Now a days may be around 2000+ MLM companies(who promote their business through direct product selling,product booking,financial & so on) are working in India taking around +_30% of the population under its network direct or indirectly.Now itself has become a industry(*taking its size,distribution force,rolling money & dependent have been taken under consideration).
Under the circumstances which steps our Government may take to regulate it ? So that the people who are involved and depend upon this sector should not be a sufferer simultaneously customers should not be cheated(not only loose their hard earned money) and governing bodies of these companies should be under control of the government but should get opportunities or scope also so that they run the business(continuous follow up,consultations,audits,surveys should be operated by the Government) .
In any business there the running force of the particular business depend upon the winner looser ratio.All the business even we look properly is the fact of mathematical impossibilities...even if we take the example of a hospital after some time there should not be any patients but in practical more than 50k health facilities are not being able to control even only 68% population of India.I any normal business only manufacturer ,supplier & retailer get the scope to earn where as in MLM scopes are being divided among all the associates also obviously a scale of people earn huge than others but numbers of earner are even higher than any sort of business.But the major problem of MLM is that of its money rolling process and excessive greed of the promoter & the company owner which creates the problem in it .
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I personally did a survey.I found on product there is a profit average some where around 40% are there .So if any company wants they can give commission from that.If they disburse 20% commission & 10%expenses then even they can earn 10%.But it needs a lots of mathematics,surveys , training,and Govt. interventions.Undoubtedly it can be a good business process which simultaneously confirms no labor problems,no unemployment and strong socio economic stability.
In bracket ,Is there any scope to give a proper & organised shape to this sector?(*as mentioned reason)
Responsible comments are invited. |
Friday, 2 November 2012
Net work marketing-a curse or can be a bless to fight against unemployment!!!
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Mr. mathematician,
ReplyDeleteYou r telling MLM binary growth as end of after some multiplications. I agree but in any distribution system there is a last tyre. In present scenario Goods from factories -> goes to CNF (persons with having handsome money to invest)-> to state distributors ( further having handsome amount to invest)-> wholesalers -> to retailers -> to consumers .These consumers constitutes 90% part of this system & only 10% are enjoying the earned money by utilising the goods from bottom 90% consumers.
In NMart case only ( Not in other MLM )-> if I consider your mathematic then up to 50% will be in last tyre and that is as consumers only , but still they will get up to 20.76% to 26.76% less the MRP of the products, which they are still utilising at much more rate then this due to their daily needs. Thus end user can become retailer for his personal purchase & a poor fellow can develop this with a small amount of money. So in N Mart case distribution system of goods is in favour of consumers in spite of sellers.Because any distribution system is always a pyramid.
Science Always stand on a thought of impossibilities. As you say, if NEWTON thought before you He never discover the GRAVITY. thanks.
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