• Mukesh Kumar Yadav Research Scholar, RU Ranchi


Network Marketing, Relationship


The Network Marketing, first popularized by Amway, in 1950s in USA is gaining momentum in India. The total turnover of network marketing companies in India was estimated at Rs 27650crores in 2021 with an annual growth rate of 22% .The India Direct Selling Association (IDSA) has  projected that  the network marketing industry will be around Rs 64500 crores by 2025. Studies have shown that consumers often have negative perception of direct selling organisations and network marketing organisations in particular. The aggressive selling techniques, exaggerations of facts in recruiting, pyramiding scams and unethical way of exploiting relationships all together form a basis for this negative perception.  The paper presents the exploitation of Relationships viz friends, relatives and colleagues and attitude of channel members in network marketing.


I. Abraham Samuel, “A million dreams” The Week, Volume 24, No 50. November 12, 2006, 24 – 36. Bloch, B. (1996), “Multilevel marketing: What’s the catch?” Journal of Consumer Marketing, 13(4), 18-26. Cheung, J.P.L. (1993), Multi-level Marketing in Hong Kong: A Unique Direct Marketing Strategy, MBA thesis, The University of Hong Kong, Hong Kong.

II. Coughlan, A.T. & Grayson, K. (1998), “Network marketing organizations: Compensation plans, retail network growth, and profitability,” International Journal of Research in Marketing, 15, 401-426.

III. Direct Selling (2021), A discussion paper presented by the World Federation of Direct Selling Associations,

IV. Kustin, R.A. & Jones, R.A. (1995), “Research note: A study of perceptions in Australia,” International Marketing Review, 12(6), 60-67.

V. Multilevel Marketing (2000), A discussion paper presented by the World Federation of Direct Selling Associations,

VI. Peterson, R.A. & Wotruba, T.R. (1996), “What is direct selling? Definition, perspectives, and research agenda,” The Journal of Personal Selling & Sales Management, 16(4), 1-8.

VII. Poon, Antony K.Y.(2003), “Network Marketing – Recriutment and Training and the Industrial Ban In China: A Review of Literature.” DBA research paper 1, The University on South Australia.

VIII. Raymond, M.A. & Tanner, J.F., Jr. (1994), “Maintaining customer relationships in direct sales: Stimulating repeat purchase behavior,” Journal of Personal Selling & Sales Management, 14(3).

Additional Files



How to Cite

Mukesh Kumar Yadav. (2023). NETWORK MARKETING:IGNORE RELATIONSHIP -ITS REALITY. International Education and Research Journal (IERJ), 9(5). Retrieved from