My book shelf from Shelfari

Tuesday, September 4, 2007

Easy money!

You think this is one more page where someone can help you become rich without working? Darn, things really get to peoples' heads at times. Where do you think you are? Not every website/blog is here to give illusions :)

Recently I've come across many websites with flashing banners, that promise to make you a millionare without much effort. I've seen many advertisements in a countless websites, each promising a different deal. But these advertisements seem to have evolved over time.

Work from home - earn Rs.2000/month
Work 3-4 hours a day - earn Rs.4000/month
Work 1 hour a day - earn Rs.7500/month
Work 1 hour per week - earn Rs. 20,000/month

But the big daddy of all these is...

Earn Rs.75,000 to 1,50,000 without working!!!

I was shocked to see such a huge salary offered without work. Who wouldn't like the idea of sitting idle all day and getting paid? As curious as I am, I ventured out to know what it is. And I've found what I thought I'd find.

I was greeted by a flash animation on the home page of that website. It has a beautiful movie that drives home their idea that "u can't enjoy life if you keep working at your job. So join us and make money without working, so that you can enjoy your life to the fullest extent". Sounded interesting. I proceeded to the website's next page, and what did I find here? Another animation, no different than the first. Oh yes, the colors and the background music did change a little bit, but it was the same message again - "earn without working". So I didn't waste any time and clicked the NEXT button. This time I found just what I've expected - another animation. Same crap. This was getting old. I had to skip another 4 animations before the website showed some pity on me and started showing something that made sense. For simplicity, let us call that business "MEOW".

The basic idea of MEOW was to sell their CDs full of e-books, which is software according to MEOW. MEOW CDs as a package cost $997. CDs which would teach you all the secrets of business and let you surpass Bill Gates in it. Now let us say I always wanted to get richer than Bill Gates. So, I buy those CDs from a MEOW distributor. That makes me his referral. Now, if I were to make money, I've got to sell those CDs to someone. But my first 2 customers would become my predecesor's referrals, not mine. That would mean I'll start getting my paycheck from my 3rd sale. But how can I make people buy MEOW CDs from me? No problemo, MEOW offers me a helping hand. It makes all the sales for me, with a commission of $200 per sale. Effectively, I need not move a finger and I keep getting money every month. Sounds interesting, isn't it?

But mind you, this is one big mirage. There's no money coming out of nowhere. It is your money going to the one who referred you and your referral's money coming to you. Hence, money flows upward in the pyramid of sales. The bottom row in the sales network gets no commission. MEOW is merely blinding you from the truth that there can never be an infinite potential for their product.

Same is the case with every multilevel marketing company. Why would anyone buy a product? We buy something because we want to use it. If I don't use a product, there's no way I'm going to buy it. Most of the multilevel marketing products are useless or outclassed by the leading manufacturers of the same stuff. Then how does a company make a customer buy its product? Simple, go to the customer and tell him/her, "Buy my product, subsequently you can make a lot of money selling the same product". Customers who fall for this become multilevel marketers.

I remember the days when my father was part of a multilevel marketing firm. He wasn't an active partner, he wasn't really interested in it, but he had to buy some stupid products because his colleague was pressing it on him everyday. He wanted to make money by selling some products to my father, but he would say "Join us and earn a lot of money!". This particular company also manufactured a lot of foods which they claimed were nutritious. My grandmother was having a few health problems (very few for her age, I'd say). Then one day this marketer lady showed up and started talking to my grandma about her new nutri powder stuff. All she said was "Amma, I've used this powder and it changed my life. I recovered from a bed-ridden state to the energitic person in front of you now. Have faith in me, take this powder and it'll take you 40 years back in time". Both she and my grandma knew very well that this time travel theory wouldn't work. But that's what marketing is all about! What that lady didn't know was that my grandma knows medicine better than half of the doctors in town. Grandma was wise enough to say "Sure, I'll use that powder" and send her away.

All these businesses work on one principle. Show the customer wonderland before they get in. After they get in, they'll see the reality for themselves. But then it would be too late and there would be nothing he/she could do. The customer already would've spent a great deal, hence left with no choice but to get that money back by selling the same product to others. This chain goes on and on, until either someone throws enough light on the business to keep people out of it.. or till the government intervenes and smacks down such illegal business models.

I almost forgot, I got a message in orkut, some guy wants to show me how to
* earn Rs.2000 to 1,50,000 per week
* educate myself and my family sitting at home
* become a leader
* show what I am to the world

I've sent him a message asking for more details. What if this guy is not a multilevel marketer and has some ultimate concept that can change my life forever? Oh man, I don't wanna take any chances.. waiting for his reply :)

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