A pyramid scheme is defined as a non-sustainable business model that involves promising participants payment primarily for enrolling other people into the scheme, rather than from any real investment or sale of products or services to the public. Pyramid schemes are a form of fraud.
Network Marketing, Direct selling, Referral Marketing or Multi-Level Marketing (MLM), is a term that describes a marketing structure used by some companies as part of their overall marketing strategy. The structure is designed to create a marketing and sales force by compensating promoters of company products not only for sales they personally generate, but also for the sales of other promoters they introduce to the company, creating a downline of distributors and a hierarchy of multiple levels of compensation.
Network Marketing is a product selling technique whereas a pyramid scheme is nothing but collection of money from new persons to distribute among those who are already in the chain above them. So, Network Marketing is a regular business and not a pyramid scheme.
Comparison of Network Marketing with Multi-Level Marketing is necessary before someone decides to opt this type of business. It depends mainly on one’s aptitude.
Thursday, September 30, 2010
What about the quality and prices of its products?
The pure gold products have no debate of quality and price. These are sold on international market prices. The quality of 18 carat gold similarly, cannot be questioned. However, the company do earn from fabrication/making charges of the 18 carat gold products in line with other multi-national companies.
As regards, the gold watch and the pen, items of such standard and quality are sold in market at almost the same price.
We received evidence that the company immediately replaces the watch if its gold plating fades out or if its machine malfunctions. No evidence about exchange policy of any other product could be received.
As regards, the gold watch and the pen, items of such standard and quality are sold in market at almost the same price.
We received evidence that the company immediately replaces the watch if its gold plating fades out or if its machine malfunctions. No evidence about exchange policy of any other product could be received.
What will happen to the last entrants in this business at the time of saturation?
It is not only GMI that is selling its products through Network Marketing but there is variety of other multinational companies that are selling their products likewise. Some companies are much older than GMI in age. If none has collapsed due to saturation, GMI is also not likely to close down on this score.
Furthermore, the expansion of the customer’s data base is not as enormous as some people have calculated. There are a substantial number of customers who join the programme enthusiastically but do not proceed as such. The company started its operation in Feb 2000. The exact number of customers could not be found anywhere; the company also does not disclose these figures. But one can safely conclude that if the programme proceeds with the same pace, saturation is not likely to occur, at least in our lives, as long as the world population goes on growing. So, those who are unemployed today or are low paid, have good opportunity to earn from this type of home based business. The world is transforming itself with new horizons and opportunities rapidly on one side and squeezing and shrinking in some aspects on the other side. So, a prudent approach is to reap the benefits from today.
What about the quality and prices of its products?
Furthermore, the expansion of the customer’s data base is not as enormous as some people have calculated. There are a substantial number of customers who join the programme enthusiastically but do not proceed as such. The company started its operation in Feb 2000. The exact number of customers could not be found anywhere; the company also does not disclose these figures. But one can safely conclude that if the programme proceeds with the same pace, saturation is not likely to occur, at least in our lives, as long as the world population goes on growing. So, those who are unemployed today or are low paid, have good opportunity to earn from this type of home based business. The world is transforming itself with new horizons and opportunities rapidly on one side and squeezing and shrinking in some aspects on the other side. So, a prudent approach is to reap the benefits from today.
What about the quality and prices of its products?
Wednesday, September 29, 2010
Does this business conform to the teachings of religions?
This business is analogous to the work of a Dealer or a Commission Agent. Say, if someone wants to sell a house. He approaches a dealer/broker. If the dealer can find some buyer then he qualifies for the agreed commission. On almost the same analogy, if one can introduce a new customer to a Network Marketing company, he deserves commission of the services rendered. However, in the latter case, selling/purchase of the products is the sole business between the company and each customer. If the income of an agent/broker does not contravene a religion, the income in Network Marketing is also legitimate.
Moreover, GMI’s business is free from Interest as explained on its website, so, there is no violation, according to any religion.
We found two FATWAS from Muslim Scholars which may be seen on the following URLs:
1 FATWA Mulana Rafiq ul Hasni of Jamia Islamia Madina tul Uloom, Karachi, Pakistan (In favour of GMI)
We did made research on these Fatwas but we leave this topic for Religious Scholars to comment upon.
What will happen to the last entrants
in this business at the time of saturation?
Moreover, GMI’s business is free from Interest as explained on its website, so, there is no violation, according to any religion.
We found two FATWAS from Muslim Scholars which may be seen on the following URLs:
1 FATWA Mulana Rafiq ul Hasni of Jamia Islamia Madina tul Uloom, Karachi, Pakistan (In favour of GMI)
We did made research on these Fatwas but we leave this topic for Religious Scholars to comment upon.
What will happen to the last entrants
in this business at the time of saturation?
Many similar schemes based on tree formation have failed. Why?
The success of any business is mainly dependent upon the team that runs it. It is the team that takes main decisions right in the beginning about:
Formation/Structure of the company
Product
Business Plan
A business may fail due to following reasons:
1) The team is not well equipped with the knowledge, experience and motivation required.
2) The product has not been chosen in accordance with the prevalent market conditions.
3) The business plan has hidden flaws and is not well integrated.
If a business fails due to any of the above points, the responsibility for that directly goes to the team and not to the type of business. A large number of conventional businesses fail every year on the above points. But people still start new conventional businesses with religious fervor every moment. Thus, the tree formation has also nothing to do with the business failure.
The GMI is in the Eleventh year of its successful operation which is proof of the fact that its team, product or business plan does not have any flaw on any score.
Does this business conform to
the teachings of religions?
Formation/Structure of the company
Product
Business Plan
A business may fail due to following reasons:
1) The team is not well equipped with the knowledge, experience and motivation required.
2) The product has not been chosen in accordance with the prevalent market conditions.
3) The business plan has hidden flaws and is not well integrated.
If a business fails due to any of the above points, the responsibility for that directly goes to the team and not to the type of business. A large number of conventional businesses fail every year on the above points. But people still start new conventional businesses with religious fervor every moment. Thus, the tree formation has also nothing to do with the business failure.
The GMI is in the Eleventh year of its successful operation which is proof of the fact that its team, product or business plan does not have any flaw on any score.
Does this business conform to
the teachings of religions?
Sunday, September 26, 2010
Does the company’s Business Plan has any open/hidden requirement regarding:
A. Financial Investment
B. Membership Fee
C. Registration Fee
D. Renewal Fee
A customer is required to do one time spending in life from his pocket according to the plan chosen by him as detailed below:
Plan One time shopping ($)
2/2 130
3/3A 70
3/3B 30
Except the above upfront amount, the company does not have any option/plan to get any Investment or Fee from its customers.
Many similar schemes based on tree
formation have failed. Why?
B. Membership Fee
C. Registration Fee
D. Renewal Fee
A customer is required to do one time spending in life from his pocket according to the plan chosen by him as detailed below:
Plan One time shopping ($)
2/2 130
3/3A 70
3/3B 30
Except the above upfront amount, the company does not have any option/plan to get any Investment or Fee from its customers.
Many similar schemes based on tree
formation have failed. Why?
Once a person joins the company and does not work. Is there any expiry period?
There is no expiry period. A customer may start work immediately or at any later time in his life.
Does the company’s Business Plan has
any open/hidden requirement regarding:
Does the company’s Business Plan has
any open/hidden requirement regarding:
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