I wanted to write this post from long time at least 2 years now, when I came across MLM for first time, I think the company was some ‘quest’ selling some gold coins, but I was refraining from writing but few days back I got a similar mail saying it’s some ecommerce business and details will be only disclosed when I meet them in person, I was able to sniff the MLM from it pretty easily.
Mail contents are as shown below
Hello,
I’m getting in touch with you for a specific purpose. I’m currently building my business that’s based on an e-commerce platform and a network marketing model. I’ve partnered with some very respectable and highly accomplished business people and Investors from India & Abroad. We have established markets in India, Middle East, Singapore, UK and are looking to expand further Globally. In this regard, we are looking at working with people who already have or would like to set up their own business. The model is tested and proven, and here’s what’s available for you, should you choose to take up this opportunity.
- An opportunity to build a new business, starting off on a part-time basis, and in a matter of 3-5 years, have it run on auto-pilot for you, in terms of earnings.
- Learn to leverage the internet to build your business globally.
- Create a network with the guidance some highly successful people from various walks of life.
- Be guided directly by the leaders in this business in India and globally.
I’m assuming if you’re like most people, you’ve probably come across network marketing in some form or the other. I’m unaware of your experience of the industry, and would like to add that the opportunity I’ll be sharing with you, should you choose to take a look at it, is unique and highly rewarding, provided it is done with the right mindset. I prefer not to discuss any details/numbers over the mail or phone. I’d prefer that you get in touch with me on my number below, or alternatively respond to my email with your contact details, if you’d like to know more. We can set a meeting accordingly.
Thanks and Regards,
P.S – Just to reassure you, this is NOT a get rich quick scheme but a genuine business that requires good work for one to succeed.
I have removed contact details and some irrelevant things from the mail.
So why I say MLM is fraud, I say it because the basic principle on which it is based is flawed, I am not going to cover all the detail of MLM there is umpteen material available on interent just Google for it, adding fraud word it leads to lots of results too, yeah getting back to why I say it’s a fraud being a programmer I have read the concept of binary trees so what so special about binary trees every programmers knows about it, special thing is that number of nodes which will have two nodes below them is half the total number of nodes, so drawing this parallel to MLM which seeks every person to have at least two person(Nodes) below them, wait a moment what I just said contradicts concept of binary trees so that’s practically not possible. So come what may half the people joining in MLM pyramid is bound to loose all their money. People who get money out of this are not getting it by doing something but fooling more people to join in and laying there hands on their hard earned money, so there’s no business here.
That was just one point but there is more to it, products which you have to sell is at much higher costs than their actual value, for e.g. some coin which you need to sell was around 30k 2 years back it was rare according to them as it was manufactured in less quantities and will have a very high value in future, is that the definition of rare if today I start manufacturing something and just create on piece out of it will it make it rare, I looked at ebay to get actual price of that coin, it was easily available and at much lower cost.
Though many a times it’s difficult to prove that this business is illegal but than there are things which are legally right but ethically wrong and things which are legally wrong but ethically correct.
I will end this here promising to revisit this post again sometime in future with some more details, but for me bottom line is MLM is fraud in most of the cases.
Some links related to MLM happy reading.
RBI flashes red signal at MLM companies
Filed under: General
Trackback Uri
The chairman of nmat is the Mr.Gopal Shekhawat
Chairman AsiaRegion of Internatinonal human rights association
This member ship is available with 5000/- rs , keeping this label this nmart is cheating people.,
Being chairman of ihr human rights, he is cheating people with fake promises
http://www.ihra.co.in
http://ihra.co.in/upload/index.php?mod=article&cat=Organization&article=104
real nmart is fooling people,
we joined nmart with out knowing the long term long fraud , they said that will give 220/- vouches for redemption at nmart store for getting products ,as of now it is going well and good, they said that they will give 11,000 as royalty bonus and for that they send bonds for 11000/- they have send bonds to all up lines,
But for many they stopped sending bonds, what is the guarantee for money, In india mlm is no t legal it know, but, at least if we buy food form a small road side hotel they give a bill on a paper, but, what about this company.
Many lahks have not received the bond or agreement form the company, for 11,000/-
now when we ask they say that there is scarcity of bonds with govt. ok we agree ,we the company to give an agreement on a bond paper but the customer care ay that they will pay 11000 after 4 years.
more over the company ask us to take print out of the a agreement form their website in our login,
how will a print out for a website be a legal document”
what ever cyeber law is applied it is not valid in court of law,
how is it legally valid that what we take from net, it is not valid as any one can make modifications from the net ,
why cant the company send printed agreement of the 11000 promised and next the company made a adv. in the website http://www.nmart.co.in saying
that the associate who joined the c company before 31 march will get 11000 at the end of 4 years and no compalsary purchase is needed.
In the agreement what they put in the net in the login is like this
7. Independent Business Associate who has a purchase account of less than 48
months will not get Loyalty bonus.
Actually the company got 42,000 joinings in a single day on 31 march as they gave a offer saying that no need of purchase is needed for a associate who has joined before 31 march, others have to purchase products worth 72,000/- with in 4 years for getting this 11,000/-
Now they changed their promise ands they print in the e agreement put in the website of associate login saying that “Independent Business Associate who has a purchase account of less than 48 months will not get Loyalty bonus.”
Is this not a cheating.
Cheating of nmart as of now..
1 .Promised that they will pay 11000 with out purchase of products in nmart for associates who joined in jan 2011 to march 31 2011. But they say that each associate has to purchase products if they have a mall of nmart with in 20 km radius, but, now they say “7. Independent Business Associate who has a purchase account of less than 48 months will not get Loyalty bonus”
2.
Next fake is that they printed vouchers and gave it for 1 year out of 4 years , for purchases of 220/- worth products, now they say that this coupons will stand cancelled and asking associates to upload photos in website and login and take a printout of the voucher in website.
One question how many people will have knowledge of net and computes, many might have joined by force, emotional joining, out of pressure, for pleasing a friends etc. they don’t remember their password, login, details , cell number enter in the time of registration in nmart, but, now how can they log and get a printout form the site,
Many people who joined them in nmart have died, transferred, shifted etc. who will have the password and contacts of the associates , how can this poor associate take a printout and get 220/- rs products.
Many poor Indians don’t know net and computers etc.
3.
They said they will give a smart card, loyalty card for transaction they have not sent it till date, it is doubt.
4.
They said that they will get repurchase income for associates , that is if associates under a joined person, who have a 20 layer people , who are called down line, if the down line purchase products , the up line will get commission on products as this manner
16 , 25 50 and 1 percent commission.
But till today this amount is not counted , is this not cheating.
5
They promised big gifts , but it is a doubt they are giving or not.
Only few that Is in 10 percent will earn money in mlm, that is once food is poisons for others.
Have a look at the tricky agreement put in their website of the login of associates
Independent Business Associate Agreement
The following are the terms and conditions for an Independent Business Associate of
M/s NEWLOOK MULTITRADE Pvt. Ltd.
Independent Business Associate” refers to, : XXXX S/o , R/o XXXX
(Hereinafter called as the “Independent Business Associate” which term shall mean
and include their heirs, executors, successors, administrators, legal representatives
and assigns etc., of FIRST PART)
And
“Nmart” refers to a division of NEWLOOK MULTITRADE PVT LTD, 3rd Floor savera
complex, opp. Krishana Petrol Pump, Udhana-Navasari road, Surat, Gujarath.
(Hereinafter called the “Nmart” which term shall mean and include his heirs,
executors, successors, administrators, legal representatives and assigns etc.,of
SECOND PART.)
Legalities we understand
NEWLOOK MULTITRADE is a registered company, registered under the company’s Act,
1956, having understood by both the parties herein on the following legal information
stated below:
1. It is believed and understood that, the Government of India in its letter vide
No.F.No.21/22/2001 Dt. 09/04/2003 & D.No.21/22/2001 Dt. 31/03/2003,
categorically stated that “the inapplicability of the provisions of the Prize Chits Money
Circulation Schemes (Banning) Act, 1978” to direct/network/ multilevel marketing,
does not come under purview of Police (criminal) action who carries a marketing
business of selling the products/goods similar to this Nmart.
2. It is also believed and understood that, the Hon’ble Supreme Court of India, in its
judgment reported in 1982 SC 949 & 1988 SC 492, categorically passed a historical
verdict, stating that the Police (criminal) action has no consequence on these type of
companies, so as also, in an other judgment reported in 2006 Crl.L.J.1961 by the
Hon’ble High Court of Patna (Bihar) that, even these type of Companies have only
consequence in Civil nature of Litigation.
Thus, both the parties herein once again believes and understands to proceed in this
Marketing Business, since it does not suffer from any legal complications as indicated
herein above. Hence entered under the following terms & conditions.
Independent Business Associate
1. NEWLOOK MULTITRADE accepts payments against its goods/products/services as
an advance payment to deliver the goods/products/services, there after issues the
PVC (Payment Verification code/ E-pin) immediately to the person who has sent the
payment subject to verification and acknowledgement of the remittance only,
subsequently, the online purchase account will be created by name as a Independent
Business Associate to the NEWLOOK MULTITRADE and will get started with those
facilities and benefits subject to online purchase account has been setup.
2. NEWLOOK MULTITRADE will only be responsible for sending the PVC/E-pin to the
respective Login ID of the person who remits payment into the company’s account and
it is soul responsibility of Independent Business Associate to create the online
purchase account immediately then only NEWLOOK MULTITRADE recognize the details
according to the online purchase account hence NEWLOOK MULTITRADE will not be
liable for any loss of bonus, income or commission due to the late creation of online
purchase account.
3. The minimum advance amount for purchase to become an Independent Business
Associate of NEWLOOK MULTITRADE begins with Rs. 5500.00, after submission of
company’s application, its rules and regulations under terms and conditions duly
signed by the IBA together with this agreement
Purchase
1. Nmart acknowledge the payment of Rs {4RegistrationAmount}/- that has been
received from the Independent Business Associate who’s NEWLOOK MULTITRADE ID
{5Username} is against the purchase of our products.
2. NEWLOOK MULTITRADE will provide a purchase account under the login section of
website http://www.nmart.co.in and this payment will reflect in terms of advance products
coupon to purchase goods/ products.
3. Independent Business Associate has to take the printout of the agreement from the
login section and after signing on all the pages, has to send to the company along with
their copy of PAN and address proof to become a verified Independent Business
Associate, further understands that verification is must to receive the payout from the
company, in case of delay in verification NEWLOOK MULTITRADE will hold the payout
until the verification process is completed.
Benefits
1. Independent Business Associate will get Nmart Loyalty bonus of Rs.11, 000 after 48
months of purchases. NEWLOOK MULTITRADE will try its level best to give maximum
bonus not less then Rs.11, 000/-.
2. Each associate will get free purchase voucher of Nmart stores worth Rs.220/- each
month for 48 months, which can be redeemed at any Nmart retail outlet across India,
3. Independent business Associate will get credit facility of Rs.1500/- max. for every
month,
4. Credit for the last month has to be settled by 7th of every month. Credit can be
availed from any Nmart stores across India including compensation plans shown in
broacher.
5. If any Independent Business Associate fails to settle credit account in specified
duration, Nmart will hold all credit facility, free purchase vouchers and Loyalty Bonus.
6. Independent Business Associate will get Commission according to our compensation
plan as mentioned in our website http://www.nmart.co.in
7. Independent Business Associate who has a purchase account of less than 48
months will not get Loyalty bonus.
8. This agreement stands good for availing services to Four-year period only.
WHEREAS:
1. Independent Business Associate agrees that the NEWLOOK MULTITRADE
Independent Business Associate is an independent contractor, and not an employee,
agent, partner, legal representative, or franchise of NEWLOOK MULTITRADE
Independent Business Associate further agrees not to incur any debt, expense,
obligation on behalf of, for, or in the name of Nmart.
2. Independent Business Associate must be of above 18 years old on the date of
agreement.
3. Management reserves right to accept or rejects/cancels the Independent Business
Associate ship whenever it feels reasonable.
4. The Independent Business Associate will not be permitted to avail more than one ID
on his/her name.
5. Independent Business Associate agrees to present NEWLOOK MULTITRADE business
plan and NEWLOOK MULTITRADE products and services as set forth at the official
NEWLOOK MULTITRADE website. Independent Business Associate will make no claims
regarding potential income, earnings, products or services beyond what is stated at
the official NEWLOOK MULTITRADE website. Independent Business Associate further
agrees not to reproduce commission checks or distribute commission checks in any
form or by any means.
6. Independent Business Associate agrees not to disparage Nmart, other NEWLOOK
MULTITRADE Independent Business Associates, NEWLOOK MULTITRADE products,
NEWLOOK MULTITRADE Business Plan, NEWLOOK MULTITRADE employees or
NEWLOOK MULTITRADE Independent contractors. Independent Business Associate
understands that disparagement may result in the immediate suspension or
termination of Independent Business Associate’s purchase account with a cancellation
of any pending commissions.
7. Independent Business Associate understands that the information given on the
website http://www.nmart.co.in is the latest and it will be only applicable regarding our plan,
products and services. Independent Business Associate further understands that any
printed material regarding our plan, product and services which is available in the
market may have been outdated, so please visit our website frequently for latest
updates regarding our plan, products and services.
8. Independent Business Associate agrees to not utilize SPAM in promoting Nmart.
This action may result in the immediate suspension or termination of Distribution
account with a cancellation of any pending commissions. Independent Business
Associate will also be in violation of the NEWLOOK MULTITRADE Distribution
Agreement and subject to legal action and be held liable for any financial loss incurred
by Nmart. Any service interruptions to NEWLOOK MULTITRADE as a result of
Independent Business Associates spamming will be billed to Independent Business
Associate at Rs. 10000 per hour until service is restored. For the purpose of this
agreement SPAM is defined as emailing ANYONE, in bulk or by single mailing, about
Nmart, who has not specifically requested the information directly from Independent
Business Associate. The ONLY exceptions to this are:
Mailing to APPROPRIATE OPT-IN mailing lists where the sources do the mailing on
Independent Business Associate’s behalf AND you do not advertise an NEWLOOK
MULTITRADE – provided Gateway URL.
However, use extreme caution when choosing an opt-in mailing list company. Using
anything but the most reputable sources could generate spam complaints against
Independent Business Associate resulting in suspension or termination.
You may include information on NEWLOOK MULTITRADE in email Acknowledge
Messages for orders and inquiries that you receive so long as it is stated upfront that
you will be sending them an acknowledge. NEWLOOK MULTITRADE also considers any
type of advertisement about NEWLOOK MULTITRADE posted to a Newsgroup or Chat
Room to be spam. Violators may be fined at Rs. 2500 per incident.
9. Independent Business Associate agrees to provide NEWLOOK MULTITRADE with
valid email address, postal address, and copy of PAN card and address proof upon
registration. Independent Business Associate understands that the use of an Auto-
Responder email address is prohibited.
10. All payments will be made in Rupees. Independent Business Associate
commissions shall normally be paid by ECS/Account transfer/Demand Draft or
Cheques and sent out weekly/monthly. If a sale is cancelled or refundable, the related
commission will be deducted from a subsequent payment. Payment will be made after
the deduction of TDS according to Indian law. Payout will be sent through ECS to the
Bank details provided by the Independent Business Associate. Independent Business
Associate is requested to update the Bank Account and Bank Code. Providing the
wrong bank account may cause delay of payout and NEWLOOK MULTITRADE will not
be responsible for the same. Any penalty or fine or charges levied by the bank shall be
born by the Independent Business Associate due to insufficient/ inaccurate information
given by the Independent Business Associate.
11. Independent Business Associate agrees to receive NEWLOOK MULTITRADE email,
and restricted to sales reports, training, newsletters, plus messages.
12. NEWLOOK MULTITRADE will make every reasonable effort to track and pay
commissions for all sales that apply to Independent Business Associate. However,
NEWLOOK MULTITRADE is not responsible for technical problems, acts by third
parties, or other events outside our reasonable control which may temporarily disrupt
or diminish this service.Independent Business Associate understand that Independent
Business Associate tracking can never be 100% accurate and NEWLOOK MULTITRADE
is not responsible for inaccuracies that might occur beyond its control. Tracking of
Independent Business Associate sales depend on several factors, technical and
otherwise, which are out of the control of Nmart. It is the goal of NEWLOOK
MULTITRADE to make Independent Business Associate tracking as accurate as
possible; however, NEWLOOK MULTITRADE cannot guarantee 100% tracking for
situations beyond its control.
13. To protect NEWLOOK MULTITRADE customer privacy, if deemed necessary,
NEWLOOK MULTITRADE reserves the right to withhold identifying customer contact
information from Independent Business Associate.
14. NEWLOOK MULTITRADE reserves all rights in or to its trademarks and services
marks but may be used by Independent Business Associate in accordance with this
agreement. Independent Business Associate may in no way display NEWLOOK
MULTITRADE logo, image or trademark that may be distasteful, misrepresented or
subjecting to deterioration.
15. Independent Business Associate shall follow NEWLOOK MULTITRADE advertising
guidelines and agrees not to misrepresent NEWLOOK MULTITRADE products and
services. Independent Business Associate agrees to use only NEWLOOK MULTITRADE -
approved ads. You may submit your own ads for Nmart’s approval. They must be
approved however before you can publish them.
16. Independent Business Associate may not assign rights or delegate duties under
this Agreement without the prior written consent of Nmart. Upon request NEWLOOK
MULTITRADE will provide Independent Business Associate with guidelines for the sale,
transfer or assignment of Independent Business Associate with guidelines for the sale,
transfer or assignment of Independent Business Associate NEWLOOK MULTITRADE
business.
17. NEWLOOK MULTITRADE shall not be held liable for any indirect, incidental, special
or consequential damages or any loss of revenue or profits arising under or with
respect to this Agreement or program, even if NEWLOOK MULTITRADE has been
advised of the possibility of such damages. NEWLOOK MULTITRADE aggregates
liability arising under or with respect to this agreement or the program shall in no
event exceed the total commission paid or payable by NEWLOOK MULTITRADE under
this agreement.
{6FullName}
18. NEWLOOK MULTITRADE reserves the right to amend, modify, and terminate this
agreement at any point of time with out any notice. The Term of this Agreement shall
stand good for a period of one year from the date of execution of this agreement and
shall automatically be renewed after every year without further consents of parties
unless either party has terminated this Agreement by written notice to the other. If
terminated, outstanding commissions at time of termination shall be paid in the next
payment so long as the Independent Business Associate did not violate the terms of
this agreement. Payment of the final commission to the Independent Business
Associate may be with held for a reasonable time in order to ensure that the correct
amount is paid.
19. No Refund Policy: The purchase amount paid towards goods/products/services
offered shall not be refunded under any circumstances and Independent Business
Associate can take back his/her 100% goods/products/services if the purchase coupon
has not been redeemed and has not violated any clauses mentioned in this
agreement.
20. Jurisdiction: In the event of any dispute arising between the Independent Business
Associate and NEWLOOK MULTITRADE relating to any matter connected with this
agreement or with regard to appointment as an independent Business Associate of
NEWLOOK MULTITRADE or the subject thereof or in relation thereto and whether as to
construction or otherwise, the same shall be referred for Arbitration and Conciliation
Act, 1996. The company shall appoint a Sole & an Independent Arbitrator whenever
any such dispute arises. The award made by the Sole Arbitrator shall be final and
binding on both the Independent Business Associate and Nmart.
The jurisdiction for the purpose of any litigation shall be the Jurisdiction of Surat,
Gujrat state Courts only.
Both the parties herein consents with each other, agrees the above terms & conditions
under this agreement by enjoying sound health with out any compulsion and under no
duress, entered also within the meaning and ambit of Cyber Laws of the Information &
Technology Act, 2001 or any other laws of this land made on the 3 Day of February in
year 2011.
1. Party No. 1 : XXX
1. 2. Party No. 2 : Newlook Multitrade Pvt. Ltd.
U can mail me at nmart@sify.com