“You will drive a Mercedes”, how to identify and avoid the MLM scam? He will come in Splendor and show you the dreams of Mercedes.
Do you want to earn 30 to 35 thousand a month sitting at home? You have nothing to do for this, all you need is a laptop and internet. Understand the business idea, you will earn millions in 6 months. Do you also get such messages?
We are talking about MLM i.e. Multi Level Marketing. Multi-level marketing can be defined as a marketing strategy in which sales representatives of a company recruit other sales people to earn commission on their sales and on sales made by their team.
If you don’t understand then let me explain it easily. You all must have heard about AMWAY, Vestige business model, which is nothing but a great example of multi level marketing. If seen, this is a legitimate business method and there is no fraud in it.
The business model seems so simple that one has to pay Rs.5,000 to join the business and then keep adding more people to the “business”. You keep getting some percentage from the entire sale of the people under you.
In AMWAY, MLM there are different ranks like Silver, Gold, Diamond etc and the higher your rank, the more you earn.
Broadly speaking, multi level marketing schemes are usually network based marketing schemes in which a person has to add more people under himself. People first pay some money to “get involved” in the business and then they add more people inside. In almost all the schemes the individual is encouraged to add more people under himself.
This scheme is running in India for years. Well, in a country where people get trapped in Lakshmi Chit Fund every day, this is still a good trap.
In India this happens in two ways. A company will connect you with itself and then it will be said that if you buy our goods and do not want to buy, then grab another customer and bring it. In another way a chain is made. You will not only be added but you are asked to add more people below you. Someone below you, someone below him and then this chain goes on.
Middle Class or Poor Youth are Caught-
Now commission starts from here and this commission keeps on passing at every level. Such people who run MLM, they only catch the helpless youth. Taking advantage of their compulsions, sell them dreams. This humiliation happens in such a way that you will not be able to understand the problem of the scheme.
At first they will approach politely. You will always see them well-dressed with expensive-looking clothes. His shoes will shine and his three piece suit will look like a ruckus. This compulsion creates an image of a utopia in the mind of the youth, and they feel that they too should have it all.
With the subconscious mind you are attracted towards their personality and want to know more about them. Multilevel marketers are deceivers but they are not fools. He knows very well what you will fall for and will plan accordingly.
These multi level marketing experts will not meet you in a tea shop near you. You will be invited to attend their seminars in lavish hotels. There you will find a multitude of people curious about these schemes. Everyone will be seen in a three piece suit. After that in the seminar it will be told how you too can roam in Mercedes like other people are roaming around. After that you get caught in their trap but the thing is that people who join early, they earn more money and people below struggle a lot. Because there is a limit to connecting people.
Simple maths will shatter your dreams. Suppose you persuade two people to join. Then those two people will convince four others to join. They will persuade the four-eight to join it. For a brief period, you will continue to receive passive income, which is the trademark promise of multi level marketing. what after that? For how many days will people join?
Today the world population is 7.9 billion. Open your calculator and double 2 to calculate 33 times, your answer will be 8589934592. Simply put, after 33 cycles there will not be a single person left in the world to join your plan.
You can’t add more people after a certain point in multi level marketing and the network gets bigger, so that’s where the trouble starts.
At the heart of network marketing is sales. You will spend your time explaining to friends, family, and strangers why they should buy the product and join your line. This is because the more you can convince the average person about it, the more likely they are to engage but at its core is the fact that network marketers don’t care about you. They care about your relationship.
Studies show that less than 3% of network marketers actually make a profit, the rest remain at a loss.
Has to Face Social and Economic Exclusion-
Once trapped in such schemes or schemes, the biggest problem is socially and financially. There are many cases where people trap lakhs of rupees in such schemes and then they work hard to withdraw their money, not for profit.
There is also a sense of moral guilt from above because every person whom you trap under this scheme, you know that his money has also been at stake. People have worked for almost a decade by trapping four lakh rupees, then this money has come out.
The social disregard one has to suffer is the worst. You remain as the broker of the scheme and this identity of yours keeps roaming everywhere. Since you have to sell products to your friends, relatives due to multi level marketing, you feel ashamed at first. Even worse is that no one picks up your phone after seeing your number. You are left out of the circle of friends because they do not want this scheme and you are compelled to sell.
Friends, MLM Companies attract poor people and loot their money by selling them only false dream. Please avoid such kind of MLM Companies. As it is very hard for poor people to sell or add members under him. If someone can not add members under him then he cannot earn through MLM Company.
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