is MLM legal In Nepal?

Is MLM legal in Nepal?-Latest Update 2022-MLM In Nepal






MLM(Multi-level marketing )is also commonly known as a pyramid scheme, network marketing, and referral marketing. Multi-level marketing is a broad term given to marketing in its literal sense, which is done through a distribution network such as a pyramid scheme or direct sales scheme.MLMs have been around for years, and popular MLMs include Amway, Market America, Herbalife, Avon Products Inc. . If you do not know what MLM is, click on the link below to know more.



What is MLM?


Is MLM  legal in Nepal?



No, MLM has not been legally recognized in Nepal yet. But direct sales business is legal in Nepal. The Parliament of Nepal has passed the Direct Sales Network Bill 2074 and it has become legal in Nepal. Direct selling business is permitted as per Direct Sales Network Bill 2074 in Nepal. But, all Direct Selling businesses that come under the purview of the Price Chits Money Circulation Scheme is illegal in Nepal.


MLM is illegal in Nepal



Why MLM is not legal in Nepal?



It has been found that the majority of people who join MLMs make little or no money. A study has shown that maximum people in MLM lose money. (Federal Trade Commission)FTC found that 99% of MLM associates lose money because sponsors or people who join MLM earn from their own sales of every one of their network chains, and their recruits, and so on, those at the top can earn a profit but not all. If there is no sustainable sales and growth of team MLM affiliates can not make money, they will not get a penny.








Hundreds of Nepalese have fallen victim to the pyramid scheme in recent years. Maximum MLM Company aims to target lower-class people, students, housewives, etc., and make them their distributor, brand promoter.MLM companies claim to give you many things like freedom of time, financial freedom, etc. but no one can get these things from MLM.



MLM business example figure


Joining a fake pyramid scheme or MLM is not only a bad career option but it is also a waste of time, money, and reputation. To protect consumers from counterfeit products of MLM companies and counterfeit schemes /Pyramid schemes MLM is illegal in Nepal.



You can watch the following video on “Multi-Level Marketing (MLM) Scams In Nepal | Truth Behind Network Marketing Business” to learn more about why MLM is not the right choice. This video is made by Swagat Gyawali, do not forget to subscribe to him. He is one of the best Nepali content creators.


What are the advantages of MLM company?



Everything in this world has its ups and downs. Even if you can’t make enough money through MLM companies, you can learn a lot of skills through a good MLM company. Here the good refers to a legitimate MLM company. Some advantages of MLM are as follow:



1. Growth in leadership skill

2. Growth in communication skills/prospecting skills

3. Low start-up cost

4. Flexible working schedule

5. Mentorship from the upline

6. MLM helps you to understand marketing concepts etc…





 Disadvantages of MLM company:


MLM companies have more disadvantages than advantages:


-Waste of Time

-Waste of Money

-Low income

-Low growth rate

-Rejection and discouragement

-Threaten of scam etc…



Are all direct sales MLMs?


Direct sales business and MLMs are not the same things. But they have some similarities. Independent distributors sell the company’s services and products directly to end customers in the direct sales business. Independent distributors sell the company’s goods and services to customers and also make money by hiring another distributor on their downline in the MLM company.



In a direct sales company, you can’t make money by hiring new distributors but you can make money in an MLMs company.


how to make money online example

If you want to make money online then Timebucks is a great option. Timebucks is a small freelancing site where you can make money with a 100% guarantee. Instead of wasting your time in a fake MLM company join Timebucks and earn money now. You will receive 1.000$ bonus if you join from the given link. You can withdraw money through time bucks every Thursday.


Note: Withdrawal threshold:10$.

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You can watch the following video, where Dr.Vivek Bindra has given his thought on MLM business. Dr.Vivek Bindra is founder and CEO of Badabusiness, famous business coach and Motivational
Speaker. If you are working for an MLM company or are planning to join an MLM company, make sure you join a legitimate company. Read the following articles to learn more about the MLM business.


Why is Network Marketing/MLM Is The Right Choice?


Should Students Join An MLM Company Or Not?


MLM Concept








A legitimate MLM offers opportunities for everyone to start a business with low risk and low cost. MLM utilizes a fair and Win-Win Marketing Plan; as your downlines get promoted, you will enjoy better rewards. However, it is most important that you choose a legitimate MLM company.




MLM is not yet legal in Nepal, but there are some legally recognized direct selling companies where you can work. Make sure you join a legitimate or legally recognized direct selling company.



However, in my personal opinion, MLM is not a good career option. If you really want to join an MLM company it is all up to you but don’t rely on MLM business to run your life. It’s like finding water in the desert.


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