Network Marketing is Scam and illegal ?

 

Network Marketing  is Scam and illegal ? Full Analyzation Of Network Marketing 

Network Marketing  is scam and illegal ? Full Analyzation Of Network Marketing .

Overview:

Network marketing is a type of business model where independent representatives sell goods and services from a company to an end consumer. It’s very popular with people looking for a part-time job, since it requires very little investment from their part. On the other hand, some businesses have adopted this model with great success as well. 

For companies, this is a lucrative way to sell their products and expand their reach with minimum marketing cost and no salaried workforce. For distributors, who usually work from home, network marketing is an opportunity to start their own small business with flexible working hours. 

There are multiple levels of distribution as well as payouts occurring at each of those levels, which is why this marketing model is often referred to as multi-level marketing (MLM).

Network Marketing  is scam and illegal ? Full Analyzation Of Network Marketing 

A company has a product or a service to sell. It finds representatives to sell the product and recruit more representatives to expand the network. 

The representatives get a sales commission on every product they sell and on every product the people they’ve recruited sell, too. Network marketing is the distribution of products and services through a network of people, rather than through traditional supply chains. 

Read Till The End To Know The Truth And Reality of Network Marketing In Nepal .

In simple terms, the philosophy behind it is: instead of spending millions (or billions) of in marketing and advertising their products through main-stream media (television, radio, billboard advertisements, newspapers and magazines etc.) they simply reward people to distribute their products by referral, word of mouth. 

It doesn’t stop there as the recruits are also encouraged to recruit a “downline” of their own. Finally, all distributors are also actively encouraged to turn particularly enthusiastic customers into distributors. So, an independent distributor working in network marketing generates an income from a combination of their own sales and the sales made by people they recruited. 

Meanwhile, the company profits by selling to their evergrowing distributor network and investing little-to-no money in marketing.

Network Marketing  is Scam and illegal ? 

Since the 1930s, several companies have managed to use network marketing to their advantage and build brands with global recognition. It all started with the California Perfume Company, which is still going strong under its current name – Avon. Other notable success stories include Tupperware, Mary Kay, Amway, and Vestige. All these companies made a name for themselves long before the internet era, but that doesn’t mean that multi-level marketing doesn’t work anymore.

 In fact, with social media, e-commerce platforms, and easy-to-build websites readily available, there are more opportunities than ever for independent distributors to market and sell their products. At the same time, however, there is also more competition than ever.

Is Network Marketing the Right Choice for You?

Economic development in Nepal has been complicated and affected by the constant change in political scenarios. GDP heavily dependent on remittances (9.1%) of foreign workers. Subsequently, economic development in social services and infrastructure in Nepal has not made dramatic progress. 

The COVID crisis has already put many Nepali migrants out of work. As fears of a pandemic spread in February and early March, a few hundred thousand workers returned to their hometowns and villages in Nepal. But most migrants were prevented from returning after the Nepali government announced a nationwide lockdown on March 24. Every industry is facing financial crisis but there is only one sector which increases its business by 100 times i.e. Networking Business. So Nepalese government should focus on network marketing companies and attract them to invest in Nepalese economy.

Nepal’s coronavirus crisis is poised to worsen in the coming weeks. As the country reopens and allows in more migrant returnees, the infection rate is likely to skyrocket. So, Nepal will face heavy economy crisis in future as many people lost their job & life which ultimately decreases the income of people and leads economy downfall. 

 Benefits:

i).Employment Generation: In a developing

country there is always scarcity of

employment. Network marketing is a no cost

employment generator. As there is no

education, gender, Age group (except> 18)

criteria. So it is easy to participate for a

common person of a country to join this

opportunity and earn money.

ii).Women Empowerment: Women are still

lagging behind in almost every field. Although

the government of many developing countries

fully support and work in this direction but

private partnership is most desirable and that is

why, Network Marketing is the main power full

tool to make it working.

iii)Government Benefits: In terms of tax

collections. Direct sales company are almost

private owned therefore they are always

progressive to sell its products continuous but

also paying the taxes as per government %

Sales tax criteria.

iv).Promotes Entrepreneurship: Direct Selling

is the only way in the world which has capacity

to promote entrepreneurship to masses and

make them, Employment Giver Not

Employment Taker.

v).Boost Economy: Network marketing helps to

generate income to their networkers so they

become independent earner and also

contributes for Nepalese economy.

Should student join network marketing?

The main reason why it should be done is to create an option of an alternate income, just like the spare tire in your car. We never know when we'll need it. Time and age is not a barrier to starting something new. If you want to join network marketing along with your studies than its great. Its better in early age, because working for yourself is always better than working for others.

 If network marketing is done consistently over a period of time with proper guidance than you will make yourself as a successful entrepreneur. 

Having an alternate income gives the person: 

1). Extra negotiating power at job interviews. 

2). Protection from making compromises at work. 

3). Time freedom at an early age (compared to traditional success, where people are financially well           off  but time poor).

 4). Resources to deal with the contingencies of life (like parents' illness).

 5). A network of friends all over the globe who will always be there to help out. 

6). Develops communication skills

Overall Conclusion:

Network Marketing is not bad and scam by beginning but it was made by some of the negative vision company and narrow minded bad persons.Even it is the most prefer business modality of the modern time.

Two famous writers Robert Kiyosaki and Kim Kiyosaki also have written the book and published originally in 2010 named "The Business of the 21st Century".In which they described about the Network Marketing business .

If you want to invest in yourself and learn some basic practical skills of life by yourself then you can join the network marketing companies based on your own choice.I hope all of your doubts regarding the network marketing field in Nepal is now cleared by this article

Disclosure:I am not suggesting you to join any Network Marketing Company but you can join if you loved the system on which base it works.Choice is yours.I have just provided you the indepth knowledge.

Cheers !!
Happy Network Marketing