This organization follows a Multi
Level Marketing business model. In history this model has never succeeded and
has very serious consequence and affects numerous people. Example Amway,
modicare, etc. There are more than 17 companies which has followed the same
strategy and some are still running. In this model there are few basic traps
1) You have to pay Rs.33, 600 in advance before joining the organization or
immediately after joining the organization
2) You have to join your friends
or relatives in the same business for you to get paid You have to join 6 of them for you to get one payment. So nearly 1.8 lakh is the amount that goes to company out of which you are given Rs.11, 600. Why do you want to cheat your friends and earn??????????
3) There might be some
products that you have to buy which are costlier like 7 gram gold coin for 33k which actually costs 6k in all jewelery shop
.
By these points you can identify the
MLM strategy of the company. How you get paid is through the friends whom you
have joined below you in the network. They pay a big amount to the company, out
of which you are paid a part of it. If you are given some products, those are
highly costlier than the outside market. For the cost the company people and the
members give thousands of explanations which are completely false. You will get
a commission amount for the sales of the products which people below you in the
network bought. So the money you get is the part of the money which is lost by
the people below you in the network.
The company gets profit in two ways
1) The products which you buy are most of the times costlier. These products
does not have any marketing expense or the sales cost, because the members
themselves are the market and they do the sales. They usually do not have after
sales or anything of that sort.
2) When each member joins they have to pay a
huge amount for which the new member is given some crap product which is highly
over valued.
Some companies use a lot of other
ways to get in money, but these are the standard ways.
How people are fooled!!!!
1) These
people are motivated only by the money which they are going to get when lots of
new members are added in their network.
2) They are told false information
about how the company makes money and how they are paid. The members are told
that they are paid by saving the marketing charge and sales but that is a false
information. They are paid from the amount spend by the people he has joined in
the network below him.
3) They never think what will happen if they are not
able to join someone below them in the network, reason might be all of the
friends are already in the chain or they are not willing to join. So the guys in
leaf node will be ultimate losers. In any network tree construction about 30% to
70% of the members will be in leaf node.
4) Comparing with coke and Pepsi business, gmail reference strategy and others are total crap which any one with common sense can understand.
People who enter this business are
getting cheated and they cheat their trusted friend and own relatives, your
friendship and relationship is in trouble. If a guy in this business tells that
he has earned a lot of money then it means he got many of his friends in
trouble. Please avoid getting cheated and avoid cheating. Words may be harsh but
thats the truth. MLM business model is a chapter in MBA subjects, that is an
example of worst business model.
I would like to recommend
that you check out the following links. These pages will explain
more:**What’s Wrong With
Multi-Level Marketing
https://vandruff.com/mlm.html
What’s Wrong With
MLM--FAQs
https://vandruff.com/mlm_FAQ.html
The Zero Sum
Theory
MLMer Tom "Big Al" Schreiter on MLM
https://mlmcentral.com/library/zerosum.html
MLM Watch: A
Skeptical Guide to Multilevel Marketing
https://mlmwatch.org/
The Network
Marketing Game
Dr. Jon Taylor, who did the
*Network Marketing Payout
Distribution Study
https://whatisgood.com/nwm/
Worldwide
Scam
https://worldwidescam.com/
MLM or Pyramid
Scheme?
https://factsource.com/srmlm.html
Cagey
Consumer
MLM and Financial Scams Exposed
https://geocities.com/WallStreet/5395/consumer.html
False Profits
Analysis of Network and Multi-Level Marketing (MLM)
https://falseprofits.com/