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.