MLM consultancy


Are the direct selling business models deploying MLM compensation plans sustainable?

Direct selling consulting for operations deploying single level or multilevel marketing compensation plans known as direct selling MLM consultancy by officials of direct selling companies as well as direct sellers around the world. This type of management consultancy plays a very important role in getting to understand the retail industry as a whole and then deploying strategies to drive efficiently in the right direction.

Direct selling model is very smart and beneficial form of promotion of products and services for corporations who wish to take advantage of word of mouth endorsement advertising.

In the current scenario, this word of mouth marketing approach has, and still is being used quite effectively throughout the countries providing value for money products as well as unique opportunities for progressive entrepreneurs. Sadly, although a few of the direct selling companies operate ethically there are the ones in majority that bend the rules for personal gain and benefit.

The challenge being faced by the man in the street is how to identify the ethical from the unethical.

Question people ask about direct selling is “Is it the right thing to do?”

The concept of direct selling gives it an edge over other forms of retail, because it leverages loyalty, product belief, recommendations, as well as financial benefits.

It is a dream scenario for companies when their customers become their promotional and the delivery team.

A direct selling MLM consulting firm plays a very important role in the current scenario when all terminologies being used throughout the industry are contradictory, and not easy to interpret causing confusion among all stakeholders including but not limited to corporate officials of Direct selling SL/MLM companies, direct sellers, government officials and support services (Software development firms, Law firms and C.A/CPA firms, etc).

This confusion works to the advantage of the unethical promoters who are continually seeking ways implement so called “get-rich-quick” schemes making it essential that a complete and in-depth Compliance Policy be incorporated for all direct sales programs.


“What can be measured can be managed”

Through many years of firsthand experience Strategy India - the MLM Consultants developed a customizable ``Fund provision and Management`` spreadsheet being seen as a valuable tool for managing a successful business. Through this tool the direct selling consultants can evaluate if a direct selling operation is sustainable.


Why sustainable?

To quote one such unethical operation: “Who cares about sustainability because we have already given product/s with established market value to our direct sellers who have paid us? And therefore the loop is closed.”

Wrong! Wrong! Wrong!

The concept of direct selling is having a network of product advocates (direct sellers) consuming the product and promoting those products to friends and relatives thereby increasing consumers and sales. All of this takes an investment of time, hard work and money which is generally done by direct sellers. Many join and toil but only a few succeed in building substantial networks of product advocates. It is therefore the moral duty of all direct selling companies to ensure that their model is not only ethical but sustainable.

Apart from usefulness to the management of the direct selling companies to see and keep in check the bearing of their business, this tool (Fund provision and Management spreadsheet) is also very useful in forensic auditing by investigation agencies and law enforcement agencies to evaluate if all laws of the land have been followed or the loop holes have been exploited to siphon off money abroad, unpaid import duties, wrong product classification to save duties, non compliance with the FDI policy in force, improper fund provisioning for the incomes committed in the compensation plan, VAT liability, Service tax Liability of the direct sellers, illegal transfer of money for seamless / world plans, etc .


“More than 97% of direct selling companies- MLM in the world would fail this audit.”

Apart from the above it is the direct selling consulting firm’s responsibility to make sure that company officials holding senior key positions understand the concept fully. More confident and clear the company officials are the more will be their contribution towards the company.

The current laws / guidelines developed and practiced by various governments and associations including but not limited to FTC, ACCC, WFDSA, DSA, etc around the world need to be upgraded to curtail malpractices by direct selling companies and destroy scams. Therefore, it is important for ethical direct selling companies who realize the importance of being fair to all stakeholders to follow self regulation guidelines regardless of other direct selling companies’ orientation. The guidelines (Self regulation guidelines) are developed by the team at Strategy India Worldwide – the mlm consultancy for direct selling – single level / mlm companies around the world and would be upgraded every quarter to make sure that every stakeholder gets a fair deal and the business model is sustainable. Along with the guidelines the policies and procedures need to be updated regularly to make business more pleasant for direct sellers and consumers.

Not having the policies and procedures updated every now and then is like flying an Airbus A 380 full of passengers with safety features of a piston engine aircraft.

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