Insight of Chain Business

Last Sunday one of my cousin asked me to attend a meeting, which is surprise n didn't tell anything about that before... Once after attending that I understood that it is a presentation for Referral marketing... I attended couple of such presentations before and had bad opinion on such businesses...
Here is the presentation summary:
We need to register in that site by offering Rs.400/- Later we need to purchase a product(watch, mobile, vacation plan, Coins & medallions) in online worth of Rs.30,000/- (all articles rates are around 30K) and also we need to refer 2 candidates...they need to refer 2 candidates again... So on both sides, when 3-3 transactions are done, I will get around Rs.11,000/-
The product doesn't worth 30K...but the main thing here is business.... when the chain goes on I will get maximum of 6.5 lac per week... This will be good as long as this chain goes on....But if one can't refer those 2 candidates..then he will loose.. and top of that I have observed that the company will get more benefit out of this...
I decided never to join in such businesses in my life...

My understanding and one liner statement of this chain businesses is that....
You need to give your money to make your seniors in the chain as Big shots and asking your friends(relatives) to give their money to become yourself as a Big shot...

DON'T JOIN GOLDQUEST…….. Or any other pyramidal business

MATHEMATICS behind GOLDQUEST…….. Or any other pyramidal business

The SCAM Revealed….

Pure money laundering

1st step- U register and Buy --

U have coin only company- 30000

2nd step- u bring two direct referrals--

You have coin only-Company has 90000

3rd step- they bring two referrals each---

U have coin and 1st cheque of 10,000 and company has 2,10,000

4th step- they bring two refferals each---

U have Coin and 2nd Cheque of 10000 so total you have 20,000, persons who joined at step 2 have coin and 1st cheque of 10000, so total money in incentives paid is 40000 total and company has 4,50,000

5th step-they also bring two refferrals each---

U have coin and cheques which when added to all u have already earned come to 40,000, persons joined at second step have coin and 20,000 each and people at step 3 get their first cheque of 10,000 and people at step 4 have coin only and company has 9,30,000
and here 7 members who have atleast some cheques but 24 people have nothing but just the coin

6th step

15 are earning but 48 have nothing

7th step

31 are earning but 96 have nothing but just coin

8th step

63 are earning but 192 have nothing.

9th step

31 have recovered money, 96 get little and 384 have nothing
and so on…

But always the no. who have only the coin is always much much more than the who have earned atleast some money.

And the people who have recovered money is just 31 when 384 have still to do it but to do that no. of those who have nothing will become 1286 people...

So always the ones at the bottom of the pyramid are the losers… And the only way left for them to move upwards in the pyramid(ie: earn money) is to lure others into the last layer. This is done after realizing that the last layer is always the losers. It is a sad fact that in the frenzy to get back the lost money relationships are often forgotten. It is often your close friends or family members who occupy the layer under you. Even then the chances that you will make money is very remote.
It is clear that the company, including the few people at the very top layer are making huge profits. The sad fact is that the money thus generated is not even being used in INDIA. It is flowing out of India. This is the same money that could very well be spent in strengthening our economy. If you buy a kg of rice not only are you investing in something that is useful to you, but also, you are indirectly supporting the family of some poor farmer somewhere.

STOP THIS SCAM…

BE THE CHANGE…