The Ground Reality of Multi Level Marketing – How They brainwash People
1st They try to convince you that Your Money isn’t waste, You are getting Products worth your Money even you are getting it in Discount. But as days pass out, you will start to realise that the Products are not Value for money even with discounts.
So to know reality of these Multi Level Marketing Companies, I decided to Join a MLM Company.I live in City A . Through my friend Circle I came to know about This Company(#). I travelled 2000 KM to reach the Seminar Camp in City E.After I reach there ,I saw almost 200 Young Boys there. Most of them are from Very Poor family background, I have seen those boys having one or Two pair of Dresses.The Company Attends two Seminar Sessions Everyday. They Chose one of those Aspiring Guys to be the Speaker of the Session to give them a corporate feel. In each Session they tell atleast two stories to Brainwash those boys.And most of those Stories are Based on trust & hope. they keep on Saying you should trust our company & in couple of Months you will be Making Millions of Money.
I googled about the Company , but didn’t find any Positive Review about the Company.
I was told by my friends that, you need to invest only 10k Rupees, Room Rent is only Rs.200/month & Food Charge is only Rs.300/month. Though prices was same, but there’s a Catch, the company accommodated 10 people per room for Cost Saving. Also foods are of low quality.they were serving Rice with Potato Curry that too for Cost saving. I spent there almost 15 days, then I decided to Comback,but that wasn’t easy. The Guys there tried every possible way to convince me by saying “You have Come from a long distance City to Make Money. Now You are going back with empty hand, What about your parents & their hope. See all your colleague ,they are not fools.if you leave, you will see You Friends become Millionaires & Billionaires later. “ . But finally, I decided this is Enough. I travelled back to my Home.But the journey wasn’t smooth for Below Reason.
The Company had Sales Office in my City, but They don’t Take Seminar there instead they take Seminar at very long Distance ( 2000 Km in my Case). They Chose a place which is not feasible easily By all Transportation Modes (Air, Road, Sea and Rail).in my case the Bus Stop was 50 km Distance & the nearest Railway Junction was 130 km.This puts a psychological Pressure on the Candidate to spend more time on their Camp.
The Company targets Following type of People
- People who want to get Rich Quickly
- People who don’t make Proper Research before investing their time & Money
- People in Desperate Need of Money
Also they charge very low amount of money in the beginning, so that more people will be unboarded faster & later they will be Brainwashed to invest more. In my case I had given Rs 10000 in exchange of some Health Care Products ( whose Real value is not more Rs 3000) .They convinced me by saying these are herbal products way better than than the Brands you used till now.But the Reality is the Product they passed out to me are mostly Chemical based.
Their Sales System mainly used a pyramid Structure, Where you become an end user when you Join Them.
How Does Pyramid Schemes Work ?
Pyramid schemes are so named because they have pyramid-like compensation structures. Initially, the system starts with a single point on top where the initial members are situated and expands towards the bottom as new recruits are recruited at every level.
Suppose Mike, the founder of the scheme, is sitting at the top of it all. He enlists 5 individuals with the expectation of a substantial profit margin. They are represented by the level directly beneath his feet on the pyramid.
For each of the 5 new members or participants who pay a specific fee, Mike takes part in an opportunity offered to them. Subsequently, the members are urged to recruit 5 more members, creating a total of 25 individuals.
The fee for each of the 25 new recruits is paid by tier-two recruiters who must transfer a portion of their earnings to Mike. Repeated: This cycle of recruitment and payment will repeat itself for as long time possible. However, money continues to flow upwards towards those in the higher levels.
Pyramid schemes are primarily focused on recruiting new members. There’s never really been any sale of a product or service — though there may have been some implied intention to lure recruits. It is not known if the income is derived from anyone other than those who were recruited.
The recruitment events’ hard-sell tactics suggest that those who are bold enough to take the pyramid plunge will receive significant funds from the recruits below them. However, in reality, the pools of potential members tend to dry up gradually. The top-level Players of a pyramid scheme may be left with money when it shuts down, while the majority of bottom level members are left without any funds.
So Before investing your valuable time & Money in such Schemes, Do Some significant amount of reaserch.
