HISTORY OF NETWORK MARKETING

Summary

In this video, Kamlesh Verma Desai dives into the history and growth of network marketing, explaining its origins and how it evolved into a global industry. He highlights key companies like Amway and Forever Living, tracing their success in India and worldwide. The video covers both the challenges faced by the industry, such as scams and resistance in India, and the steps taken to regulate the market. Desai emphasizes the vast potential for individuals involved in network marketing, offering a perspective on the growth of this sector in India and beyond, with a future projection of massive expansion.

Takeaways

• 😀 Network marketing is an important industry for personal growth and success in life, requiring knowledge and understanding of its history.
• 😀 The story of network marketing began in 1934, starting with a person who sold a product called Nutrilite, which was recommended through word of mouth, leading to growth.
• 😀 The concept of rewarding people for referring others to purchase products started with Nutrilite, which set the foundation for modern network marketing.
• 😀 Amway, founded in 1959, was one of the first major network marketing companies that expanded the industry globally, offering useful products.
• 😀 Forever Living Products, founded in 1978, introduced aloe vera-based products and has expanded significantly over time with over 62 products today.
• 😀 Network marketing in India began in 1990, with Amway being the first company to introduce the concept, followed by rapid growth.
• 😀 In India, the early struggles of network marketing included skepticism due to the applicability of foreign products, which weren’t suited for the Indian market.
• 😀 Network marketing faced a lot of fraud and scams in its early stages, as some people started misleading others with false promises of quick wealth.
• 😀 In 2018, the Indian government introduced guidelines through the India Direct Selling Association (IDSA) to regulate and eliminate fraudulent practices.
• 😀 The network marketing industry in India is booming, with a projected turnover of 65,000 crores by 2025, showcasing massive growth and opportunities.
• 😀 Forever Living Products, which has been in India for over 23 years, continues to grow and is now a key player in the network marketing industry, offering legal and sustainable business opportunities.

Q & A

What is the primary focus of this video?

The primary focus of this video is to introduce viewers to the world of network marketing, its history, the growth of the industry, and the opportunities it provides, particularly focusing on Forever Living and Amway in India.

What is the significance of understanding network marketing according to Kamlesh Verma?

Kamlesh Verma emphasizes that understanding network marketing is crucial for long-term success in life, as it can help individuals grow their business and knowledge in a meaningful way.

How did network marketing begin, according to the speaker?

Network marketing began when a person started a shop selling various products, including Nutrilite. Customers recommended the product to others, which led to increased sales through word of mouth. This created the foundation for the network marketing industry.

When did Amway start operating, and how did it influence the network marketing industry?

Amway started in 1959 and played a major role in the growth of network marketing globally. Its success helped establish the legitimacy and potential of the direct selling industry.

What is Forever Living's role in network marketing?

Forever Living began operations in 1978, focusing on aloe vera-based products. It is one of the prominent companies in the network marketing space and continues to thrive with over 62 products available globally.

What was the situation of network marketing in India when it first began?

Network marketing officially started in India in 1990 with Amway. The industry quickly grew, but there were challenges due to the products not always being suitable for the local market.

What were some challenges faced by network marketing in India?

Some of the challenges included the mismatch of foreign products to Indian needs, such as car wash products, which were not relevant to the local market. Additionally, fraudulent schemes also plagued the early stages of the industry.

How did fraudulent activities impact the network marketing industry in India?

Fraudulent schemes emerged when some individuals exploited the system by convincing others to invest money without offering real value. This led to negative perceptions and scams in the network marketing industry.

What measures were taken to combat fraud in network marketing in India?

In 2018, India introduced regulations to address scams in the network marketing industry. The government also created the India Direct Selling Association (IDSA), which helped enforce legal standards and guidelines for companies operating in this sector.

What is the expected future growth of network marketing in India?

According to the speaker, the network marketing industry in India is expected to reach a turnover of ₹65,000 crores by 2025, up from ₹18,000 crores in 2023, showing substantial growth.