STRATEGIES OF MULTI LEVEL NETWORK MARKETING IN INDIA

 What kind of marketing plan we choose starting a MLM Company?

This is very vital question the marketing system adoption while setup a MLM Company now first we understand what kind of Marketing System we have in MLM:

GENERATION PERCENTAGE PLAN 

The oldest and the most successful method of MLM Commission Distribution System which is being adopted by most of the consumable product selling mlm companies like Amway, Oriflamme, Avon, Herbalife etc. in which company fix some target selling to achieve some fix percentage of commission. It’s an open width program in which a customer can open as many legs as he wants and achieve more and more percentage fix up by company till he achieve last level of promotion.

PARTY PLAN

The most successful and the only legal system in most of the European countries and adopted by Tupperware in which a customer organize a kitty party at home and call his/her friends and relatives in which he/she showcase the products and try to sell products to them and to turn into distributor of the company via Kitty party. In this modal company offer Discounts and Free Gifts to party organizer as well in party.

BINARY MLM PLAN

The New age MLM System is being offered by an online computer education system selling American company Skybiz in year 2000 is now the best adopted modal for new age one time product and services selling companies, before Skybiz no one has ever thought that Internet and MLM the combination of both can the idea of this century to sell service through Internet via MLM Route. Skybiz was the fastest MLM Company in the world to sell more than 10 million Computer Education Packages online in just 8 months of the launch of the product and become multibillion dollar company in just 1 year with the use of Internet and Power of MLM. It started from United States and reached more than 180 countries and become worldwide phenomena in just 6 months of time. In this System a person can only open 2 legs and other people will spill over to those two people under them and has fix payment system on matching of the new product sold under his/her 2 legs.  

AUSTRALIAN BINARY PLAN

In 2001 one 3 mobile an Australian Telecom Giant offered a new marketing system in Australia now called Australian Binary in which a customer can open 3 legs and first two legs will give profit to his/her up line member and the third one will give profit to the sponsored member. In the initial period it shoot up like rocket and bust all previous records and added new people to MLM as this system offer more commissions to new member and lesser for the old ones but the earlier system were offering the reverse of the Australian Binary. This system was adopted by one product selling small MLM Companies to become competitive to earlier setup MLM Giants.

BOARD SYSTEM

In year 2005 few American companies started this System in USA this is get rich quick system where a person earn big commission over his/her team when he/she qualify or break a board of 8 -16-32 members generally he gets the commission of all the 8-16-32 members himself on their work.

In the whole of the this marketing system we prefer Binary System is the most compatible system for one time product selling companies as it is easy to understand and easy to explain and customer may earn commission at minimal effort.

Top MLM Companies of Multi level Network Marketing in India

Now more than 10000 Companies of direct selling operating in India whose business turnover is more than 3500 Crores fiscal year 2009-2010, according to the Indian Direct Selling Association, IDSA. IDSA is an association developed by some of the direct selling MLM companies in India for the core issues related to this business and future prospects of the trade.

IDSA Members companies list: Indian Direct Selling Association –IDSA

·         Tupperware ·         Tines ·         Oriflame ·         Modicare ·         Max Newyork Life Insurance

·         Mary Kay ·         Klink ·         Jafra ·         Hindustan Unilever ·         Herbalife

·         DXN ·         CNI India ·         Avon ·         Amway ·         Elken

·         AMC Cookware ·         Altos ·         4life India

There are hundreds of other MLM companies also operating in India who are not a part of any association or IDSA but they have gained immense popularity in Multi Level Sales Business in India.

Know more about information: Service Tax and Tax consultants in Delhi

 

Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 011-43520194

INDIA BUDGET 2014-FOREIGN DIRECT INVESTMENT HIGHLIGHTS

The Finance Minister Mr. Arun Jaitley, has set himself a daunting task to maintain the FY15 fiscal deficit target of 4.1 %, is trying to bring back the interest of foreign institutional investors by increasing the FDI limit in some sectors and abolishing the controversial retrospective tax.

•  FDI in defence sector: Finance Minister Arun Jaitley in his maiden Budget said that the government is looking at raising foreign direct investment (FDI) in the defence sector to 49 % from 26 %.  
•  FDI in insurance sector: The government has increased FDI in insurance up to 49 % from 26 % earlier. It would enable many promoters of Indian companies to sell their shares as well as infuse new capital in the firms. 
•  No retrospective tax: The government plans to do away with the retrospective tax. All cases of retro taxes after 2012 will be pushed to the higher panel. The minister said he hopes foreign companies will appreciate the move on retrospective tax. 
• FDI in ecommerce sector: Liberalisation of FDI in the ecommerce sector will provide much-needed certainty to foreign players and to a sector that has the promise to provide increased commerce and generate employment in the country. The move will also provide boost to the sector and create healthy competition so as to benefit all the constituents in the ecosystem - consumers, government, ecommerce players and retailers in general. 
•  FDI in health insurance sector: This budget provisions to enhance both financial and physical access of healthcare for the country.

Through broadband in rural area, telemedicine will increase the accessibility of qualified doctors and specialists into rural area and increased FDI in health insurance to 49 per cent will help increase the financial accessibility of population.

OTHER UNION BUDGET 2014 – HIGHLIGHTS

• Government will not bring any retrospective amendment which is unfair to the tax payers. 
•  Five more Indian Institute of Management (IIMs) to be set up. 
•  Four more Indian Institute of Technology (IITs) to be set up. 
•  Rs. 100 crores for Metro in Lucknow and Ahmedabad. 
•  Allocates Rs. 400 crores to incentivize the development of low cost housing. 
•  Rs 500 crores for solar power development project in Tamil Nadu and Rajasthan. 
•  Uniform Know Your Customer (KYC) norms for entire financial sector. 
•  Finance Minister Proposes liberalization of American Depository Receipt (ADR)/Global Depository Receipt (GDR) regime. 
•  Accounting Standards for Banks and Insurance sector would be notified separately.
• Taxation issues for foreign funds with Indian managers to be clarified. 
•  Finance Minister proposes one Demat account for all financial products. 
•  Special small saving scheme to be introduced for the education of girl child. 
•  Public Provident Fund (PPF) annual ceiling enhanced to 1.5 lacs. 
•  Maximum exemption limit raised to Rs. 2.5 lacs for an individual. 
•  Senior Citizen are not liable to pay tax on income upto Rs. 3,00,000. 
•  Investment limit under Section 80C increased to Rs. 1.5 Lacs. 
•  Deduction for Interest on Housing Loan increased to Rs. 2,00,000. 
•  No change in tax rates for corporate tax payers. 
•  Concessional rate of tax on dividend from foreign subsidiaries continues. 
•  No sunset date for concessional rates for foreign dividends. 
•  Concessional rate of 5% on interest extended to all types of bonds. 
•  Government shall consider public comments received on DTC. 
•  10 year tax holiday for power companies starting production and distribution on or before March 31, 2017. 
•  To boost manufacturing sectors - customs duty reduced on certain inputs such as fatty acids, etc. 
•  Import duty on steel increased from 5% to 7.5%. 
•  Government to provide investment allowance at 15% for 3 years to manufacturing company investing more than Rs. 25 crores. 
•  Portfolio income of Foreign Institutional Investor (FIIs) to be treated as capital gain. 
•  Imported electronics goods to cost more. A cess to be introduced. 
•  Income of funds from portfolio investments shall be deemed as capital gains. 
•  Controversy over categorization of income of foreign investor funds as capital gains or business income shall end with this proposal. 
•  Customs duty reduced on certain types of coals. 
•  Government reduces basic customs duty on LCD/LED televisions. 
•  Customs duty cut to nil on import of LCD, LED Panels below 19 inch. 
•  TV sets, Solar power units, computers, oil products, soaps becomes cheaper. 
•  Footwear to go cheaper - excise duty reduced from 12% to 6%. 
•  Sugary carbonated drinks to get dearer. 
•  Cigarettes, Cigars, Pan Masala, Gutka and other tobacco product to attract more excise duty. 
•  Basic rates of customs duty @ 10%, excise duty @ 12% and service tax @ 12% remains intact. 
•  Excise duty hiked on aerated waters with sugar content.

 Know more about information: TDS Return and new company registration

Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 011-43520194

How to Open MLM Company in India, Best MLM Business Plan

Who can start a multi-level marketing mlm company?

A company or manufacturer or a trading company who has some exclusive and unique products or services to market and wants to tap worldwide customers without setting up expensive shops and showrooms with little efforts and patience can start MLM Company.

What is the law for setting up Multi Level Marketing Company India?

There is no separate law for setting up a Multi Level Network Marketing MLM Company in India till now it was proposed in Indian Parliament 2005 but yet not became a law however there are certain acts of India constitutions which we need to consider before setting up Multi Level Marketing Company:

1. It should not be a only head count commission modal which falls in Pyramid Scheme which is banned in India, covers MRTP Act alias Money Rotation Trade Practice Banning ACT 1969.
2. It should not be only money involved investment return format which falls in PCMC Act alias Prize Chit and Money Circulation banning Act 1978.
3. It should be feasible Product selling Business Modal.

What is the best practice to setup a Multi Level Marketing Company?

Firstly we recommend you to setup a Private Limited or Limited Company to setup a Multi Level Marketing Company in India which involved limited risk for directors who are setting up a Multi Level Marketing Company Business.

Apply for IDSA (Indian Direct Selling Association) Member Ship. It’s not a government body but it’s a private body setup by Amway India who is trying to govern the whole Direct Selling Companies in India with their problem and to stop unethical and illegal MLM companies and Multi Level Network marketing Business practice to operate and destroy the MLM Business route.

Apply for Vat/Service Tax/ Tan No and all necessary license and registration required for manufacture and selling your product.

Appoint a Legal Advisor and a Chartered Account to create rules and regulation forms, printing materials, other company related legal documents and stationary materials. Please does not cut copy paste other company’s print materials as it may not be applied on your product or MLM Business modal? It is also advisable to develop exclusive website content and information related to company written by legal advisor of the company to counter legal laws of the Land.

Know more about information: Chartered accountant in India and TDS Return

Hope the information will assist you in your professional endeavors. For query or help, contact: info@carajput.com or call at 011-43520194