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Following a series of controversies embroiling the ₹7,000-crore direct selling market in India, consumer goods major Hindustan Unilever (HUL) is re-looking into the strategy of its network marketing division Hindustan Unilever Network. What makes ACN an intriguing sales opportunity is that the company offers services that people are already using. As the legal counsel for ACN often says, “We know that there is bad press on the internet about us. The other way that ACN makes money is with the buy-in process that new IBOs must use to get started as a sales representative. One interesting point in the ACN business model is that cold marketing techniques are not allowed. As with an MLM opportunity, making money can be difficult and it requires the building of a downstream to be effective. MORE ABOUT BRANDONAfter being physically and mentally disabled by a brain tumor, Brandon overcame the odds to regain his health to help his pregnant wife in her fight against stage 3 breast cancer. They had a legal pad, ideas, and a mutual dissatisfaction of the direct sales experiences that were available in the jobs market at the time. Independent sales agents, patterned after the Amway business model, are called Independent Business Owners [IBOs]. Many of the services can be switched to ACN effortlessly and customers save money because of it.
There is the traditional downstream where residual income is earned by salespeople that have been directly recruited to a person’s team.


We just choose to ignore it.” The bad press originates from two incidents that occurred in Montana and Pennsylvania respectively.
Slamming refers to the changing of a customer’s utility without their explicit permission to do so. This limits IBOs to selling services to personal acquaintances or increasing their downstream. The ACN business model may not be for everyone, but it has helped the company to build an effective international presence.
Gaille is one of the top business bloggers in the world, and he has founded several multi-million dollar companies. Together they determined that their new company should be able to correct the mistakes that all four had encountered in previous positions.
Instead of selling laundry soap and makeup, however, ACN representatives are selling telecommunications services, television services, and even energy to the customer base. Salespeople also earn a portion of the utility bills that they have contracted with customers as long as the customer stays signed up with ACN.
In Montana, a Cease and Desist order was issued against ACN because of what was deemed to be a pyramid scheme structure.
Natural gas, electricity, landline phones, and several other services all fall into the categories that ACN manages. Direct selling refers to a business model where sales personnel engage in network marketing, direct selling or referral marketing.


Customers don’t change their buying habits, get the high speed internet, VoIP, and phone services that are needed, and everybody wins.
After investigation, however, Montana discovered it was an isolated incident of local IBOs acting inappropriately. They make money from the energy that is used and share a portion of those profits with sales representatives. HUL Chairman Harish Manwani, in the company’s annual report for 2013-14, said that the year has been extremely challenging for the direct selling industry, including HUL, due to ambiguity on acceptable norms for direct selling in India. There are also regular ACN training events that cost more than $100 to attend, plus expenses, that IBOs are strongly encouraged to attend.
In 2011, HUL had made some changes in the compensation plan by removing the entry fee and the renewal fee for its members or sales representatives, making it easy for them to bring business. According to Chavi Hemant, General Secretary of Indian Direct Selling Association, a body representing the direct selling companies, the PCMC Act is a major hurdle for the industry and should be amended at the earliest. Last year, another US headquartered brand Mary Kay had quit India citing regulatory concerns and poor sales.



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