How to start new MLM company?

  • Create and Modify Your MLM Business Plan as per Direct Selling (MLM) Rules 2021
  • Start creating MLM Software as per the Legal MLM Compensation Plan and Direct Selling (MLM) Rules 2021
  • Understand and Comply with Direct Selling Rules 2021
  • Strategize and Start your MLM Business Promotion

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Create and Modify Business Plan as per Direct Selling (MLM) Rules 2021

  • Rather than creating their own MLM Compensation Plan, most MLM Companies copy their plan from some other MLM company and think that their plan is legal. Whereas in reality, they just might be running pyramid schemes or money circulation schemes
  • Pyramid schemes and Money circulation plans are not legal.
  • For any MLM Company to operate in a legal way following Direct Selling (MLM) Rules 2021, It is necessary that MLM Company create MLM Compensation Plan according to the Direct Selling Rules.
Create Legal MLM Plan

Ministry of Consumer Affairs of Indian Government has made Rules for MLM companies which is compulsory to follow

  • Ministry Of Consumer Affairs from Government of India published rules for MLM Industry in year 2021, which is called Consumer Protection (Direct Selling) Rules 2021
  • It is compulsory for every MLM Company to follow these Direct Selling Rules
  • It is complicated to interpret the Rules in context of how it applies to your MLM Company and what are the changes required in MLM Business in order to comply with these rules
  • We recommend you to seek advice from an MLM industry expert to understand how Direct Selling Rules applies to your MLM Business and get started with all MLM Rules related procedures

Start creating MLM Software as per the Legal Business Plan and Direct Selling (MLM) Rules 2021

To follow MLM Rules completely and efficiently, your MLM Software must have features and functionalities which MLM Software generally does not have.

  • Besides product prices, GST will be applicable on commissions of distributors. Which requires a separate GST mechanism implemented in MLM Software. Just the standard GST reports won’t suffice that.
  • There must be some specifically required sections in Invoice which most MLM Software generated invoices does not contain. If it is not integrated in your MLM Software properly, it might be harmful for your MLM Business in the future from legal perspective.
  • For MLM Company, ‘consumer’ and ‘distributor/direct seller’ are one and the same as they purchase products as well as sell them to others. In case of any legal inquiry, it will be easy to prove the MLM company as a pyramid scheme or money circulation scheme if legal terminology is not used in MLM Software

MLM Company cannot afford to have legally vulnerable software.

We recommend you to seek consultation from an MLM industry expert to have fully Legally Compliant MLM Software

Strategize and Start your MLM Business Promotion

Beyond this point, you have to decide on some key decisions. Only the company and its management will keep the company into a growth direction.

Some of the things which should be taken into account while strategizing MLM Business promotion are:

Brand Establishment & Positioning

Segmenting Target Market

Go to Market Strategy

Package Distribution Channels

Operational Efficiency

Marketing & Promotional Material

Product & Business Orientations & Training for Distributors

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