What's up people?
Today, in this article you will get to know some of the top Direct Selling Companies in India, total scam and fooling people to make them Rich fast!
And there are a ton of people in India that have been fooled by some Ponzi schemes that promise to make everyone rich and famous and successful entrepreneurs etc...
There are a lot of network marketing MLM companies in India that are working legally and have a very good reputation but,
But some of them are totally direct selling scams, what are those companies and what were their stories. Let's dive right into it.
Below are various companies that belong/belonged to the network marketing industry. The only one things that are common in mostly each of these companies is these companies came out with no product with this MLM marketing model.
Mostly Ponzi schemes and money circulation in that little GREY area because according to rules if a company has a product, it's a LEGAL Company so most of these companies added a shi**y product just for the sake of having a product to sell so that they can do their Money Circulation "LEGALLY"!
Started in Hong Kong on a network marketing model by QI group founded in 1998 by Mr. Vijay.
The company basically sell personal care, e-commerce, and travel products online.
What these guys basically did is, these guys wanted money, a lot of money! So they organized a business plan which has a huge money-making opportunity.
The problem was there was no product!
So to get a legal batch on their shirt they launched a really expensive watch which was around 1 Lakh rupees.
No, it was not RADO, not Rolex, etc.! It was basically a cheap 2000 rupees watch which they tried to sell on their e-com website for huge amounts for being legal and to get a lot of profits.
First, you have to enroll in the website and make a purchase anywhere around 3 lakhs- 10 lakhs per person!
This will get you a specific ID and from that ID you have to make a fool of hell lot of people. And once they do the same process, congratulations you will get a nice commission.
Because of the reason, they were charging in lakhs per person, it was a multi-crore Network Marketing Scam!
This fastest growing network marketing company has a plan, the plan was basically based on TRUST!
How this scam reached so great heights as why people become so dumb all of a sudden? And purchased a product that was over-priced and has no brand value. HOW?
The company had collected money from the normal people in crores so they thought to gain more trust from the people and introduced celebrities into the game.
Some of the money that they had collected gone into celebrity promotion which made a lot of people gain more trust like YES, this is a legit company if such a huge celebrity is also promoting this.
Their sales went straight up and they even collected a ton of money in a really short period of time.
This fastest growing MLM company has its roots into multiple countries and same was the issue that was happened in other countries that I will explain right now:
Most of the people that got enrolled in the scam felt cheated in the company and got to know the real truth that what exactly is happening right here in front of us and we are all part of this scam too!
They demanded the refund and the company simply rejected to give it back!
They went straight to launch report against the company and it was like 50 people from different states that were also reporting the same report against this particular company.
The Police directly ran their investigation and it was the time the full scam was exposed and it went straight in the Media which exploded like crazy in the televisions.
After all, this happened here is a regular brave girl who was doing the Qnet business and explained How her 4 years are ruined by Qnet and what is her learnings so that you can be safe and make the right choices:
Guys, I think if I explain each and every core of these top direct selling fraud companies in India, it would be so long to read. From now on I will only explain briefly so that you get to know the names of these network marketing frauds.
And in the end, I will tell you how exactly you can interpret the situation if you hear the word network marketing in the future.
So let's go:
It is another big scam that basically made a lot of health care products like magnetic bed sheets, magnetic necklaces, etc.
The company basically find and encourages a lot of local bed sheet and other buyers to add "rental owned" and promise to pay 6 percent annual returns.
People then buy these products and then encourage others to get rented from the company. Nobody knew where the company will repay the money to these people so-called 6 percent annual returns?
When the time came to repay these people, the company went into great Debt of 240.5 billion Yen which was like the second biggest debt of a fraudster company.
Sooner or later, the company officials said to the team members that the company is a fraudster when a lot of people started to report the company and the money circulation business went straight down in the gutter.
I remember from my own family relatives someone has also invested like 1.25Lakhs and then sooner we got to know the company went straight bankrupt!
BK Jewellers was a very reputable jewelry company that make and distribute high-quality various products of gold, silver, etc.
It was a very reputable brand that was doing all it's business legally and everything was working all good and fine.
One day, the owner of the company had got this idea that he will collect a lot of money from regular people and double the money in a few years.
He launched various plans for gold investment(₹68,000+), platinum investment(3.3Lakhs+) and various other plans.
People basically invested huge amounts and the company overnight Ghosted everyone!
They ran away with all the money.
If you are from Delhi particularly, you will exactly know how big was the scam and how many people have lost their money.
Actually, you can check out more information about this money circulation scam here.
There are a lot of scams out there and some of my friends are also involved in this network marketing scam.
I want to make very clear in this article that there are a lot of network marketing scams out there that are making a fool of a lot of people and there are a lot of genuine network marketing companies that are making future of a lot of people.
The network marketing industry is very powerful but companies like these when entering in the market makes the problem and it is exactly the reason that this industry as a whole has a very negative reputation as a whole in the world.
It all boils down to you as a person to get to know which company is a money circulation ponzi scam and which company is legit through which you can build a thriving business!
I know a lot of these scams and Ponzi schemes are ghosting people and running with the cold hard cash earned by normal regular people.
There are a lot of Ponzi companies and I cannot explain in one single article so I am leaving the link where you can check out other network marketing ponzi scams, Go Here!
When you meet the people, you have to exactly know:
- What is the historical background of the company?
- The past record of profits and loses- Knowing is the company is going in profits or losses in past years is also very important!
- From where it is started for what mission?
- If it is an old company then search online about any cases as a background check?
- Is the company legally working?
- How exactly the money is being made in the company. Make sure that you always have to receive commissions on the product sales and not on the membership.
- Why the company basically started, just to make money or to solve a problem in the market place.
These are basic few things that you have to make sure you get it right in the first meet!
The first thing you have to do if you are planning to join an Indian or any network marketing company is their company culture.
If you did not feel positive after meeting the people of the company or if you feel that for something I am being forced or pressurized to believe in.
This is a Big Red Flag!
If you are feeling terrible after meeting the people and the culture on the first day, you will not survive in this type of company.
Make sure that the company has its own product which actually produces results. And you only purchase the product to get started in the company.
Most MLM Network Marketing Companies do not require large sums of money and if there's no product, it's definitely a money circulation system or a ponzi scam of chain marketing.
The money you will be paying to get started in the company for what you have to receive a quality product so there's no investment at all. You paid the money, you got the product so it's all balanced!
If you find the right company, you also have to make sure that the company's product that you enjoy using is a product for repeat orders.
If no-one is buying the product then who will continue the business? How the company will pay the money to its distributors? By recruiting more people?
Then the company is most probably is a chain marketing scheme!
Because if the company has a genuine product that is on repeat order then the company will always have a positive cash flow and the company will never get bankrupt and you and every distributor will get benefited.
By major investment I mean there should be no investment. All you are doing is purchasing the product and that's all to start the business.
Make sure that there are no such claims that we will "double your money" in "this much" time and bring "this much" people.
Also Read:
MLM Companies: Everything You Looking For And Need To Know!
[Good or Bad] Network Marketing Business For Students
What Is The Scope of Network Marketing MLM Companies?
In the end, I say make sure that you get in with a reputable brand around 5-10 years of existence minimum, that be good to track all the above points that I just discussed so that you can protect yourself and get in the right company.
After all, you will be giving your hard work in this company so make this part right!
I wanna emphasize this that the Network Marketing MLM Industry is good and there are various top direct selling companies that are doing good.
All you have to do is find a good company and stick with it and you will definitely find yourself in a much better position in the coming time.
If you are someone who is looking for a way how to earn extra income in the part-time. No not an MLM Business but how to build a Successful Online Business.
Sign-up for this free master course which will help and guide you on how to basically build a thriving online business in today's age where everything is getting online.
Register here- bit.ly/OnlineMarketing1O1
That's it if you find value in the content I put up here on the website, do let me know by sharing it and I will meet you in another informative article on the website.
Peace!
Honorable References:
- Alena Rais YouTube channel= https://www.youtube.com/channel/UCjLPS62jAAacLvpjsKT_7_w
- https://www.moneylife.in/article/qnet-it-is-a-chain-where-a-person-is-fooled-and-then-he-is-trained-to-fool-others-to-earn-money-says-bombay-hc-order/46857.html
- https://en.wikipedia.org/wiki/Qnet
- https://www.glassdoor.co.in/Reviews/QNet-scam-Reviews-EI_IE473237.0,4_KH5,9.htm
- https://www.quora.com/How-do-I-make-my-friend-realize-that-QNET-is-a-not-a-scam-qnet
- https://www.youtube.com/watch?v=FACxHiHpwGk
- https://timesofindia.indiatimes.com/city/bengaluru/Japan-Life-charged-with-cheating/articleshow/11194963.cms
- https://www.japantimes.co.jp/news/2019/04/25/national/crime-legal/police-raid-40-offices-japan-life-bankrupt-firm-suspected-defrauding-elderly-customers/#.XVJu0-gzbIU
- https://www.consumercomplaints.in/complaints/bk-jewellery-house-c166222/page/3
- https://www.hindustantimes.com/delhi/over-300-duped-of-crores/story-gDHGwesCYGF9K3U9f54UkK.html
- http://archive.indianexpress.com/news/another-fraud-surfaces-jewellery-store-owner-s-son-duped-thousands-absconding/475710/
- https://www.entrepreneur.com/article/159396
- https://www.wikihow.com/Choose-a-Network-Marketing-Company
- https://toddfalcone.com/how-to-pick-a-network-marketing-company/bc1/
- https://www.thebalancesmb.com/choose-network-marketing-opportunity-1201185
Today, in this article you will get to know some of the top Direct Selling Companies in India, total scam and fooling people to make them Rich fast!
And there are a ton of people in India that have been fooled by some Ponzi schemes that promise to make everyone rich and famous and successful entrepreneurs etc...
There are a lot of network marketing MLM companies in India that are working legally and have a very good reputation but,
But some of them are totally direct selling scams, what are those companies and what were their stories. Let's dive right into it.
One Common Thing You Will Notice...
Below are various companies that belong/belonged to the network marketing industry. The only one things that are common in mostly each of these companies is these companies came out with no product with this MLM marketing model.
Mostly Ponzi schemes and money circulation in that little GREY area because according to rules if a company has a product, it's a LEGAL Company so most of these companies added a shi**y product just for the sake of having a product to sell so that they can do their Money Circulation "LEGALLY"!
Top Fraud Direct Selling Companies in India
1. Qnet
Started in Hong Kong on a network marketing model by QI group founded in 1998 by Mr. Vijay.
The company basically sell personal care, e-commerce, and travel products online.
What these guys basically did is, these guys wanted money, a lot of money! So they organized a business plan which has a huge money-making opportunity.
The problem was there was no product!
So to get a legal batch on their shirt they launched a really expensive watch which was around 1 Lakh rupees.
No, it was not RADO, not Rolex, etc.! It was basically a cheap 2000 rupees watch which they tried to sell on their e-com website for huge amounts for being legal and to get a lot of profits.
What people basically have to do?
First, you have to enroll in the website and make a purchase anywhere around 3 lakhs- 10 lakhs per person!
This will get you a specific ID and from that ID you have to make a fool of hell lot of people. And once they do the same process, congratulations you will get a nice commission.
Because of the reason, they were charging in lakhs per person, it was a multi-crore Network Marketing Scam!
How they became so huge?
This fastest growing network marketing company has a plan, the plan was basically based on TRUST!
How this scam reached so great heights as why people become so dumb all of a sudden? And purchased a product that was over-priced and has no brand value. HOW?
The company had collected money from the normal people in crores so they thought to gain more trust from the people and introduced celebrities into the game.
Some of the money that they had collected gone into celebrity promotion which made a lot of people gain more trust like YES, this is a legit company if such a huge celebrity is also promoting this.
Their sales went straight up and they even collected a ton of money in a really short period of time.
How did it end?
This fastest growing MLM company has its roots into multiple countries and same was the issue that was happened in other countries that I will explain right now:
Most of the people that got enrolled in the scam felt cheated in the company and got to know the real truth that what exactly is happening right here in front of us and we are all part of this scam too!
They demanded the refund and the company simply rejected to give it back!
They went straight to launch report against the company and it was like 50 people from different states that were also reporting the same report against this particular company.
The Police directly ran their investigation and it was the time the full scam was exposed and it went straight in the Media which exploded like crazy in the televisions.
After all, this happened here is a regular brave girl who was doing the Qnet business and explained How her 4 years are ruined by Qnet and what is her learnings so that you can be safe and make the right choices:
Guys, I think if I explain each and every core of these top direct selling fraud companies in India, it would be so long to read. From now on I will only explain briefly so that you get to know the names of these network marketing frauds.
And in the end, I will tell you how exactly you can interpret the situation if you hear the word network marketing in the future.
So let's go:
2. Japan Life
It is another big scam that basically made a lot of health care products like magnetic bed sheets, magnetic necklaces, etc.
The company basically find and encourages a lot of local bed sheet and other buyers to add "rental owned" and promise to pay 6 percent annual returns.
People then buy these products and then encourage others to get rented from the company. Nobody knew where the company will repay the money to these people so-called 6 percent annual returns?
When the time came to repay these people, the company went into great Debt of 240.5 billion Yen which was like the second biggest debt of a fraudster company.
Sooner or later, the company officials said to the team members that the company is a fraudster when a lot of people started to report the company and the money circulation business went straight down in the gutter.
I remember from my own family relatives someone has also invested like 1.25Lakhs and then sooner we got to know the company went straight bankrupt!
3. BK Jewellers
BK Jewellers was a very reputable jewelry company that make and distribute high-quality various products of gold, silver, etc.
It was a very reputable brand that was doing all it's business legally and everything was working all good and fine.
One day, the owner of the company had got this idea that he will collect a lot of money from regular people and double the money in a few years.
He launched various plans for gold investment(₹68,000+), platinum investment(3.3Lakhs+) and various other plans.
People basically invested huge amounts and the company overnight Ghosted everyone!
They ran away with all the money.
If you are from Delhi particularly, you will exactly know how big was the scam and how many people have lost their money.
Actually, you can check out more information about this money circulation scam here.
You might be thinking:
There are a lot of scams out there and some of my friends are also involved in this network marketing scam.
I want to make very clear in this article that there are a lot of network marketing scams out there that are making a fool of a lot of people and there are a lot of genuine network marketing companies that are making future of a lot of people.
The network marketing industry is very powerful but companies like these when entering in the market makes the problem and it is exactly the reason that this industry as a whole has a very negative reputation as a whole in the world.
It all boils down to you as a person to get to know which company is a money circulation ponzi scam and which company is legit through which you can build a thriving business!
I know a lot of these scams and Ponzi schemes are ghosting people and running with the cold hard cash earned by normal regular people.
There are a lot of Ponzi companies and I cannot explain in one single article so I am leaving the link where you can check out other network marketing ponzi scams, Go Here!
How To Protect Yourself For Direct Selling Scams Companies
1. Company HISTORY, GEOGRAPHY, AND BIOGRAPHY
When you meet the people, you have to exactly know:
- What is the historical background of the company?
- The past record of profits and loses- Knowing is the company is going in profits or losses in past years is also very important!
- From where it is started for what mission?
- If it is an old company then search online about any cases as a background check?
- Is the company legally working?
- How exactly the money is being made in the company. Make sure that you always have to receive commissions on the product sales and not on the membership.
- Why the company basically started, just to make money or to solve a problem in the market place.
These are basic few things that you have to make sure you get it right in the first meet!
2. Company's Culture
The first thing you have to do if you are planning to join an Indian or any network marketing company is their company culture.
If you did not feel positive after meeting the people of the company or if you feel that for something I am being forced or pressurized to believe in.
This is a Big Red Flag!
If you are feeling terrible after meeting the people and the culture on the first day, you will not survive in this type of company.
3. Company's Product
Make sure that the company has its own product which actually produces results. And you only purchase the product to get started in the company.
Most MLM Network Marketing Companies do not require large sums of money and if there's no product, it's definitely a money circulation system or a ponzi scam of chain marketing.
The money you will be paying to get started in the company for what you have to receive a quality product so there's no investment at all. You paid the money, you got the product so it's all balanced!
4. Repeat Orders
If you find the right company, you also have to make sure that the company's product that you enjoy using is a product for repeat orders.
If no-one is buying the product then who will continue the business? How the company will pay the money to its distributors? By recruiting more people?
Then the company is most probably is a chain marketing scheme!
Because if the company has a genuine product that is on repeat order then the company will always have a positive cash flow and the company will never get bankrupt and you and every distributor will get benefited.
5. No Major Investment
By major investment I mean there should be no investment. All you are doing is purchasing the product and that's all to start the business.
Make sure that there are no such claims that we will "double your money" in "this much" time and bring "this much" people.
Also Read:
MLM Companies: Everything You Looking For And Need To Know!
[Good or Bad] Network Marketing Business For Students
What Is The Scope of Network Marketing MLM Companies?
CONCLUSION
After all, you will be giving your hard work in this company so make this part right!
I wanna emphasize this that the Network Marketing MLM Industry is good and there are various top direct selling companies that are doing good.
All you have to do is find a good company and stick with it and you will definitely find yourself in a much better position in the coming time.
And Before I End This Article
If you are someone who is looking for a way how to earn extra income in the part-time. No not an MLM Business but how to build a Successful Online Business.
Sign-up for this free master course which will help and guide you on how to basically build a thriving online business in today's age where everything is getting online.
Register here- bit.ly/OnlineMarketing1O1
That's it if you find value in the content I put up here on the website, do let me know by sharing it and I will meet you in another informative article on the website.
Peace!
Honorable References:
- Alena Rais YouTube channel= https://www.youtube.com/channel/UCjLPS62jAAacLvpjsKT_7_w
- https://www.moneylife.in/article/qnet-it-is-a-chain-where-a-person-is-fooled-and-then-he-is-trained-to-fool-others-to-earn-money-says-bombay-hc-order/46857.html
- https://en.wikipedia.org/wiki/Qnet
- https://www.glassdoor.co.in/Reviews/QNet-scam-Reviews-EI_IE473237.0,4_KH5,9.htm
- https://www.quora.com/How-do-I-make-my-friend-realize-that-QNET-is-a-not-a-scam-qnet
- https://www.youtube.com/watch?v=FACxHiHpwGk
- https://timesofindia.indiatimes.com/city/bengaluru/Japan-Life-charged-with-cheating/articleshow/11194963.cms
- https://www.japantimes.co.jp/news/2019/04/25/national/crime-legal/police-raid-40-offices-japan-life-bankrupt-firm-suspected-defrauding-elderly-customers/#.XVJu0-gzbIU
- https://www.consumercomplaints.in/complaints/bk-jewellery-house-c166222/page/3
- https://www.hindustantimes.com/delhi/over-300-duped-of-crores/story-gDHGwesCYGF9K3U9f54UkK.html
- http://archive.indianexpress.com/news/another-fraud-surfaces-jewellery-store-owner-s-son-duped-thousands-absconding/475710/
- https://www.entrepreneur.com/article/159396
- https://www.wikihow.com/Choose-a-Network-Marketing-Company
- https://toddfalcone.com/how-to-pick-a-network-marketing-company/bc1/
- https://www.thebalancesmb.com/choose-network-marketing-opportunity-1201185
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