Their merchandise is not available in any shop. The company's distributors sell goods directly to customers. Guidelines related to such business were released this month by the Central Government.
The husband of Shubha Saxena (name changed) suddenly became unemployed. In such a situation, the great responsibility of running the house fell on Shubha's head. He tried hard to get a job, but failed. Meanwhile, he met a woman who claimed to be in direct selling and playing in lakhs. Inspired by him, Shubha started selling products of a direct selling company by investing his savings. The company first took guarantee money from them, then gave them the goods. Shubha came out selling goods, but was disappointed. Products were very difficult to sell. In a big city like Delhi, transportation costs were also very high. Eventually, he gave up and approached the company to take back its products, but the company flatly refused. Not only this, the company did not even return the guarantee money to them. Shubha had no way out because the company had not given him anything in writing, without which any legal action could be taken. Her hard-earned money dipped when she was fascinated by money and money.
This true incident is a small example of the excess and arbitrary behavior of some direct selling companies in the country. Of course direct selling has opened up new avenues of employment in the country. A large number of men and women have been empowered and told them the secret to earning hard, honest money. But as is often the case, even a few companies started making bets and they did not spare even customers and their agents. All this happened because the rules and regulations made by the government were inadequate to deal with such new business. Various conditions were introduced for agents and investors, which were not justified. In this way, this new path began to become confusing and customers and agents began to be exploited. Actually people did not understand what this multi-level marketing is? Some unscrupulous companies like 'Speak Asia' took advantage of this and lured investors a lot. Finally, the government got repaired and has now announced tough measures. Several new rules have been enacted to bring direct marketing companies back on track and for transparency. These rules or guidelines will make things very clear. It will also benefit those companies, who are selling their products honestly. Transparency will benefit both agents and customers of these companies. Many companies were not currently distributing their profits among agents. Many were neither giving receipts nor returning them with investors' money. Even some companies were not paying VAT and sales tax to the government. That is, in a way this profession was getting dirty and a large number of investors and agents were being cheated.
The growth of the direct selling industry in the country is so high that the government needed to monitor it. The journey, which started about 20 years ago, has now moved forward. The PhD Chamber of Commerce and Industry estimates that the direct selling industry will reach Rs 15,000 crore in the next three-four years. It is now 8000 crores. In such a situation, it was necessary that this business be regulated.
The pyramid scheme boosts profits by rapidly restoring people. Its purpose is to provide maximum benefit to those above. In this, money is taken from new people only. In order to entertain people, they are tricked that they will be able to earn millions of crores easily. For this, they are given the example of high earning agents so that they get attracted and fall into this trap. To become an agent in pyramid companies one has to pay a hefty amount and a part of it goes to the top. The more people get involved in such schemes, the higher the earnings of the above people will increase. But multi-level marketing is somewhat different. In this, agents get the opportunity to sell consumer products and they move as much as they sell. These are called distributors. They sell and earn the products of particular company. They also have the right to keep their salesperson. It is not that there is complete freedom and earning in this too. Companies do not earn as much as they tell them. Distributors have to meet the sales target in a particular period, which sometimes becomes a sore throat. Their money is also trapped by this. Many companies hand over the product to the distributor on their own and when they fail to sell, they do not even take the product back. This causes losses to the distributors. Investors who leave the company also do not get their money back.
Monitoring authorities will be set up in the Center and States to follow the new rules, which will monitor them. The Central Government has also directed the State Governments to work under these guidelines. They will prepare a mechanism for this and work will be done on them only. Right and honest companies will benefit from this. Companies will be spared the extravagant legal action that the direct selling company Amway had once suffered. Amway's Global CEO was arrested on charges of fraud in a district in Andhra. This brought the country into disrepute. But now such a situation will not arise because firm rules have been made for this. Indian Direct Selling Association says that these steps of the government will benefit the industry and will provide employment to millions of people. Jitendra Jagota, chairman of the association, believes that this will bring transparency and faster growth of real companies.
The current CEO of Amway India, Anshu Budhiraja, says that the new guidelines will not only protect the interests of consumers, but will also benefit the companies that work ethically. This will increase the work of direct selling companies. Vivek Katoch, director of Oriflame, a company that makes women's cosmetic products, says that this will bring clarity to the business. Everyone will benefit by coming to transparency. The advantage of direct selling is that it does not have middlemen, so that the product gets to the customer at the right price. This makes both agents and customers happy. The government has saved both by creating new rules. These rules should be legalized soon so that strict action can be taken against those who disobey them.
What will be their effect, i am going to tell you guys in this article:
The husband of Shubha Saxena (name changed) suddenly became unemployed. In such a situation, the great responsibility of running the house fell on Shubha's head. He tried hard to get a job, but failed. Meanwhile, he met a woman who claimed to be in direct selling and playing in lakhs. Inspired by him, Shubha started selling products of a direct selling company by investing his savings. The company first took guarantee money from them, then gave them the goods. Shubha came out selling goods, but was disappointed. Products were very difficult to sell. In a big city like Delhi, transportation costs were also very high. Eventually, he gave up and approached the company to take back its products, but the company flatly refused. Not only this, the company did not even return the guarantee money to them. Shubha had no way out because the company had not given him anything in writing, without which any legal action could be taken. Her hard-earned money dipped when she was fascinated by money and money.
This true incident is a small example of the excess and arbitrary behavior of some direct selling companies in the country. Of course direct selling has opened up new avenues of employment in the country. A large number of men and women have been empowered and told them the secret to earning hard, honest money. But as is often the case, even a few companies started making bets and they did not spare even customers and their agents. All this happened because the rules and regulations made by the government were inadequate to deal with such new business. Various conditions were introduced for agents and investors, which were not justified. In this way, this new path began to become confusing and customers and agents began to be exploited. Actually people did not understand what this multi-level marketing is? Some unscrupulous companies like 'Speak Asia' took advantage of this and lured investors a lot. Finally, the government got repaired and has now announced tough measures. Several new rules have been enacted to bring direct marketing companies back on track and for transparency. These rules or guidelines will make things very clear. It will also benefit those companies, who are selling their products honestly. Transparency will benefit both agents and customers of these companies. Many companies were not currently distributing their profits among agents. Many were neither giving receipts nor returning them with investors' money. Even some companies were not paying VAT and sales tax to the government. That is, in a way this profession was getting dirty and a large number of investors and agents were being cheated.
Booming market
The growth of the direct selling industry in the country is so high that the government needed to monitor it. The journey, which started about 20 years ago, has now moved forward. The PhD Chamber of Commerce and Industry estimates that the direct selling industry will reach Rs 15,000 crore in the next three-four years. It is now 8000 crores. In such a situation, it was necessary that this business be regulated.
Pyramid scheme is different
The pyramid scheme boosts profits by rapidly restoring people. Its purpose is to provide maximum benefit to those above. In this, money is taken from new people only. In order to entertain people, they are tricked that they will be able to earn millions of crores easily. For this, they are given the example of high earning agents so that they get attracted and fall into this trap. To become an agent in pyramid companies one has to pay a hefty amount and a part of it goes to the top. The more people get involved in such schemes, the higher the earnings of the above people will increase. But multi-level marketing is somewhat different. In this, agents get the opportunity to sell consumer products and they move as much as they sell. These are called distributors. They sell and earn the products of particular company. They also have the right to keep their salesperson. It is not that there is complete freedom and earning in this too. Companies do not earn as much as they tell them. Distributors have to meet the sales target in a particular period, which sometimes becomes a sore throat. Their money is also trapped by this. Many companies hand over the product to the distributor on their own and when they fail to sell, they do not even take the product back. This causes losses to the distributors. Investors who leave the company also do not get their money back.
... so that there is no fraud
However, after much discussion, now the Central Government has become aware and the Ministry of Consumer Affairs has made strict rules in this September. Now all such companies will have to comply with the provisions of the Indian Contract Act 1872. They will not be able to do any kind of dishonesty in the contract.Monitoring authorities will be set up in the Center and States to follow the new rules, which will monitor them. The Central Government has also directed the State Governments to work under these guidelines. They will prepare a mechanism for this and work will be done on them only. Right and honest companies will benefit from this. Companies will be spared the extravagant legal action that the direct selling company Amway had once suffered. Amway's Global CEO was arrested on charges of fraud in a district in Andhra. This brought the country into disrepute. But now such a situation will not arise because firm rules have been made for this. Indian Direct Selling Association says that these steps of the government will benefit the industry and will provide employment to millions of people. Jitendra Jagota, chairman of the association, believes that this will bring transparency and faster growth of real companies.
The current CEO of Amway India, Anshu Budhiraja, says that the new guidelines will not only protect the interests of consumers, but will also benefit the companies that work ethically. This will increase the work of direct selling companies. Vivek Katoch, director of Oriflame, a company that makes women's cosmetic products, says that this will bring clarity to the business. Everyone will benefit by coming to transparency. The advantage of direct selling is that it does not have middlemen, so that the product gets to the customer at the right price. This makes both agents and customers happy. The government has saved both by creating new rules. These rules should be legalized soon so that strict action can be taken against those who disobey them.
Direct selling guidelines 2016
Distributors will get relief
- - The pyramid scheme has been banned in a way. No pyramid structure can be built now to earn money.
- - Now every direct selling company will have to make many written promises. No fees will be charged from them while holding an agent.
- - Agents will not be forced to buy more products as before. Till now companies used to give their products according to their own.
- - Companies have to be informed about profits, commissions and incentives in advance. Companies cannot keep agents in the dark.
- - Companies will have to get things back from the agents that could not be sold. Earlier, the companies did not withdraw the product, causing losses to the distributor.
- - Agents can leave this work whenever they want and there will be no other bond on them. Millions of agents will benefit from this.
... then companies will also profit
- - The agents who used to leave work after getting upset, will now remain with the company.
- - Companies will benefit in the long-term by maintaining a network of distributors.
- - If the fraudulent companies go out of business, then honest companies will benefit.
Top MLM Companies in the country
- Amway
- Oriflame
- Tupperware
- Avon
- Herbalife
- Hindustan Unilever
- Modicare
- RMP Infotech Pvt. Ltd.
- Balaji Multi Services
- Unicity
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