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Direct Marketing

The nitty gritty of marketing – Kaushal Karkhanis & Sonia Nazareth

No 9 to 5 grind. No commuting. With as little an investment as Rs. 2000 – Rs. 3000 and some glib salesmanship, you can assure yourself of a healthy income. Some of the biggies claim they earn as much as 2-3 lakh a month!! Excited? Check out the wonderful world of Network Marketing.

Network Marketing (NM) or Multi-Level Marketing (MLM)
This is the newest wave to sweep the Indian consumer market. Simply put, consumers can enjoy the benefits that would normally go to wholesalers & retailers. As a member you would stand to receive the money gained by cutting out the middleman.

How do you earn money?
Simple. You become a member of a good NM company by paying a nominal amt, using their products and recommending them to others. How do you earn lotsa money? The important thing here is to recruit more people to sell, who in NM jargon will be known as your ‘down-line’. If your down-line is active, and they induct new members or sell the product, you get a commission on their sales as well as sales by any new person he/ she recruits into the fold. Good No? But just remember that your down-line needs to be very active for this theory to actually work.

Here’s a lowdown on some of the existing MLM companies:

AMWAY

This Fortune 500 company pioneered the concept of MLM and was one of the first to come to India in 1995.

Product ranges: From Personal care to home care. The company has a good reputation in the market and if you have contacts abroad, you may have a foreign downline as well, and obviously that means higher earnings (how about that!). However, most Amway products are expensive and can be afforded only by a upper-middle class clientele, which restricts your market to an extent. The good news is they now plan to introduce a more economical range.

Membership fee: Rs. 4,200 (includes kit of products, brochures, stationery)

For details: www.amway.com OR www.amway-india.com

MODICARE
Modicare (the desi version of Amway) was launched in 1997. The company offers a wide range of affordable products from personal care, auto care, home care, laundry care, water purifier, children’s books (phew!) with a 100% satisfaction or money-back guarantee. The key advantage is that the products are good and moderately priced, therefore easier to sell. As a member, voluntary walkout is permitted, i.e. you can return your membership within 3 months if not satisfied with the company and get a refund for the entire amount, minus processing fees, even if the products have been consumed to the extent of 25%.

Membership fee: Rs. 1,950 (includes a kit of products, brochures, stationery, etc.)

For details contact: Mr. Ravi (Modicare Star Director), Tel: 4376987

AVIANCE
Aviance is the newest entrant in the MLM segment in India, launched just last month for direct-marketing of cosmetic products. Most products here come within the premium range, which restricts your potential market. Also, membership is open to ladies only.

Membership fees: Rs. 900 (one of the cheapest but I have no information about contents and startup kit)

Here’s a list of some other MLM companies:
Avon – Cosmetics & Beauty Products; Dianet – Jewelry; Oriflame – Cosmetics & Beauty Products; Tupperware – Plastic ware; Unique – Insurance; Em-Power – Computer hardware, software, training; Japan Life – Alternative medicine; Vision 25 – Groceries; Quantum – Personal care, security accessories, nutritive, etc.

All said & done>…
MLM is here to stay for a long while. As a career, MLM can be one of the best around. Having a lot of contacts is an advantage, provided you have the inclination and good persuasion skills. But that’s also where the flip side comes in – as a member you tend to promote your company and if you don’t check yourself, soon enough your friends and ‘contacts’ will get annoyed and may start avoiding you. So hard sell is looked down upon.

NEVER adopt HARD-SELL. In short, if you and your down-line work real hard for just a couple of years after joining and maintain a healthy relation, by subtly increasing your down-line you can be assured of a life-long, growing income. NM is known to be very popular among housewives, students and freelancers, though that doesn’t mean others are not successful at it. ‘Have a dream, have an action plan, will succeed…’, seems to be the philosophy of NM. Insiders swear that MLM stands for Make Lotsa Money while Making Life Meaningful!

For more details about any of these or other MLM companies, or Network Marketing in general, contact me:
Kaushal Karkhanis
Pager – 9622315089 (currently not available),
ICQ – 6415381
E-mail – kaushal@lovemail.com

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