Yes! It is illegal to do Network marketing in Nepal. If found so, action is taken by the concerned department as per Law.
But, Direct Selling is legal in Nepal.
Table of Contents
What is Network Marketing?
Network Marketing is the scientific, well-researched, and modern way of promoting. It gives an idea to sell a product without shop or Malls. So, it is also referred to as MLM (Multilevel Marketing) and SLM (Single-level Marketing). This industry completely destroys the concept of Traditional Business. Because direct Selling is a method to sell a product directly to consumers without any retailers and whole sellers.
In MLM, Company issues me a certain percentage of commission if someone accepts my offer to affix the company. At first, to connect with the company he should purchase the product. If he incorporates, from all the member who joins to the company as his offering, I will get a commission. After reaching a certain business volume, the company will gift you.
Is network marketing pyramid scheme ?
It’s like a tree diagram of what primary level students are studying in mathematics. He will be my downline If joins the company on my offering. Hence, He will call me upline. Thus the one who is at the top earns more money and the down one earns no penny at all. To earn the money, the man at down must make someone accept his recommendation. Otherwise, he can’t get the promotion. Network Marketing, MLM, and Pyramid Scheme are similar.
By saying – “This is a great opportunity, Your life will be the changed”, many uplines are offering their prospect. Also, some people even consider the one who offers them as a god in this industry.
Government is allowing to run Direct Selling Company because Nepal Government identifies Direct Selling and Network Marketing in Nepal as two different terms.
It may be because Authority is trying to overlap the history of Network Marketing in Nepal. Many foreign MLM companies had taken money from their agents/customers/IBA(Independent Business Associate). Due to certain conditions, firms were shut down. Now those leaders who ran away at that time are roaring back.
Present Condition of Network Marketing in Nepal
Well! running a network marketing company is illegal in Nepal. But there are some companies running in the name of “Direct Selling Company”. Companies like Iboss Global International, Nature Herbs International, New Bibek Enterprises, Healthy Living Nepal, Care Matters International e.t.c have licenses for operating this business. Iboss Global International is the first registered direct selling company in Nepal.
But some of them are international corporates. One associate of Iboss Global Life said -“As per law, Foreign companies should produce 50% product from Nepalese raw materials .” Registering company in the name of Nepali Person, some foreign companies are running MLM in Nepal. They are re-branding Indian items and selling them. This is the condition of Network Marketing in Nepal.
Legal companies running network marketing in Nepal
- Iboss Global International
- Healthy Living Nepal
- Care Matters International
- Nature Herbs International
- New Bibek Interprises
Should you join, if someone is offering you to join MLM or Direct Selling?
Dr. Vivek Bindra said I will request my son to join the Direct Selling Industry because from here we can learn patience, knowledge, and art to respect. He is the founder of Bada Business and the best motivator. He said, “”. We can get ideas to run other businesses too because we can meet business persons with a great personality there.
If you are thinking to take a step toward the Direct selling Industry, join the company with quality products.
As a result whole team will fail, If your uplines are just talking about income and income. A company selling the products that we use in our daily life will be successful. If the company and uplines are just talking about profit and profit, the company will not go any longer. So think and choose the best company before joining.
Pros of Joining Direct Selling/ Network Marketing Industry in Nepal
- Leadership Development.
- There will be development in personality, personal development, and increase in knowledge.
- Also, you will have chance to get ideas from business persons.
- If you become successful, you will have large earnings.
- High Acquaintance (Contacts) with peoples.
- Respect in Direct Selling Industry.
- You can get free life-changing seminars.
- Even it may change you totally because of above special features of MLM industry.
Cons of Joining Direct Selling Industry in Nepal
- If you became unsuccessful, You can’t get back your time.
- Low income at the beginning.
- You may have many friends but believe me, everyone will reject your offer. You are going to face struggle in the initial time.
- Even, You may lose your friends and relatives.
- To be successful, you may have to wait for a long time because recruting peoples need time.
- Any decision of the company will impact you directly.
- If the company flops, you may have to start again with another one.
Also read, Top 10 business ideas in Nepal 2021