An ROI (Return on Investment) MLM plan pays members a scheduled return - often daily or weekly - on an amount they've deposited or invested, in addition to referral commissions for bringing in new members. Because payouts are based on investment rather than product sales, ROI plans carry substantial legal and regulatory risk in most jurisdictions, including India.
Pure investment-return ('deposit and earn') schemes are high-risk under Indian law and can be treated as unregistered collective investment schemes or Ponzi structures by regulators. This is a legal question - please consult a qualified financial-services or direct-selling lawyer before launching any ROI-based plan.
We can build the software on request, but we strongly recommend getting legal clearance first, and we'll flag the compliance risk clearly before starting any ROI-plan project.
Some businesses tie 'returns' to actual product resale margins rather than pure cash deposits, which is generally viewed more favorably - but this still needs legal review specific to your model.
Repurchase plans pay commissions on repeat product purchases (a real product changes hands); ROI plans pay a return on money deposited, with no product sale required - which is the core source of the legal risk.
Yes, daily, weekly, or milestone-based schedules are all configurable - but the schedule itself doesn't resolve the underlying legal risk of the plan type.
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