Business in Bangladesh: Illegal Aspects of Multi-Level Marketing
Illegal Aspects of MLM (Multi-Level Marketing)
Business in Bangladesh
Acknowledgement
Some of the top experts on MLM’s and pyramid schemes have been consulted in the preparation of this paper.
Table of Contains
Name of the Topics Page no.
01. | Report Abstract | 03 | 02. | Introductory Discussion of Relevant Terms | 05 | 03. | Types of MLM compensation plans | 09 | 04. | A simple analysis of a pyramid scheme based binary compensation plan | 10 | 05. | Difference between Legitimate Multi-Level Marketing Plan and Pyramid Scheme | 12 | 06. | How to identify product-based illegal pyramid schemes (illegal MLM) | 14 | 07. | Critical Hypothetical Analysis of Multi-Level Marketing Binary Compensation Plan – An Ultimate Pyramid Scheme | 16 | 08. | Why Pyramid Schemes are Popular? | 31 | 09. | Disadvantages of illegal MLM as A Business Model | 32 | 10. | Destructive Effects on the Lives of MLM Participants | 34 | 11. | A Brief Case study on Destiny-2000 Ltd. | 36 | 12. | Government Regulation and Recommendations | 39 | 13. | Conclusion | 41 | 14. | Reference | 42 |
Report Abstract
One of the most problematical of business models is multi-level or network marketing (MLM). Many MLM programs show all the effects and characteristics of a pyramid scheme, but the MLM industry has nonetheless been allowed to continue and flourish in Bangladesh. The MLM participants are considerably suffered by the tricky and corrupting influence of the MLM companies, and the financial and social harms. Unfortunately, victims of these programs seldom complain, blaming themselves for their failures.
This problem is compounded by limited resources available to the enforcement agencies in Bangladesh, faced with MLM companies which are operating using both Naked Pyramid Schemes (NPS, where no products are offered actually) and Product-based Pyramid Schemes (PPS, where products are offered but using illegal pyramid scheme).
Business in Bangladesh
Acknowledgement
Some of the top experts on MLM’s and pyramid schemes have been consulted in the preparation of this paper.
Table of Contains
Name of the Topics Page no.
01. | Report Abstract | 03 | 02. | Introductory Discussion of Relevant Terms | 05 | 03. | Types of MLM compensation plans | 09 | 04. | A simple analysis of a pyramid scheme based binary compensation plan | 10 | 05. | Difference between Legitimate Multi-Level Marketing Plan and Pyramid Scheme | 12 | 06. | How to identify product-based illegal pyramid schemes (illegal MLM) | 14 | 07. | Critical Hypothetical Analysis of Multi-Level Marketing Binary Compensation Plan – An Ultimate Pyramid Scheme | 16 | 08. | Why Pyramid Schemes are Popular? | 31 | 09. | Disadvantages of illegal MLM as A Business Model | 32 | 10. | Destructive Effects on the Lives of MLM Participants | 34 | 11. | A Brief Case study on Destiny-2000 Ltd. | 36 | 12. | Government Regulation and Recommendations | 39 | 13. | Conclusion | 41 | 14. | Reference | 42 |
Report Abstract
One of the most problematical of business models is multi-level or network marketing (MLM). Many MLM programs show all the effects and characteristics of a pyramid scheme, but the MLM industry has nonetheless been allowed to continue and flourish in Bangladesh. The MLM participants are considerably suffered by the tricky and corrupting influence of the MLM companies, and the financial and social harms. Unfortunately, victims of these programs seldom complain, blaming themselves for their failures.
This problem is compounded by limited resources available to the enforcement agencies in Bangladesh, faced with MLM companies which are operating using both Naked Pyramid Schemes (NPS, where no products are offered actually) and Product-based Pyramid Schemes (PPS, where products are offered but using illegal pyramid scheme).