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What is Direct Selling or Multi-Level Marketing?

A direct selling company or multi-level marketing company provides and distributes its products and services to the consumers without involving intermediaries in the channel/process of the sale. Since this model eliminates the participation of mediators, it allows the businesses to distribute a certain amount/commission to the independent agents i.e. distributors, members, etc.

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What is Direct Selling or Multi-Level Marketing?

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  1.   Without consumers, this world will become unrealistic. A consumer is not just a salient backer to the businesses but a backbone of the society’s financial structure. There are mainly two ways by which services and products are distributed to consumers – the traditional one that is the most practiced way. The other one is Direct Selling or Multi-Level Marketing. In this approach, the manufacturers distribute the services and products directly to the consumers. In this post, we will shed some light on the ​direct selling guidelines in India but before that understand what direct selling is! So, let us get started! What is Direct Selling or Multi-Level Marketing? A direct selling company or multi-level marketing company provides and distributes its products and services to the consumers without involving intermediaries in the channel/process of the sale. Since this model eliminates the participation of mediators, it allows the businesses to distribute a certain amount/commission to the independent agents i.e. distributors, members, etc. depending on the sales volume. A company that is doing direct selling depends on the mouth-to-mouth publicity by its targeted users. This ‘No Advertising Agenda’ not only does a ‘cost-cutting’ but equips the company for the payments of commissions to its members.

  2. Basic Plans of Direct Selling The manufacturers in India offer their services and products to their members at a price lower than the printed MRP. This offered price is called member price or distributor price. The retail profit or margin from MRP and distributor price typically varies from 10% to 20%. Direct selling companies have their personal and unique set of equations for calculating sales volume. For instance, the company is liable to decide on the product’s sale worth Rs. 1,000 by a member, the volume generated point will be 700. It means Rs. 100 are equal to 70 points. The companies generally offer cash-back facility on sales volume or points generated in a month. After reaching a certain cumulative sales volume, members can escalate their cashback scale. If you are planning to set up a direct selling business, you need to comply with certain requirements. When you initiate the process, you will be given 90 days for compliance according to the conditions of the guidelines designed for the best direct selling company in India. With effects from September 16, 2016. Final Words So, these are the direct selling guidelines in India set by the government to streamline everything. Currently, there are some of the best and reliable direct selling and MLM companies in India like PiplByte operating smoothly. However, it is best to browse through their official website before you decide to join them. Web:​​https://piplbyte.com Phone: ​+91-9560095680 Email: ​info@piplbyte.com Add: ​E-115, 11th Floor Himalaya House 23, K.G Marg, New Delhi-110001

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