Is Network Marketing Legal In India?

Multi-level marketing, also known as network marketing is an excellent strategy that you can use to sell services and products. This is where employees can be treated as both buyers and sellers. The revenue of the company here will be later distributed to the workforce that is non-salaried. This happens because many networking companies keep a good track of the sales whereas the selling burden and the process of selling a service or a product is not a responsibility of the work force on its own. A few MLM companies like Forever Living, Avon and Amway have also used this to get more sales while providing employment chances for working women.

What is network level marketing?

Network marketing in India is a direct selling scheme that is operated in India. There are several famous companies like Tupperware that have already implemented this and they are minting money from people just like that. The concept of earning more commission depending on the performance of marketers is a cost effective technique to earn more cash from home. Being a direct model, the buyer purchases the product from the company straight instead of relying on any middlemen.

What is the future of network marketing in India?

Network marketing is definitely expected to grow in 2024, given the fact that it is moving upwards in the past couple of years. We are expecting more businesses, especially those who are in online shopping and e-commerce platforms to try to come into the picture as more and more digital channels are opening up. Consumers are also becoming quite health conscious which will also have a good effect on lifestyle and wellness products. This is a niche area where we are expecting lots of improvement. Network marketing also gives you a great income opportunity which makes it easy for people to get more financial income as a side income.

What factors have led to the growth of network marketing?

1. Get more disposable income

More Indians need disposable income these days, which has led to more spending of consumer goods these days. This has not just benefitted companies but also offered a good range of products and services to people.

2. Urbanization

India is also urbanizing quite quickly which is increasing scope for urbanization. Urban companies have more chances of getting exposure to services and products which can lead to the adoption of this business model

3. Demographics

India’s demographic is quite young which has caused networking companies to create more entrepreneurial opportunities for people since young people are more interested in being financially independent and having an additional source of income.


If you ever end up in a situation where someone is scamming you within this business, make sure that you consult a good lawyer who can help you understand which approach is suitable for you. There are many startups that help you draft all kinds of legal documents from home at very low priced costs. So, make sure that you make good use of them and never let network marketing get in the way of your growth.

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