It is really pity that people are not realising the pitfalls they are falling in, in the name of multilevel marketing, referral marketing, networking. More than 90 per cent of people who join these schemes have lost their money and surprisingly they blame themselves for their failure instead of learning that the scheme itself is illegal. One may claim that it is providing employment to many but in fact that only a handful of people are being benefited and a sizable number of losing their hard-earned money. Those who line their pocket with people's monies express anguish over the movement against such fraudulent companies.
The other day, I met a housewife at Hyderabad. Her name is Nirmala (name not changed). First she tried to defend the Amway scheme. But after a brief cajole, she spilled the beans. I talked to her into telling the truth, only truth, nothing but truth. She revealed that her family is purchasing Amway products worth Rs. 4, 000 every month but actually receiving Rs. 1,400 only as commission. (Generally, Amway distributors lie that they are earning several thousands of rupees as commission every month). That is a huge loss for a middle class family. She tried to sell the products to the family friends and relatives. Their response has turned to hostile soon and now every one of them when approached is shutting the door on their face. It is that humiliation she cannot digest and she has been trying hard to reason with her husband to leave this 'business' (as if it is a business). But he is not relenting and is insisting that they are going to become millionaires soon. For the last four years they have been into this and for the last two years she is trying in vain to convince her husband to realise the reality. This is the fate of several hundreds and thousands of families across the country. These fraudulent companies are not only wreaking havoc on the economy but also destroying the families. The second one is more dangerous than the first one. My friend Mr Paul (obviously a pseudonym), who commented in this blog, is yet to realise this and I wish he overcomes the awe and lies of Amway and accept the reality.