MLM is a business model that supports making money in two ways: selling the product and bringing in new sellers. It has become a significant source of additional income for working individuals and a mainstream source of income for those who are fully unemployed.
India has embraced multiple business models and opportunities since time immemorial. Recently, India became the 4th largest economy in the world. This has become possible only because of our ability to accept different opportunities.
In 2023, the sales volume was $3.4 billion, which is a great number.
Today, we will talk about the best E-commerce MLM companies in India and their associated benefits.
What is an MLM company?
An MLM or Multi-level Marketing company is a model that sells products through non-salaried staff. It is also known as network marketing, as individuals make money by recruiting others and by selling their products. The recruits have to sell products and hire more people for the same.
Benefits of building a link between MLM and e-commerce
Before talking about the benefits of building a link between e-commerce and MLM, let’s understand what e-commerce and MLM are. E-commerce MLM means the amalgamation of online sales and purchases with network marketing.
Let’s see the benefits of creating a link between e-commerce and Multi-level marketing-
- A wider audience to sell products
- Better customer experience
- Operational cost gets reduced
- Tools or platforms to manage teams
- Lesser need to maintain inventory
Factors to Consider before joining an E-commerce MLM Company
If you are planning to join a Multi-level marketing company in India, don’t invest recklessly in any company you want. Instead, check if they are:
- Selling a product (most important)
- Overall earnings
- Involved in money circulation, if that’s the case, don’t join that company
- Duration
- Business structure
- Success rate of MLM distributors
- Prices of stocks and other related details
- Board of Directors
- Unique Selling Proposition (USP)
If something looks fishy, then refrain from joining that MLM company.
How can we start E-commerce MLM companies in India?
Starting E-commerce MLM Companies in India is a laborious task. Here are the steps for the same-
- Start with a business plan, which involves setting goals and a good amount of market research.
- Plan your finances, delineate your niche based on your interest, and choose your product line wisely.
- After deciding on your product, develop the product or service, along with that, curate a detailed plan.
- Make sure you have developed a clear compensation plan for distributors.
- Now, get your company registered and obtain the required licenses.
- The next step is to build an e-commerce platform, which needs to be user-friendly and easy to navigate.
- Get a marketing plan and start recruiting accordingly.
- Trace numbers using the right tools.
Pro Tip: How to register with E-commerce MLM Companies in India?
- You will have to register your company as a private company or LLP.
- The next step is to get name approval from the Ministry of Corporate Affairs.
- Understand the laws that include taxation, consumer and distributor protection and other rules.
- Be clear with your business model and define it clearly in the Articles of Association (AOA) and Memorandum of Association (MOA).
- Get all the important licenses required for selling and manufacturing.
- It is advisable to join the Indian Direct Selling Association for recognition and other guidelines.
Now let’s check out some of the best e-commerce MLM companies in India.
Top 16 e-commerce MLM companies in India
✔️ Health and Wellness E-commerce MLM Companies in India
1. Amway India
Undoubtedly, Amway is one of the best e-commerce MLM companies in India. The company was established in 1959 and is successfully functioning in more than 100 countries.
The annual revenue of the company is $8 billion.
- Products
Personal care, nutritional supplements, skincare and homecare products
- Starter Investment Kit
The $62 starter kit and optional kit will cost you around $99, and a yearly subscription will cost you around $35.
- Rating
4.1/ 5
- Compensation plan
You can earn money through bonuses, retail margin, and direct distribution income.
2. Young Living
Young Living is one of the fastest-growing network marketing company in India. Originally, the company was started in Lehi, USA, in 1994.
The company is known for its pure products and fine treatment of employees. Currently, they are operating in 150+ countries.
- Product
Wellness supplements, essential oils, and personal care products
- Starter Investment Kit
A retail kit would cost you around $40- $165
- Rating
3.6/ 5
- Compensation plan
You can make money through retail profits and an early bonus for sales and recruitment. The main focus is on recruiting more members. Earning is allowed up to 8 downline members.
3. Forever Living Products
In recent years, Forever Living has been doing well in our country. It was originally founded in Arizona, US. It has more than 4500 employees and its annual income is $4 billion.
- Product
The company deals in aloe vera-based natural skincare products.
- Starter Investment Kit
It would cost you around $100
- Rating
3.7/ 5
- Compensation plan
Earn money through retail profits and bonuses for group or collective sales.
You can also get a leadership bonus if your team performs well.
4. Vestige
Vestige Marketing was established in 2004 and is currently dealing with more than 350 products, which are halal certified.
The company has received several awards, like the Lifetime Achievement Award at the Direct Business National Entrepreneurship Summit& Awards
- Product
Health supplements, home care products, and personal care and beauty products
- Starter Investment Kit
The starter kit would cost you around $15.
- Rating
4.2/5
- Compensation plan
- Retail profits
- Bonus for good performance
- Commission for bringing recruits
5. Herbalife
Herbalife was established in 1980. The company has an annual income of more than $5 billion.
They have a strong customer base in 90 countries and are actively involved in sponsoring activities in different competitions. Their products are loved by the Indian audience, which makes it one of the finest e-commerce MLM companies in India.
- Product
Protein bars, nutritional supplements, and skincare products
- Rating
3.6/ 5
Compensation Plan
- Retail Profits
- Wholesale Profits
- Royalty Overrides
- Other Incentives
✔️ Beauty Products E-commerce MLM Companies in India
1. Oriflame
A Sweden-based Multi-level marketing company founded in 1967 is currently operating in 60 countries. Oriflame is known for selling quality products at affordable prices.
- Product
Beauty and skincare products, fragrances, and diet supplements
- Starter Investment Kit
It would cost you around $50.
- Rating
4/ 5
- Compensation plan
You can make money through retail profits and performance-based bonuses.
2. Mary Kay
Mary Kay is one of the leading e-commerce MLM companies in the world. They are known for delivering quality, but their prices are quite high in India. But if you don’t mind spending on quality products, then you cannot go wrong with this brand.
- Products
Fragrances, beauty, skincare and body care products
- Starter Investment Kit
You can get their starter kit for $100.
- Rating
3.9/ 5
- Compensation plan
The best part about the compensation plan is that you get 50% of the sales amount.
3. Avon Products
Avon has become a household name, and I don’t think you haven’t heard about their products. Avon has marked a strong presence in the market. Over the years, they managed to earn customer loyalty with their quality products and won’t be exaggerating by calling it one of the best E-commerce MLM companies in India as well.
The company is currently operating in more than 143 countries.
- Product
Women’s beauty and skincare products
- Starter Investment Kit
Average cost- $100
- Rating
3.9/ 5
- Compensation Plan
You can make money through commissions, where you will receive a percentage of sales.
4. Nu Skin
Last but not least, Nu Skin is one of the most amazing e-commerce MLM companies in India. It was founded in 1984 in America and is currently operating successfully in more than 50 countries.
They are known for high-quality products and sustainable innovations.
- Products
Skincare and anti-ageing products, nutritional supplements
- Starter Investment Kit
It would cost you around $100
- Rating
3.4/ 5
- Compensation Plan
Not much information is available on this.
✔️ FMCG E-commerce MLM Companies in India
1. RCM
The company was founded in 2000, and after 2 decades, it holds a great position in the market.
The vision of the company was to provide employment opportunities to people who are looking for ways to make money. This is an Indian company that has more than 10 million business associates at present.
- Product
FMCG Products, garments, cosmetics and home appliances
- Starter Investment Kit
It would cost you around $50.
- Rating
4.2/ 5
- Compensation Plan
- Retail sales
- Commission for bringing recruits
Read More: How to Start an FMCG Business – A Step-by-Step Guide
2. Modicare
Modicare is another gem in the Multi-level marketing business from India. The company was established in 1996 and is the first direct selling Indian company.
The company is counted among the top 100 best small and medium workplaces in Asia in 2021 and 2022.
The company deals in more than 300 products from 12 different categories.
- Product
Food and beverages, skincare, home accessories and personal care
- Starter Investment Kit
It would cost you around $50
- Rating
3.9/ 5
- Compensation Plan
They consider team building, retail sales and overall performance for bonuses and other incentives.
3. Parinam Healthcare Pvt Ltd
Parinam Healthcare, being one of the youngest e-commerce MLM companies in India, is no less than older companies. The company was born in 2011 and has built a great reputation over the years.
Their products are affordable and serve the purpose well. The company has constantly received positive reviews from users.
- Product
FMCG Products, juices, health supplements, and Ayurvedic medicines
- Starter Investment Kit
Information Not Available
- Rating
4.5/5
- Compensation Plan
Information not available
✔️ Other E-commerce MLM Companies in India
1. Tupperware
Mom’s favourite! Tupperware is known for selling high-quality containers and kitchen utensils. The company entered India two decades ago and has become a household name.
The company is operating in 80+ countries with a vision of empowering women by providing them with employment opportunities. Their products are eco-friendly and durable.
- Product
- Kitchen utensils
- Containers
- Water Bottles
- Starter Investment Kit
It would cost you around $119- $220
- Rating
3.8/ 5
- Compensation Plan
- Commission on product sales
- Bonuses and awards based on performance
2. Barefoot Books
The company was founded in 1992 in Cambridge and is known for selling books. Unlike other companies, their prime product is a book of different genres.
They started with an aim of inculcating the habit of reading among children. If you are a parent, please go for this company.
- Rating
3.9/ 5
- Compensation Plan
They do not offer individual selling, but if you are a retailer, you will receive 50% off MSRP along with other offers.
3. Netsurf Network
It was founded in 2000 and currently deals in 57 products. At present, it has a base of 2.5 million customers, and it focuses on making money through direct selling.
Their products are natural and are designed for health-sensitive individuals.
- Product
Agriculture, home care, health care, and personal care
- Starter Investment Kit
It would cost you around $40-$50.
- Rating
4/ 5
- Compensation Plan
- Direct Sales
- Performance-based bonuses
- Incentives for recruitment
4. doTERRA
This company is known for sustainability and high-quality products. It was founded in 2008. The company is actively involved in charitable activities.
The only drawback is that you cannot join this company for free. You have to pay $35 as a joining fee along with the starter kit.
- Product
Essential Oils
- Starter Investment Kit
It would cost you around $150-$750
- Rating
3.3/ 5
- Compensation Plan
- Fast Start Bonus
- Retail Profit Incentives
- Leadership Performance Awards
MLM Companies that are banned in India
One thing you need to understand is that India has not imposed outright bans on certain companies, but certain models are illegal in India, which include:
- Pyramid Schemes
The main purpose of such schemes is to recruit people and not to sell products. It is the Prize Chit and Money Circulation Act, 1978, as this practice includes money circulation in disguise.
- Money Circulation Schemes
Any sort of money circulation practice is banned in India. If you come across any such activity, please report that company and don’t invest your efforts and money in such things.
Due to such practices, there came a time when people started doubting the credibility of MLM companies.
As an individual, you need to be aware when associating yourself with any company.
Future of E-commerce MLM companies in India
The E-commerce market is booming, which makes a great space for e-commerce MLM companies in India. Big players are ruling the market, but that is the case in every business. You have to deal with competitors.
But don’t forget India has a population of 1.46 billion, and by producing a quality product and following the right marketing strategy, you can always set yourself apart.
With the growth of technology, you can always find innovative ways to promote your product. From AI to Virtual reality, you can use these technologies for improved and up-to-date marketing.
India enjoys the Internet at affordable prices, which is why people are shifting to online shopping. This is like getting a tilled ground for e-commerce and MLM companies in India.
Conclusion
The integration of MLM and e-commerce has created a haven for budding entrepreneurs. These companies, when they started, were not as big as they are today.
If you are interested in starting an E-commerce MLM company in India, it would cost you around $50,000- $150,000. So, before starting to walk on thin ice, make sure to consider the repercussions along with the profits.
Remember-
Success is not final, failure is not fatal: it is the courage to start that matters.
(Modified version of Winston Churchill’s words)
Also, let us know which company you like the most?
FAQs
Q1- Is direct selling a part of a pyramid scheme?
No, direct selling is not a part of a pyramid scheme. It is legal in India. The whole concept of MLM is based on direct selling. It is recognised by the Federal Trade Commission.
Q2- What is an MLM compensation plan?
A compensation plan refers to the earning model of distributors. It is a detailed plan about how sellers will earn commission and other rewards for personal as well as team performance.
Q3- Is MLM a scam?
No, it is not a scam. Initially, people perceived it as a scam as the model was new, and some companies resorted to fraud.
Q4- Which is India’s fastest-growing MLM company?
Amway is the fastest-growing company in India, as well as globally. The products are top-notch.
