Some call it multi-level marketing, while some others call it network marketing, or referral marketing. Whatever it is called it is nothing but a money circulation scheme which eventually would benefit a chosen few leaving a sizable number of people in lurch.
The Supreme Court of India in its judgment on July 10, 2008 (2008 8 SCC) Kuriachan Chacko versus State of Kerala stated that "I take note of the fact that inherently there is merit in the allegation of the prosecution that the Scheme is so grossly unworkable that the persons who made representations to that effect and induced persons to part with money did entertain contumacious intention. They knew fully well that unworkable false representations were being made. The obvious attempt, it can be presumed at this stage, was to induce persons by such false, unworkable representations to part with money. Initially, some subscribers can be kept satisfied to induce them and others similarly placed to join the long queue. But inevitably and inescapably later subscribers are bound to suffer unjust loss when they swallow the false promises and make payments."
People in the network marketing try to induce as many people as possible to join such scheme preferably from their friends and relatives. At times, they also advertise in Classifieds to attract the attention of more people. They organise seminars, meetings, workshops in the name of 'good business opportunity' of course, with an entrance fee. They show a rosy picture of foreign tours, early retirement and 'total financial freedom in 2-5 years'.
Network marketing means one has to rope in as many people as possible into the NET. Where do they find so many people on earth. Sooner or later, the chain is going to break and that is why it is called 'Mathematical Impossibility'.
This is exactly what Amway India is doing in India and Amway's other subsidiaries in other countries, lining its pockets.
Recently there was an e-mail with an attachment of an article by Donald Trump and Robert Kiyosaki. Like all network propagandists it also highlighted the greatness of network marketing. But it never mentiioned how the network grows without breaking at some point. That is why it is called cheating attracting the provisions of Section 420 of the Indian Penal Code.
People are understanding the pitfalls of such schemes and avoiding them. Still, these crooks solicit their friends and relatives who could not resist their overtures.
Be Brave and say NO to these crooks whenever you are approached with such network marketing or referral marketing schemes. Just tell them in their face that they are not cut for the job.