Multi Level Marketing System
Manish Goel was apprehended yesterday following investigations into allegations that Cosy Marketing Pvt Ltd cheated people by offering plots in Rajasthan’s Pushkar, Deputy Commissioner of Police (EoW) S D Mishra said. Last year, the company organised many seminars in Delhi, Haryana, Rajasthan and UP about a real estate project. The scheme launched mentioned that a member of the scheme could get a plot of 100 sq yard in Pushkar for Rs 41,000. “For this plot, initially, a member had to deposit Rs 11,000 in advance at the time of obtaining membership of the scheme and remaining money was to be deposited against the membership of the plot in 15 instalments of Rs 2000 each per month. “Till date more than 11,000 persons have invested in the scheme,” Mishra said. The company, which is into multi-level marketing, had collected money from public and distributed commission to existing member for adding a new member in the scheme. The company had acquired some agricultural land near Pushkar and the photographs were shown to the investors to induce them to invest in the scheme, wrongly promising an upcoming township there. “The company reportedly allotted plots to a few members but for most of the other members it did not fulfil its promise since the whole scheme, in fact, was a farce. The company had only a limited piece of land, that too agricultural, grossly insufficient to allot plots to the huge number of members they made. “There were no sanctions of a township and the money generated from public was circulated to pay commissions and rewards to earlier members to lure more customers. The company, in this way, cheated the members of their invested money,” Mishra said. Two bank accounts – one in Kotak Mahindra Bank and the other in ICICI Bank at Dwarka – where the cheated money of the victims were transferred have been identified and frozen. Efforts are on to trace his brother Rakesh Goel, co-accused and alleged mastermind in this racket, Mishra said.
For the original version including any supplementary images or video, visit http://zeenews.india.com/news/delhi/multi-level-marketing-company-owner-held-for-fraud_848802.html
Multi-level marketing plans are often pyramid schemes
I lost Rs 40,000 rupees, I got nothing. I am a Christian. I have these Sri Yantras. I bought four Sri Yantras. They cost Rs 8,000, she says. She bought a ‘Spatika Mala’ instead of soap as Quantum assigns these beads greater Commission Value (CV). Says Santoshamma, They told me, I was one point short of travel to Malaysia. Thats why I should enroll two or three more persons, so I made another two persons join. Editor, Pelli Patrika, Krishna Mohan says its looting the poor. A lot of indigenous Amway likes are emerging on a day-to-day basis and are looting the poor, gullible, innocent people, he says. CNN-IBN Investigation approached a police officer who bust an MLM outfit-the mattress selling Japan Life India. The officer explained how MLM operations in India are in fact, illegal. Says IPS, Vishwanath Sajjanar, Way back in 1978, the Central Government has banned all money circulation schemes by whatever names they may be called, whether you call network marketing or multi level marketing or direct marketing. The very running of money circulation scheme is illegal in India. Multi-Level Marketing was banned in 1978.
For the original version including any supplementary images or video, visit http://ibnlive.in.com/news/how-multilevel-marketing-cheats-at-all-level/59842-7.html
Ask Polly: My Best Friend Keeps Recruiting Me To Join Her Multi-Level Marketing Scheme!
Most of these companies are based around home shows where a hostess invites her friends to her home for product or service demonstrations. Attendees are then offered a chance to purchase while the hostess of the party earns incentives and credit toward her own product purchases based on the sales of her party. The demonstrator will earn a commission based on the sales of the party. Direct selling businesses include toys and clothing for children, kitchen supplies, home decor, jewelry, crafts, adult novelties and much more. There is a direct selling business for virtually any interest and many companies within each category. The commission structures and upfront costs will vary by company as well as how deep of a downline (recruits) the demonstrator can have and earn from their sales. Choosing a Direct Sales Company When searching for a direct sales opportunity, talk with others who have also pursued a work from home business with that company. In conducting research, it is important to distinguish between multi-level marketing opportunities and pyramid schemes . Find out about the pros and cons, upfront costs, ongoing costs and commission structure for the business. Ask about the amount of support available for new and existing demonstrators. Having an online presence with a website to sell products or book parties is also essential in reaching more potential customers. Choose a work from home opportunity based on interests or current hobbies.
For the original version including any supplementary images or video, visit http://suite101.com/a/multi-level-marketing-businesses-a208845
Multi-level Marketing Businesses
Then I want you to say, in a calm tone, “I love that [Name of Friend] is happy, but this business is not for me.” When they protest, you say, with a small smile, “I’ve heard every pitch, but trust me, it’s really not for me.” Then look them straight in the eye. Let them apologize, or move on. If they stay on the subject, politely excuse yourself and go to the bathroom. To your friend, you say, “I love you, but no, and that answer won’t change.” That’s all. If she revisits it, look her in the eyes and say, “Are you hearing what I’m telling you? Please respect my feelings on this front.” It’s not a question of you respecting her choices. You don’t have to say a thing about what she wants and needs. All you have to say is, “I don’t want that for myself.” The end. I would avoid specifics. I would memorize three “No thank you” lines and I would prepare to say them over and over again, punctuated by uncomfortable silence. As long as you don’t start talking and explaining and apologizing and discussing her choice to become a pox upon the face of the earth, you’re safe. Just be a woman of few words in this arena.
For the original version including any supplementary images or video, visit http://www.theawl.com/2013/08/ask-polly-my-best-friend-keeps-recruiting-me-to-join-her-multi-level-marketing-scheme
Strategies: Is multi-level marketing a good choice for you?
I expect I will get a few more calls again, however, I think it is important to provide this information so that prospective buyers can make an informed decision before they join a MLM. What is a multi-level marketing scheme? It is a network or matrix marketing venture. On the surface it appears to be an attractive business opportunity to involve your network of friends and family, sell products and make a lot of money. You have the support of a multi-level marketing company who supplies the product, with marketing support and sometimes training. They will not call themselves a multi-level marketing scheme and some do not actually sell a product or service, they may just offer an investment opportunity. Most multi-level marketing businesses offer a plan that claims that you will receive commissions by selling their product as well as commissions on the sales of people you recruit. Typically, you sign up, send money for the product or business package and your recruits do the same and their recruits do the same. Everyone is sending the multi-level marketing company money to be a member.
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multi level network marketing
Sounds great, right? In reality, MLM programs rank high on the list of fraud schemes, and the Federal Trade Commission (FTC) and most states’ attorney general have warnings and multiple lawsuits against many MLM programs. That’s one of the reasons that it’s so cheap to get in: Many states regulate “business opportunities” requiring more than $200-$500 initial investment. To stay under the radar, most MLM programs keep under that threshold. Here’s what the FTC advises: “If a plan offers to pay commissions for recruiting new distributors, watch out! Most states outlaw this practice, which is known as ‘pyramiding.’ State laws against pyramiding say that a multilevel marketing plan should only pay commissions for retail sales of goods or services, not for recruiting new distributors.” Even if a program isn’t fraudulent, from a business point-of-view, MLM programs share the same fundamental flaws, including: Recruiting competitors. No one in legitimate business wants competitors. In MLM programs, your goal is to get lots of others selling the same product or service. In real businesses, you’d pay for exclusive territories.
For the original version including any supplementary images or video, visit http://usatoday30.usatoday.com/money/smallbusiness/columnist/abrams/2009-05-08-multi-level-marketing-pitches_N.htm
My Experience With Multi-Level Marketing
Given the losses suffered by the millions of participants joining the schemes annually, why do they join and why would many stay active in these organizations? As can be seen from the Amway Quixtar Motivational Organizations entry at my Freedom of Mind Center site, sometimes these schemes employ the same mind control techniques that abusive cults use. Recruitment rallies may run till early hours of the morning; the schemes are presented as the “last best hope.” Critics and doubters are cast “losers” and “dream stealers.” In this way, Amway’s recruiting organizations (as well as other, similar MLM schemes), can themselves be considered destructive cult groups. But these groups are commercial cults that are offering a type of transcendental ideology that is not much different from that found among the religious cults. Their salvation lies ns a financial promise. Early in 2007, several Quixtar distributors, which it dubs “independent business owners” (IBOs), filed suit in the United States District Court in San Francisco, applying the Racketeer Influenced and Corrupt Organization (RICO) statutes, and alleging that Quixtar (which at the time was still part of Amway) functions as a massive consumer fraud. On November 3rd, 2010 the parties announced a proposed class action settlement valued at $150 million. The settlement is subject to court approval. Pyramid Scheme Alert and its board members have received literally thousands of victim testimonials from former distributors in Amway and many other MLMs. Pyramid Scheme Alert’s Fitzpatrick described the aggregate investments of millions of American in “endless chain” business opportunity schemes such as Amway, as the ” Main Street Bubble .” He argues that the value of the investments and effort expended by the salespeople/investors is dependent on new salespeople/investors being recruited, which cannot happen indefinitely. The value is artificially inflated on the false claim of “endless expansion.” Unlike Wall Street’s ponzi schemes, which collapse totally and all at once, the Main Street Bubble “collapses” continuously as the value is not realized by the “failures” who churn at a 50-80% rate a year .
For the original version including any supplementary images or video, visit http://www.huffingtonpost.com/steven-hassan/main-street-bubble-of-mul_b_816996.html
How multi-level marketing cheats at all level
According to a number of industry experts, it all lies in how the compensation plan works. And each companys plan works in a different way. Some operators succumb to the temptation to milk the IRs rather than help them make sales, giving rise to the industrys sometimes-deserved reputation for exploiting the people at the bottom of the chain the so-called downline. According to Jeff Ernsthausen, writing in Harpers Magazine , such companies can create incentives for sales reps to focus on inventory sales to these recruits, rather than on sales to end consumers.the distinction between a legitimate business and pyramid scheme hinges on whether these commissions come mainly from retail sales to final consumers or inventory sales to other distributors. Vigorous industry efforts and lawmakers in some countries have attacked some of the worst problems. Its possible that the best policeman is the Internet where the more spurious charges flourish in sketchy personal blogs but dont make it onto reputable sites. Abuses still happen sometimes; unknowing IRs (independent representatives) and unscrupulous operators can team up to bring these practices into play: Top-weighted compensation plans. Bosses upstream in the sales network, sometimes a number of them, get as much money per sale as the person who makes it. A reversal of the normal way to pay commission to salesmen in the field. Stockpiling. Requiring IRs to purchase large amounts of inventory to join the network, or to qualify for commissions. Channel-stuffing. Coming up with frequent revisions or updates to products that IRs have already purchased, making them out of date and unsalable so that IRs have to get rid of them often by giving them away, so that they have to buy more just to stay in business. Inadequate controls. Failing to keep overly-aggressive IRs from making false or misleading claims of income just to recruit new members to the network. Pay to play. Requiring IRs to pay exorbitant fees just to join the network or to maintain their status in it, incenting upstream people to make money simply by getting more people to join. Spurious sales tools. Requiring IRs to purchase high-priced training session and sales tools like books and DVDs of uneven quality and value. Often a way to milk more money out of poor performers before they leave the network. Cult-like culture. Motivations a key part of all sales organizations; some MLMs amp it up with messianic language and a powerful sense of purpose and community so that IRs stick with it to be loyal and keep friends, even when losing money.
For the original version including any supplementary images or video, visit http://www.forbes.com/sites/donaldfrazier/2012/10/31/multi-level-marketing-in-the-wrong-hands-ripe-for-abuse/
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Multi-level Marketing: In the Wrong Hands, Ripe for Abuse
They chicken out of making cold calls or meeting strangers at Perkins. They dont want to invest all the time into their home business that would be necessary for it to succeed. Or, they get divorced and end up splitting their downlines. You see, I worked for a network marketing company for a few years. But not as a distributorI stayed with a steady paycheck from the corporate offices. It was there that I met a company executive who had gone from abysmal failuresleeping in his carto becoming a millionaire with these MLM products. And when he did, his sponsor, the man who recruited him, became a multi-millionaire. I chose this particular MLM company to work for because their products: Were environmentally-friendly Tags: Amway , Avon , Cabi , DSA , DSEF , JAFRA , MLM , multi-level marketing , network marketing , Pampered Chef , Partylite About Holly Doering Holly Doering has worked for the Better Business Bureau Serving Eastern Washington, North Idaho, and Montana for half a decade. Her areas of expertise include the CORE Values Program (Character, Optimism, Respect, Ethics) for Teens and Charity Review as well as writing and editing. Prior to that, she has written for two newspapers, a local magazine, and taught English at the community college.
For the original version including any supplementary images or video, visit http://www.bbb.org/blog/2011/12/my-experience-with-multi-level-marketing/
Beware the “Main Street Bubble” of Multi-Level Marketing groups without U.S. Government Protection
http://www.networkingtowealth.com Shane Jeremy James discusses in this video the importance of having the right multi level marketing system and gives you some network marketing tips and tricks. Take these powerful network marketing tips Shane Jeremy James shares with you and run with it to achieve great things. The MLM tips and MLM secrets which are fast, simple, quick and powerful to implement and will help you to manage more reps and to grow your business faster. Watch this video today for multi level marketing tips and create a great multi level marketing system. http://youtu.be/gcmcQ4niYhc Be well educated if you have a great multi level marketing system in place. The more well informed you are the more likely you will succeed in your MLM business opportunity. The better system you have, the faster your team will duplicate. You need to stick with it until you succeed in YOUR NETWORK MARKETING BUSINESS. All the multi level marketing tips that Shane Jeremy James provides you will work, only if you stick with it.
For the original version including any supplementary images or video, visit http://www.youtube.com/watch?v=gcmcQ4niYhc