Learn To Start Network Marketing Business In India 2

Learn To Start Network Marketing Business In India

Gone are those ancient times when you required an office and a large sum of money to step into the business world. Network Marketing business has broken the records of history if you don’t agree with me? Check out your house, does it has a good collection of Tupperware containers. I bet you have. Well, for starters let me tell you Tupperware is a network marketing company.

How To Start Network Marketing Business

The limitless world is yet to be explored when we talk about Network Marketing. And I literally mean it. The only reason which is enough is that beyond large scale companies, small scale businesses are least in competition.


Busting Myths 

The network marketing industry is prone to myths if you haven’t heard any of these then maybe you require more detailed study for the network marketing sector. This sector has acquired its share of rumors but bushing these are an important part that will help you to achieve a good perspective.

Busting Myths

Myth 1: Impossible to get rich through network Marketing

Personally, this myth is true and false for every kind of business and this is the thing I have felt even when I started writing. You have no supernatural powers to know if any business can earn exactly how much. So everyone gets this feeling that getting rich is not impossible but through such kinds of new mechanisms like network marketing, it becomes difficult to accept.

Myth 2: Network Marketing is not a sure shot success

Well while reading this myth I just thought why not? How can people even think like that? By looking at large scale network marketing businesses this myth sounds untrue. Especially in India if you give something of value, customers come asking for it. That is the power of true service. Let me tell you that nothing is a sure shot success in this world, you have a 1% chance to fail at anything. But this doesn’t stop us from trying.

Myth 3: Eventually Network Marketing comes to a shutdown point

Here anyone could be busted I bet all those criticizers of network marketing are gone all wrong here. A business that basically works on making new members each day and literally works on networks can never go out of demand. If you don’t agree then think about it; do all your networks will cut you off on the same day? That doesn’t happen, it is the biggest myth ever.

Myth 4: It is just an illegal Pyramid chain

First of all, do you know what a pyramid chain is? The hierarchy on which a network marketing works is a form of a pyramid. Even the government organization is a pyramid so would that be illegal? I don’t think so. This form of a business may not be acceptable by some but given proper recognition by the law. So anyone can oppress it by spreading myths in society.

Myth 5: Marketers are using their network

Who doesn’t? At some point in every business, our networks help. The myth is taken in a much negative way but it works positively in each business. If you don’t agree then why do you call all your networks at the inauguration party of your business? It is because every business starts with their networks and eventually expands it on the way to success. I am really happy to bust these myths that are actually prevalent in society.

Myth 6: Network Marketers are tricking their clients

Starting a business calls for good reasoning and purpose on which your services are based. The purpose of the organization defines who you are. Ultimately an organization fulfills the need of society and hence it can not be called tricking the clients. While any illegal method is used then every business comes under the charges of law. But if you say using good marketing strategies is a way to trick clients then I am sorry because the myth is busted.

Myth 7: It is not an opportunity for all but just for top management 

Whenever you come to know about network marketing business the first reaction is just what we are discussing here. It goes like this, “what will I earn, the entire money is earned by the owners”. Did you think that owner has come for loss and your profit? Not at all, we all are here for profit. Your earning is totally dependent on how much sales you create. But yeah! There is a charge for the services you take from top management. 

Myth 8: It is a group of people forcing others

During the initial stages of group learnings and various discussions, you will think that this business is too good to be true and I am just forced to be here. Why? Because you will be persuaded and motivated to do more. The marketing strategy to attract more clients is already followed by almost every business then why not here? 

It is the way of looking at things differently. You got to understand the business world demands your keen eye towards the small gaps. If you don’t think out of the box you are out of the box. Don’t let these myths stop you from achieving your potential.

How To Start Network Marketing: Learn & Earn

Identify the Business Model

Don’t be shocked while reading the first step as earn when you are learning about how to start a network marketing business. This strategy is followed by a few and usually kept secret, but it is time to reveal the hard and fast methods. You, me, or anyone else none is a master at it but we need to start from somewhere. So here is something where you can learn and earn.

The direct joining in the large scale network marketing business is the best way to learn from the core. First of all, understand the process to join the best of network marketing business world.

  • Modicare: ever heard of it? If not click on the name now and you can join there network marketing chain. It is really easy and you will get to learn from the experienced sellers.
  • Oriflame: the biggest haul of India that provided jobs to various women. I myself use Oriflame products that last for really long but being in the organization is kind of great.
  • Vestige: I found this network marketing business while searching for discounted products. It provides great training and even online classes. Yes, you need this opportunity so why wait to grab it.
  • DXN India: Indian based firms are the best to learn about Indian customers. DXN gives you a great experience to know about food culture and various food facts that are hidden. So if you are into the food industry, this is your biggest shot.

There are tons of other businesses that you can directly join but I want you to know how these are helpful. Sometimes we are doing above mentioned jobs but we don’t seriously learn the core concepts. So here are some things to take care of.

  • The biggest rule that you should never forget is you are not working for money but for a good exposure. 
  • You must know when to stop and take the next step. There is no good time to start but analyzing the best time to move to the next stage is an art.
  • Expand your horizons, you are planning not just for a network marketing job. You are going to be an entrepreneur so think like one. Learn about top management.
  • Don’t stick to one job, explore multiple jobs. Why? It helps to identify which market segment suits you. Don’t worry, if you can’t explore each sector you have better ideas mentioned below.
  • Grow your roots, yes you may find your customer even at your workplace. No, you are not stealing customers but just giving them better services.

Identify the Business Model

Did you think that network marketing was an easy chain that could be started anywhere? If not, you must know the full-grown strategies so as to avoid major setbacks. And let me assure you that the major setbacks are the outcomes of minor mistakes. So here are the true business models of network marketing that are explained in simple terms.

  • Multi-Level Marketing or MLM: It is the biggest chain that you can form through network marketing with huge numbers of underlying teams. This kind of business needs to come up with an incentive plan that works for a different level of sellers.
  • Two-tier network marketing: the limited number of sellers can be hired. It is found in small scale businesses. You will be required to get direct sales to your clients or get volume boosted on the website. 
  • Single tier network marketing: it is a kind of job where you directly sign up to sell products of a company. It has nothing to do with any distributors who work under you. You can even call it an affiliate marketing program.

How to choose a network marketing business model?

  • For starters fixate your goal on which your company will want to work in the future. Ascertain the demand of the industry and know the number of funds. 
  • Select a business structure suitable available from a partnership firm, sole proprietorship, corporate company, or a HUF. 
  • Now, what will be the size of your company? Small scale, medium scale, or large scale.
  • If you figure each of the points mentioned above then you will get an obvious answer.

Attract Market Niche

The network marketing industry is certainly larger than you thought of. It has numerous products and services with different variations. Knowing different sectors enables a closer look at their business. Let us quickly know about the main sectors of network marketing.

  • Personal Care: The cosmetics industry is booming since the birth of beauty and will exist to the end of time. The overflowing demand has not even left the network marketing industry. Even the best example of Oriflame is mentioned above to start with. Here you must check the huge variety of products that are never-ending.
  • Healthcare: The necessities of life will be found in every aspect of the business world rather than a luxury. Healthcare products are largely demanded in India and network marketing is its good source. Well, the good news is you don’t have a huge number of variations in the products so have a smooth start.
  • Household Goods: yes, housewives demand a good collection of household products. This demand for new styles has found household network marketing in existence. Tupperware has maintained a good market share so as to be mentioned here.
  • IT Services: The reach of the internet is known to all and network marketing has given a source of income to millions in the world through IT Services. A web hosting company is a popular form of the network marketing company that is found in India.
  • E-Commerce Companies: what will you call Flipkart and myntra? Are they doing direct sales from their manufacturing factories? Certainly not, these are the distributors of various manufacturers. It is known as single-tier network marketing that is already booming now.
  • Various other market segments of the network marketing industry are yet undiscovered. If you have one of those eyes to identify the gaps of society then you can tap on to the innovative segment of network marketing. Also, the growing returns of network marketing are already looking towards new discoveries.

Top Management Requirements

Top Management Requirements

If you are serious about knowing how to start a network marketing business then start taking your decisions wisely. There is a thin line between an expert and an overconfident guide. Here are the points that will keep you in check at every step.

  • Create some specific positions for your company, you may know about some already such as an accountant, a legal advisor, designated marketer, and some others.
  • Top-level management requires major experience in the network marketing industry and it should never be compromised. At least 3-5 years of experience is compulsory.
  • Know about their goals for your company, the common question asked is where do you see yourself within 5 years? If they are wanting to be with your company then it is a good start.
  • Get a complete background check, some of the experienced network marketers get easily inclined towards money. It is a big no for them in your company.
  • Check the personality and characteristics by engaging them in group exercises and challenges. Also, it will help you to know about their contribution to the company.
  • A good level of education is necessary for being in a network marketing company’s top management. They should have a proper understanding of the market, especially your market.


Hiring top management was just a start that doesn’t end, now you require employees who do the groundwork for the company. It is possible only with the help of experienced top management. The main positions to be hired are;

  • Network Marketers
  • Advertising planners 
  • Distributors
  • Product promoters
  • Manual workers

What makes the hiring process worthwhile? It is knowing what you are looking for in an employee? But what is the most important part of the recruitment process is that you are not looking for an employee. Confused? Let us learn below;

  • Hiring a network marketer calls for good marketing skills but is that it? Not at all, what if they are not liked by your clients? You don’t want an exaggerating marketer. So yes there should be potential but no need to overdo it.
  • Match your goals and employees’ goals, do they fit in there? If not let them know. You may find a good position for those employees who has extra skills. Some individuals are good at motivating hence they are really helpful on your team.
  • Learn about the spirit of employees, do they find happiness in what they do? Is it just a matter of money? Do they really use what they sell? These things place them in a different column of employees. If they tick right on these qualities then they should be hired.
  • A learning spirit in every employee is the most demandable aspect that can not be missed in a network marketing company. Network marketers are continuously coached until they reach a point. Quick learners are of great value here.

Where to find employees who match these skills?

  • Online websites: post a job at various online websites available just for you. Even free websites are available to take advantage of. You will find various employees who are ready to learn.
  • YouTube: create a video for your company and post it on YouTube. The abundant following of YouTube by millions of youngsters is a good way to reach out. While it is important to create an engaging video.
  • Networks: Being in the network marketing industry calls for good networks. Ask your networks to find good employees and that will be easy enough if you just give them enough details of the job.
  • Emailing: your website will find a way to the email list and this will be the best road to good employees. Don’t forget that employees are the foundation of network marketing so ensure these tips.

Training Period

The huge share of earning sources also goes to training courses available for network marketers. You may provide free training to your employees but the same is chargeable to anyone who doesn’t join four companies. Even some network marketing companies charge their employees to get online training.

How to design the training course? Learn some important aspects.

  • Designing a training course starts with knowing about the time period of training. It depends on how early you need an employee to start work. Even the first day an employee can start working with their continuous training.
  • The next stage is dividing the training program into multiple levels so that the difficult part can be taught after learning the basics. It will require proper strategies to recognize each area of training.
  • Hiring online tutors or recording online lectures in one go to provide an online training course. It will demand investment in good teachers and technology so that recordings don’t get damaged over time.
  • Pricing each module of the training program and limiting its time period to learn. Different programs can be charged differently according to their weightage.
  • Online distribution channels are to be organized for different kinds of software. These should be compatible with any kind of browser and smartphone. You will require professionals to help while designing an online course.
  • Also, your course should have copyright so as not to get copied by others. Or don’t give these courses on different channels. A limited website can be maintained to learn these courses.

Compensation Plan

Compensation Plan

The most important thing to know about how to start a network marketing business is creating a satisfying compensation plan. While choosing a compensation plan you have two options;

  • Create a customized compensation plan
  • Buy a compensation plan

Here are the various compensation plans suitable for a different kind of business;

  • Board plan: It is also known as the revolving Matrix plan. It is the most trending plan which you can choose. Here, each time a marketing chain splits in two. It is one of the most systematic forms of compensation. It means every new marketer will create at least two other networks.
  • Unilevel Plan: Uni means one so one marketer can form any number of networks and there are no limits. It is the easiest form of the compensation plan. It is difficult to maintain the records in this kind of compensation plan.
  • Hybrid plan: if you are interested in more than one plan and both if they suit your organization then create a hybrid plan of these two. You can mix and match but don’t forget to test these plans.
  • Binary plan: it is a systematic plan based on mathematics. Here you have 2 multiplied by n. Where n is infinity, it suggests any number of networks. Here the distributors are known as business centers. 
  • Matrix plan: where a fixed number of networks can be formed and in a very systematic manner then it is a matrix plan. This is generally called a forced compensation plan. Width and depth are multiplied to create a specific number.
  • Stairstep plan: large scale companies require this kind of rigorous approach to create a compensation plan. The volume of product and sales determines the structure of the compensation plan. While an unlimited number of networks can be created through this approach.

Software Systems

Every organization works on a modern approach that helps to reach up to the level of its competitors. Network marketing business is a cut-throat business where technology is placed in the utmost position. It can make or break your situation. Here are some important technical aspects to be looked at.

  • Marketing software: these are the tools that help the company to market the products easily without applying high cost on employees and training. The software will do the work of website management, Social sharing, email marketing, and much more.
  • Automation software: a hybrid software that is customized for the type of network marketing business. You can buy it at your convenience. It will help to work on every aspect of the business from accounting to marketing.
  • Customer relationship software: maintaining customer relations is the major of the network marketing business. Recording the data of customers and using it effectively is the basic use of this software.
  • Sale software: The management of sales and the formation of new customers is recorded under this software. It basically helps in accounting by keeping records of sales. 
  • Order management software: purchasing is the short term for order management. A huge part of network management is handled by this software. It is a necessary component of the network marketing business.

You can easily buy software online by visiting here. It is important to choose software for your business according to the need. It basically depends on the number of networks and sales. The variety of products comes into the picture after considering the other two requirements.

Legal Plans

Network marketing comes under those businesses where you will get the least guidance about the laws applicable. But this is not the case here. I am going to solve the most found legal query about network marketing business.

  • The network marketing industry is governed by The Prize Chits And Money Circulation Schemes (Banning) Act, 1978. 
  • Gst registration: every network marketing must get a GST number to complete the liability of taxes payable to the government of India. 
  • Income tax: the person or the owner should follow the income tax ruler by applying for a pan card. The pan card is a must rule to be followed.
  • A bank account is required to be under one nationalized bank. At least one. This account will be used for official purposes.
  • Memorandum of Association should state the purpose and nature of business. It should be clear and the same as followed by the company.
  • Sales incentives or the compensation plan should be mentioned by the company. These plans should be clearly illustrated to the employees in their agreement oral or written. 
  • The address of the company should be mentioned on the website and other official papers. The presence of the name of the business is a crucial part of the rules of the government of India. It also enhances the presence of the brand.
  • A grievance portal should be available for the customers. it is important to be in the network marketing industry. The portal can be given on the website or a contact number.

Do’s and Don’ts of Network Marketing

Starting with do’s of network marketing

  • Find a product that you love; why? You can’t sell what you yourself don’t appreciate. As a matter of fact, it is impossible to sell it. You need to find out that thing which is a need and your love. It is a kind of meeting point with these two requirements.
  • Quality is the major focus that is generally ignored by network marketing companies. They often get regular clients and the quality gets out of the picture. Without even realizing the shutdown point comes and then they start by blaming as we mentioned the myths above.
  • Being ethical is the first need for a network marketing company that can get you ahead of the competition drastically. Some of the small network marketing businesses are not following the ethical requirements but those who do are looking at a great future.
  • The Target market is your whole market. Even if you start to step out of your targeted market, it will require major thinking. Hence cover your targeted market in initial stages.

Let us learn about Don’ts of network marketing 

  • Don’t over recruit, it means there is no need to recruit a large number of employees. Even the limited group can build enough networks if given proper resources provided they have good skills.
  • Don’t force your friends and family, generally, you waste your time on those who are not interested. The basic rule of business asks you to identify potential buyers and convince them. If you are just practicing then it is fine.
  • Don’t stress out too much on the negative things, network marketing is the game of mind. You must conquer your brain first in order to win others. Once you yourself are satisfied then you can fulfill others’ needs.


Do’s and Don'ts of Network Marketing

Reading until here? It means you have already started learning about how to start a network marketing business. The first step mentioned in the article is the sole factor that will define your future of network marketing career. If you are up for the hard work then start applying to all of those opportunities right now.

Here is a tip# don’t stop at learning about network marketing, the industry is quite large. If you get stuck anywhere comment us below.

Which part of the article did you like? Are you from the same industry? Have you heard about network marketing before? Does the concept look appealing to you? 

Halfmba.com has covered major queries if you want any query to be added; let us know in the comments section below. 

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