Sunday, 31 October 2010
From political religions to commercial religions
Saturday, 30 October 2010
IBOs concentrate on enrollment all the time
Tea Party may appear in the ongoing MLM scandal
Mr. Steadson is still proving the validity of what we have said
Tuesday, 26 October 2010
Mr. Steadson continues to prove the validity of what we have said
Sunday, 24 October 2010
An obvious question remains unanswered
Saturday, 23 October 2010
Mr. Steadson is neither original nor unique
Friday, 22 October 2010
Irony is lost on the inflexible Mr. Steadson
Thursday, 21 October 2010
Customers? What customers?
Wednesday, 20 October 2010
Everything depends on context
Tuesday, 19 October 2010
The business model of all IDSA members is illegal
Here goes the list of the members of Indian Direct Selling Association (IDSA). Let us examine their modus operandi how they are cheating the people of India.
4Life Trading India Ltd.
4Life believes in building people through Science, Success, and Service. So, no matter what you’re looking for- fantastic health, unrivaled time.
4Life Trading India claims like all direct selling companies that its products are unique. It boasts that its products would improve immune system function by up to 437 per cent. Its products are very expensive. For instance, Transfer Factor Plus Tri-Factor (90 capsules) costs Rs. 3600. This product provides the ultimate in immune system support for the body (whatever that mean). They do not reveal whether it is medicine or food supplement.
A 120-capsule bottle of GluCoach costs Rs. 2235. This product claims to support the metabolic and endocrine system.
Another product Cardio which costs Rs. 1965 is said to support a healthy heart and proper cardiovascular function.
Here is a funny product called RioVida which costs Rs. 3850 and it is claimed that it ‘educates, enhances and balances the immune system’ again whatever that means.
Tri-factor (60 capsules) is claimed to be vegetable capsule, once again whatever that means. It costs Rs. 2600 and the company says that ‘smart becomes wise’ with Tri-Factor.
The modus operandi is simple. There are several packages to become a distributor. By paying Rs. 24, 400 one could become India Diamond4Life distributor or could be sponsored by an already existing distributor. There are several types of packages like Rs 7,200, Rs. 950 and Rs. 250. For all these packages, taxes extra. To get rewards and infinite commissions, the distributor has to enroll three people in a month who each personally should purchase products worth 100 LP i.e. each of them must purchase products worth Rs. 7200 and make sure they purchase 100 LP the next month as well.
Daehsan Trading (
Through our proven free enterprise system, we help more people enjoy better health, financial independence and personal.
This Malaysian-based company is selling Reishi Gano, a kind of mushroom essence. It also markets a large range of products like Natural food supplements, cosmetics and toiletries, beverages and ayurvedic products.
The DXN claims that its products increase oxygen supply to blood circulation, relieves fatigue, cleanses blood, serves as a brain tonic, stabilizes nervous system, stabilizes blood pressure and eliminates water soluble toxins.
If anybody wants to become a member, one has to be sponsored by a DXN member by paying Rs. 500. Every member has to purchase products worth Rs. 3,000 i.e. 1000 pv to make him eligible for the bonus for that month.
K-Link Healthcare ( Our This company also offers a wide range of products like Ayurvedic, beauty care, health care, health drinks, health food. |
K-Link also sells some mysterious products like Deep Heat oil, Energy cream, Energy liquid, Black jade, Energy Elegant Jade ring, Energy Jade ring, Energy sticker, Energy touch whatever they are used for. These are sold under Universe Induced Energy (UIE) category. These could be branded as magic remedies.
This Chennai-based company offers two plans to become members. Under Plan A, a member gets commission of 74 per cent and the under Plan B, the member gets 72 per cent commission.
One has to be sponsored by an existing member by paying Rs. 650 to become a member and he would be paid commission if he enrolls more members. He would also get additional points on the business turnover of his downline members. This is also another chain marketing system.
Altos Enterprises Ltd. Altos Enterprises Ltd. is India's leading internationally recognized Indian Direct Selling Company. The products of this company are diversified from rice, personal care, home care, health car, hair care, garments, FMCG, aroma natural beauty, business literature and agriculture aid. |
By paying Rs. 649, a member gets 60 capsules of Nutroton, 400 BV, 10 to 25 per cent retail profit, distributor’s death benefit. Practically, there is no entry fee. But if the member keeps on enrolling new members, his business volume increases. Suppose a member enrolls fifteen persons and they in turn enroll 35 persons, the total would be 50 and the member would get a monthly income of Rs. 5,200 provided he purchases products worth 1000 pv every month. The website of this company is complete with drawings of pyramid scheme.
Elken International India Pvt. Ltd., Trusted To Care , Trusted To Nurture, Trusted To Lead, Trusted To Offer Only The Best This also Malaysia-based company is selling a variety products right from health care, body & beauty care, personal care, water purifying systems so on and so forth. Apart from mushroom-based products, it also sells Arabian dates too. This company also offers bonuses of up to 71 per cent on the sale of products and commission on the business of downline members. |
To become a member one has to pay Rs. 3000 for the business kit. A distributor from Bihar said that it is not possible to sell these high-priced products in
Mary Kay Cosmetics Pvt Ltd. Gurgaon Mary Kay is one of the largest direct selling cosmetics companies in the world. With its
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The US-based company sells skin care, makeup, and body care and fragrance products. If anybody wants to become `an independent beauty consultant,’ one has to be sponsored by a member i.e. enrollment. The company also offers a ‘dream business opportunity’ with rewards like diamond bracelet and foreign trips and even luxury cars on achieving sales targets i.e. enrollment targets. It has three offices in
AMC Cookware ( Since 1963, we have been committed to a new culinary culture, true to our motto "Eat better. Live better." This company offers multi-cooking system, bio-cleaners, power vacuum system and some other special products like knives, frying pans. The products are guaranteed for 30 years. This is also work from home concept. Anyway one has to join through a registered consultant. All products are expensive. Now, the company is spreading its tentacles because of the growing purchasing power of Indians. They opened a shop in |
When contacted the person in-charge says that the cooking utensils are made of surgical steel which is an outright lie and not mentioned in the website. This is how people are misled to join the scheme.
For over 25 years, Forever Living Products has dedicated itself to seeking out nature's best sources for health and beauty, the website claims.
The company‘s business model is also a pyramid structure. A distributor after enrolling under a distributor, of course, without any entry fee, has to enroll more people under him to claim bonus and extra commission on the business done by his downline. The company claims in its website that nobody in the downline should ever be promoted above the distributor. A promotion for the downline should be a promotion for the upline too, it claims. It is amply clear that it is also a pyramid structure. The website induces people by stating that there are multiple income opportunities to earn money. Recruitment is the main source of income of the scheme of this company. All its products are aloe vera-based and are very expensive. The promoters claim that these products have therapeutic value. A toothpaste tube is sold for Rs.220. The rest could be imagined.
Max New York Life Insurance Co. Ltd., Gurgaon Max New York life insurance provides life insurance solutions, children's plan and retirement solution. |
This Insurance company offers Rs. One crore insurance policy for a paltry amount of Rs. 1300 per month. It is too good to be true. The website never reveals the percentage of amount to be deducted under policy administration charges in the first year. It never reveals how a Rs. 1300 per month premium becomes Rs. One crore in 20 years. It gives a toll free number for further details. However the number won’t work. Just a pyramid structured business model.
Amway Amway |
Its business model is 6-4-3 and it has been cheating millions of people all over world. Already the Andhra Pradesh High Court has held that its business model is illegal. Criminal cases are pending against the company.
Herbalife International India (Pvt) Ltd., Herbalife is a premier nutrition and weight-management company. We offer life-changing products and an unparalleled business. One comes across advertisements all over to reduce weight or increase weight. If one falls for it, he is going to lose a lot of money apart from weight. This is also a pyramid structured business model. One has to become a distributor by paying Rs. 2800 and he has to enroll more members into the scheme. He gets paid for enrollment and product sales. |
It offers Herbalife products at a discount to the distributor and he achieves higher level in sales he gets an opportunity to travel abroad. It could be safely said that it is also a pyramid scheme.
Modicare Ltd., It is said that behind every successful business is a person who once made a courageous decision. In the case of the Modicare the distributor is called Independent Business Consultant (IBC). It is also the same model like Amway |
It is also a pyramid structured business model. Though becoming an IBC is free i.e. without entry free, one has to enroll more persons to get commission.
Avon Beauty Products India Pvt. Ltd., Gurgaon |
This company claims that it is a company for women. It even offers free distributorship and sell the products and pay later to the company. On personal sales the distributor gets a 30 per cent commission and 17 per cent more on the group sales. IF the distributor enrolls more persons, she could earn more. A typical pyramid scheme.
160 million times a day, someone somewhere chooses a Unilever product. From feeding your family to keeping your home clean. When told, a die-hard fan of Hindustan Unilever refused to believe that the company is now into multilevel marketing. After showing the website only he believed and said it is sad that a good company like this should resort to such dubious means. The company is selling all its products with different names at exorbitant prices in the multilevel marketing to make easy/quick money. |
It is modus operandi is same that of Amway
Oriflame India Pvt. Ltd.,
CNI Achievement powers the desire to perform. CNI, Creative Network International, a Direct Sales organization empowers growth. |
Right from skin care products, food beverages, food products to water purifiers, it has several products which are exorbitantly priced. It also offers compensation plan for the CNI distributors. Its welcome kit is only Rs. 249. Like all IDSA members the distributors are also given fancy titles. This
Jafra Ruchi Cosmetics India Pvt. Ltd. |
It is yet to come out of the womb
Tupperware India Pvt. Ltd., Gurgaon For over 60 years, Tupperware has made an unwavering commitment to Enlighten, Educate and Empower women and their families. Most of the products are for kitchen storage purpose. Its business model is Chain of Confidence campaign which in fact is nothing but a chain marketing or network marketing, referral marketing. Whatever it is called it is also a money circulation scheme. It induces housewives to purchase products and tell their friends to purchase the products by becoming distributors under their downline to earn extra income. |