Knowing that Direct Selling/Network Marketing companies are in steady growth path, many new companies are coming up of late. Most of them woo customers and recruit Distributors giving unrealistic promises. In the last two years many companies came up and disappeared. The fact that these companies collected huge sum from aspirants as Entry Fee before disappearing is certainly a matter of concern. Therefore, the selection process should be scientific and based merely on data analysis.
How to Identify a Fraud Company
Watch out for these
illegal activities from MLM companies.
1.
Illegal MLM businesses usually offer quick, easy, and suspicious
money for recruiting more members.
2. The company is
asking for a sum as Entry Fee. (It’s definitely a deviation from the
Guidelines issued by the Central government.)
3. A clear-cut and well-defined
marketing plan is not produced by the company.
4. The
products/services offered by the company are not useful to customers on a daily
basis.
5. There is no money
back policy or return policy.
Try to know more
about new MLM companies before joining. Ensure that the company policies
conform to the guidelines issued by the Central Government.
Guidelines Issued
by Central Govt.
How to choose a Genuine Company
It’s advisable to
work with a company which is established and left with a good track record of
at least five years. The website of the company should be visited and its
growth record should be studied critically.
In order to select
a company to work with the following parameters should be evaluated/assessed.
·
Company Profile and Management- What is the
background, own manufacturing plant, management
·
Vision & Mission- should be people oriented
Quality of Products and Services- Are the items useful
·
Momentum and Growth (Most companies
perished in 5-6 years. (So, a company sustained for a long period of time
should be selected. Additionally, the track record of the company in the path
of growth should also be considered)
·
Best Support and Training System (we should ensure
that the company has an established training system in place.)
·
Timely Pay-out (Most important)
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