MLM Script and MLM Software

Is MLM(multi level marketing) illegal under Indian Laws and Acts?

Public Comments

1. MLM Business is not illegal in India only money circulating businesses disguised as MLM are.
2. Of course not. Especially like eCosway, selling 4000 kinds of low priced everyday using products. eCosway will come to India on Jan 2008 http://www.blognow.com.au/ecosway
3. Despite its impressive growth, MLM suffers from a negative reputation in some quarters. In the past, many business ventures that used network marketing techniques were actually pyramid schemes. These illegal scams promised participants the chance to make huge amounts of money while doing very little work, provided they made a sizeable initial investment. The people who started the pyramid scheme were paid off by those who joined later, but most participants did not see any return on their investment. Roha noted that an MLM is more likely to be offering a legitimate business opportunity if it has low startup costs; charges a reasonable price for products; does not require sales representatives to purchase a lot of inventory; allows sales representatives to return unsold merchandise; and provides the majority of sales representatives' income from the sale of products. Even legitimate MLM businesses have been criticized for employing hard-sell methods. "To critics and turned-off erstwhile customers, MLM conjures up images of being hounded by door-to-door salesmen or pressured into hosting or attending 'parties' where pushy salespeople hawk products of dubious value amid peer pressure to buy something," Roha wrote. "And, to top it off, you're subjected to an evangelical pitch to join the downline." Finally, some critics note that most people who become involved in network marketing businesses do not make much money. A 1991 study by the Direct Selling Association found that 90 percent of MLM sales representatives made less than $5,000 per year.