Companies have perceived the beneficial ways of improving sales and marketing. Likewise, an MLM company in India seeks to benefit its revenues from existing resources. MLM means multi-level marketing, a kind of B2C marketing used by firms to sell their products. This kind of marketing is different from the usual methods of marketing. 

If you want to serve your company with this strategy, you can use it effectively in many ways. Today several firms are using this marketing method to enhance their sales and improve capital gain. This article has an overall view about MLM or Network Marketing. It will help in analyzing this type of marketing and use it accordingly.

How does an MLM company in India function?

Also known as Multilevel Marketing or Networking Marketing, this practice brings excellence to a company. However, it also depends on the type of business that you are running. If your company is suitable and will work well with network marketing, you can use this technique. But let us first understand the working strategy. 

MLM comprises marketing via employees that work for you without a salary. Yet you heard us right it is a cost-free way of marketing products. This strategy works with distributors that also hire sales officials under them and encourages them to sell products. The payment means of network marketing is via commissions. An individual earns as per the sales they generate for the company. It is a downline network of distributors that work in coordination to improve sales and earn commissions.

Many times distributors do not even have to generate sales to earn money. They get commissions based on the number of sales their recruited distributors make. So, any person can effectively expand the downline distributors under them and work with ease. However, like every marketing strategy, MLM has its pros and cons. So, be very careful while being a part of any MLM company in India.

Many people are taking advantage of this marketing system and eagerly participating in these schemes. It is a two-profit plan where both the company and the employees benefit. One such example is Amway. Throughout the years, Amway is successfully carrying out its business with network marketing strategies. 

Pros and Cons of an MLM company in India

This downline network marketing is beneficial to both distributors and the company. However, it has plenty of pros and cons that one must consider. If you want to work or imply this technique for your company, you must go through this list. This article highlights its vitality in the industry and shares the negative and positive sides of it. Many businesses are trying this method to see if it is adding value to their firms. However, you must consider these points before beginning with this marketing system for your company. 


  • It is a means of sharing product information via experience: Passionate people who have used the products personally come up and share experiences to boost sales. Companies are using this valuable feedbacks and paying commissions. It helps in making the process profitable for both parties and creating brand trust. 
  • A simple way to begin a business:
    If your firm is new and you do not wish to invest a lot of money, you can use this marketing strategy. It permits to save fixed salaries given to employees every month. Using this system might help you to gain profits in the beginning years of your business. 
  • Ease of working:
    It does not encourage a 9 to 6 working strategy, but the employee can work at any time with ease of comfort. Every person dreams of working from their homes today. Network marketing gives this freedom to their employees.  
  • No limit to the number of distributors you hire:
    One person can hire as many distributors and create as many strong links of networks. The stronger your network, the better profits you will yield. MLM marketing is all about earning via commissions and sales, so this is a huge pro of this strategy. 
  • No need of training employees
    Direct marketing calls for constant changes in products to make them look appealing to users. However, it is not the same with MLM marketing. In this system, you do not need to train employees, but they can freely make sales with their talents. Also, this helps in creating a sense of leadership and improving growth. 


  • It may not yield huge profits:
    Joining an MLM company in India may help you in earning part-time incomes well. However, it is not always suitable for full-time work. Also, companies may demand a registration fee that you may have to pay to join these firms. 
  • Invites rejection
    Not every person will be keen on buying products from you since MLM companies offer more direct sales and face-to-face. It is a primary drawback that discourages their employees and leads to a lack of interest in work. Also, the work becomes difficult and unwilling to do since they don’t have a defined SOP and each distributor or seller would be working at their own style of marketing. 
  • More susceptible to scams 
    Not every company is authentic and their products are patent. Some of them are just there to waste precious time. For MLMs, it is tough to evaluate whether a company is trustable or not. Also, distributors might be unfaithful and create a bad image for companies. So, MLM involves high-risk and may not always be a powerful method of marketing. 
  • Slow pace profits:
    To find the right prospects is hard to generate profits for a business owner or being a new distributor. Both of them take time to yield profits from MLM marketing. It is a slow method that requires a lot of patience to get success. 

This marketing strategy is an acceptable method in today’s age. But it may not always be profitable and yield the desired results. Therefore, you must consider its insights before getting involved with such business strategies. The Federal Trade Commission investigates an MLM company in India. However, in some cases, it is even difficult for them to find out their legality.