THE PROSPECTS OF MULTI LEVEL MARKETING BUSINESS COMPANY IN BANGLADESH

THE PROSPECTS OF MULTI LEVEL MARKETING BUSINESS COMPANY IN BANGLADESH. Multi-level Marketing is a business prospect that goes by many names – network marketing, direct selling, person-to person marketing, matrix marketing, binary marketing or one to one marketing. Network marketing often called Multi-Level Marketing is perhaps one of the least understood methods of moving products and/or services into the market place. It is a system whereby the company producing the product or service rewards the people who make word of mouth referrals. The people who operate as components in the chain are referred to by any of the following names – Members, Independent Salespeople, Network Marketers, Advisors, Agents, and Distributors – different schemes uses in different categories. Over the following decades, MLM has evolved and developed further into the wide array of companies, product ranges, reward plans and cultures that exist today. This unique, powerful system of free enterprise continues to grow, attracting more and more people to it. As we prepare to enter the twenty-first century, MLM has been so well-respected, so healthy, so attractive or so rewarding. In Bangladesh MLM Company is growing day by day because of increasing of demand throughout the country. MLM Company started its journey with the goal to create self-employment opportunities for millions of educated-unemployed youths of Bangladesh. BACKROUND HISTORY OF MLM COMPANIES: Exactly nobody knows when MLM business began, because it really evolved over a number of years, prior to World War II. Most observers agree that Nutrilite was the first true MLM Company. MLM Company Officially first introduced in 1940/41 By Dr. Carl Rehn Bourgh in America. First MLM Company is Calpurnia Vitamins Co. Then Neutrality Product incorporated (NPI).In 1958 it was treated as an international MLM concept with the opinion of American Parliamentarian along with the Traditional marketing Concept. At Present More Then 150+Countries and 15000+ companies are practicing This System all over the world.The Greatest Example is MALAYASIA, More Than thousand of Companies are practicing this system (2018). Direct Sales Act 1993 treated as an act of Malaysia Parliament and our neighboring country India has 3000+ running MLM companies. In Bangladesh since 1999 near about 75 MLM companies where we can explore to engage our employment. According to www.mlmbd.com there are 24 MLM companies actively found to be operating in Bangladesh. MLM BUSINESS SYSTEM: MLM system is the dynamic innovation in the world business arena. It is also a marketing system treated as the modern concept for the whole universe. Basically it is direct product Distribution marketing system without intermediation.It is Multi-level selling system among the Basic consumers using personal referrals. Consumers can be part of the products distribution system & can share profit.It is a strategy for selling products whereby independent salesmen are permitted to recruit other salesmen and to draw commissions from the sales of their recruits. COMMON SUBJECT OF CRITICISM: Multi-level marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of others they recruit, creating a down line of distributors and a hierarchy of multiple levels of compensation. Other terms for MLM include pyramid selling, network marketing and referral marketing. Most commonly, the salespeople are expected to sell products directly to consumers by means of relationship referrals and word of mouth marketing. Some people use “direct selling” as a name for MLM, although MLM is only one type of direct selling, which started centuries ago with peddling.MLM companies have been a frequent subject of criticism as well as the target of lawsuits. Furthermore, criticism has focused on their similarity to illegal pyramid schemes, price-fixing of products, high initial start-up costs, and emphasis on recruitment of lower-tiered salespeople over actual sales. Encouraging if not requiring salespeople to purchase and use the company’s products, potential exploitation of personal relationships, which are using as new sales, and recruiting targets. occasionally exaggerated compensation schemes, and cult-like techniques which some groups use to enhance their members’ enthusiasm and devotion. It’s ironic that people still mistakenly accuse MLM of being pyramid selling when it was actually the reputable MLM companies that first petitioned government authorities to have pyramid selling outlawed. It did not take long for legislation to be passed to rub out pyramid selling. Nevertheless, pyramid selling is not really a system or structure, despite its cunning name. It’s a mentality – an attitude –, which is very hard to legislate against. Consequently, many anti-pyramid laws also discriminate unintentionally against legitimate network marketing, “throwing the baby away from the bathwater.” MLM BUSINESS IN BANGLADESH. MLM is a recent activities and trend added to the business of Bangladesh. It is a concept used by many countries around the world with USA, Canada, Singapore, Malaysia, Taiwan, and India almost 55 years. In addition, it entered the Bangladesh in 1998 through GGN (Global Guardian Network). In Bangladesh since the marketing concept was latest in the MLM Company started to face with many difficulties from the beginning. However, many people misunderstood the concept, even by some of the government agencies. MLM not only operates as direct marketing channel but also it is being practiced by Multi-Level Marketing, Network Marketing, Direct Selling etc. The companies deal with, mainly falls into three categories – health and health related products; computers, information, and communication technology; and convenience and consumer products. On that line of selling near about 75 MLM companies in Bangladesh where we can explore to engage our employment. According to www.mlmbd.com, there are 24 MLM companies actively found to be operating in Bangladesh which changing their customers lifestyle and country’s economy. LEGAL OBLIGATIONS: The cabinet of Bangladesh Government approved proposals for a law to lead in the multi-level marketing (MLM) business in the country. According to the proposed MLM Control Act 2012, any person or organization has to obtain a license to run such businesses. The law has a provision for three to five years’ jail and a maximum of Tk 50 lakh fine for not having a license or forgery in business. Moreover, if anyone is found guilty of cheating people in the name of MLM business, he/she will be sentenced to one to five years in jail and will have to give those people double the money, which has been exchanged, in compensation. PAST ERROR IN MLM BUSINESS IN BANGLADESH: However, in some cases, Destiny-2000 Ltd, Uni Pay2 and others company before was performing in a way which does not match with its social image and those sectors need extra attention. It needs to maintain its accounts receivables and payables more consistently and accountability from the governmental Perspective. There marketing strategy is different of the other MLM companies in the world. There marketing strategy was not very strong and unique and they have inefficient and dishonest management system. They should ensure proper payment system through banking channel for the swift payment of their Distributors and should appoint additional distributor to fill the additional target market. Additionally they should ensure product availability & introduce more delivery sites all over the country and might consider re-adjusting with the local market price in order to gain local market share over the existing leader. The company need to capture the industrial project segment of the market is because right now it is one of the growing sectors where the MLM demand is high. Furthermore, It should conduct the different seminars with the efficient trainers, consultants and government officials in order to make them aware about the proper and genuine MLM Business.It should communicate with government to establish the principles and constitutions of MLM. They should develop effective and informative Websites to inform all information regarding Destiny Business. Moreover, Government has no specific focus on MLM in Destiny Business that is why people are non-reliable on Destiny Business. There are no specific rules and regulations regarding MLM from the government. This is the main obstacle. Companies like Unipay2u, destiny 2000 got away easily, due to the loop holes in the law. STRICT LAW APPLIED FOR DOING GENUINE MLM BUSINESS : After massive allegations of cheating people by companies, millions of Bangladeshis lost their hard-earned money to fraud companies. The Ministry of Commerce, Bangladesh, is all set to form a strict all in coming months. In future all companies will come under tough monitoring. The MLM companies should not be engaged in 21 types of businesses including those of land, flat, shops, office space, insurance, leasing, cooperative, trees and lotteries. If the license of a company is suspended and it is found operating business or engaged in sales of products, the government will freeze the company’s bank accounts as per the recommendation of the High Court. Sale of any imaginary product, tangible assets like trees, apartment, etc, any kind of bonus scheme, collection or disbursement of funds by installment or savings, lottery ticket selling, trading of gold/platinum/bronze are remarkable fields where the MLM companies would not be allowed to do business. Furthermore, the secretary will have power to suspend licenses of the MLM companies and halt their business if they are caught on charges of any wrongdoing. The MLM companies will be allowed to pursue businesses under electronic marketing, pyramid selling scheme, networking marketing, tele-marketing, door-to-door sale and mail order sale. If any company bypasses any provision of the act, they will be penalizing and the board of directors of the company will face a jail sentence. Additionally, the MLM companies also will have to be enlisted with the Registrar of Joint Stock Companies and Firms (RJSC) as like any other company in Bangladesh. RECOMANDATIONS FOR DOING MLM BUSINESS IN BANGLADESH: I would like to discuss several benefits why it is the high time to do MLM business in Bangladesh. Use these benefits to promote your MLM Program and to recruit anyone in your organization you may be successful in MLM business in Bangladesh. Network marketing will work any country where there are people, social environment, easy internet facilities and demand of good products. Now Bangladesh is Digital country so there is a very good prospect in direct selling business than before. It seems like multi-level marketing businesses are getting more popular than ever especially with the way our economy is going. They are the rage now on the internet sphere via social media. In fact, people who work from the comfort of their own home have taken by many multi level marketing businesses companies. Now there are various MLM companies with variants products doing business in Bangladesh. It is very easy for people to choose from them genuine one. They come in all shapes and sizes, with all kinds of compensation plans and support the people. Having a successful multi-level marketing business opportunity can give both money and make everyone’s dream become true. It is very exciting to know that you can begin internet marketing with a multi level marketing business opportunity and get great results. However, they require just as much hard work and commitment as any other business. If you are relatively new to this industry and concept, you might be a little skeptical and that fine. Here are some advantages to owning multi level marketing opportunities. Having successful multi, level marketing businesses can give you the money that you have always dreamed of having. They give you a fair advantage to a life of abundance that no other business modal can offer. CONCLUSION: If we are looking for great MLM companies, it is very important to choose which one we are really want to do work. Additionally, which one is sound better than other and must be aware though many of them sound too good to be true The social impacts on those in the industry has thrown up some attractive results in terms of the very positive attitude toward the direct selling industry held by members of the independent sales force. While most had seen an development in life style and in extra income, clearly the most compelling result were the way in which people believed they had benefited in more personal way. That they believed they had improved people and they were more confident, more motivated, better communicators and had developed new skills, particularly business and financial skills. This result has thrown new light on the business industry of Bangladesh. However, the social scenario and demographic characteristics of the members, distributors involved in the MLM practices. I believe numerous other predictors may also be important and opportunities available, motivations for involvement, economic impact of such practices on life style and on economy of Bangladesh as a whole. The profitability and the market tests of MLM Company is encouraging for the potential and present investors and it very attractive for the new comers who want to be launching MLM business in Bangladesh. I hope Network marketing and online marketing will be the future of trade and selling in Bangladesh and a great opportunity to take control of financial future.