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Advantages of Network Marketing:

#1. Passive Income Opportunities:

Network marketing business will offer opportunities for its massive customer base to earn passive income and micro-entrepreneurship is promoted. It is estimated that around 5 million distributors are engaged in the MLM business to earn passive income.

#2. Established Women Empowerment:

During the year 2013, it is estimated that it has employed around 3.4 million females as distributors of MLM business. Network Marketing business opens up the space for the women empowerment and established a strong future for the women to balance their time and work more effectively.

#3. Opportunities for SME’s:

Direct selling companies come up with the launch of new products and depend on the SME’s to enhance the features of their products. This provides opportunities for SMEs. the companies invest in the right SMEs to promote their MLM business with the new products.

#4. Enhanced Employment Generation:

As we have already seen that it provides passive income for the marketers, it also provides employment opportunities for a large number of people. Most of the time MLM companies interact with various vendors to accomplish operations like packaging and distribution.

#5. Initiated Social Responsibilities:

Network marketing companies are outstanding in supporting social responsibilities. The projects carried out by some significant MLM companies play a crucial role in resolving the social impacts.

#6. Contribution to the Government Sector

Since the MLM companies generate a huge tax to the government. It helps in improving the Indian economy with its huge revenue. During the year 2013, the tax generated was around INR10 billion. It also contributes to direct and indirect tax.

Conclusion:

it is evident that the MLM industry has excellent potential to develop more success in the future of Network Marketing in India. It has impacted the social as well as economic parameters in India. It is estimated that it will reach around 159.3 billion in 2021 and INR645 billion by 2025. Easily we can conclude that growth of network marketing in india is very promising.

HISTORY OF DIRECT SELLING IN INDIA:

In 1886-MLM business has evolved in the USA during the year 1886 with the establishment of Avon.
In 1925– During this year, the direct sales volume increased to around 300 to 500 million USD.
Between 1940 and 1960– Many companies emerged based on the concept of multi-level marketing or network marketing.
In 1970-New products are being focussed on widening the MLM business. Product categories like wellness products, household products, food items started evolving to attract potential customers.
Between 1990 and 1996-Many major MLM companies like Avon, Amway, Tupperware extended their service globally to build massive customers for their MLM business. They started their MLM business in India, Korea, China.
This is how MLM business enters India. Now we will look into the growth of network marketing in 2020 in India by analyzing the up and down of the previous years.