Pyramid schemes, MLM, Chit funds,

  

Pyramid schemes, MLM,

 Chit funds,

Ponzi schemes

Sandeep sir says that,

in the name of business

there are many scams going on

And everyone is focussed on just one person

Vivek Bindra sir

But, is he alone here?

Or there are many such people on YouTube

who are trapping others in this pyramid scheme

Vivek Bindra vs Sandeep Maheshwari

From this entire episode,

people just learned gossiping

But the problem is much deeper

Let's get straight to the point

How can people identify scams?

Through only 3 questions,

After asking these 3 questions

you will come to know

if this is a scheme or a scam

Blog is very important

and sharing this with everyone is important

So, if you think that

your friends must know about this

Then don't forget to share this blog

Q1: From where does the

 money come?

Let's understand the pattern

A pyramid scheme starts from one person

Who hires few people to

promote its product or its scheme

These people get some money initially

These people hire other people under them

But, not as an employee

As an investor

People at the second level

join after giving some fee

But why do they join?

In today's age, people think twice

even before giving a rupee to a beggar

Then why would anyone join

a new company by giving huge fees

The answer is simple

Because of greed

They are shown the greed of money

They are told to make more people join

On every new enrollment,

you will get a commission

RBI has warned against Pyramid schemes

Don't not fall prey to high returns

and join such companies

But why?

Because this model is flawed

Let's talk about the numbers and

understand if this is even practical or not

Suppose a pyramid scheme starts with one person

Then he hires 6 people

And at every level

6 more people will be added

Then at the second level

6*6 = 36

people will be there

On the third level

6*36 = 216

which means 216 people will be there

As it keeps going this way,

then by the 12th round

2.1 billion people will be enrolled here

Which is more then India's population

At least now, it is more

So what happens is,

The guy in the previous level

makes a double application

and gets enrolled again

So, he keeps investing more money

Because they have to achieve targets

They invest their own money again

This can become addictive

Because after completing targets,

rewards are given,

even foreign trips and cars

You get recognition

And this is an ideal scenario

of a pyramid scheme

Where that pyramid scheme

reaches by the 12th level

Usually such pyramid scheme companies

are very local

They operate in small cities

and in villages

So, the money of existing people only

keeps on moving around

Let's come to the question again

From where does the money come?

There is a famous line

Trace the money,

Because money never lies

Usually in such pyramid schemes

some product is sold

just as a front

People find it difficult to spot a pyramid scheme

when they think that

they are getting paid to sell shampoos

they are getting trained on sales

But after working one realises

that no one is interested in buying this shampoo

Because, there is no power in the shampoo

Actually using that shampoo causes hairfall

But, by this time

that person is trapped

They think that our money is stuck here

So let's keep this burden

on some other person

Let's recruit them,

earn our commission from them

and then get away with this

That's why before investing in any company

before joining any company

The first question one must ask is

from where does your profit come?

If you are selling a product,

Then most of your profit must come

by selling that product only

Not by recruiting people

How much money comes from product sales?

And how much by recruitment?

From this one question

you will understand what is the business model

Qt. 02

But if there are no levels

then what do you have to ask?

Usually the discussion stops here

That there are no levels in our company

Affiliates are directly connected to the branch

So, if there are no levels

then how can call this a pyramid scheme

Of course, this is not a pyramid scheme

There's another name for it

Ponzi scheme

A person named Charles Ponzi

came to America from Italy in 1900s

He had big dreams

but with a zero bank balance

To quickly generate money

he developed a scheme

Double your money in 90 days

He used to take money from people

and give postal reply coupons in return

Then after 90 days

he would double the money and give them back

But after getting double the money

the investor would become greedy

They would say, keep all the money with you

And give me after doubling it again

Investors are not happy

after getting the amount doubled

And Charles Ponzi knew this

Human greed has no end

There is no end to the greed of people

Thats why people kept giving him money

And Charles Ponzi kept it doubling

So, the profit of all these people was just on paper

They never took their money back

But , was this sustainable?

not at all

As new people stopped joining

the interest of people decreased

this whole system collapsed

The thing to understand here is,

that was no pyramid here

But, money circulation was the scam

The product was the greed of people

We make memes on 'Phir Hera Pheri'

but forget about the point in that movie

We don't understand

the warning given in that movie

Let's come back to the second question

What to ask when there are no levels?

You have to ask

How does the money get's doubled

No instrument in the world

can give you 200% guaranteed returns

If a business is a legitimate business

then it can give you

one thing from the two

either high returns

or guarantee

No one can give both the things at a time

Bank gives you 7.5% return

Then how can they give you 200% returns

that too with gurantee

Then if you are part of such money circulation

Then it is going to collapse some day

Question no.3

Is there any value in the product?

Most important question is this

Is there any value in the product?

If there is value in the product

Then that is not a scam

Because selling directly or

making affiliates is not a scam

Amazon also has an affiliate program

Does that mean, Amazon is scamming?

Insurance companies also hire agents

They are not employees, they get commission

Are these insurance companies into a scam?

If there is value in the product

then it is not a scam

But, if the product is to recruit people

then it can be a scam

The problem here is that

value is a very subjective term

In today's age,

does a watch have any value?

Watch shows you time,

which mobiles also do today

Still, why do people buy

watches worth lakhs of rupees

Is this a scam?

This is a separate topic

we will make a video on it in future

The point is that,

the value is in the product

Though, it may be the perceived value

When someone buys a Rolex

then he buys it to wear the watch

Not to sell it in future

People believe that Rolex has value

its brand has value

after wearing it

their self worth increases

There is something

for which they are ready to spend

lakhs of rupees for a watch

Here, a grey area starts

using which many companies

sell some product to you

Whose value is very less

but the perceived value

has been made very high in your mind

Sometimes religion is used

Sometimes astrology is used

Sometimes you are sold gemstones

Sometimes a ring

So, what do you have to identify?

You have to identify,

how big are their promises

After just wearing a watch

No one becomes a millionaire

and this is also clear in their advertisement

They advertise, only what they can give

Which they can offer to you

Not, what impact it will have in your life.

Also, they don't say,

make 5 people to buy Rolex watch

so you will get 5 Rolex watches for free

Because this is all too good to be true

So, it isn't

And the most important thing

That people are not innocent

Most people know,

what is a scam and what is reality

Still they enter into it purposely

Because they think that they are smart

Before they get scammed,

they will get out of it.

They will take the profit

will buy a car

Not more

But will take some return from there

And then will quit

People think that before the scam gets exposed

they will take their profit

and then quit

And such people only

get scammed

If a small person like me

can tell you these things clearly

which is available on Google

within a click

Why does the government

not take any action against them

Why don't they have a regulating body

to identify a scam

Why fast track actions are not taken on them

Even after knowing so much

Why such schemes exist

in every lane and every city

Why do people get trapped

and fall prey to a scam?

Today, people are just focussed

on Vivek Bindra sir

But, we are missing the bigger point here

Today, after getting crores of rupees

founders get jailed or

run away from the country

Even after the government having

25000 crores of depositors money

Only, 17500 people get back money

that too only 138 crores

Founders of such big companies

get clicked with big actors,

invite them for weddings,

sponsor cricket teams

Does no one stops them?

Court?

RBI?

Government?

Why?

The bottom line is that,

the country's population is a lot

the country's unemployment is a lot

And this is not about just today

Unemployment problem has always been there

And no government can create so many jobs

So, what the government thinks

if a person is busy doing some kind of work

then let him be busy

A busy person doesn't ask questions

Then that person may be

busy in a scam itself

Whatever is happening,

let it keep happening,

Don't disturb it

Don't bring a change

India hates reforms

Until the matter gets heated up

don't do anything

It is due to this attitude

the country stays behind

And money is taken even for inaction

Do you think, any company becomes this big

without the support of any politician

But, only the company's owner gets punished

not those who supported them

Aren't they culprits too?

People on the internet feel that,

targeting Vivek Bindra sir will solve the problem

But the problem is deeper

After telling you all of this

I have a question for you

After the blog, you will ask me that

should you become a part of

any pyramid scheme or no?

Under the greed of money

should one get into a ponzi scheme?

Because, if one gets into it

then one may get scammed

And if one doesn't get into it

then there is FOMO

FOMO because, our neighbour

will definitely get into it

get a car, get a bungalow

And your family will taunt you

So the conclusion is that

I can't be the judge of this

that should you enter such schemes or no?

Because many such things are wrong

but still are legal

Drinking alcohol, cigarettes are wrong

I think even playing rummy online is wrong

But still, government allows it

It is legal, that doesn't mean it is right

But through this blog, I don't want to guide you

I just want to open your eyes

So, that you can think properly and

take your decision on your own

After finishing the blog,

let's revise our 3 questions

1, Where does the money come from?

Always trace the money because the money never lies

Second question is for those companies

who don't have any levels

2. How does the money gets doubled?

What's your basis of giving 200% returns?

On what basis can you give these high returns?

How can you guarantee it?

3. Is there any value in the product?

what is the real product?

is it a business of selling the product?

or the business is of recruiting people

The money is yours

You have earned it by hardwork

So, I can't tell you

where you should invest your money in

Because many legal things too

come out as a scam later

Some years ago, NFTs had come

Which people bought for lakhs of rupees

But, today its value on the internet

is equivalent to zero

Even this was wrong

But, people were doing it

and even promoting it

The rule of today's world is that

one who is caught is the thief

And you must know this

Because such new scams will keep coming

It will fool people

you have to ask a question to yourself

Can I take this risk of being a fool

If all of my money is lost

in the worst case scenario

Then can I still survive

Can I live with this burden?

I follow one simple rule,

Don't put all of your eggs in the same basket

And I use this same advice in stock market as well

No matter how old or trustworthy

the company may be

Investing all the money in one company

is very risky

If you got any value from this blog

If you liked our way of educating people

Then don't forget to subscribe or follow us

Because it is free for you,

but we get a lot of hope from it

Because we don't have to take

the things happening around us

just as gossip

We have to learn from it

and most importantly we have to keep

ourselves and our family safe

And sharing this important message with you

makes a difference to me

https://insiteiq.blogspot.com/2023/12/how-to-fight-overpopulation-in-india.html