Multi Level Marketing is a chain where you are fooled first, you are then trained in workshops and seminars. so that you can fool others. There are no customers here.
Everyone here is a distributor and a distributor has been making a distributor under himself To join MLM, no age, qualification, skill, or interview nothing is required.
you should have only one thing, you should have money to buy a welcome kit You are already dealing with financial problems and by connecting with them, Your friends also get annoyed with you.
Tata, Birla, Ambani Adani, all the profitable businesses of India From salt to software development, they are now involved in everything.
Why have they never come up with a three-man scheme till today?
Firstly, what is MLM Multi-level Marketing, pyramid scheme, network marketing, chain and referral marketing and All these things are the same or different and more importantly whether it is legal in India or not.
And if it is not legal then what are the tricks used to make it legal.
What is Pyramid Scheme ?
The pyramid scheme was introduced in India for the first time in 1995 which happened for the first time that people used to get money without giving any service or goods.
And for this, they only had to add men under themselves. Because there is a man at the top of this scheme and under him are two men. And then there are 4 men and a pyramid type structure is formed.So it’s called the pyramid scheme.
How scheme works ?
Now you will say what is the problem with this? earning is on, no one is being harmed but there is a big problem Suppose I am the owner of a company. I added 6 people under me.
This became the first level, now these 6 people will add 6 people under their So for a total of 36 people, this has become the second level. Now, these 36 people will add 6-6 people under them, so it became 216 people. This is the third level. Similarly, there will be 1,296 people on the fourth level.
By doing this, you will reach the 12th level so 2.1 billion people would be needed. There is no such population in India.
Similarly, when you go to the 30th step, more than 13 billion people will be needed and the whole world also doesn’t have that much population.
This is the reason that the people who are on the top, on the first or the second layer, they make money for the people at the bottom where there are maximum people are not able to make money In the area where you live, there must be 1000 to 2000 people living there. You will be at a loss in 1-2 levels only.
That’s why this pyramid scheme has been designed in such a way that it’s bound to fail in the end The first 1 to 2 layers earn but 99% of people’s money is lost in this.
It is riskier than playing a gamble you will feel that you are not getting rich because you are not able to add people but the reality is that you are in the lower layer.
You will not be able to blame MLM companies. You will feel that it is your fault, You could not add people this Is Why Pyramid Scheme Is banned in India under new consumer protection rule If you take money from someone in money circulation, MLM, and pyramid schemes so it’s an illegal activity For which you can also be jailed under Prize Chits and Money Circulation Schemes Act you will say that if it is banned and it is illegal then how are the companies operating it?
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By Manipulating the entire model, MLM companies merged to direct selling Direct selling means companies bring their products to the people through distributors and marketing. Word-of-mouth works in direct selling which means Marketing through people.
The product went to a man, and now he is selling that product to his friends and family And if that product sells then he gets his incentive But it is to be noted that money is received for selling the product, not for connecting people These companies apply the angle for connecting people Under the guise of direct marketing, pyramid schemes are being run so that they don’t go to jail Ever since the company linked this pyramid structure with Products Since then it has become multi-level marketing And the government can’t do anything about it.
Because some people genuinely in India are running their business from Direct Selling. That is why the government gives guidelines every day don’t fall into the MLM trap Until it was not banned, companies had taken money from people.
And used to tell them that you have to add three people under you. As people will join by paying money, you and those who are above you will continue to get money And this chain will grow and you will become rich overnight.
And after being banned, they linked it to products and services. They bring any product, medicine, or eBook And the money that used to be taken from the pyramid scheme now it is taken through the welcome kit.
50-60 products are added to this welcome kit. The goods which are of 500 were sold in 2000.
so that the pyramid scheme can be run this is the reason any product of MLM It will be 20 to 30 times more expensive than the market rate They run their pyramid model with the extra money they take If you ask them why are your products so expensive So they would say that it is a game-changer, such a product has not yet come into the market.
Some of their products are such that they can also cure sugar and cancer. think carefully about Tata, Birla who has so much money and have a large research team They have years of experience and they have the best talent in the whole of India.
They can’t make soap, toothpaste and kit and the new companies of MLM in the market which has come in 4 days, they can make it. The reality is that they run a pyramid scheme under the guise of a product.
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Sometimes in the name of a course or product, you will notice all MLM companies are more interested in connecting its under 3 people than selling the product.
How People Get Trapped ?
Instead of marketing and advertising their products, they spend more money on seminars.In which all of them come wearing suits. If you go there, you will feel that board meeting of Singhania’s or Oberoi’s is going on.
This money is spent on seminars so that people give money only after seeing the dazzle and join them and after seeing their seminars, you will feel that they are working on some mission.
And that mission is not understood by the whole world. Their products are never famous and no one is interested in them.
They neither spend on marketing nor you will get to see any of their advertisements All their interest remains in the money they get by adding people.
If I talk about those who are currently associated with MLM So ask yourself if they hadn’t sold you dreams of financial freedom Income of 6 to 7 figure, be your own Boss, passive income had not sold all these dreams would you have bought such expensive products from the market? you never buy, you have put money in the starter pack and joining fee Because you got to hope to get out of your current situation Another thing maybe people have less understanding of MLM.
And do not understand its secret knowledge But you see with a little logic Tata, Birla, Ambani Adani, all the profitable businesses of India From salt to software development, they are now involved in everything.
Even then, why did not these people come up with the scheme of three people till today? They provide referrals that if you refer their product to someone then you will get some benefit but they never came up with a three-person scheme.
And they never share profit among the people Because they know if their product will be good and marketing will be right so there has to be profitable and will not share that profit with anyone Only MLM people share profit from top to bottom.
Leave them aside and if we talk about our government which is abused every day due to unemployment and poverty and opening accounts in MNREGA The government should collect all these poor and assign a representative And start connecting 3 people from each village.
All poverty will end So why don’t they do this? The reality is that MLM is not a business model.
And I am saying this because when a normal company makes a product gives it to the distributor, from distributor to customer. Marketing is done, it costs a lot of money in ads. But if we talk about MLM, then there is no customer here.
Everyone is a distributor, a distributor is making a distributor under himself.
You will never understand whether you are a seller, distributor or a customer And you will not get the answer to this thing till the end In normal business, by investing money in the business, the owner would have taken the risk.
Connects people with himself and gives them a salary after they get profit and the owner never share that profit this is the reason why the owner of the company takes interviews 10 times and sees the skill, education, and age even after that, if he does not understand, then he fires.
But in MLM, you are also investing money and you are also taking the risk of that money. It is a far away from getting a salary, you are giving money to that company. And then working for that company too.
And you are also giving profit for the 3 people you have connected under you and the owner of MLM company is roaming freely That’s why to connect with MLM you do not need education, skills , interview and any age.
You only need to have money to buy the welcome kit even if you’re a kid once you give them money whether you work or not no one will fire you.
And If you want to do this, then what do you need to join a company for this? go to a factory and take 4-5 products from there and start adding people under you What do you need a company for? This is also wrong but I am just telling you to explain.
Get them to sign a legal bond of the things they are promising they will never sign. You tell them to lend me, I will return you after adding 3 people Because business is 100% successful, they will never lend, this is a chain where you are fooled first, you are then trained in workshops and seminars. so that you can fool others.
If you have seen the movie Resident Evil There’s a zombie in it that bites a man so that man also becomes a zombie.
Then those people also get involved in making other people zombies. The same thing is happening in MLM too.
Every person has a dream to do something for his family members, to get out of your current situation Not listening to the abuse of the boss, when all the roads are closed, The MLM people come as hope and to refuse them means to close all doors to the one hope that came in your life.
That’s why you listen to them, they come to you first and do the same thing.
They ask you if you are happy with your income and obviously, you will refuse It won’t tell you till the end what to do. They have a sir, they are very busy. They are waiting for him and they will continue to explain it to you for 1 to 2 hours. And when they see some potential in you, then they will make you meet the sir.
You will be told how poor they were before, and how this thing changed their lives For a long time, these people used to show cheques, Then people said that the cheques get deposited in the bank why are you showing Later all these things are reduced, In these, your security is also at risk.
In the race to connect three people, if you are stuck with any person and if his money is stuck then he will ask for money from you, not the company There have been such cases many times that people get beaten up.
Many people have lost their lives too There is a book “My Father’s Dream” by Erik German, you must read it In this, he told how their life was ruined because of MLM.
You are already dealing with financial problems and by connecting with them, Your friends also get annoyed with you, they also explain to you how they get rejections in the beginning but even after that, keep it up and see where they are today That’s why you keep doing the same thing. Some of your wise friends will explain to you.
For them, they will say that stay away from negative people they will not let you grow Some companies sell products using MLM But their product is reputed in the market and the ads of their product are running. And everyone knows that particular product And its core will be direct marketing.
Meaning you will get money from selling the product, but you won’t get money for adding people under you or buying a welcome kit.
As people are coming on the internet, people have become aware of MLM. But now these companies have also become very professional and organized.
Sometimes they will bring online courses, e-books They come with different models, it will not look like MLM but it will work as MLM You have to be very careful, and in today’s time it has become very difficult to understand Because of the fancy names, you’ll find out later that it’s a pyramid scheme.
Now you have to observe very carefully, if you want to add people at any stage, then leave It’s a trap, well these companies already know what’s going to happen That’s why they keep all their arrangements. But still, if you get stuck then complain. So that they do not fool the rest of the people in the future.
First of all, approach a lawyer and send them a notice secondly file an FIR at the police station and initiate a criminal case and also make a complaint against the Registrar of Companies.