Direct selling business has been around for over three decades in India. This business model is known for its accessibility and welcoming nature. How do you know if you have what it takes to be a successful direct seller? See if you are passionate about business and ready for hard work. That’s all it takes to start this business. Millions of people do the business, and at least for half of them, it is the only source of income. Still, the history of direct selling in India is unfamiliar to many people.
Direct selling, also known as network marketing, started in India in 1995. The sad truth is people are still struggling to grasp the idea of networking or multi-level marketing. India is an excellent market with great business opportunities. Many people have twisted the same reason for their vested interests. This has led to widespread misinterpretations of direct selling.
History of Direct Selling in India
Direct Selling ideas originated in the USA during the 1920s and 1930s. Then the idea grew and spread to more parts of the world. The history of direct selling in India started in 1995. In the late 2000s, the business started to develop to new heights. Even the rural part of the country showed an increase in economic activities. Thanks to direct selling, it has always been an empowering model.
The number of companies started increasing over time. From a couple of direct selling companies in the late 90s to hundreds of companies now, the model’s growth happened over time. Now there are millions of people successfully earning income through network marketing. The business got its big break after the liberalization by the end 90s. Since then, many global companies like QNET have made their way into the Indian direct selling industry.
Later, in the year 2014-15, there were 6.5 per cent increases in growth rate. The growth rate has kept on increasing. In the recent past, that is, in 2020-21, the industry reported a 10 per cent growth rate. It is good to see that the direct sales industry is flourishing. Despite the economy suffering from low growth due to Covid-19, direct selling grew.
The history of direct selling in India is a complex one because the model is complex. Network marketing is a team of like-minded people doing business together. When many people work for a common goal, the model becomes more profitable.
The Benefits of Network Marketing
Network marketing has its perks. It is beneficial for many reasons. The model is accessible, safe and welcoming. It is easy to enter the industry as it doesn’t create any barriers like the traditional industry. Likewise, you can exit the industry any time you want to. As there are not a lot of costs involved, there won’t be much loss of money either.
The best direct selling companies uphold great work ethic. So, the industry is diversity inclusive. It’s a safe and welcoming space for women. There is no disparity between rural and urban areas. Anybody can start a business from anywhere in the country.
If money is the factor that stopped you from stepping into the business, the network marketing is the best place. It doesn’t create huge barriers in the form of capital. A person can start a direct selling business by buying the company’s products. You can be an official independent representative through a simple online registration process. From there on, you will be a businessperson and an intermediary between the company and customers.
Direct selling is a cost-effective model for many reasons. The low capital needed to start a business is one of the reasons. There is also no need for a physical store or shop. Besides, no ads cost and low transportation cost. To succeed in direct selling, all a person needs is the will to work hard and a passion for business. Knowing the history of direct selling in India will be an added advantage for those who are planning to start the business.
Women Empowerment in India
The direct selling industry has a huge role in women’s empowerment in India. As I mentioned earlier, the business is safe and welcoming to women. The cost-effective feature and the work ethic made it truly accessible for women. There is no doubt that direct selling is a liberating and empowering career opportunity. It is proven from the fact that 53 per cent of direct sellers in India are women. Direct sales are the only female majority business industry in India. The model never fails to reward its workforce with what they deserve. The industry provides equal pay for equal work. In all possible ways, direct selling has managed to be the best industry for women to get a kick-start in business .
Myths around Direct Selling Business
The accusations against direct selling are many times baseless. People misinterpret the model for fraud schemes like a pyramid or get-rich-quick scheme. In reality, direct sales have nothing to do with such business models. It takes hard work, passion, smart plans and more effort to succeed in direct selling. When these illegal schemes ask for money as an investment, they offer an easy money-making option. Plus, you will receive no products in return for the money you give. But, in direct selling, you will receive products worth the money you use to join a company. You can resell this product to make a reasonable profit. Thousands and thousands of people do this trusted business. Yet, be careful when deciding to join a company. Make sure to avoid the fraudulent schemes that offer a great amount of money. Instead, join reputed direct sales companies, top in the country like QNET, only after in-depth research. Learn about the history of direct selling in India to make the best business decisions.