Direct selling is the fastest growing business industry right now. It is a business that is said to have low risks and creates revenue based on the amount of effort put in the business. Direct selling is defined as an A type of sale that implies direct contact with a buyer without any third parties. This is an effective way to increase revenue.
Direct selling is one of the oldest ways of marketing and has been present amidst us for a very long time. In India, however, direct selling has been seeing a lot of limelight for all the wrong reasons. People have a notion that direct selling has to do something with a Ponzi/Pyramid scheme or a chit fund scam. People started referring to companies that are involved in direct selling as frauds.
QNET was amidst some controversies when people believed a deceiving con than the company. QNET went through some troubling times even though it did not do anything illegal, and has always done its business proceedings legally. QNET’s employees and distributors were harassed because of all the unwanted drama that unfolded because of one guy who could not understand what it takes to run a business.
Introduction to IDSA
IDSA also known as The Indian Direct Selling Association was formed in the year 1996 on November 1st. The Indian Direct Selling Association, IDSA, is an autonomous, self-regulatory body for the direct selling industry in India. The Association acts as an interface between the industry and policy-making bodies of the Government facilitating the cause of Direct Selling Industry in India.
The Indian Direct Selling Association manages and becomes the link between the direct selling industries and the government. When government renewed the laws of direct selling in India, the IDSA played a major role. IDSA works closely with the government to enhance the working efficiency and the clarity, credibility and confidence in the direct selling business.
What is IDSA
IDSA is a major leap in the areas of maintaining regulations when it comes to direct selling. It is not a government-run body, but a medium for the direct sellers to reach out to the government. IDSA can be termed as the guiding line for the direct selling companies of India. Some of the direct selling guidelines of India state that:
1.All direct selling companies in India shall submit an undertaking to the department of the consumer affairs within 90 days from 12th September 2016.
2.A direct seller cannot receive remuneration or incentive for the recruitment/enrolment of new participants.
3.Direct sellers can only receive remuneration derived from the sale of goods or services
4.Direct seller shall carry its identity card and not visit the customers premises without prior intimation/approval.
5.Direct selling company cannot force its direct sellers to purchase more goods or service than they can expect to consume or sell.
6.Direct selling company cannot demand any entry fee/registration fee.
7.Company must provide every participant written contracts describing the material terms (buy back, re-purchase policy, cooling period, warranty and refund policy.
8.Mandatory orientation session with accurate information for the newly recruited direct selling agents
9.There shall be prohibition of the pyramid scheme and the money circulation scheme.
10.There shall be a monitoring authority to deal with the issues related to the direct selling.
All these guidelines were given by the Indian government in coalition with the The Indian Direct Selling Association. These regulations have come forth for the betterment of the direct selling society of India. A large number of our population is a part of direct selling. As we know, direct selling is the only business that provides the liberty to work after you technically retire, according to the government.
There are different guidelines of direct selling for different states in India. You can read about the government approved guidelines of your state on the IDSA website.
Direct selling is a labour-intensive industry and has a positive socio-economic impact in terms of higher employment, women empowerment and skill development. Reports show that the socio-economic impact of direct selling sector in India is focusing on how the benefits can be leveraged through appropriate policies. Having a large part of the population employed and earning, it helps in the growth of the GDP of the country.
