How to Start MLM Business in India?

Are you thinking of establishing your own MLM company in India after gaining adequate experience in one? If yes, you need to consider a few very important things here for the same.

MLM or Multi-Level Marketing is a great choice for start-ups looking for opportunity to earn extra income. You can get MLM Software demo to understand software working process.


General Guidelines


•    MLM business is a great opportunity as it presents future earning prospects with a very low start-up cost.

•    To establish this business, it doesn’t require any specific qualifications, or age limit. However, industry knowledge, skills, experience and the performance of  owner make difference when it comes to the growth.

•    Further, the product range and compensation plans attract customers towards this business.

•    Targets you set determines the time needed for the business and whether you are just considering it as a start-up business or taking it very seriously.

•    Starting your own MLM business and working as a distributor in one, where you are thinking about the performance of your downline are two different challenges.

The MLM Business Plan and Structure

Starting a MLM business is challenging. When it comes to multi-level marketing, your top priority should be to focus on the structure of your MLM.

The structure of your MLM business will define how your business would operate, what will be the major products and their promotional strategies, how to attract and build the network, the right payment methods and how to offer support to each network member. Moreover, the base of any such company is the plan on which it works since there are many types of plans available out there and selecting the best compensation plan is an important decision. These plans can be matrix, binary, forced matrix, uni-level, single leg, board plan, investment plan, etc.

While you might be confident enough to take everything smoothly on your own, experts suggest to hire a consultant or seek advice from professionals to help you in this matter.

Preparing for the MLM Business

The foremost thing when it comes to preparing for MLM start-up is having a real product (s) or service to offer. Here, a real product means a thing of utility that you have developed or discovered, and hold a patent, significantly. This could be something with great potential and holds importance for the customers.
For this, you need to do thorough research to understand the market trend and customer needs and determine the right type of product to sell or promote for your MLM business. If you want to take an easier alternative, you can start an MLM company for a manufacturer of a product or service that is in a need of good marketing.

Need for a MLM Software demo

Once you are ready with the structure and action plan, the next thing you will need that plays a crucial role is having a reliable MLM Software to manage and control your MLM  business. Reliable MLM software can help such business owners by offering them a good platform for promotion and make their work easy by giving complete control of the business. These software offers services like recruiting, payouts, report generation, timely calculation, and much more.

In order to get your software developed, look for established developers with good track records and partnered with renowned companies. Renowned MLM Software companies have their own strengths and weaknesses. Research well about a few top choices and determine the best that suits your needs. A majority of software providers also provide design solutions for the MLM start-ups with web-based software support that can evolve to licensed onsite technology as the business grows.

Law for setting up Multi Level Marketing Company in India

There are no specific law for MLM companies in India, though it was proposed in Indian Parliament in 2005 but not yet recognised as a law till date. But there are certain guidelines and rules that need to be followed to make your business legal.


  • It should not be only money involved investment return format that falls in PCMC Act alias Prize Chit and Money Circulation abandoning Act 1978. Also, it should be a feasible Product selling Business Model.
  • Moreover, it should not be only a head count commission Model falling in Pyramid Scheme which is banned in India. It covers MRTP Act alias Money Rotation Trade Practice Banning ACT 1969.


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