Tuesday, 24 November 2009

Network marketing is 'Mathematical Impossibility'

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.

12 comments:

Tex said...

Amway has been around for a half century and has not "broken the chain" yet. In fact, most of the people who were involved 50 years ago are dead, so there is no "chain breaking" in sight. LOL

Should we wait another 50 years, such that most people involved now will also be dead? LOL

Shyam, you, Brear, and qiac are complete IDIOTS!!! LOL

dtytrivedi said...

can any tell amway that its model is illegal in high court in india and still it is working in india?


Its seems like government officials are afraid to kick amway india out despite declaring its business model illegal!!!!!

And as a matter of fact still its name comes frequently in the indian press. Are our indian press reporters are not aware of amway reality? they should contact these guys to know the exclusive information and news coverage they are having.

dtytrivedi said...

some people like some people don't but it is for sure direct selling does make significant contribution to the economy.

here is the live e.g.
Direct selling association was formed during late in 1960's in Australia.

And now look how the big industry is.

direct selling today is playing an important role in 22.4 million population country.


now here is the snapshot of direct selling industry in Australia

INDUSTRY SNAPSHOT

Here are estimates of DSAA Member contribution to Australia's direct selling industry:

Industry Sales - $1.2 billion, or 90% of industry turnover
Total contribution to Australia's economy - $9 billion, or 1% of Gross Domestic Product
Economic performance contributes to 100,000 jobs outside direct selling
Independent contractors distributing DSAA member products - 540,000
Independent contractors engaged full-time - 4.6%
Female representation - 91%
Persons employed by DSAA members - 2200
Average sales per DSAA member employee - $636,000
Average sales per independent contractor - $2,200
Share of complementary medicines market - 23%
Share of skin care products market - 15%
Major sales breakdown: New South Wales 30%, Tasmania & Victoria 30%, Queensland 20%
Household visits - 2 million per month
Direct sales customers - 3 million.

For India the industry is just around 10yrs it represents huge opportunity in terms of employment and indirect employment and contribution to gdp.

however, these silly (nitwit) don't understand it, they still think that indian court and its laws are some what more advanced in than other developed countries.

till now they are saying alot regarding harmful effects of direct selling.

I again request to legal scan and shyam that if they are so confident about what they are saying then, could they find any strong factual information rather than opinions (consisting of adverbs and adjectives) which backs their opinions or statements.

Indian court is not the first one to misunderstood the idea of direct selling.

among the others - Chinese Govt. took 15-17 yrs to understand what is direct selling and after than it brought legislation in 2005. And among was among very few to obtain the licence.

Again and again I would say if u say something come up with facts.

Can u quantify what u say....
if don't then its mere opinion ....

dtytrivedi said...

just reminder

for a writer when he said to me

"Rely on facts, only facts nothing but facts my friend"

http://corporatefraudswatch.blogspot.com/2009/09/rely-on-facts-only-facts-nothing-but.html

just incase u want to have a look what u said incase u forget.


well atleast news paper clippings are better than the opinions to make my statements more authentic.

dtytrivedi said...

sorry for my mistaker regarding

"And among was among very few to obtain the licence"

i meant amway was among few to obtain the licence.

Tex said...

The DSA is designed to protect the MLM companies, not the IBO/distributors.

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