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All You Need To Know About Multi-Level Marketing In India

Ponzi Scheme

All You Need To Know About Multi-Level Marketing In India

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India is a country of more than 1.21 billion people, and therefore, it is difficult for governments to monitor and track the movement and preferences of every individual. Similarly, both public and private companies face a hard time understanding the customer’s preferences, primarily because of the diversity in India’s population. Therefore, companies run several brand and marketing campaigns to customise their products and services to the needs of a selected audience from every region. However, the companies, especially in the last two decades, have opted for different marketing approaches apart from various marketing strategies.

What Is Multi-Level Marketing?

Multi-level Marketing, direct marketing or network marketing is a technique in which individual salespeople directly touch the consumers. Companies lure recruits by baiting them with incentives and overnight wealth. Even though it is not illegal, several companies that adopt MLM methods become fraudulent through their confusing pyramid schemes.

To understand MLM, one must assume that they opened a company and recruited five individuals. Each of those five individuals recruits five new employees, and the cycle continues. It encourages existing members to bring in new members. Moreover, the current members are paid a specific percentage of the sales made by the recruits. Since members at every level receive compensation, if there are more layers, there would be more money. The technique is heavily used by those…

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