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Goldquest

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Goldquest
Jul 30, 2007 10:19 AM, 5300 Views
DIRECT SALES - MULTI LEVEL MARKETING-LEGAL?

In the future, all advertising is going to be through "channels". One can already see signs of it with the explosion in numbers of medium of communication esp electronic, a/v and print media channels. Product communication is going to be a highly targeted method using a mix of media.


Foreseeing and exploiting this many organisations, esp traders, have chosen the multi-level marketing or "direct sales" methodology as a viable and sustainable marketing technique. Now, what organisations and "scamsters" do with this "direct marketing" approach(as with any new concept, open to misuse) is a moot point. I believe many accredited DSA listed companies even Amway, have had serious litigation to deal with over the years. (The Chinese government has categorically denied permission/refused regulatory approvals to MLM operators but the Indian government has no such prohibition.)    https://dsa.org/


Earning commissions on sales of products is different from earning commissions from "enrolling members" to a scheme and sharing the enrolment fee as commissions to the upline. A single, Rs.0 to X value product maybe issued alongwith the enrolment, the total enrolment amount of any individual being distributed as "income" for those above the individual who has enroled. If the company is distributing profits derived from reduced advertising and reasonable product sales margin, then its a true direct marketing company such as Modicare in India. If they are distributing "fabulous" income from enrolment of members, then they are a thinly disguised pyramid scheme.


Decide for yourself what you are getting into. With this review I am not speaking for or against any organisation using direct sales methods, but trying to define multi-level marketing as a futuristic direct sales technique.


Pauline Chitra Vellaichamy

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