Some consider that there are legitimate Network marketing companies which have good MLM business plans that last for long and along with them every year we see scammers in MLM come up with tailored made plans to cheat people. It has not been long, few years ago; someone came up with non-working or growth plan. The business plan offered, the earlier you join, the faster you will make money, of course that is true in MLM but the catch was that we do not have to work at all and in one year’s time their invested amount will turn into 100 times, I wish government could offer such a scheme, but never the less people lost their money. Reason, either the investor was illiterate or he got scammed or he got carried away, after seeing someone from “rags to riches”.
The irony of the story is that, still there are people who are putting their hard earned money into such schemes. In past 4-5 years people have been cheated to the tune of hundreds & thousands of crore in India itself, but respite all this, the government is not taking steps to regulate network marketing . Though we have THE CHIT FUNDS ACT 1982, which is not enough to tackle present menace or may be the government has better things to take care like 2G scam, CWG scam, Adarsh scam etc.
Let me share with you how we can identify an MLM scam
- Duplication is must, without duplication a network marketing company cannot survive.
- If company offers you that without working, without referring, still you will get returns on investment.
- Say if you investing ‘x’ amount, by the end of year, company offers you 10 times of x.
- Never get carried away, if the business plan sounds unbelievable.
- Credentials of people, who are running the company, check their past records.
- Don’t get carried away with the pomp & show.
- Do not get carried away with the exorbitant money shown on a piece of a paper.
- Check their registration papers; in India it is called Incorporation Certificate.
- FOREX trading is banned in India, check with your local bank.
- Do research on company profile over the internet; if you see that company has cheated someone then do talk to them, analyze and then decide.
To Your Success in Business & Health in Life,Ak Sharma Editor,