One has to ask oneself a question how any business opportunity becomes illegal. The law is clear in this aspect. The Prize Chits & Money Circulation Schemes (Banning) Act, 1978 clearly says that if there membership and the member needs to enroll more members with the offer of commission it amounts to money circulation scheme and it is punishable.
Let us see how. If a member joins paying some fee to the company, it is flouting the norms of business. Why because, no person needs to become a member paying some amount of money just because he wants to purchase some product. If I want to buy a product, I can straight go to the shop or business establishment and buy whatever I want. But the fraud begins with the membership. And it continues with further enrollment with the inducement of commission. Nobody can purchase products without becoming member and nobody can purchase without being referred to by someone. Here comes the money circulation scheme. These fraudsters may alter their business models and camouflage with the sale of products and services. But basically they all do one thing, that is money circulation. That is what is called quick/easy money. Let us not fall prey to these machinations. If anybody cannot enroll members he may not get commission. But due to the inducement of more commission, he is compelled to chase or hunt for new members putting in lot of efforts.
14 comments:
Yes you are 100% right, but what is the use of talking this here as i want to know how we can punish the top 100 guys who are luring the common man and makes lacs of rupees while the company makes in Billion and do not pay Tax to Government of India.
I think first clear the concept of networking marketing and then discuss about on it. This business is legel and it gives to chance to earn good money to ordinary people.
This is not a money chain,this is network marketing,first learn about it,as nowadays..all business schools have started to teach subject on network marketing..b4 commenting first learn the things properly..and check what percentage of US & AUSTRALIA ,SINGAPUR "GDP" comes from this industry..
Is MyVideoTalk a registered company in India to do business? Does it pay taxes to Govt. of India to qualify to run its business operations ?
Pl. investigate and comment. Is their compensation scheme legal and qualified.
Everyone must ask is a business really legal ... but one must also equip himself with facts otherwise the opportunity that one is looking for may not materialize.
The prize chits & money circulation scheme Act of 1978 hold true and correct in filtering out scams and schemes which are victimizing most of the people. But this provision is true only for PONZI SCHEME or as Mr. Shyam Sundar said ... money circulation.
Money Circulation or PONZI Scheme is a process by which a person takes money from a certain "Singh" and give a portion to a certain "Kumar" and then take money from "Kumar" and then a portion of it to a certain "Sanjay". Eventually this concept collapsed as the person who started it has no source of money to pay off the growing number of people.
The P.C.& N.C.S ACT of 1978 also indicates that the money must not be an outright cause of membership.
Now ... knowing the facts let us examine the statements ...
MVT does not make a person a "member first" so that he can buy our Business Package ... rather a person who have seen the product from an authorized representative "decided" to acquire our product and services.
In the process of purchasing, our company gives a unique identification sequence number so that the company will be able to trace the person account in order to channel the commission to the same person in case he then decides to do business with us. I find that legal indeed.
Now on a conventional business model ... a person buys a printer ... and do installation on his PC ... he is then ask by the instruction on the printer company's website whether he is to register his product to avail of additional services. The concept is the same ... but instead of "technical support services" ... an additional "commissions" can be given in the case of MVT. Is that legal enough?
As for the last two statements ... "quick/easy money" and ... "putting lots of effort" ... it seems contradictory ... as there is a prejudice on "easy money" and "effort" at the same time ... which suggest that a person must have hard money and do things easy.
In anyways ... MVT does not promote easy money = lazy effort ... instead MVT promotes same as any corporate job ... the harder your work the higher your compensation ... however some corporate jobs have harder work and just compensation only ... and in addition to that your compensation will also be limited as dictated by your position in your corporate job. These are all facts ... you decide if you want to join MVT ... but you are not the one deciding whether a networking company is illegal. It is the judicial process that decides in accordance with the benefits of the people.
Everyone must ask is a business really legal ... but one must also equip himself with facts otherwise the opportunity that one is looking for may not materialize.
The prize chits & money circulation scheme Act of 1978 hold true and correct in filtering out scams and schemes which are victimizing most of the people. But this provision is true only for PONZI SCHEME or as Mr. Shyam Sundar said ... money circulation.
Money Circulation or PONZI Scheme is a process by which a person takes money from a certain "Singh" and give a portion to a certain "Kumar" and then take money from "Kumar" and then a portion of it to a certain "Sanjay". Eventually this concept collapsed as the person who started it has no source of money to pay off the growing number of people.
The P.C.& N.C.S ACT of 1978 also indicates that the money must not be an outright cause of membership.
Now ... knowing the facts let us examine the statements ...
MVT does not make a person a "member first" so that he can buy our Business Package ... rather a person who have seen the product from an authorized representative "decided" to acquire our product and services.
In the process of purchasing, our company gives a unique identification sequence number so that the company will be able to trace the person account in order to channel the commission to the same person in case he then decides to do business with us. I find that legal indeed.
Now on a conventional business model ... a person buys a printer ... and do installation on his PC ... he is then ask by the instruction on the printer company's website whether he is to register his product to avail of additional services. The concept is the same ... but instead of "technical support services" ... an additional "commissions" can be given in the case of MVT. Is that legal enough?
As for the last two statements ... "quick/easy money" and ... "putting lots of effort" ... it seems contradictory ... as there is a prejudice on "easy money" and "effort" at the same time ... which suggest that a person must have hard money and do things easy.
In anyways ... MVT does not promote easy money = lazy effort ... instead MVT promotes same as any corporate job ... the harder your work the higher your compensation ... however some corporate jobs have harder work and just compensation only ... and in addition to that your compensation will also be limited as dictated by your position in your corporate job. These are all facts ... you decide if you want to join MVT ... but you are not the one deciding whether a networking company is illegal. It is the judicial process that decides in accordance with the benefits of the people.
Everyone must ask is a business really legal ... but one must also equip himself with facts otherwise the opportunity that one is looking for may not materialize.
The prize chits & money circulation scheme Act of 1978 hold true and correct in filtering out scams and schemes which are victimizing most of the people. But this provision is true only for PONZI SCHEME or as Mr. Shyam Sundar said ... money circulation.
Money Circulation or PONZI Scheme is a process by which a person takes money from a certain "Singh" and give a portion to a certain "Kumar" and then take money from "Kumar" and then a portion of it to a certain "Sanjay". Eventually this concept collapsed as the person who started it has no source of money to pay off the growing number of people.
Everyone must ask is a business really legal ... but one must also equip himself with facts otherwise the opportunity that one is looking for may not materialize.
The prize chits & money circulation scheme Act of 1978 hold true and correct in filtering out scams and schemes which are victimizing most of the people. But this provision is true only for PONZI SCHEME or as Mr. Shyam Sundar said ... money circulation.
Money Circulation or PONZI Scheme is a process by which a person takes money from a certain "Singh" and give a portion to a certain "Kumar" and then take money from "Kumar" and then a portion of it to a certain "Sanjay". Eventually this concept collapsed as the person who started it has no source of money to pay off the growing number of people.
Dear admin ... kindly edit my post as errors provided repetition of post unwantedly.
The 5P’s:
1.People – Mel & Amy Gill are 21 yr veteran Network Marketers. CEOs
2.Products – They unique and does everybody need it!
3.Plan – MVT pays you in 9 different ways and has the highest ceiling.
4.Price – The product worth it’s price!
5.Positioning – The product ‘ahead of trends’ in terms of positing in the market!
When you ask these 5 questions, you will very clearly know the RIGHT companies from the WRONG ones.
MyVideoTalk is right on the top when it comes to the 5P's.
Cheers
Sidz (MLMsureshot.com)
After enrolling all your friends and relatives and even strangers, these mirage hunters keep on looking for new company with which they could enroll the same lot into the new scheme. They all say the same logic and the same argument again while soliciting new enrollments. I only pity you.
I would like to share an insight from the Article i read recently about MLM from ' Dean & Laura Vandruff's Homepage:
This document is at http://www.vandruff.com/mlm.html
-If money is needed that badly, why not simply ask friends and family for help rather than taking money from them under false pretenses--and also selling them a bill of goods? By "sponsoring" them, you have not only conned them and profited at their expense, you have made them feel like losers, since they are not able to make a success of the hopeless MLM concept.
Once seen, only the morally blind, or consciously criminal, could continue in such a "business."
But wait, perhaps you could recruit... your mother!
Moral Inventory
By way of review, the prospective MLM initiate has to face and resolve these ethical issues:
1. Do I want to be involved in encouraging people to be more materialistic?
2. Do I want to sell a product that perhaps couldn't be sold any other way?
3. Do I want to be a part of an enterprise famous for slander, libel, and rumor?
4. Do I want to be a part of a company that may employ criminals as marketing experts?
5. Do I want to make money off my ability to convince people that an unworkable marketing system is viable?
6. Do I want to be known among my friends and family as a person who tried to con people with a thinly veiled pyramid scheme?
If you can answer these questions "yes," training is available... But remember that God is watching, even if you never get "successful" enough for the Feds to notice you.
MLM "executive" is in a truly unfortunate position. Not only is there no one assigned to make the decision of how much is enough, the MLM is set up by design to blindly go past the saturation point and keep on going. It will grow till it collapses under its own weight, without even a bureaucrat noticing.
MLM is like a train with no brakes and no engineer headed full-throttle towards a terminal.
Don't Some People Make Money in MLM ?
First, we will analyze the "driving mechanism" of MLMs. We will detail how they are intrinsically unstable, guaranteed by design to oversaturate the market with no one noticing. We will look at why MLMs can never equalize into profitability the way companies in the real world can, so that the result will be that the organization as a whole cannot, even in theory, be profitable. When this inevitable destiny occurs, the only money to be made is not from the product or service but from the losses of people lower down in the organization.
Thus the MLM organization becomes exploitative, and many high-level MLM promoters have been shut down, the "executives" incarcerated, for selling the fraud of impossible success to others. Other, larger MLMs have survived by hiring large batteries of attorneys to ward off federal prosecutors, even bragging about the funds they have in reserve for this purpose.
The unfortunate "distributor" at the bottom is the loser, and once this becomes apparent beyond all the slick videotapes and motivational pep-talks, good people start to get a bad taste in their mouths about the whole situation.
So, yes, money can be made with MLM. The question is whether the money being made is legitimate or "made" via a sophisticated con scheme. And if MLM is "doomed by design" to fail, then the answer is, unfortunately, the latter.
But how exactly does this happen, and must it always?
Hope this article saves someone from falling for any MLM sophisticated con scheme !
Mr. Shyam,
It upsets me to know You are a journalist and still do not clearly understand the difference between:
1. A "Money making scheme" like chit funds, mainly for financial schemes, where you make "Members" and collect money to give to those who became "MEMBERS" of the said ILLEGAL scheme.
AND
Network marketing, where we DO NOT MAKE MEMBERS, but SELL PRODUCT TO A CUSTOMER WHO NEEDS IT.
The company compensates us directly for the product sold by me or my team.
Selling products directly saves the company to pay commissions to the middle men and therefore creates the possibility to make a costly product affordable to the buyer. And selling products and getting commission on it is not illegal, ELSE ALL TRADING ACTIVITY MUST ALSO BE BANNED, including Franchisee business, Insurance business and all middle men who live only by buying at a lower cost and selling at a higher cost.
Can you now see the difference? If not, suggest you UNDERTAKE A COURSE ON NETWORK MARKETING AT ANY BUSINESS SCHOOL GIVING MBA EDUCATION.
Dr. Salil Gupta
Dr. Salil Gupta - And I suggest that you take a course with me, to learn how a closed-market swindle, or pyramid scheme (without any significant or sustainable revenue other than that deriving from a never-ending chain of losing participants) can be dissimulated behind effectively-unsaleable products and/or services.
Post a Comment