Proof that RMP is Scam Hi recently I visited to RMP infotec seminar function. And I came to know some noticeable facts (which were arguable in nature that t hat I will share with you later).
About RMP y y y y y
y
RMP infotec started in 2001 is network marketing c ompany RMP has total 23 products RMP means Resource money and power Gives opportunity to earn Rs 1000 ± 130,000 per w eek 14 office in India Website : http://rmpinfotec.biz/
Some Legal evidences:
y
Member of FICCI Member of World Trade Centre (New York)
y
Has Tie-up with MSIL (Mysore Sales International Limited a premier Government of
y
Karnataka marketing organisation y
The
found of the company is Ma havir steel (no website found of it)
y
Member of DSEI (direct selling Education Institute in Dubai Dubai ) See appendix 1.2
y
No.1
y
Guinness world record for sending 2512 memb er of rmp rmp to Thailand for convention
y
RMP
in Asia network marketing company
is LLC (limited Liability Company) company in Dubai.
http://rmpinfotec.biz/middleeast/Default.aspx
Achievements: y
250,000 car ac hievers
y
1000 ceiling ac hievers
y
200 Mercedez Benz ac hievers
y
35
y
500 crore
y
10000 entries per day.
+ BMW achievers
Compensation Plan:
Please go through link below
http://www.rmpinfotec.zoomshare.com/5.html
Proof that RMP is Scam
The
real facts
Websites of RMP:
1. http://www.mahavirgroup.net/index.html there is no mention of RMP infotec, not only this, there is also no mention of of Mahvir group in rmp website 2. http://rmpinfotec.biz/default.aspx RMP (however there was no mention of WTC member accredition) 3. Infact it was later found it was member of of WTC in Mumbai,. 4. No mention of DSEI DSEI membership in Dubai in website and to be more satirical there no mention of RMP infotec in DSEI website as well http://www.dseidubai.com/index.php?option=com_content&task=view&id=18&Itemid=35 5. No. 1 in Asia on what basis basis and parameters? 6. Guinness world not mentioned mentioned in the website of rmp as well there is no even even mention of rmp in Guinness website http://www.guinnessworldrecords.com/ http://www.guinnessworldrecords.com/.. Infact in year 2010 june Amway chine sent 13000 chinese to salespeople to California http://articles.latimes.com/2010/jun/01/local/la-me-amway-china-20100601 7. When I went through the website of MSIL there is no mention of RMP in their website. http://www.msilonline.com/default.htm 8. There is no mention of its turnover in the website of RMP or in any news news 9. Although it mentions how many people are enrolling but there there is no mention of sales of leading products 10. Even there is no mention about the quality of the products regarding how there are better compared to the products which are available in the markets? markets? 11. There is a sentence on RMP infotec i nfotec which says that ³RMP is a strong customer based network driven company, which focus on customer satisfaction´. Ironically Distributors are the only customers in the system. The compensation system is such that it is only designed to be sold to the distributors 12. There is only compensation on recruitment recrui tment through product which is sort of investment that costs around Rs 7000. And of the other people wants to join the business they w ill do the same. The compensation is payed from the investment and not from the sales which is absent in the system.
Proof that RMP is Scam Every person when enrols in the business will buy product for one time, afterwards there is no retail effort by him personally. He will benefited only from the investment amount of the newly enrolled persons Infact the whole system is works on enrolment of the people. So if there is no new enrolment there will be no turnover.......
For e.g. In the system maximum ceiling per week is Rs 1,30,000 (which is Rs 5,20,000 for 4 weeks) which will be possible possible only if inleft there are 256 256 people enrolled and 256 on Right (no mention of turnover). So in order to maintain the level of income the person has to keep on enrolling new people. 13. Definitely there are many reasons which points out that RMP is not the network marketing company, it following pyramid scheme practice. Firstly, let¶s see what is network marketing or mlm and what is pyramid scheme There is classical distinction made by Federal trade commission regarding what is difference between mlm and pyramid schemes
³Pyramid sc hemes now come in so many forms that they may be di fficult to recognize immediately. However, they all share one overriding characteristic. They promise consumers or investors large profits based primarily on recruiting others to join their program, not based on profits from any real investment or real sale of goods to the public. Some schemes may purport to sell a product, but they often simply use the product to hide their pyramid structure. There are two tell-tale signs that a product is simply being used to disguise a pyramid scheme: inventory loading and a lack of retail sales. Inventory loading occurs when a company's incentive program forces recruits to buy more products than they could ever sell, often at inflated prices. If this occurs throughout the company's distribution system, the people at the top of the pyramid reap substantial profits, even though little or no product moves to market . The people at the bottom bot tom make excessive payments for inventory that simply accumulates in their basements. A lack of retail sales is also a red flag that a pyramid exists. Many pyramid schemes will claim that their product is selling like hot cakes. However, on closer examination, the sales occur only between people inside the pyramid structure or to new recruits joining the structure, not to consumers out in the general public.´
³Multilevel marketing programs are known as MLM's, and unlike pyramid or Ponzi schemes, MLM's have a real product to sell. More importantly, MLM's actually sell their product to members of the general public, without requiring these consumers to pay
Proof that RMP is Scam anything extra or to join the MLM system. MLM's may pay commissions to a long string of distributors, but these commission are paid for real retail sales, not f or new recruits.´ Source : http://www.ftc.gov/speeches/other/dvimf16.shtm According to World Federation of Direct Selling Pyramid schemes which uses product as the way run its scheme as ³ Disguised pyramid wolf in sheep's clothing´ Further
it states t hat
Some pyramid promoters try to make their schemes look like multilevel marketing methods. Multilevel marketing is a lawful and legitimate business method which uses a network of independent distributors to sell consumer product s. To look like a multilevel marketing company, a pyramid scheme tak es on a line of product s and claims to be in the business of selling them to consumers. However, little or no effort is made to actually market the products. Instead, money is made in typical pyramid fashion, from recruiting. New distributors are pushed to purchase large and costly amounts of inventory when they sign up. For example, you might have to purchase $1,000 of nearly worthless worthless products in order to become a "distributor." The person who recruited you receives $500 (a fifty percent commission) and $500 goes to the t he top (the company, in this thi s case). Notice the similarity to the simple pyramid scheme described earli er. Source: http://www.wfdsa.org/about_dir_sell/index.cfm?fa=schemes3 According to Federal Bureau of Investigation: Pyramid schemes, also referred to as franc hise fraud, or chain referral schemes, schemes, are marketing and investment frauds in which an individual is offered a distributorship or franchise to market a particular product. The real profit is earned, not by the sale of the product, but by the sale of new distributorships. Emphasis on selling selling franchises rather than the product eventually leads to a point where the supply of potential investors is e xhausted and the pyramid collapses. At the t he heart of each pyramid scheme there is typically a representation that new participants can recoup their their original investments by inducing two or more prospects to make the same investment. Promoters fail to tell prospective participants that this is mathematically impossible for everyone to do, since some participants drop out, while others recoup t heir original investments investments and then drop out. Source:
http://www.fbi.gov/majcases/fraud/fraudschemes.htm
Proof that RMP is Scam According
to Chinese Prohibition of Chinese Pyramid selling Regulations
Article 7 The following acts are pyramid selling acts 1. an organizer or operator seeks illegal benefits by recruiting personnel requiring the recruited personnel to recruit other personnel to participate and calculating and paying remuneration here and hereinafter including material rewards and other economic benefits to the recruited personnel on the basis of the number of personnel di rectly or indirectly recruited by them through rolling recruitment 2. an organizer or operator seeks illegal benefits by recruiting personnel personnel and requiring the recruited personnel to pay fees or fees in disguised forms such as order of commodities as a condition to being qualified for participation or recruiting other personnel to participate and 3. an organizer or operator seek seeks s illegal benefits by recruiting personnel and requiring the recruited personnel to recruit other personnel so that an upline-downline upline-downline relationship is formed and calculating and paying remunerations remunerati ons to an upline personnel on the basis of the sales performance of his downline personnel.
Source:
http://tradeinservices.mofcom.gov.cn/en/b/2005-08-23 http://tradeinservices.mofcom.gov .cn/en/b/2005-08-23/24294.sh /24294.shtml tml
According
to Australian Trade Practices Amendment (Australian Consumer Law) Act
(No. 2) 2010
Meaning of pyramid pyramid scheme (1) A pyramid scheme is a scheme with both of the f ollowing characteristics: a) to take part part in the scheme, some or all new participants must must provide, to another participant or participants in the scheme, either of the following (a participation payment ): ): (i) a financial or non-financial benefit to, or for the benefit of, the other participant or participants; (ii) a financial or non-financial benefit partly to, or f or the benefit of, the other participant or participants and partly to, or for the benefit of, other persons; b)
the participation payments are entirely or substantially induced by the prospect held out to new participants that they will be entitled, in relation to the introduction to the scheme of further new participants, to be provided with either of the following (a recruitment payment ): ):
Proof that RMP is Scam (i) a financial or non-financial benefit to, or for the benefit of, new participants; (ii) a financial or non-financial benefit partly to, or f or the benefit of, new participants and partly to, or for the benefit of, other persons. (2) A new participant includes a person who has applied, or been invited, to participate in the scheme. (3) A scheme may be a pyramid scheme: a. no matter who holds out to new new participants participants the prospect prospect of entitlement to recruitment payments; and b.
no matter who is to make recruitment payments to new participants; and
c.
no matter who is to make introductions to the scheme of further new participants.
(4) A scheme may be a pyramid scheme even if it has any or all of the following characteristics: a. the participation payments may (or must) be made after after the new participants begin to take part in the scheme; b. making a participation payment is not the only requirement for taking part in the scheme; c.
the holding out of the prospect of entitlement entitlement to recruitment payments does not give any new participant a legally enforceable right;
d.
arrangements for the scheme are not recorded in writing (whether entirely or partly);
e. the scheme involves the marketing of goods or services (or both).
http://www.comlaw.gov.au/ComLaw/Legislation/Act1.nsf/0/4E8004BC23ACDE BBCA2577620009E209/$file/1032010.pdf refer page 73.
So from above we can say that a company which is running pyramid can also involves the product however, there is no encouragement on the sales of the product.
Proof that RMP is Scam 14. Majority of the turnover of the company is through investment or enrolment of new people. 15. All products which it is offering are durables. These products are not regularly purchased by the people. Majority of distributors buys product only during recruitment. 16. The product cost is also an important factor in determining whether the company is pyramid scheme or not. In case c ase of RMP Infotec Pvt. Ltd. the lowest product cost is Rs 6990 which makes it even more doubtful that how the company would train them to sell in the market. After my careful observation I came to know that people recruited through buying a product worth Rs 7000 and from f rom that amount the recruiter gets benefited. This is anot her important sign of pyramid scheme. In direct selling and network marketing or Mlm Company one gets benefits mainly mai nly from his/her sales as well as sales made from his recruits. This makes it clear that the company lacks retail sales as well it is using inventory loading to sell its products which is anot her important feature of a company which w hich is running pyramid scheme........
17. Although RMP may be having 1 crore distributors but it is not at all effective in terms of sales effort made by the distributors. 1 crore di stributors just contributing Rs 2310 crore sales. Moreover, there is no any system system which educates them regarding how to sell the product. Please go through the web-link below which states the top 100 direct selling companies in the world according to sales and their number of distributors or sales people. http://www.directsellingnews.com/index.php/site/entries_archive_display/global_100_the_ top_direct_selling_companies_in_the_world
As you will see that largest direct selling company Avon is having 67 million (67 lakh) distributors generates Rs 49,350 crore !!!!!! 18. And last but not the least it is not a member of IDSA http://www.idsa.co.in/members.html 19. There are no such any articles regarding RMP in any news in India. 20. There is no commission structure regarding sales of of the product only on the base of recruitment. 21. Many people boost that RMP got an LLC status in DUBAI. But I am sure sure that most of the people don¶t what does it means, even though they may know its it s full form but they are unaware of its it s meaning.
Proof that RMP is Scam According A news website called called UAE interact which is supported by National Media Council has explained it in a very comprehensive manner. ³Incorporating
³Under the
a Limited Liability Company
Commercial Companies Law or CCL (Federal Law
Concerning Commercial Companies as amended by 1984 and Federal Law
No
13 of 1988, Federal Law
investors are permitted to
hold
Federal
No.
No.
Law
8 of 1984 No
1 of
15 of 1998), foreign
up to 49 per cent equity owners hip in UAE
companies, 51 per cent of t he equity equity m ust be be held at all times by one or more UAE nationals.
The
Limited Liability Company or LLC is t he most popular method of
establis hing a commercial company in t he UAE, unless the business involves banking, banking, insurance insurance and investment investment activities activities conducted conducted on be half of third parties w here a Public Joint Stock Company is required. Articles 218 to 255 of t he CCL (inclusive) regulate t he establishment of limited liability companies. The LLC requires a minimum of two and a maximum of 50 members and minimum capital capital ization of Dh300,000. Management of t he LLC is vested in t he µmanagers¶ (up to five natural persons) w ho may or may not be UAE nationals.
The
procedures for establis hing an LLC and obtaining a trade licence can
be obtained from the Chambers of Commerce Commerce o f each emirate.
There
are
also a number of efficient law firms in t he UAE who can assist you wit h the process.
Other commercial structures regulated by
UAE
company law are General
Partners hips, Simple Limited Partnerships, Joint Joint Participation Participation,, Public Join t Stock Company, Private Joint Stock Company and Partners hips Limited with Shares, most of w hich, except for t he Private and Public Joint Stock Companies, are not readily used.´ Source: http://www.uaeinteract.com/business/incorp.asp Let us see what RMP as showing in its proof. There is a website of RMP Infotec General Trading (LLC) http://rmpinfotec.biz/middleeast/Default.aspx And here is the link which shows its registration in Dubai
Proof that RMP is Scam http://rmpinfotec.biz/middleeast/Profile/Profile.aspx
As you can see that it is difficult to identify what is written in Registration form. Besides this it should also have its name registered in Dubai Chambers of Commerce directory. Here is the website of it http://www.dubaichamber.ae/ One can verify it whether the company is member of Dubai Chamber of commerce or not. I went to E-service section and through that there is Commercial directory through which I tried to find its name. And I found f ound that there was no such company. There is another shocking thing which w hich I found in its website of Dubai. When I w as reviewing its products one of its products got my attention. 1. RGT Nano Bracelet Cost 165 USD or 605 AED Benifits: Bio Energy bracelets are effective for below mentioned body disorders:
1.Arthritis & Rheumatism 2.Joint & muscle pain4Backache and headache
Proof that RMP is Scam 3.Respiratory Problems: Coughs & Asthma 4.Constipation 4Inflammation4Insomnia 5.Stress4Diabetes and High Blood Pressure (Controlled) 6.Cholesterol As you can see that benefits mentioned above are totally superficial in nature. There is no proof to backing these claims cl aims which are superficial.
My conclusion:
RMP is having many characteristics which a pyramid scheme possess like Inventory loading, lack of retail sales, enrolling members and l astly earnings which is earned through recruitment of people. The whole business plan is on enrolling people. Besides this majority of its claims are false. So according to me it is definitely defi nitely a pyramid sc heme.
Proof that RMP is Scam
Appendix 1
Proof that RMP is Scam
Appendix 1.2
There is no mention of Rmp when I checked the website of RMP as well as DSEI http://www.dseidubai.com/index.php?option=com_content&task=view&id=18&Itemid=35
