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Sunday 19 August 2012

PART III: How Leader’s Could Rate Multi Level or Network Marketing Companies……


Before reading this article please read the previous issues on the same topic.



The basic question which is most often asked is regarding the legalities of the Multi Level Marketing or Network Marketing Companies. The term ‘Legality’ has very varied meaning and application in Multi Level Marketing or Network Marketing industry.


At the primary stage it means that, “Does the system comply with the legal procedure of the origin country and the host country, the country where the company is launching. Secondly, “Has the Multi Level Marketing or Network Marketing Company obtained the registration and necessary approvals for running such type of product, concept, idea, and services?”. Lastly but not the least tax registration, deductions and customs compliance filed, obtained and timely paid to the respective government. If the product is related to health sector does it has the approval from government agencies, certification from well established and government approved laboratory. Some products need safety certification also.

All the above documents should be checked by the leaders before promoting any concept because it is your group and people who are going to be involved in the system. Any misrepresentation, obnoxious interpretation or falsification of ideas, facts or data’s would hurt them not only financially but emotionally. It would be total loss of faith, this means loss of team member which indirectly is loss of business. Manpower lost in this way is money lost and FAILURE gained. The leader loses his well developed and hard earned image, value and is often looked as under analyzer & achiever. So, we all should be very sensitive while selecting a company because all major problems arises when unethical means are used to procure the documents or inadequate legal papers are tendered for getting registration, certification or while fulfilling the documentation.

While checking the details of any Multi Level Marketing or Network Marketing Company, a leader should validate regarding the physical presence of its Head Quarter, Local Stock Point or Franchise Location (office). Absence of physical presence means when the organization is unable to provide workspace for the base unit, then how the whole system is going to function systematically.

The question remains the same either for Head Quarter or Franchise Point, we all know, at present time, most of the process is operated online but still physical presence is needed and required for the managing the system, delivery of product or services and training. Physical presence of an office gives and supports management & its operating people to sit, discuss and analyze the on going process as well as the coordination of whole business environment & domain of the respective company. Physical office gives a lasting feeling, it validates the absolute presence, so without this basic facility, promotion of any business system is unthinkable.

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