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I also write technical articles here

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“Building the pipeline”, “Carrying the bucket”, have you heard these words before? I happen to hear these words quite often these days. And I almost ended up laughing when I first came to know the meaning of these words. Carrying the bucket means working as an employee somewhere and building the pipeline means setting up one’s own business. What I don’t understand is one uses a pipeline or a bucket, either ways the water will be delivered to the same pot. Then shouldn’t we be concentrating on the more important question of “whose pot is this in reality?” rather than basing our theories on the methods employed to fill this pot. 

What I’m talking about are the so called MLM (Multi Level Marketing) companies, not all the MLM companies but the ones that make people fall prey to their faulty pyramid building methodologies. Let’s not get into the technicalities of how these companies deceive more than half the people who join them and why some countries have banned such companies. The links towards the end of this article throw more light on that. Purpose behind the article is to talk about a few arguments that the believers of such schemes make against non-believers, and which I found to be equally applicable to them in some cases or totally immature in others.

One of the very common arguments that these people make is “People in the job (call them employees in some organizations) don’t work for themselves but for their employers”. How true!! What about the people who promote MLM schemes promising huge returns in a short span of time? They too make the people above them in the pyramid make money. Every time the person above you (This is the same person who made you join such scheme) earns lot more than what you earn. Ultimately, here too, people are working for others. At least someone like me (who is an employee) knows whom he is working for. Such is the fate of the people joining this fraudulent MLM scheme that they don’t even know who is taking the major share of their money.

Another argument that these guys make is – “People like Birlas and Ambanis are making money through our hard-work”. This argument seems very immature to me and this again boils down to the same thing. Someone who started this MLM thing is building his castles on all the hard work that these quick-buck dreamers are doing. Birlas and Ambanis (or any other business houses for that matter) are all visionary people, they are building something that will last forever and won’t end up in people loosing their hard earned money. They are contributing to the GDP of the country, where as these fraudulent MLM companies are taking the savings of common man out of the country.

Here is another one – “We are not making people join the scheme, we are creating leaders”. That’s really very immature and childish to me. These people are doing something by delivering a few seminars; even IIMs think that they can’t do that in two rigorous years on their campus. One very fundamental thing that these people forget is that leaders are born and are not created.

I have many other arguments made by these MLM guys, but these more of personal sort. And putting them in here would make this article very lengthy. My purpose of writing this article is to start a patient and mature debate over the advantages and disadvantage of not so genuine MLM schemes (I reiterate again, not all MLM things are fraud, Tupperware in US for example is pretty genuine thing).

I would urge you all to go through this link (and all the links on that page) before making uninformed statements/decisions.

http://users.openface.ca/~cobe/eth/quest.html

14 Responses to “Carrying the bucket or building the pipeline..!!!”

  1. Vaibhav Kamble Says:

    There is one golden question which can be asked in this regard.

    What is the reason MLMs are so successful ? Why even the most sensible and educated people fall prey to these schemes ?

    Answer is simple. They challenge the dormant greed of a person. They know that everyone wants to be rich and successful. They will try to lure you showing you the extravagant dreams. They show you one shortcut where you can achieve your dream. What you need to do for this? You register with them paying some fees. You work part time. What you just need to do is making your relatives and friends register with MLMs. And let the process continue till eternity. You get commission every time somebody has joined in your network. So simple thing to do.

    Where do you lose here ?

    You lose when you make your good friends and relatives join such schemes. They join not because everyone is fool.They join just because you are connected somewhere to them as a friend as a relative. Why should they buy Amway glister toothpaste for Rs. 105 when the best toothpaste is available in the market for half of its price ? We forget very core thing here. Here you forget that the thing which you are trying to sell is not just overpriced.Overpriced is a less intensity word. I will call it gigantically priced product with baseless expectations. You lose when your friends/relatives lose their hard earned money to such cons.You lose in relations. You convey that you believe in earning money by whichever way possible though you make fool of people. You do not believe in earning money through hard work. Rather you want an easy money where you want to spend 2-3 hours converting your friends into fishes who again will find few more fishes as they have invested money in this. It is not always that a person selling MLM trap is always a greedy person. But he sells MLM because somebody has sold him MLM and he wants to get his money back by selling it to somebody else. This is how it grows and grows.

    How it can be stopped?

    By not falling prey to these MLMs whoever person is selling it. Blacklist the person who is promoting it. Let them realize that we are not fools who will buy Rs 105 toothpaste just because you are selling it. Let us not become sentimental in buying the nicely wrapped shit though the person selling it is your best friend. Let us trust in earning the money by working hard and not by crooking your closed ones. Let us stop becoming our greed as our weakness.

  2. Reshma Says:

    Its law of attraction negative will attract only negative people and thoughts,so mind your words while writing the article.

    The act of conversation is not only to say the right thing at the right time,but also to leave unsaid the wrong thing at the tempting moment.

    Dont waste web space by your recycled thoughts.
    Emplty your trash first.

  3. rahulkumar Says:

    gr8 job suhas
    the article has actually brought out things which i was thinking of but couldnt put in words..
    i am one of those poor souls who lost money in mlm
    i hope initiatives like this will dissuade others from falling prey..
    hope to read mre of these from u

  4. Nilesh Says:

    MLM is mere concept of selling good and services using the through mouth publicity. This is very good concept but being new concept it has some challenges. For example computer industry in the 1985 to 1990s were criticised highly on account of loss in job, there were several debates that computer is boon or curse for society. Many a learned editors (What my friend is writing now in this blog)of good newspapers wrote against. Many employees protested but can we find the same reality now. Infact computer industry is providing many job.
    Similarly MLM being new industry, new concept in the absence of governing laws many psuedointellectual take benefit. Many person did not fallowed business ethics. But now days this industry is glorifying once against as many learned people are entering in this industry as profession. University of Illinois at Chicago and Symbiosis at Pune are teaching Network Marketing as part of syllabus. According to Forbes magazine several millionaires have been produced by MLM industries but negligible amount by job. One should study this concept in depth and then comment. Some people form opinion which is relative but facts cant lie. Therefore study the concept in depth and u will come to know reality. Some person always take negative thing to come in limelight. I believe u are not in that category.

  5. Vaibhav Kamble Says:

    A billion dollar question here arises is that who is holding the trash? :D

    I am really missing the poll gadget here.If it would have been here, it would have been really great to show what people really think about it.
    Rather than putting stolen quotes which say about Act of conversation and bla bla bla , it would be nice if you can come up with points and data which defends your points.I don’t know whether you have really read the article properly or not. Suhas has pointed to a link where author tells about one important characteristic of binary trees. In any Binary tree, number of leaf nodes is always greater than the number of non leaf nodes.Pyramid schemes portray the same binary trees which we have learned in our CS books.People at leaf nodes get nothing unless they move one postion higher in the tree.At any point of time there are more losers than gainers in Pyramid Schemes. I definitely would not like to be part of these schemes even after knowing this.Go to Alabania’s wiki page, you can certainly find about the collapse of alabanian economy after the arrival of Pyramid schemes.
    Reshma, you should not be bothered about wasting the webspace. WordPress is giving it for free.
    Probably you would not understand it.They are not charging Rs 1500 for registration and giving Suhas perks for making his friends/relatives register for writing blogs on wordpress. :D .Even if it has to be bought , I hope Suhas won’t mind buying the webspace just to educate friends around him and to spread the right thing rather than brainwashing people with lavish reverie.
    One more thing I would like to point out in your post. Law of attraction says Negative will attract Positive and not negative. This is one of the most basic lessons of Modern Science. Equal Forces repell and not attract. :D

  6. Reshma Says:

    A billion dollar question here arises is that who is holding the trash?
    You are holding trash of bookish modern fundamentals without implementation.Read law of attraction(shame on ur CS books -,+ unimplemented theory,there is much more to see outside of CS books)
    http://www.stevepavlina.com/blog/2006/08/the-law-of-attraction/
    http://books.google.co.in/books?id=5E-51Dc-mysC&printsec=frontcover&vq=law+of+attraction&source=gbs_summary_r#PPA1,M1

    I am really missing the poll gadget here.If it would have been here, it would have been really great to show what people really think about it(create it,u have webspace,CS books :D ).
    Rather than putting stolen quotes which say about Act of conversation and bla bla bla , it would be nice if you can come up with points and data which defends your points(dnt want to waste my time to educate full cup people like u).I don’t know whether you have really read the article properly or not(reading wrong things will not give right insights). Suhas has pointed to a link where author tells about one important characteristic of binary trees(again bookish!reliance,hindustan lever have also started binary plan.Theory se bahar aaja,uske bahar hi duniya hoti hai). In any Binary tree, number of leaf nodes is always greater than the number of non leaf nodes(life itself is the binary,there will be always more childrens than adults bcoz childrens are @leaf position…as time passes they will also become non-leaf adult).Pyramid schemes portray the same binary trees which we have learned in our CS books(mahitiye ata khup athvan hotiye CS books chi :p ).People at leaf nodes get nothing unless they move one postion higher in the tree.At any point of time there are more losers than gainers in Pyramid Schemes. I definitely would not like to be part of these schemes even after knowing this(No one will take you and it will be better for them).Go to Alabania’s wiki page(wa!!nice to see you using editable websites as your knowledge base,update your knowledge base from such sites and get increments in JOB(Just Over Broke) as glorified beggar,all the best to carry ur already leak bucket with many holes), you can certainly find about the collapse of alabanian economy after the arrival of Pyramid schemes.

    Reshma, you should not be bothered about wasting the webspace(fukatache milatay mhanun…). WordPress is giving it for free.
    Probably you would not understand it.They are not charging Rs 1500 for registration and giving Suhas perks for making his friends/relatives register for writing blogs on wordpress. .Even if it has to be bought , I hope Suhas won’t mind buying the webspace just to educate(or misguide) friends around him and to spread the right thing rather than brainwashing people with lavish reverie(like u).
    One more thing I would like to point out in your post. Law of attraction says Negative will attract Positive and not negative. This is one of the most basic lessons of Modern Science. Equal Forces repell and not attract.(what a blogish knowledge you have!)

    *All the best.And write something creative of your own instead of doing tp on commenting others blogs having zero practical knowledge of anything.Get well soon.

  7. Animesh Says:

    Hi guys

    Well things are being taken too personally now and debate has spun out of control. Lets concentrate on the issue and not wash or dirty linens in public.

    There are always two sides of coin and the light should be thrown on both of these.

    One thing for sure it definitely produces millionaires though I have failed in two such schemes. I have paid hefty amounts and worked hard(but not hard enough). Still would say that it was lack on my part because the system succeded and still running. I have bought overpriced products and now cannot use them nor can I sell them, still I donot blame the system.

    Joining or not joining the system is a personel perspective of everbody. And lossing on relationship is also true. But then can we think why we failed in our relations? Why were we not able to give it more strength? Its a common knowledge that all the relations in the international scenario revolve around economics. Then why can we not strengthen our personal relations by providing the same economic power? Ok personal relations have a touch of emotions but then till economic help does not hurt.
    I am not saying that join any of MLM scheme no thats not my point.
    I am simply trying to further this debate on correct course. Lets have a debate on this issue its really boiling.

    And yes I will like to disagree at point and thats of creating leaders. I was a shy and timid guy. But now I am atlest not shy. I can voice my concerns and try to approach a stranger. I am not a leader yes leaders are born but these MLM companies prrovide a very good grooming point for leaders. They help in distinguishing between the ledears and the followers. Between achievers and heart achers.
    I lost good few thousands but I have learned something.

  8. Nagendra Says:

    MLM..They use the concept of network marketing
    Network Marketing..What a brilliant concept..Marketing without even spending anything..
    Marketing mouth to mouth..That’s really a beatiful concept..which can make a company succesful
    But
    When we come to the scenario here..
    That’s now being used by many companies and few immature who don’t understnad the concept of network
    marketing..and try to earn money very fast without hard work..
    Dont tell me these guys work hard pulling others under them..
    Thats not called hard work..thats something like dragging others also into the pit they have fallen..
    I have seen few companies like this..
    There are companies which initially run very gud..One fine day management decides somethig..
    They change the policies which they have initially made,,
    Because of this all the guys who join latest hoping they could earn more will be cheated..
    and those guys who will be at the top of the tree will be all wealthy..
    Tell me what’s the concept basically..
    One guy joins paying some amount and make some more join under him each paying the same and he gets something which is nothing when compared to all the money being invested by all of those..
    Hope someone explains this..
    you get money because you are making others join!!..and buying products
    which are made by new companies who dont know how to market and they sell it with much more price adding the concept of network marketing.
    And some say..they are helping others to earn money..who has never done a good thing to anybody,
    He might not even have a given 50 paise to a begger..
    Suddenly he wants to help others..what crap..
    I have seen many of my freinds waste money in such kinda things..spoiling their valuable time and career..
    Bookish Knowledge!!…Without books there is nothing you can learn.
    You can’t ask everyone about everythig..Books are the means through which u can pass on knowledge to others..
    And if anyone tries to let others know whats correct and whats wrong, thats absolutely great
    Atleast he is giving knowledge to others..Whats wrong in that..Thanks to the author
    No one cares about guys n gals wasting web space for nasty stuff..
    But they are worried when some one tries to share knowledge and help some one..
    People, Think something productive..don’t waste your time joining these kind of stupid businesses .
    Instead do something productive which can help you and others too..

  9. Vaibhav Kamble Says:

    It seems the comments have became some sort of personal. I am sorry for that.But I would like to answer
    to all the comments that are being posted editing my comment.

    First things first.
    It would be better if you give data which can prove that your MLM scheme is helping all people involved throughout rather than telling me what law of attraction is. I thought you have learned science sometime in your life.Sorry for such assumptions.

    Second:Creating Poll gadget
    I don’t mind creating such gadget as I know how to do it. But thats all the blog owner’s decision whether to have it or not.It is not required that we must have a gadget , we still can work with following question.
    Those who ever care to vote can vote:

    Q: What is your general reaction about MLMs or Pyramid Schemes or Network Marketing?
    1. They are just awesome. They helped me build my future.I never had a feeling of such fullfillment in my life when I got into this. My relationship with people improved. I have kinda became a Giding light for all poor , hardworking people arond me.

    2. I entered into MLMs just to rip the benefit of early comer. I had only business in mind. I do not worry what will happen to those whoever joins below me.

    3. I lost all my credibility in society. People around me evade me so that they do not have to face the situation where they have to say no to my kind asking to come for the seminar arranged by MLMs.I have earned money at the cost of my relationships in society.My closest friends do not want to talk to me just because they fear that I might ask them for few more contacts for MLMs.

    4. I joined simply because I can get returns through goods i will get while joining and nothing has gone waste.But i found that products were exorbitantly priced.And that is why people who care about value for money did not join this scheme.

    5. I am wealthy upper class person. I was knowing from the start that I am going to lose all my money I have put in MLMs. I hate the concept of MLMs from the start. I have got registered just because best friend of mine has became a part of this MLM and he made me join it.I do not expect anything in return.

    6. I simply joined because some idiot showed me his big cheque of bla bla amount.Later I found dat that was the only cheque he earnt in his entire career of this business.I also found that he hampered is nice career devoting his entire energy to this scheme.

    If you have any more options in mind , you can comment those.

    Third: dnt want to waste my time to educate full cup people like u
    You do not have any idea about whom you are dealing with. Its better you do not comment on my abilities.

    Fourth:Suhas has pointed to a link where author tells about one important characteristic of binary treesagain bookish!reliance,hindustan lever have also started binary plan.Theory se bahar aaja,uske bahar hi duniya hoti hai
    –>Reliance and HLL is planning to enter into binary plan does not make the concept good. There are lot of MLMs who are doing help of needy people. We have an example of Tupperware.
    We still can take an example of Gramin Bank started by Nobel Prize winner Economist Mohammad Yunus who identified the importance of mutual trust in relationships.It is one of the revolutions in area of microfinance. Lasting peace cannot be achieved unless large population groups find ways to break out of poverty. Micro credit is one such means. Indeed, the Grameen Bank’s success lies in its business model: the recovery rate is said to be over 96 per cent; these short-period loans are dispersed without any kind of collateral (but backed by group guarantee) and borrowers are required to save some amounts. Hence, over time many borrowers are able to escape poverty.The recovery rate is higher because people belonging to same group know each other very well and they make defaulting borrower repay the sum because of their relations.

    Fifth:life itself is the binary,there will be always more childrens than adults bcoz childrens are @leaf position…as time passes they will also become non-leaf adult
    –>This is no new truth that you are telling. Children of today are going to be adults or precisely parents tomorrow. But is is true in all cases? And in this case of MLMs you are taking sides with has the drop rate of over 98%.Check your stats.

    Sixth:mahitiye ata khup athvan hotiye CS books chi :p
    –>Again the same comment.You do not have any idea about whom you are dealing with. Its better you do not comment on my abilities.

    Seventh:No one will take you and it will be better for them
    –> Its really true. :) Its not good for them. I might nullify their brainwashing effect. :D

    Eigth:.Go to Alabania’s wiki page(wa!!nice to see you using editable websites as your knowledge base,update your knowledge base from such sites and get increments in JOB(Just Over Brok)as glorified beggar,all the best to carry ur already leak bucket with many holes)
    –> People from all over the world see the wikipedia as an authentic resource of knowledge. Technologists see Wikipedia as a thret to goolge in the domain of search and knowledge. Being editable by anyone is the biggest power of wiki. It ensures that the content that you are viewing is neutral. You can see neutrality mismatch too if user vote against its sanity. Wiki points you to the newspaper links using which you always can clear your doubts. Now don’t say that I do not believe in Times . Nobody care if you believe or not. You simply don’t matter.
    I believe you must belong to the royal family or the family lending money to Tats and Birlas as your parents must have not been the glorified beggars in your words. :D

    Ninth:you should not be bothered about wasting the webspace(fukatache milatay mhanun…)
    –> I have my own website.I pay for it.Btw WordPress is again one of the leading community websites which have the sole purpose of giving voice to people.They are not driven as MLMs. Its hard for you to understand what communtiy contribution is.

    I do not care to explain my side. As I do not have to tell who is misguiding without giving facts. This is not an issue where you can just debate. This issue involves economics. It can not be proven without giving numbers to support you.

    Get Well Soon.Be wary of your butt. People might kick it if you don’t :D

  10. chatekar Says:

    Nilesh,

    Please go through the blog again. I have severally mentioned that I’m talking about those fraudulent MLM companies which ultimately leave more than half of their members penniless. Yes, I do agree that network marketing is a strong concept and the future of this era, but then that does not mean we should allow anything under the veils of MLM.

    Reshma,

    I don’t have any words for your derogatory comments. Please don’t take anything personally.

    Animesh,

    I do agree that MLM companies help you get rid of your shyness, they create that flair of sales and marketing in you that we usually are frightened of. Still, does that make you a leader? My argument was only against the claim that MLM companies create leaders.

    Nagendra,

    You seem to be quite a patient man. I totally agree with you on almost everything – right from reading books to sharing knowledge.

  11. Animesh Says:

    Hey Suhas

    Thanks for caring to reply.
    I agree and had accepted that no I am not a leader but my point is that these MLMs atleast provide grooming ground for future leaders. Some of whom we may never recognize. That was all I wanted tto say.

    And I have never approached my friends or relatives for these companies because I believe that: Friendship based on bussiness is better that bussiness based on friendship.

  12. Hetal Says:

    ‘One very fundamental thing that these people forget is that leaders are born and are not created.’— I dont agree with this statement at all..

  13. Sanjay Says:

    Hi,

    An i-opener!!!

    Suhas your blog and comments on it are exploding….u have done the job of staring into the person’s eyes and telling that your child is ugly!!!

    I fully concur your opinions w.r.t. MLM. I don’t know about leadership though.

    I also attended (was forced to attend actually) few MLM presentations….one hitch in some schemes is most of them have their head offices located at Tax heaven countries and where corporate laws are too liberal.

    Secondly I think as rightly pointed out by someone before why people sign for such schemes is due to greed and due to thought of earning money without much pain.
    What I feel is having roots in basic eco. Without Land, Labour, Capital and Entrepreneur….I cann’t earn the returns. What am I investing here in MLM? None of these i believe.

    But remember bottom of pyramid will always be robbed in such cases….so one need to ensure that there is bigger fool (and that is not you) before entering such schemes.
    My 2 cents.

    I liked the blog…certainly advice it!
    Cheers. :)

  14. Neeraj Says:

    I had a bad experience with MLM in the US. Check my link for my blog post on that. I think this MLM thing is a big scam.


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