Executive Summary

The Industry I have been worked for the internship project is Network Marketing Industry, which is also called as MLM Industry or Direct Marketing. It was started in 1941 in USA. Amway, fought and won, in 1979, thereby proving that Network Marketing was a legally justifiable form of business. There were 5,000 Active Network Marketing companies in 1995 and it touched to 30,000 in 2010. It is a proven marketing technique successfully implemented in more than 100 countries in the world. In India it was started by Oriflame in 1995 1996 and it was approved by Indian parliament on 20th Dec 2002 and Green signal was given by the supreme court of India on 19th Feb 2003. The company which I worked is Resource Money Power (RMP) which was started on 24th Aug 2001 from Chennai and now it has almost every Branch and Franchise all over India and also its First International Office has been started in Dubai. RMP is just a marketing company which markets the product indirectly by giving Distributorship to the people where they can earn an extra income. The major channel partner of RMP is Future Group and various Associate Partners such as Reliance, Wipro, HCL, Compaq, Thyrocare, Claret, and many more. RMP collects the product in bulk from these companies and sells it to the customers at MRP by giving them the opportunity to earn through providing packages of different products ranging from 6990 to 48000. This is done through BINARY PLAN where income is distributed to the distributors according to their pair match. As per weekly pair match, distributors get weekly payment. There is bonus income and also e commerce income. In RMP a distributor can earn 6 income monthly. The main purpose of the plan is to create as much network as possible where in future a life long income is created.

NETWORK MARKETING IN INDIA

Turn over 2007-08 : Rs. 50 Billion (Rs. 5000 Crores) Expected turn over of Indian organized Retailing by 2020 : $ 400 Billion ($ 40,000 CRORE = RS. 20 LAKH CRORE) Expected market share of Network Marketing : 25% ($ 10,000 CRORE = Rs. 5 LAKH CRORE)

First Indian Binary Network Marketing Company in its 10th successful year of operation RMP COMPANYS TURNOVER YEAR 2001-02 2007-08 2008-09 2009 2010 TURNOVER 40 Cr. 1610 Cr. 1731 Cr. 2320 Cr.

(70% of the same is redistributed to our Distributors)

WHAT IS NETWORK MARKETING? Multi-level marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of others they recruit, creating a downline of distributors and a hierarchy of multiple levels of compensation. Other terms for MLM include network marketing or referral marketing or direct selling. Most commonly, the salespeople are expected to sell products directly to consumers by means of relationship referrals and word of mouth marketing. Some people equate MLM with direct selling, although MLM is only one type of direct selling. MLM companies have been a frequent subject of criticism as well as the target of lawsuits. Criticism has focused on their similarity to illegal pyramid schemes, price-fixing of products, high initial start-up costs, emphasis on recruitment of lower-tiered salespeople over actual sales, encouraging if not requiring salespeople to purchase and use the company's products, potential exploitation of personal relationships which are used as new sales and recruiting targets, complex and sometimes exaggerated compensation schemes, and cult-like techniques which some groups use to enhance their members' enthusiasm and devotion. Not all MLM companies operate the same way, and MLM groups have persistently denied that their techniques are anything but legitimate business practices.

What is MLM? MLM stands for Multi Level Marketing. Marketing means to "move" a product or service from the manufacturer or provider to the consumer. Multi Level refers to the system of compensation provided to the persons who are causing the product to move or the service that is provided. "Multi" means more than one, and "Level" means generation.
Today there are thousands of Network Marketing companies operating throughout the United States, Canada, Mexico, South America, the United Kingdom, Europe, Australia, New Zealand, Israel, Japan and the Pacific Basin. Little Malaysia alone has more than 800 active Network Marketing companies. Network Marketing is reported to be a $100 billion

dollar industry, internationally, made up of FORTUNE 500 and New York Stock Exchange (NYSE) companies.

A Brief History of MLM

Nobody knows exactly when MLM began, because it really evolved over a number of years, prior to World War II. Most observers agree that Nutrilite now an Amway subsidiary was the first true MLM company. In addition to being the founders of network marketing, they were the founders of the vitamin and food supplements industry, way back in the 1920s. So the historical connection between MLM and nutritional products dates back over most of the twentieth century a fact unknown to most people (especially those who think that, somehow, MLM companies are johnny-come-latelies to nutrition. Most of the major product breakthroughs in that industry have been pioneered by MLM companies, in fact.)

How Does It Work?

In MLM marketing, you share information and develop personal and professional contacts. You are rewarded for sharing information that results in product sales. Network

Marketing empowers you to build your own networking sales organization from your personal and professional contacts, which also empowers everyone to do the same, creating exponential growth of your network. You can earn income from the successful efforts of your network of business associates.

The Future of MLM

Over the following decades, MLM has evolved and developed further into the wide array of companies, product ranges, reward plans and cultures that exist today. This unique, powerful system of free enterprise continues to grow, attracting more and more people to it. As we prepare to enter the twenty-first century, MLM has never been so well-respected, so healthy, so attractive or so rewarding. By the end of your visit, youll be in a better position to understand this unique system of business than many of the people already involved and thats whats really needed if MLM is to achieve its almost limitless potential. Most network marketers have very limited understanding of its true power. When youve learned the basics, spend some time exploring the different sections of www.mlmsoftwareindia.co.in like role of MLM Software, MLM legal terms, MLM related links, FAQs etc. Its widely regarded as one of the most useful and reliable resources for people involved in MLM, whether theyre new or seasoned distributors, regardless of the MLM company theyre associated with, or whether they work their businesses full time or part time.