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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

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