Tuesday 19 April 2011

Tvi Express Indias Second most successfull Pyramid Scheme?

The most successful Pyramnid scheme is of course AMWAY
Thats the longest running MLM con

Before i go to the scheme heres a great article on Pyramid schemes from

http://money.howstuffworks.com/pyramid-scheme1.htm

What is a Pyramid Scheme?

The main characteristic of a pyramid scheme is that participants only make money by recruiting more members. There are many different kinds of pyramid schemes, but the two most basic are product-based and so-called naked pyramid schemes.

In a naked pyramid scheme, no product is sold. Here's how it works:

One person recruits 10 other people to participate in a "no-fail investment opportunity."
The 10 recruits each pay the recruiter $100.
The recruiter now tells them to go out and recruit 10 more people to do the same.
If each recruit is successful, they'll all end up with $900 in profit from a $100 investment.

pyramid scheme illustration



Pyramid schemes quickly become unsustainable.

Sounds simple enough, but here's the problem: Let's say the initial 10 recruits each find 10 more people. Those 100 new recruits will have to find 10 recruits each to make $900. That means they have to find 1,000 people willing to sign up for the program. And if they somehow find 1,000 people, that next level of the pyramid will need to sign up 10,000 to make a profit. Eventually, there won't be enough recruits at the bottom of the pyramid to support the level above it. That's when the pyramid topples and everyone at the bottom loses their investment.

A product-based pyramid scheme is the same concept disguised as a legitimate direct sales opportunity. Here's how it works:

A distributor recruits 10 salespeople who each pay $500 for a starter kit of products to sell.
The distributor gets 10 percent of each starter kit that's sold.
The distributor also gets 10 percent of each product that any of his recruits sells, including more starter kits.
The recruits are told that the fastest way to make money isn't by selling products, but by recruiting more people to buy starter kits.
The people at the top of the pyramid get commissions from everyone in their downline, the many levels of recruits below them on the pyramid.

The problem with most product-based pyramid schemes is that the products themselves don't sell very well, or have very slim profit margins. So the only way to make money is to find more recruits. Eventually (and surprisingly quickly), the market becomes saturated. There are too many people trying to sell the same unattractive product and there's no one left to be recruited.

It's mathematically impossible for everyone to make money in a pyramid scheme. For example, if each recruit needs to find 10 more people to recoup the cost of his or her initial investment, the eighth level of the pyramid would have to recruit a billion people to make back their money. And the next level would need 10 billion, nearly twice the population of the Earth.

Studies show that in a naked pyramid scheme, 90.4 percent of people lose their money, while in product-based pyramid schemes, that number jumps to a shocking 99.88 percent


Heres some info from the TVi website FAQ page

1. How much does it cost?
The cost to join TVI Express is USD 250 if paid using prepaid vouchers and is USD 275 if paid by Liberty Reserve or Credit Card. It's a one time out of the pocket expense for a lifetime membership and does not include any recurring charges.

Mynote So you shell out 1000 rs to get in and then to get your 10000 rs back you have to get in two persons with 10000 rs each


2. How fast can I get started after I sign up?
Instantly. You immediately receive your membership backoffice and one click access to all various booking and search engines to start planning your next holiday. You also receive your very own Marketing Package and a self replicating website to start promoting the TVI Express Opportunity and build your way to the financial freedom.

3. Do I need to sell any products?
No. You don’t need to sell any products. TVI Express is a unique e-commerce opportunity allowing you to build the Business around the globe sitting at your home. However, we do support leaders who take initiatives to promote the opportunity offline conducting seminars and workshops about the Opportunity.

my note this is the classic sign of a pyramid scheme .......if you can make money selling the scheme instead of selling a good or a service its a pyramid /mlm scheme

4. Is there a recurring cost or monthly membership payment?
No. There is no monthly payment. Your one-time payment to join TVI Express entitles you to have lifetime access to our upcoming promotional deals, programs and campaigns.

5. What do I need to do to cycle out of the boards?
The first thing you need to do is sponsor two (2) people who join the TVI Express Opportunity. This will qualify you to cycle out of the boards as you progress ahead in the Compensation plan. Secondly, you need to encourage and teach those two downlines (people you sponsored) to sponsor more people and duplicate the process. Following these two simple steps will have you making money even while you sleep

My note Cycling out is a way for this paticular MLM /Pyramid scheme unwitting or willing accomplice to get out of the con with his principal intact
The cash flow if i may call it that is beautiful
The first person pays 10000 to get in he then needs 2 more persons to pay 1000 rs each total 20000 get his 10000 rs back (if at all he gets it back ) he probably will
so if the bakra gets 2 more bakras the cash flow is 20000 rs in 10000 rs plus something called eVoucher worth $250 what an evoucher worth rs 250 $ really gets you is not mentioned

6. Is there any limit on the times I can cycle out of the Express board and earn $ 10,000 each time.
No. There is no limit on cycles. You can earn as much as you want by cycling out multiple times, giving you an opportunity to create ongoing Residual income with each milestone you cross.

7. What is Residual Income? How is it different from Board payouts?
Residual Income ensures that you earn money on every sale in your organization enabling you to earn thousands of dollars with growth of your network. It is different from the Board payouts and gets activated as soon as you cycle out of the Express (2nd) board. With growth of your network, not only you will cycle in boards and earn payouts but will also earn a certain percentage of amount on every person joining your worldwide team. The Compensation plan has been designed keeping in mind the long term growth opportunities, with fast income at every step.

My note that ensures that the person who got out with his principal keeps recruting more people to increase his "network"

8. Is there any capping limit on Residual Income?
No capping, no ceiling and no time boundations. You can earn unlimited amount of income and the matrix structure pays till infinity allowing you to enhance your income every coming week.

9. Can I sponsor more than two people?
To qualify and earn commissions, you need to sponsor two people. However, if you want to progress fast and create multiple legs to ensure faster cycles and enhanced residual income from multiple legs, we do urge you to sponsor as many people as you can and support them at the same time.

10. What do I receive when I cycle?
You get the following commissions after you cycle out of the respective boards :
1) Traveller board : You receive $500 ($250 cash + an eVoucher worth $250)
2) Express Board : You receive $10,000 and a re-entry into the Express Board


Notice how in this long fag they have rarely mentioned what services they are actually selling
There are no details about the holidays the airfares the hotels nothing
All thats hammered in is you make more money if you get in more people

5 comments:

iwannabrich said...

SIR,
YOUR BLOG HAS BEEN A MUCH NEEDED SOURCE OF HOPE TO ANY SERIOUS INVESTOR IN THE INDIAN EQUITY MARKETS,ESPECIALLY AT A TIME WHEN ENTIRE COMPANIES HAVE BEEN KNOWN TO VANISH WITHOUT A TRACE(ATLEAST THATS HOW SOME COMPANIES HAVE BEEN DEFINED IN THE BSE SITE) AND EVERY 2ND DAY A COUPLE OF SCANDALS COMES OUT OF THE WOODWORK.
PLEASE CONTINUE FIGHTINNG THE GOOD FIGHT
IF THERES THAT U CAN DO TO HELP PLEASE TELL (IF ONLY FOR MY OWN SELFISH REASONS)
P.S.SOME PPL ACTUALLY THOUGHT U WERE SUCHETA DALAAL FROM MONEY LIFE..LOL

Anonymous said...

Great site!

JamesLynch said...


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JamesLynch said...


This is the one of the best and informatic blogspot i ever seen.thanks for such a nice and unique content with many tips , ideas and guide to other traveler.Thanks again.
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Unknown said...

Great Article Very Nice Thanks
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