Yes, is the answer to the question in the title, and wait, it is when you are not aware of it. This is exactly my observation and overall perception of MLM (Multi Level Marketing) schemes floating around across India, especially Tamilnadu in my experience
Disclaimer: This post entirely is based on my experience, observation, perception and understanding on MLM schemes. So all views and comments mentioned are personal. Am fine to have a constructive discussion to enrich and enlighten or add value to my understanding of MLM but not a senseless quarrel.
The most interesting persuasion to get me into one of the MLM schemes by my friends got me in a fix for a day. Until then the aversion mainly was all based on the attitude of ppl who were already in it trying get in every possible creature on earth and the other social inputs. When this one came to me, one of my closest and most intelligent and sensible friend had joined the scheme already and he infact brought another intelligent guy to persuade me. Since my intelligent friend was already done, i had a feeling that i would fall as well. And when the guys speak to you to persuade, they attack your 'greedy need' or a 'greedy dream' ie their emphasis is more on it than the actual business. For Eg. getting rich enough to buy your own car, own house, flight travel...etc, all in a very short span of time like about an year. I always had no or less money than my need, so i asked for a day to think about it and get back. Thats when i pondered more on the itching inner feeling that was stopping me. I felt the business which was all about getting ppl under you was not actually conventional business at all. For Eg. Even MNCs also have a referral scheme, where if you refer your friend for the company, the company will gift you money if that friend successfully clears interview and joins the company. Now this is the most closest comparison, but in here all the parties involved are benefited, ie you get gift, friend gets job and the company gets employee. Also, you would probably refer a few friends of which one or two make it.
Now in MLM, the difference is, you force your friend to join and after he joins he can only earn by more referrals and it never stops. The products that are sold are not real business, it is the 'networking' which is the business and everyone is aware of that, at the least that is wat the persuading ppl do even if its not the intention of their direct selling company. Now the questions is, whats wrong in making 'networking' the real business? whoever is good in marketing wins and earns lot of money in good time? Ok, look at it again with the example. Person A pays Rs 30000 and joins an MLM, he is given 10k worth a product, so till now his loss is 20k, but to recover he gets 6 more friends, who pay 30k each. By now i guess A will get his 20k out of the 120k that his friends lost! Where did the 100k go? to the upper hierarchies? for what? forcing ppl to join? and that you call your hard work? Do u get this? He makes you pay a large money and to get back the money you have to work yourself on your own friends to get them pay you! Company literally did nothing to pay you. Truth is, as you see, it is 'money movement' and zero business. When you try visualizing the money movement, it always happens from the bottom most to the top, distributing at every level and the bottom most is always at loss until they move up creating new losers.
You are paying yourself by robbing your friend's money and force him to help rob his friends further! Wait, rob? why did i use that word? well, what else will you call it when you make some one pay without literally anything in return?
Pain multiplies when it happens with not so much informed or well to do people. Many of them emotionally get involved and even sell their assets like jewelry or borrow on interest etc and add to their pain more by pushing and pulling more such ppl into it! Happened to my relative as well!
Am aware of companies which does direct selling with high value products, but not everyone in their network is interested in that real business!
Innocence is Divine, Ignorance is Evil!
Disclaimer: This post entirely is based on my experience, observation, perception and understanding on MLM schemes. So all views and comments mentioned are personal. Am fine to have a constructive discussion to enrich and enlighten or add value to my understanding of MLM but not a senseless quarrel.
The most interesting persuasion to get me into one of the MLM schemes by my friends got me in a fix for a day. Until then the aversion mainly was all based on the attitude of ppl who were already in it trying get in every possible creature on earth and the other social inputs. When this one came to me, one of my closest and most intelligent and sensible friend had joined the scheme already and he infact brought another intelligent guy to persuade me. Since my intelligent friend was already done, i had a feeling that i would fall as well. And when the guys speak to you to persuade, they attack your 'greedy need' or a 'greedy dream' ie their emphasis is more on it than the actual business. For Eg. getting rich enough to buy your own car, own house, flight travel...etc, all in a very short span of time like about an year. I always had no or less money than my need, so i asked for a day to think about it and get back. Thats when i pondered more on the itching inner feeling that was stopping me. I felt the business which was all about getting ppl under you was not actually conventional business at all. For Eg. Even MNCs also have a referral scheme, where if you refer your friend for the company, the company will gift you money if that friend successfully clears interview and joins the company. Now this is the most closest comparison, but in here all the parties involved are benefited, ie you get gift, friend gets job and the company gets employee. Also, you would probably refer a few friends of which one or two make it.
Now in MLM, the difference is, you force your friend to join and after he joins he can only earn by more referrals and it never stops. The products that are sold are not real business, it is the 'networking' which is the business and everyone is aware of that, at the least that is wat the persuading ppl do even if its not the intention of their direct selling company. Now the questions is, whats wrong in making 'networking' the real business? whoever is good in marketing wins and earns lot of money in good time? Ok, look at it again with the example. Person A pays Rs 30000 and joins an MLM, he is given 10k worth a product, so till now his loss is 20k, but to recover he gets 6 more friends, who pay 30k each. By now i guess A will get his 20k out of the 120k that his friends lost! Where did the 100k go? to the upper hierarchies? for what? forcing ppl to join? and that you call your hard work? Do u get this? He makes you pay a large money and to get back the money you have to work yourself on your own friends to get them pay you! Company literally did nothing to pay you. Truth is, as you see, it is 'money movement' and zero business. When you try visualizing the money movement, it always happens from the bottom most to the top, distributing at every level and the bottom most is always at loss until they move up creating new losers.
You are paying yourself by robbing your friend's money and force him to help rob his friends further! Wait, rob? why did i use that word? well, what else will you call it when you make some one pay without literally anything in return?
Pain multiplies when it happens with not so much informed or well to do people. Many of them emotionally get involved and even sell their assets like jewelry or borrow on interest etc and add to their pain more by pushing and pulling more such ppl into it! Happened to my relative as well!
Am aware of companies which does direct selling with high value products, but not everyone in their network is interested in that real business!
Innocence is Divine, Ignorance is Evil!
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