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 (India) P.

Ltd., Delhi

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 (India) Pvt. Ltd., Chennai

Our Mission is to establish an International Network Marketing Company that fulfills our commitments and responsibilities

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. Ludhiana

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., Bangalore

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 Bihar and he lost a lot of money in this scam. Anyway it is impossible to sell these products anywhere in the world. There are a sizable number of people who lost in this scam.

Mary Kay Cosmetics Pvt Ltd. Gurgaon

Mary Kay is one of the largest direct selling cosmetics companies in the world. With its Mission of “Enriching Women’s Lives”.

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 India. However it is limited so far to only Metros in the country. Mainly it targets high society women in the higher income group.

AMC Cookware (India) Pvt. Ltd., Bangalore

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 Vijayawada too.

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.

Forever Living Products (India) P. Ltd., Mumbai

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 India Enterprises, Noida, UP

Amway India Enterprises is the country's leading direct selling FMCG-company .It manufactures & sells world-class products sourced from India. Its business opportunity & all products are covered by 100% Money Back Guarantee.

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., Bangalore

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., Delhi

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 India selling several types of products at exorbitant price.

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

Avon for over 120 years has empowered women professionally and through financial earning opportunity.

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.

Hindustan Unilever Network, Mumbai

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 India. To become an HUN consultant, one has to be sponsored by an already existing member after paying membership fee and buy products from the stock point. The initial membership fee is Rs. 995 and the first invoice is Rs. 1400. Depending upon the purchase of products, the HUN Consultant would acquire points to get commission. If he enrolls more consultants, he would get more points. This is also a pyramid structured business model.

Oriflame India Pvt. Ltd., Delhi

Oriflame claims that it is today one of the fastest growing beauty companies selling direct. It claims to specializes in natural Swedish cosmetics. Its beauty products are, like the products of all direct selling companies, exorbitantly priced. One has to become a beauty consultant to purchase products and introduce more consultants to earn more commission.

CNI Enterprise (India) Pvt. Ltd., Bangalore

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 Malaysia–based company offers a ‘unique’ dubious idea to inherit the business earnings from generation to generation. So if one becomes a distributor, his children, grand children and great grand children would inherit the earnings. What a great inducement!

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.


dtytrivedi said...

use your head shyam, money circulation becomes applicable only when one benifits during enrollement and not during the sales of the products.

dtytrivedi said...

to be more clear, mone circulation does not apply when one gets benifit from the sales made by its downlines.

If it is considered money circulation scheme then all insurance companies and telcomm companies are running pyramid scheme.

Because team lead recruits the people in his team and he get major benifits from the sales posted by its subordinates.

Shyam Sundar said...

You have not read the latest Supreme Court judgement. It shows that you have no brains at all. If you enroll 102 persons, you would automatically get Rs. 62, 500 every month. This is what is described as easy and quick money banned under the PCMC Act. Insurance schemes and telecom companies would not ask each and everyone to become member by paying some amount and start selling its products. It shows once again your level of thinking.

dtytrivedi said...

well i am in amway i know how it works.

dear shyam its not enrolling 102 people one will get 62,500.

Its generating sales from six different people that is generating sales of 5,50,000 from six different people.

when u look at the catalogue there is no where written that there is business point and commission for enrolling people.

dtytrivedi said...

well i am in amway i know how it works.

dear shyam its not enrolling 102 people one will get 62,500.

Its generating sales from six different people that is generating sales of 5,50,000 from six different people.

when u look at the catalogue there is no where written that there is business point and commission for enrolling people.

dtytrivedi said...

well i am in amway i know how it works.

dear shyam its not enrolling 102 people one will get 62,500.

Its generating sales from six different people that is generating sales of 5,50,000 from six different people.

when u look at the catalogue there is no where written that there is business point and commission for enrolling people.

Shyam Sundar said...

Amway makes easy and quick money by charging entry fee and renewal of membership every year. It is all in the enrollment where the money is. And every member must purchase Rs. 2000 worth products every month whether he could sell them or not. That is where the fixed revenue for Amway is. There is also the 'tools' and entry fee for meetings where the 'IBOs' lose their money. It all adds up perennial loss. If IBOs could not enroll more persons, the are blamed for their 'incompetence' and they naturally shut their mouth. Every month IBOs keep on losing their hard-earned money to purchase products which they could not sell. Even years after into the 'good business opportunity' they remain there without any growth unless they enroll more people. That is why the website prominently says that they would make Rs. 62,500 if they enroll 102 persons under them.

Unknown said...

Shyam r u in the governing body..all the companies that u spoke of r approved by idsa..r u kinda jealous u r not able to profit as much as thesd people..whatever u do..u must work towards it..those in certified mlm companies toil hard..its not easy to generate leads n sell genuine products..then u would say all celebrities that endorse products r making crores to just appear in ads..dont u use the products..get a life man..dont give genuine mlm companies a bad name

Shyam Sundar said...

Claude, you are speaking as if IDSA is a government body to give approval. Poor fellow try to understand that IDSA is promoted by all these fraudulent companies. The MLM business model is nothing but mathematical impossibility. They are all out to cheat the people of India. It is laughable that you are saying that I am jealous. I am only warning our own people not to fall prey to the evil designs of these companies.

Shyam Sundar said...

Corporate Frauds Watch believes in publishing all opinions provided they do not indulge in abuse of freedom. Probably Saji did not post it properly that it why the posts were not published. There is nothing like moderating here.

Vijay said...

Jaaney bhi do yaaron............When you fight with the pig in the mud, pig enjoys the most, dont waste your time arguing, go and create a network...............

veer said...

SHYAM SUNDER JI ABHI TO AMWAY GUTNO KE BAL HI CHAL RAHA HAI. jab abhi to vo khada bhi nahi hua hai so just imagine jab khada hoga aur daudne lagega to kya hoga? dusri baat aap jo bhi karte ho aap apne organsation me time doge to hi income hogi ,lekin yaha 2-5 saal me aap achchi income generate kar sakte ho .by the way one question aapki beti ki shadi ke liye aap kitne ladke dekhoge? agar koi pasand na aaye to kya aap apni beti ki shadi ki shadi kabhi nahi karenge. passion ka imtehaan to hona hi chahiye aur yaha aapke dhiraj ki pariksha hoti hai. phir bhi shak ho raha ho to just wait and watch. veer 9723129370

veer said...

SHYAM SUNDER JI ABHI TO AMWAY GUTNO KE BAL HI CHAL RAHA HAI. jab abhi to vo khada bhi nahi hua hai so just imagine jab khada hoga aur daudne lagega to kya hoga? dusri baat aap jo bhi karte ho aap apne organsation me time doge to hi income hogi ,lekin yaha 2-5 saal me aap achchi income generate kar sakte ho .by the way one question aapki beti ki shadi ke liye aap kitne ladke dekhoge? agar koi pasand na aaye to kya aap apni beti ki shadi ki shadi kabhi nahi karenge. passion ka imtehaan to hona hi chahiye aur yaha aapke dhiraj ki pariksha hoti hai. phir bhi shak ho raha ho to just wait and watch. veer 9723129370

Vikky1979 said...

Shyam Sundarji, use common sense. You can make fool to some of people for some time. But you can't make fool a lot of people for long time. Amway is running since 1959 in more than 90 countries. Also you are not having correct information how it works. Remember Direct Selling is future. If not agree wait & watch.

Shyam Sundar said...

Vikky, just click the Home button to read an elaborate answer to your silly query.
You are ready to get hoodwinked and you don't mind to cheat your own friends and relatives.
Wake up! Vikky from the deep slumber.

vijay said...

Jo person networker nahi hai vah network ke baare me kaise coments kar sakta hai.vah ke boss ki gulami kare ya loan lekar bussiness.usake bachhe bhi vahi kare.network new model of freedom ka farmula hai sabke samajh me nahi aayega.

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Unknown said...

Chennai based shivshu canadian clear international ltd, this international fraud, , mineralwaterRO plant machine manufacture, MD shusilkumar, shivkumar, my money 30lacs, 3 years delay to machines, criminal case for me...., bank interest 15 penalt to my money, my own fund 1crore locked, dont run the business, now bank surfassi Act cheese my company, pls dont approch this corporate fraud means shivshu canadian clear international ltd,

Unknown said...

There is a difference in money circulation and genuine MLM. Money circulation doesn't involve any product and services. And if you will say to look into deeper than every business is a money circulation becuase money always cirulate... iska paisa useke paas, uska paisa iske paas. if you say products are overpriced then you should understand that we pay for coke and pepsi 12 rupees however the manufacturing cost for it is just 1 or 2 rupees. Isn't it overpriced. why don't you go against these companies. if you say that in MLM companies, people are forced to puchase product or to join members to get commission and promotion the same happens to me in my job. my boss alwyas gives me target. I am forced to give the business to my boss to get my commission and promotion. This happens everywhere. Even though if you say that it is fraud, it doesn't matter becuase everyone is enjoying to do it. you can't give a job to everyone to earn something but mlm gives a chance to everyone to earn something. there are lot more serious concerns in this world that need to be addresed. I think you should work on those instead wasting time against MLM.

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Ayiena794 said...

whoever write this i can conclude that you are very stupid person and know nothing about 4life,you are totally wasting time writting such idiotic article..to make 1capsule of transfer factor needs 8glass of fresh milk(take small nano molecule named transfer factor) for cows who has given their 1st child only and 10 egg yolk. the total price is about 18 dollar per capsule but company just sell it less tan 1 dolar per capsule.its a global business which is a proven solid business model for 18 years around 150 countries and 11 year in malaysia.the system allows us to become its partner n share 64% of the global profits.

Unknown said...

Join Forever living products worlds best business opportunity it gives you health + wealth..

Shyam Sundar said...

If the products of these racketeers are of high quality, why don't they sell in the open market without inviting people to become members and asking them to bring in more members which is a chain scheme.

chander prakash said...

I think ye shayam sunder ek failure hai. Jo apni life me success nhi ho paya to inn companies pr apna gussa nikal raha hai. Wake up Mr. Shayam. Ye chhoti soch se upper nikalo. Aur Network marketing industry ko theek se study kro. Fail hue ho to koi baat nhi. Doosro ko to aage badne do.

Shyam Sundar said...

Puttar Chander, Wake up man from deep slumber. Everyone knows that this is cheating business. I am very successful journalist and advocate. I am well settled in my life. But every paisa I earned is lawful. Do not drag more people into this network marketing which is well described by the Supreme Court of India as 'mathematical impossibility' Knowing fully well that this won't work for long these people are involving more people into it means they are cheating.

Mayank Sinha said...

Hi Shyam Sundar

I think you did not gone through press release of govt of India about Direct selling Industry i am not a promotor of any direct selling companies but now law has been made for direct selling Industry. Its a Kind of Marketing model which is now part of Chapter Marketing management studies if it is cheating then it not added to any studies of management
read this


Chit fund, money circulation( Like invest 8000 bring two people they invest 8000 each you will receive 1600 if they duplicate the same you will receive 800 this is illegal which is termed as pyramid/binary and money circulation)

Direct selling industry which is running on network marketing model have huge potential if you still keeps on saying its cheating after govt approval then sorry to say but you are mathematically impossible

Shyam Sundar said...

I suppose you are referring to the guidelines issued by the Centre. Basing on these guidelines the state government need to prepare their own guidelines. These guidelines are also so hard even Amway finds it difficult to adhere to them. So do not blindly believe by what these touts are saying. It is still an illegal business model. And any minute they may have to face criminal cases anywhere in India.

Mayank Sinha said...
This comment has been removed by the author.
Mayank Sinha said...

it is not as there is nothing written any where that it is illegal.
pyramid schemes are only illegal and product based direct selling companies if they work ethically they can work without any problem, forgery is mainly done by some their agents in lieu of earning more money they trap people by giving false information which not in company guidelines or business plan

Mayank Sinha said...


go though my blog and find out all of illegally running chain marketing companies

D. Praveen kumar said...

Respected Mr.Shyam Sundar sir, iI have very recently read your post aboutvmlm industry. I am a very ordinary person also not successful network business man. But opinion may differ from person to person. I would like share share few information here that few years back most of us not aware the health benefit of aloe Vera but now every doctors and every mnc Foch companies are taking about it but truth original revealed by mom companies. Like wise lot of examples non fluoridated tooth paste, herbal cosmetics, rice bran oil, Vegetable oil soap etc so mlm companies not only sells Foch products but also with good quality. Let me come to income part the actual income not comes from recruitment but it is coming from the performance of your downline for example if your performance is 20 percent same time your downtime aperformance is 15 percent you will earn the difference 5 percent from him same like that if your down line b performance is 12 percent you will earn 8 Percent from him. This is only basic income plan and more different income plan is available. Also it very easily understandable not a mathematical impossibilities.and I would like to tell you that only this industry is the option for better social economic development let me tell you how. Traditional business models made us employee and employee forever. This industry will make us entrepreneur and entrepreneur forever because previously all investors taken and enjoyed all our efforts and time now there is a change try to welcome the change let us live for us. Regards, d. Praveen Kumar, 9042739546,coimvatore

Modicare Distribution Point said...

very good post, Check Altos Business Plan

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