June 30, 2020
In 2020, Growth Of Multi-Level Marketing In India

In 2020, Growth Of Multi-Level Marketing In India

Multi-level marketing has grown by leaps and bounds. Since the year 2011, when Multi-level marketing was in its heydays, it reached a valuation of INR 12,620 crores in 2016. Since then, the growth rate in India has been rated at 4.8% and is poised to reach INR 15,930 crores by the end of 2021.



This growth has been largely driven by millennial’s taking the plunge into Multi-level marketing software and the adoption of cutting edge MLM software solutions. With the rising user awareness and the culmination of cutting edge technology, MLM software solutions have made the industry more transparent and have aided the sector in attaining sustainable growth.



Multi-level marketing companies have voiced their concerns that law in its current form cannot effectively establish whether an MLM venture is genuine. However, governmental bodies globally are paying attention to this and drafting appropriate legal amendments to facilitate the growth of the industry.



In this post, we will analyse the growth trajectory of the MLM sector and the global outlook of the entire industry. Let’s have a look at the latest trends in the Multi-level marketing industry and how they affect the growth of this sector in 2020.



Current Status of Multi-Level Marketing In India


The Multi-Level marketing sector has been growing in recent years. Owing to numerous government introduced policies and the advent of MLM software solutions, the industry is currently undergoing a period of rich growth. The industry has immensely benefited the nation in promoting entrepreneurship and improving marketing and selling skills among the masses.



MLM software solutions have further complemented the growth of the sector as the operational aspects are highly simplified. Multi-Level Marketing has helped the sector is attaining a sustainable growth structure. Since the years 2015-16, every major market has witnessed a huge surge in Multi-level marketing.



Historically, people in India have been hesitant to join the MLM industry with the primary reason becoming the shady tactics adopted by a few players and deceiving people of their hard-earned money. Thankfully, MLM software solutions have made this aspect clear by providing fact-driven data and ensuring transparency in the sector.



Primarily, the retail sales of the MLM sector are dominated by the health and wellness sector. The runners up sectors are the beauty and personal care segments. The food category in direct selling witnessed the strongest growth, standing at 34%. These sectors will continue to witness further growth in the coming times.



In direct selling, a reseller is directly communicated with the consumer and this immensely reduces the possibility of overcoming objections and the ability of resellers in clarifying customer doubts is enhanced tremendously. MLM software solutions have certainly opened up new business horizons for the direct selling industry and will continue to help the sector in expanding its customer base.



The MLM sector has already impacted the lives of more than 30 million people globally. With an estimated 2,20,000 entrepreneurs joining the industry every week. With a combined 90% market share that can be directly attributed to International companies, domestic players looking to enter MLM can definitely take cues from the already established market.



Growth of Multi-Level Marketing In India


In a paper released by ASSOCHAM, it was said that the average sale of that a Multi-level marketing associate makes is valued around $300 per year, which is drastically lower than the global average of $1700. The paper emphasized the need for developing a conducive environment for the growth of the Multi-level marketing domain.



According to the study, the top markets for MLM are:


• USA (20%)
• China (19%)
• Korea (9%)



India stood at the 22nd rank in 2014-15 which was later improved to the 20th position in 2015-16. The Multi-level marketing industry accounts for around $183 billions of retail sales around the world. MLM software solutions have driven the industry forward in building an effective sales network and facilitating in managing hundreds of SKU’s.



One of the most well-pronounced impacts of the MLM sector is the entrepreneurial impulse it develops for its members. Getting involved in an MLM allows members to work in their own time and the rewards are directly proportional to the amount of work the members choose to put it.



MLM software solutions have supplemented the growth of the MLM sector globally. With the increased operational management capabilities, MLM software solutions have streamlined almost all the business aspects of an MLM business.



MLM software solutions have greatly simplified all the operational aspects that make it relatively easy to manage a direct selling business. This has allowed MLM venture owners to focus on growing the business and developing the market as a whole.


Recent reports have suggested that the MLM sector will peak in 2025 as more international and domestic players will enter the Indian market. Propelled by robust MLM software solutions, the industry is poised to surpass half a trillion-dollar valuation that the market is poised to achieve and will lead to millions of new members joining the industry.


MLM ventures are also deploying the latest trends in Digital Marketing and SEO that enhances their reach and improves their business prospects. With proper implementation of proper strategies that ensure digital success, MLM ventures are working towards establishing an authoritative digital presence.





The MLM sector in India has been in existence for many years but the highest surge has been witnessed in the past 5 years. With the entrance of numerous International MLM companies, the number of people getting involved in MLM ventures has surged considerably and will continue to witness further growth. The MLM industry certainly has a bright future.



The technological advances brought in MLM software solutions and a culmination of other factors are driving the industry to achieve a $650+ billion valuation by the end of 2025. The direct selling marketing approach is one of the most trustworthy and ancient business methods that has thrived over the years and will continue to grow in the days to come.

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