Skip to main content

All about Pyramid scheme, Ponzi Scheme.



What is Pyramid scheme, Ponzi Scheme?

Pirimid scheme : - It's Money circulation, each recommending other investors. Ponzy scheme (Charles Ponzi fist orchestrated,  generates returns for older investors by acquiring new investors). Both there is no any goods or service exchange happening which is banned in India and many other country. Many such company use proven MLM marketing models like Binary, Sunflower or any such.

Is Pyramid/Ponzi scheme legal ?

No, As there is no goods and service exchange, it's not legal in India. Major problem in this is there is no morality exist in such scheme, any time company can be closed. There are still some companies operating by registering in countries like Thailand where it's not made illegal. In India it's made illegal by 1978 Prinze Chits Money circulation Schemes(Banning) Act. 

Why people join such company?

Unlike in MLM everyone can still earn money without any referral, people consider this as investment rather business.

Any genuine company in this segment?

May or may not be, its not legal in many countries. Major problem is reason behind starting such firm, there could not be any obvious genuine reason to start such. 

Is MLM same as Pyramid/Ponzi  scheme?

No, MLM is a effective marketing strategy to promote products with out any advertisement. MLM helps in creating a passive assets --click here to read more on passive income and active income--, after a cause of time. Its same as Insurance sale in the initial stages of business development, difference between insurance sale and MLM  are, insurance sale has three level of  hierarchy were as MLM has infinite levels. Insurance sell product by giving fear of uncertainty, MLM sale by giving dreams to people. MLM helps people to start business with small capital. MLM initially required sales skill, later need leadership skill, then training skill, last a public speaker and a motivator.

Is MLM Legal?

MLM is legal in almost all countries, except some country like Saudi where all MLM companies are banned,because country don't promote any public gathering, which is common in any MLM companies.

How old is MLM companies?

Its is half a century old, just to be in safe side only associate with company with more than 10 year experience. I personally new few companies closed down because of Multiple reasons, some closed because lack of authoritarian support in India before 2016 --MLM guidelines came after 2016 in india.

How huge is MLM?

In India it make around 1.5 billion US dollar sale annually, with same number of population and resource near by country china its 35.73 billion US dollar and the leader in industry. US is the second highest with 35.35 billion US dollar

The real scammer pyramid scheme is below, there is wisdom for who thinks

Comments

Post a Comment

Popular posts from this blog

Why network Marketing?

Lets see what many famous Celebrities think on  Network Marketing.  There are many celebrities who endorsed  the network marketing, also there exist many idiots who thinks, everyone is wrong including Bill Gates. Its your conscience decide where you belong.  "if i would be given a chance to start over i would choose network marketing" ~Bill Gates  "Network Marketing has produce more millionaires than any other industry in the history of the world" ~Les Brown  "If i were starting over today. I would make millions in the Network Marketing" ~Donald Trump  "Network Marketing is the fastest growing business of 21st century which must be joined by every young man and women globally otherwise you can never get the best of your youth age"  ~Dr. APJ Abdul Kalam   "You strengthen our country and economy, not just for striving for your own success, but by offering opportunity to others. Your industry give people a
Post a Comment
Read more

Passive income vs Active Income

Security is mostly a  superstition . It does not exist in nature, nor do the children of men as a whole experience it. Avoiding danger is no safer in the long run than outright exposure.  Life is either a daring adventure, or nothing.  - Helen Keller Passive income          “ Making money while you sleep ”  Passive income is money earned with minimal activity through a variety of ventures which require little daily effort or upkeep on the individual’s part. Let’s be honest, if you want passive income for life, you have to get to the point where your assets are earning for you. One best way to create passive income is MLM "Network marketing gives people the opportunity with very low financial commitment, to build their on income generating asset,  and acquire great wealth. it has the potential to save the United States and the world. because it teaches people not to be employees, but to be entrepreneurs"  ~Robert Kiyosaki Active Income Active inc
Post a Comment
Read more