Multi-level marketing phenomenon has been in the Indian market since a long time now. I got to know of this concept when my maternal uncle joined the Amway bandwagon. Ever since, I have come across a lot of multilevel marketing brands from Tupperware to Speak Asia to now Q-net that have made it to the upper middle class Indian markets.
Tupperware and Amway are product-specific companies while Speak Asia is online survey based and Q-Net is selling what - Luxury holidays and luxury products which one doesn't really require.
I was approached by one of my batchmate who had joined one Q-net to discuss about the prospect of me joining her circle. I met her and a collegue of her who had recently joined Qnet leaving an esteemed job at a global logistics company. During the meeting, I wasn't informed anything about the company or its products. The pitch rested heavily on how doing something on my own - part-time was the only way to have assured money for the future and how joining Q-net was the best solution. The pitch was more about motivating me to do something other than a job rather than about explaining me about the company. Details of the company and the products were sent to me by email. Examples about how a lot of people who have joined Q-net have become rich suddenly were provided. At the end of the meeting, inspite of telling very little about the company or my role, the person had the audacity to tell me that very limited time is available and he needed me to confirm my intent soon by transferring around Rs. 2 lakh. Imagine someone - a stranger- asked me for Rs. 2 lakh over a cup of coffee. I straight away declined to join such a proposition and never gave a thought about the episode.
However, today I was shocked to know that one of my friend who, I believe has a good financial acumen, has actually joined such an entity. He is a Chartered Accountant and is extremely calculative about the investments he makes. Yet, it is extremely disappointing to know that he has joined such an entity. Someday or the other, I believe such an entity is going to bust. Some news has already started cropping up in this regard.
I fail to understand how the lure of fast money is so prevalent - even among learned, well educated people working for some of the best MNCs in the country. How can people working at good posts of respectable companies be duped to fall for such schemes? How can such educated people invest so much money somewhere without and paperwork and without and guarantee is beyond my thinking?
In my opinion, one must never believe any investment scheme which promises more than 12-14% return. Such schemes are bound to bust eventually.
I hope others do not fall prey to such ponzi schemes and do not invest in such phony schemes.
Tweet
Tupperware and Amway are product-specific companies while Speak Asia is online survey based and Q-Net is selling what - Luxury holidays and luxury products which one doesn't really require.
I was approached by one of my batchmate who had joined one Q-net to discuss about the prospect of me joining her circle. I met her and a collegue of her who had recently joined Qnet leaving an esteemed job at a global logistics company. During the meeting, I wasn't informed anything about the company or its products. The pitch rested heavily on how doing something on my own - part-time was the only way to have assured money for the future and how joining Q-net was the best solution. The pitch was more about motivating me to do something other than a job rather than about explaining me about the company. Details of the company and the products were sent to me by email. Examples about how a lot of people who have joined Q-net have become rich suddenly were provided. At the end of the meeting, inspite of telling very little about the company or my role, the person had the audacity to tell me that very limited time is available and he needed me to confirm my intent soon by transferring around Rs. 2 lakh. Imagine someone - a stranger- asked me for Rs. 2 lakh over a cup of coffee. I straight away declined to join such a proposition and never gave a thought about the episode.
However, today I was shocked to know that one of my friend who, I believe has a good financial acumen, has actually joined such an entity. He is a Chartered Accountant and is extremely calculative about the investments he makes. Yet, it is extremely disappointing to know that he has joined such an entity. Someday or the other, I believe such an entity is going to bust. Some news has already started cropping up in this regard.
I fail to understand how the lure of fast money is so prevalent - even among learned, well educated people working for some of the best MNCs in the country. How can people working at good posts of respectable companies be duped to fall for such schemes? How can such educated people invest so much money somewhere without and paperwork and without and guarantee is beyond my thinking?
In my opinion, one must never believe any investment scheme which promises more than 12-14% return. Such schemes are bound to bust eventually.
I hope others do not fall prey to such ponzi schemes and do not invest in such phony schemes.
Tweet
The brain wash they do is so dangerous..
ReplyDeleteI like this quote "A fool and his money are soon parted"
But when this fraud happens with simple, naive people.... it is sad. :(