-Shifali Mandhania AMSSOI

With the changing scenario of business around the globe, organizations have quickly and effectively synergized with the dynamics of the modern business. Their orientation, their focus, their processes, and above all, their ways of marketing & sales management- everything has evolved Internet, E Commerce, Direct Selling, Mail Order System and there's an in exhaustive list of innovative ways and media through which organizations sell to their customers

"Customer Service, Satisfaction and Ease".

The following lines of a famous leader"Today's illiterate won't be the persons who aren't educated, but instead they'll be the ones who aren't adopting themselves to changes .

For many people, the words network marketing or MLM (multi-level marketing) conjure up images of hitting up your so-called warm market (those two or three hundred people near and dear to you as well as those unfortunate enough to have crossed your path at some time in the distant past) and pleading, cajoling, persuading, arguing and plain pressuring them to join your program. Or organizing house parties and presentations to make your pitch to a captive audience. Or having to approach complete strangers while standing in line at the supermarket

The history of network marketing originates back to the 1940 s where a company trading under the name of California Vitamins ....... Nutrilite Food Supplement Corporation. In 1959 Richard DeVos and Jay Van Andel founded the company Amway. Almost 50 years later Amway is a well established network marketing company operating in more than 80 countries around the world and with more than 3 million business operators

Network or Multi Level Marketing may be defined as a distribution channel/ sales method wherein the manufacturer directly sells to the customer at a preferred rate and also gives the customer rights of selling the same product(s) for certain compensation/ incentive. Company does not employ full time salaried employees to sell and market its product offerings. The customers acting as independent agents/ distributors/ network marketers/ independent consultants on behalf of the company do this (very similarly like the life insurance companies have independent marketing agents to sell their insurance policies).

Network marketing is a general term for a type of marketing that is usually performed by an individual instead of a company. It refers to the use of interpersonal or social networks to market products and services for business purposes as opposed to the more traditional and common practices of wide-range advertising.

Network Marketing is the Perfect Business Every year, thousands of men and women leave established, lucrative careers to pursue new opportunities in the booming network marketing An industry that is now attracting former doctors, CEOs, and others, seeking independence and financial rewards.

Traditional business

Network Marketing

In traditional business goods and Same price services move from one channel to the other with the increase of prices at every channel. A pen at a manufacturing will cost In network Marketing the same pen you Rs 2, the same pen will cost Rs3 sell to the customer at Rs 2 from the at the whole sale price, while at the manufacture distribution you buy the pen at Rs4 to go and sell to the customers. You as a retail to get more profit you sell the pen at Rs6

The firm motivates the customers of the company to sell its products by way of Network Marketing (direct selling). The customer introduces other people to the system of MLM and sells to them his firm's products. Now, after purchasing, these new customers will automatically have agency rights for marketing the same products to other people, thereby increasing sales and recruiting more marketers (consultants). Hence this system of network marketing boosts sales and also brings in new and more marketers by way of existing customers working on behalf of the company and marketing its offerings + the great business opportunity available with the customer ship.

The structure is designed to create a marketing and sales force by compensating promoters of company products not only for sales they personally generate, but also for the sales of other promoters they introduced to the company, creating a downline of distributors and a hierarchy of multiple levels of compensation. The products and company are usually marketed directly to consumers and potential business partners by means of relationship referrals and word of mouth marketing

charged by the middlemen, is now given to the consultants. material is always genuine.

The 45 per cent or more of the margin or mark-up, which was The consultant gets the product direct from the firm, hence the The products will be of superior quality at affordable prices and in

appropriate packings. These products will not be available at retail outlets, hence there is exclusivity of selling rights. with the payment is sent to the consultant. This statement also gives the names, addresses and phone nos. of all the consultants in your group. investment or liability
The consultant gets a chance to do business without any A detailed computerized monthly statement of accounts, along

The poor and middle class work hard for their money and the rich have their money work hard for them

I work for money

My money works for me

Multilevel marketing allows sellers to build a business through their own sales efforts and by inviting others to become sellers. Remuneration is based on a seller's personal sales AND on the combined sales of those people they have sponsored, trained and motivated.

Leadersclub Liberty League 5Linx \Mannatech Inc. Market America Max International Melaleuca National Safety Corp. Natures Sunshine Products Orenda International Oxyfresh Worldwide Inc Powur Pre-Paid Legal Services, Inc. Projoba International Quixtar Reliv International Simplexity Health Synergy WorldWide Tahitian Noni International USA Healthcare Savings Usana VitaMark International Watkins Xango YTB International

4Life Research ACN Advantage Nutraceuticals, Inc. Aim International Inc AMS Health Sciences Amway Arbonne BeautiControl BigEar Inc. Big Money Pro Big Planet Bio-Metics Bodywise International Brain Garden Cognigen Networks, Inc. DHS Club Ecoquest International Eniva Corporation Essante Essentially Yours Industries Financial Destination Inc. First Fitness International

Forevergreen Forever Living Products Inc ForMor International Freelife International Global Domains International GNLD International LLC GoldShield Elite Gourmet Coffee Club Herbalife International Heritage Health Products Immunotec Research Ltd Innerlight Kaire International Krystal Planet

Amway India Modicare

Sunrider India AMC Cookware

Forever Living Oriflame India Avon Beauty

Hindustan Lever Network

Herbal Life

Direct Educational Technologies Daehsan Trading India Tupperware India PS Press Service

1988 from US$ 33.32b to US$ 100b (approx.) Growth of almost three times (in last two decades) In India, the direct selling industry is estimated to be around worth of Rs.2,400 crores.

*References have been taken from information sources of FEDSA (World Federation of Direct Selling Associations), IDSA
(Indian Direct Selling Association)

Everyone is a prospect We ll build your business for you This isn t marketing we are just sharing products Anyone can do this We have the best product ever You just don t have enough belief Proven system

1. Many people join these companies thinking they'll get rich quickly and with little effort on their part. 2. The person joining has no sales or business experience. 3. Because most people already have full time jobs, they treat their part-time business like a hobby. 4. Many times people sign up under a friend, family member, or a co-worker, which is great. But do they have any experience building a large, profitable business? 5. Some people just get frustrated and give up. It may not always be easy, and it may not happen as quickly as you would like, but if you quit, it will never happen period.

1.

Trust Build "trust" first in your prospects eye by giving them good resources that could help them build their business faster and easier than they might ever thought possible before in their businesses. When you start doing that for your down line, your network marketing strategies will not only help you to grow your MLM business substantially but it will also help you to build good reputations in your prospects eye.

2. Competence Nobody wants to do business with people who are very incompetent Show your true expertise in the eye of your prospects and customers. Give them good taught that they can't resist and let them know that there are more to come

3. Contribution If you really want to make things happen in your life, you have to be very proactive and be a good contributor. There are many ways you can accomplish that by reaching out to people through different medium

The industry is looking forward towards the government of India and industry to come up with a proper legislation in form of a Direct Selling Act in the country, so as to properly organize and regularize business in this sector. Also such legislation would boost healthy competition and eliminate incompetent & fraudulent players and promote level playing field in the industry.

The term is technically a type of marketing that can be used as part of an overall marketing strategy which may or may not encompass multiple tactics. For example, the most common marketing tactic in a network marketing strategy is word of mouth. Many companies which utilize a network marketing strategy facilitate it with a multi-level marketing (MLM) compensation structure. For this reason, the two terms are often confused with one another and used interchangeably

It is important to make the distinction that the term "network marketing" describes a particular marketing strategy, while "multi-level marketing" is a specific characteristic that is a large part of, and speaks to an overall business model. While the two are often seen implemented within the same company business plan, they need not be and in many cases one is used without the other.

It is possible confusion arises from the hierarchical structure created in a multi-level system: because of its nature, the system itself results in the formulation of a tree network within the scope of the company. The term "network marketing" however is not in reference to the structure of the company; it is a description of the nature of the strategy used to market the company products. In other words, the "network" adjective is not referring to any company-related attributes; it refers to how the marketing itself takes place: through the social networks of individuals. Put yet another way, network marketing is not marketing which necessarily creates a network within a company, it is marketing that is performed through the social networks of independent people.

Word-of-mouth communication Most influential for consumer decision making Comes from an independent source Often based on experience Can be negative and positive But, how can marketers act on it? Until now, we did not know who is talking to who? We could not easily reach opinion leaders . We could act on w.o.m. only on the aggregate using broad proxies to identify opinion leaders Psychographics Demographics

We have refined data on consumer communities.

--Social network data: people designate friends (e.g. MySpace.com)

Telecom data: people talk to friends, people designate preferred contacts (e.g. Skype) We have new technology to analyze the data Hardware Software (graph theory) We can act on the data (viral marketing) Send messages to key people in the network Avoid marketing noise (blanket SMS promotion

Consumer communities .
They are the path of word-of-mouth communication, the basis for viral marketing They contribute to each network member s customer value, the basis for customer relationship management (CRM) They may reflect correlated preferences and needs, the basis for segmentation and targeting

What network marketers do? Find communities in complex networks (Skype, Myspace, Telecom traffic data) to target with brands/content to discriminate w.r.t. price/advertising Find key people who (i) connect communities, (ii) hold communities together to initiate new product/service diffusion to ensure best return on direct (viral) marketing to refine CRM techniques

-At its core, network marketing is a simple business. It s all about generating leads, qualifying those leads and then following up with those qualified leads until they take the action you want them to take (or tell you to stop) - either purchasing product from you or joining your downline as a productive distributor.

Conybio Conybio as one of the largest Network Marketing Company in India. Conybio Healthcare (India) Pvt. Ltd. is an Indian Company and is into the business of Interactive Distribution