RCM Business Plan: In today’s article, we will give information about an Indian direct selling company. Which has been working in India for the last 2 decades, and has emerged from many highs and lows.
The full form of RCM is Right Concept Of Marketing, which comes under Fashion Suitings Private Limited and it is registered under MCA in April, 1988 from RoC-Jaipur, Rajasthan.
RCM started its MLM plan in the year 2000, which is going on even today.
Karun Jain Cachar and Tilok Chand Chhabra are the present Directors of this company and its office is at Bhilwara, Rajasthan.
RCM Company is a founder member of FDSA established in 2011. There are currently around 25 direct selling companies in the FDSA Member List, in which My Recharge, Mi Lifestyle, Ok Life Care, and AWPL are big names.
RCM Vs Rajasthan State Government
In the first decade of its inception, RCM was developing very well. But at the end of 2011, RCM suffered a major loss.
In Rajasthan itself, a company called Gold Sukh had done a scam of more than 200 crores with 1.5 lakh people. Which promised to return 1.5 times the money in 18 months.
Due to this, another MLM company in Rajasthan was also raided and RCM was closed in December 2011.
At that time the government did not have a solid guideline to differentiate between the right direct selling company and the pyramid scheme, due to which RCM had to bear this loss.
The RCM promoter again supported the company for the next 10 months and in the meantime held dharnas in Delhi and Jaipur to start the company again.
Finally, in October 2012, the Rajasthan State Direct Selling Guidelines were released by the Ashok Gehlot government and RCM started again.
Very few companies are able to do that, challenge our system, and succeed.
In today’s time, RCM is one of the legal direct selling companies present in India.
RCM Business Plan
RCM is a product based direct selling company. Like any other MLM company, any person can join RCM as a direct seller.
RCM Direct Seller has to do 2 main tasks,
1. Product purchase
Buying a product is very important after joining RCM. Only after purchasing a product of Rs 1,000, the title of the sponsor is received and further MLM plans can be worked on.
Apart from this, the direct seller gets the product at a lower price than the MRP at the DP. Accordingly, the direct seller can earn retail profit by further selling the product at MRP.
Retail Profit = MRP – DP
Another important job that RCM Direct Seller has to do is recruitment. Under this, the direct seller will have to add other people like himself to his downline from RCM as a direct seller.
With this, those who buy the product in the downline, some percentage of the profit will also be given to the up-line.
Remember, you don’t get money for adding people. Rather, when people related to you buy some products, then according to the income plan, you will get profit.
RCM Income Plan
Now we will give you information about RCM Company’s Income Plan i.e. RCM Compensation Plan. In which you will get to know, how RCM gives money to its direct seller and how many types of income are provided by RCM.
Before knowing about the RCM income plan, we should know about one of its main aspects, which is known as BV in RCM.
The full form of BV is Business Volume. This BV is a currency unit of RCM Company. An RCM Direct Seller can withdraw his income through BV.
BV is pre-determined on each RCM product. Which the direct seller gets according to every purchase.
So let us now understand, what kind of income RCM provides to its direct seller and how many conditions have to be passed by RCM direct seller to get it.
Types of Income in RCM
RCM provides three types of income to its direct seller, which are as follows,
- Performance Bonus
- Royalty Income
- Technical Bonus
Let us understand in detail all the types of income given above.
1. Performance Bonus
According to this income, RCM company provides fixed percentage of income on fixed BV to its direct seller.
From the table given below, you can see that what percentage of income is provided by RCM up to how much BV.
|Total BV||Performance Bonus|
|3,50,000 BV +||29%-32%|
Example: Suppose if an RCM direct seller named Ramesh makes 5,000 or more BV company. So from the above chart, you can see, that his level will come to 12 percent and thus RCM will provide him 12 percent of 5,000 BV i.e. a performance bonus of Rs.600.
2. Royalty Bonus
According to Royalty Bonus, RCM provides 3% to 8% income to its direct sellers.
|Total BV in main leg||Total BV in other legs||Royalty on main leg’s BV|
|3,50,000 or more||1,15,000 or more||3%|
|3,50,000 or more||1,70,000 or more||4.5%|
|3,50,000 or more||2,60,000 or more||6%|
|3,50,000 or more||3,50,000 or more||8%|
To get this income, RCM Direct Seller has to fulfill certain conditions, which are as follows.
- If an RCM Direct Seller wants 3% royalty income, then it is mandatory for him to do business of 3,50,000 BV in his main leg and 1,15,000 BV on other legs. The main leg means the leg in which maximum product purchase has taken place.
- If an RCM Direct Seller wants 4.5 percent royalty income, then he must do business of 3,50,000 BV in his main leg and 1,70,000 BV in other legs.
- If an RCM direct seller wants 6 percent royalty income, then it is mandatory for him to do business of 3,50,000 BV in the main leg and 2,60,000 BV in other legs.
- If an RCM Direct Seller wants 8 percent royalty income, then it is mandatory for him to do business of 3,50,000 BV in his main leg and 3,50,000 BV on other legs also.
Here are some points, which must be kept in mind.
- Personal purchases of more than 1500 BV should be made annually for royalty income.
- If a person has a main leg (3,50,000+ BV ) as well as 3,50,000+ BV in another leg and 1,15,000+ BV in one leg, then he has to pay on two legs (3,50,000+ key) Royalty income will be available.
3. Technical Bonus
In the form of a technical bonus, RCM company distributes 1 to 5 percent of the total BV turnover of the company to its direct seller.
|Total BV in main leg||Total BV in Second Leg||Technical Bonus on Main Leg Key BV|
|5,00,000 or more||5,00,000 or more||1%|
|10,00,000 or more||10,00,000 or more||1.75%|
|22,00,000 or more||22,00,000 or more||2.50%|
|48,00,000 or more||48,00,000 or more||3%|
|100,00,000 or more||100,00,000 or more||3.50%|
|200,00,000 or more||200,00,000 or more||4%|
|500,00,000 or more||500,00,000 or more||4.50%|
|1000,00,000 or more||1000,00,000 or more||4.75%|
|2500,00,000 or more||2500,00,000 or more||5%|
There are some conditions to get the Technical Bonus, which are as follows:
- To get Technical Bonus Income, it is mandatory for RCM Direct Seller to personally purchase 1500 BV of product every month. This 1500 BV personal purchase has to be done by RCM Direct Seller in the year in which he wants to get Technical Bonus.
- To get Technical Bonus, it is mandatory for RCM Direct Seller to get 8% Royalty Income for 3 consecutive months, and by doing this a Direct Seller becomes eligible to get Technical Bonus.
- When an RCM direct seller has a business of more than 5,00,000 BV in any leg other than the main leg, then the direct seller gets his own separate technical bonus.
- Technical Bonus to a Direct Seller is given in the main leg by deducting it from whatever bonus is being received.
Talking about RCM’s product, this company has 250 to 300 products, in which FMCG, personal care, health care, home care, electric products are present.
RCM also has a wellness product range called Nutricharge, which is endorsed by Amitabh Bachchan.
Price wise, RCM products are more affordable than other MLM companies like Herbalife, Forever Livings, and Amway. RCM products also look quality from the packaging.
RCM has created RCM Business App to help its direct seller in MLM business, which you can download from Play Store.
Is RCM Company Legal?
Yes, RCM is a certified MLM company, which is a product based and fully legal company. You can’t call it fraud.
How to Join RCM business plan?
To join RCM business plan, you need a Sponsor/Upline. Under which you have to join the downline. For this, you can contact any existing RCM direct seller.
What are the requirements to join RCM business plan?
To join RCM, you must have aadhar card. If you are under the age of 18, you can provide parental information. Apart from this, PAN card and bank account information will have to be given.
How much is the cost to join RCM business plan?
Due to the Direct Selling Guidelines, now there is no fee to join any MLM company. But now there is a need to buy products, from RCM you will have to buy an average of 1000 rupees initially.
Do we have to add people to RCM business plan?
Yes, in RCM you have to add people. But it is not necessary, in this, you can earn only retail profit, only by further selling the product of RCM at MRP. But if you want a good income from MLM, then it is very important to connect with people.