RCM Business, How RCM Business Works

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In this article, you will read about various aspects of RCM business. You will get to know what this business is, how it works and how one can earn money from it? You will also get to know as to why this marketing business has grown by leaps and bounds, and what is the procedure to join the company.

What Is RCM Business

RCM stands for Right Concept Marketing. RCM business, as a company was started in 2000 and its real name is Fashion Suitings Private Limited. The company is registered in Jaipur, Rajasthan, and it works through multi level marketing.

RCM is India’s largest direct selling company, with a network of more than 10 million direct selling marketers. IT enables direct sellers to earn residual income, with a very little investment.

The company provides a variety of products ranging from FMCG goods to Agri products to health care and clothing, from different brands. It started by direct selling of one product and currently it has more than 400 products to offer, and has a base of more than 15 crore customers.

All RCM products are made available through an amazing network of 184 depots, more than 10000 exclusive delivery centers that is growing every year. This delivery system is backed up with a robust ERP system, which also keeps each and every Direct Seller updated with real-time smart information of their business activities with RCM.

How RCM Business Works

RCM business works through multi level marketing and direct selling, which tries to eliminate the costs added upon the product during its journey from the company/industry to the end customer.

The well knit approach in the overall development of direct sellers associated with the company has led to the formation of RCM network that is working across the length and breadth of India.

In RCM multi level marketing, marketer is also the customer. The company encourages a person to buy his stock from it, by offering him rewards and concessions. This customer becomes the first marketer, called Top marketer, for the company.

This Top marketer is encouraged to add more and more customers, who will also become marketers, called leg marketers for the company. Together, you will be called a marketing team.

Also read: Village Business Ideas

For every purchase made by the leg marketers, the top marketers gets various kinds of bonuses. The bonuses are of three types and they are:

  1. Performance Bonus (10% to 32%).
  2. Royalty Bonus (3% to 8%).
  3. Technical Bonus (1% to 5%).

The performance bonus recieved by the marketers depends upon two parametres. They are Business volume and Percentage Chart. These terms are discussed below:

Business Volume (BV)

It is a term coined by RCM to give weightage to different items. Business volume can range from 40% to 100 %, depending upon the type of item, and it is always calculated on the sale price (at which a marketer buys the item), and not on MRP (at which marketer sells the item).

For example, If you buy a Nysa Soap. It has a sale price of 30 and MRP of 35 and Business volume of 60%.

Therefore it has a business volume of 60% of 30, which is equal to 18.

So if you buy the above mentioned soap, a business volume of 18 will be credited to your account. If you buy n number of such soaps, a business volume of 18n will be received by you.

Percentage Chart

This chart is used to give commissions to the marketers based upon the business volumes credited to them. It shows how much will a marketer get as a commission based upon the Business Volume (BV) in his account.

This chart is shown below:

Business Volume (BV)commission (calculated as a % of BV in your account)
upto 100 BV and above10%
5000 BV and above12 %
10000 BV and above14%
20000 BV and above16.5%
40000 BV and above19%
70000 BV and above21.5%
115000 BV and above24%
170000 BV and above26.5%
260000 BV and above29%
350000 BV and above32%

Suppose, you purchase some items at sale price worth 6000 Rs, and with business volume of 50% from the RCM business. It means a Business Volume of 50% of 6000 = 3000 will be credited into your account.

According to the percentage chart, these 3000 BV credits entitle us to the commission of 10% of 3000 = 300 Rs.


Any person, who wants to join RCM Business as a direct seller has to apply online on the application form available on the company’s website. In the application form, he/she has to give details of the person who has proposed the applicant in the column of the proposer and the detail of sponsor in the sponsor column.

Further, the scanned copies of applicant’s photo, identity card, address proof and bank account details are to be uploaded online along with the form.

The applicant needs to read and accept all the terms and conditions.

After accepting the terms and conditions, the applicant will get an OTP comes on his/her mobile number that he has mentioned in the application form. Enter the OTP and the form will be sent to the company for approval.

List of documents to be attached with application form

In order to apply for the RCM business as a direct seller, you need to attach the following documents with your online form:

  1. A colorful photo passport size
  2. One of the following documents for certification of Photo ID
    1. Passport (Valid)
    2. PAN Card
    3. Voter’s Identity Card
    4. Driving License (Valid)
    5. Written confirmation from the banks certifying identity proof
    6. Domicile certificate with communication address and photograph
    7. Central/State Government certified ID proof
    8. Certification from any of the Authorities mentioned below:
      • Panchayat Pradhan
      • Councilor
      • Sarpanch of Gram Panchayat
  3. Self attested Photocopy of any of following documents for address proof:-
    1. Telephone bill not older than 3 months
    2. Bank account statement not older than 3 months(Attested by Bank)
    3. Electricity bill not older than 3 months
    4. Ration card
    5. Passport (Valid)
    6. Driving License (Valid)
    7. Voter’s Identity Card
    8. Written confirmation from the banks (Attested by Bank)
    9. Lease agreement along with rent receipt not older than 3 months
    10. Current employer’s certificate mentioning residence
    11. Domicile certificate with communication address and photograph
    12. Central/State Government certified Address proof.Please note that expired passport cannot be used as address proof, it can be accepted as ID proof.
  4. Cancelled original signed cheque which has the name printed of the account holder or original Bank statement issued and attested by bank for the proof of Bank Account Number.

The applicants need to know that there is no registration charge/fee to become a Direct Seller.

The company will check and scrutinise the application form, and if it is approved, the applicant will be assigned a Unique/Track ID Number on the website. You can check the status of your application number any time from the official website of RCM business.

After receiving ID Number, the applicant becomes the Direct Seller and has to get the ID card by entering his/her personal information on Website.

One Direct Seller can sponsor as many person as he/she desires. Sponsor who is not Direct Seller can sponsor single new person.

RCM Business App

RCM business has also launched its mobile app, through which it showcases its products through videos, presentations and infographics, that helps it increase its business and get more and more marketers.

It also helps a marketer showcase and share various products of RCM business with friends, relatives and potential customers, who can place orders and receive products at their door setps.

This app lets an RCM business marketer check the Business Volume credited in his account and also informs them about training schedules, meetings and seminars. In addition, it also helps in locating nearby RCM business stores.

You can download the RCM business app here.

So, this was all about RCM Business. We are sure that you would have found this article very useful and hope that you will share it with your friends.

Hello, I am Mansoor Mir. I am a part time blogger and a full time teacher. I have an experience of more than 4 years in the Blogging field, and I love writing about Business, Cryptocurrencies, NFTs, Technology and Academics.

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