Monday 4 April 2011

'A little learning is a dangerous thing'


Shyam 
Your free-thinking readers have recently been treated to the self-proclaimed, enlightened thoughts of a pair of absurd 'MLM' fantasists. Out of the kindness of their hearts, they gave us the benefit of their second-hand, great wisdom in many different fields of human endeavour, from fast food and nutrition, to Indian jurisprudence, morality, philosophy, religion, atheism, politics, mathematics, economics, etc. Perhaps the most confusing aspect of all of this, was Nikhil Bhatia's repeated references to the original, American 'personal success' guru, Napoleon Hill http://en.wikipedia.org/wiki/Napoleon_Hill , the author of 'Think and Grow Rich.' Down the years, almost every transient 'MLM' adherent has been advised to buy a copy of this life-changing tome, which perhaps explains why it has sold more than 30 millions copies since 1937 (but mostly since 1960). 
Napoleon Hill was, in fact, a failed law student turned journalist who, in 1908, was commissioned by the steel magnate turned philanthropist, Andrew Carnegiehttp://en.wikipedia.org/wiki/Andrew_Carnegie to interview hundreds of high-achievers. Based on these interviews, Hill, in collaboration with Carnegie, later came up with what they claimed was a 'law of success.' Many people have observed that all Hill and Carnegie discovered was the self-evident truth that very successful (as opposed to very talented) individuals, are invariably self-diciplined, highly organized, optimistic and focused, and filled with limitless energy and self-belief. In reality, Carnegie's possessed all these qualities, but his own initial success was also largely-due to his having absolutely no moral objection to profiting from the American Civil War. In 1901, Carnegie (the son of poor Scottish immigrants to the USA, and who began working in a factory in the 1840s) sold his steel company for half a billion dollars and then proceeded to give 350 millions dollars to good causes (particularly, in the field of public education). He was apparently filled with remorse. 
At no point in 'Think and Grow Rich' could Napoleon Hill have suggested that joining a'Multi-Level Marketing' scheme is a pathway to success, because, at the time he was writing his book, this particular, deceptive label for an age-old criminogenic phenomenon, was yet to be coined. Ironically, in the year that 'Think and Grow Rich'was first published, one of the richest (and apparently most-successful) men in the world was Adolf Hitler- the de facto King of Germany, and best selling author of 'My Struggle.' Exactly how Hitler ( a penniless ex-soldier) had become so rich and powerful so rapidly, was completely beyond the intellectual capacity of Napoleon Hill. Consequently, he made absolutely no reference to Hitler in 'Think and Grow Rich.'Indeed, for obvious reasons, in 1937, Napoleon Hill completely failed to warn his readers about charlatans who pretend to possess a superior, or superhuman, knowledge, and who are prepared to share this knowledge with the rest of humanity (for a price). 
Hitler was a narcissistic charlatan, and energetic public speaker, who had quickly risen to the top in an existing gang of like-minded charlatans. These deluded racketeers all steadfastly pretended moral and intellectual authority. During the 'Great Depression' of the early 1930s, a handful of 'Nazi' bosses rapidly acquired a vast fortune by peddling millions of ill-informed recruits the unoriginal lie (presented in publications, recordings and pay-to-enter meetings) that by joining and building their group, any ordinary man could transform into a superman, just like their group's rags-to-riches 'Leader,' Adolf Hitler. 
Unfortunately, the hidden criminal objectives of the billionaire 'Nazi' bosses were completely unthinkable to their poor recruits. 
David Brear (Copyright 2011)

7 comments:

developmentfuture said...

Mr.Shyam,
I observed that you posted some wrong views Regarding

1:
Price Fixing,Group Sharing Benefits,Marketing Business Strategy.
2:
You treated The Prices difference as MONEY CIRCULATION which was wrong BAD openion.
Any company Pay Taxes on the END price to Government is LEGAL,lawfull PROFIT MONEY 100%,Dont call it MONEY CIRCULATION with over price.Black Money was converted into WHITE money by Paying TAXES lawfully in INDIA few years back.
Law it self allowed to have their own prices irrespective of Manufacturing costs unless it is Restricted by CONSTITUTIONAL LAW.Even no need to compare with other companies prices If A Company paid full TAX on END price.

Banks and Lottries,Share Market,Commodities PAPER TRADING like GOLD online are the examples of only CASH ROTATION BUSINESS WITHOUGHT ANY PHYSICAL product buying or SERVICE PRODUCTs like Hotels,Tours,Flight Tickets,BUSUS,Trains,Schools.
But You must not delete Few posts only when they were TRUE in SOCIETY LAWFULLY.
3:
Group sharing of CASH from LAWFULL PROFIT MONEY is not wrong to any Number of Groups.Exa: Development Of Women And Children In Rural Areas (DWCRA).Indian World CUP TEAM 2011.
I can say many examples further regarding these two Issues.

3:
Every customer,client come from MARKET or OPEN MARKET only.You must realise Every shop owner If he sells Consumer products or any product in India ,His Family,relatives and Friends only come for the opening cermony and buy the products.First we tell,inform to our near and dear,so It is aplicable to any type of business.

There is no CONSTITUTIONAL LAW in the world that YOU must do,FOLLOW MARKETING STRATEGY business in this way only.Every one can have their own business strategies to reach customers.If 90% of companies are following same Market strategy to reach customers that doesnt mean 10% or even 5% or even 1% of Remain companies also should follow same market strategy.No.Its is wrong When they pay taxes on end price,It is company individuavality as it like to reach end customer LAWFULLY only.

My Request is So dont do comments on LAWFULL things.

Shyam Sundar said...

There is an enactment called Prize Chits & Money Circulation Schemes (Banning) Act, 1978 basing on which the Andhra Pradesh High Court delivered its judgement that the business model of Amway India is illegal. And the Supreme Court of India also upheld the same judgement. These are not my views but the AP High Court views. You could not comprehend such simple issue and whatever you are writing is just blabbering.

developmentfuture said...

"Of course, the Court can not interfere with the fixation of the price. Anybody is free to fix any price and it is for the customers to accept or not."

You are also not caring the Respectable HIGHT COURT JUSTICE comments about PRICE FIXATION and you are TREATING as MONEY CIRCULATION for the LAWFULL PRICE and LAWFULL PROFIT MONEY SHARE by way of OVER PRICE.

Now we come to BUSINESS MODEL of a company :

As you wrote,If AMWAY paid only VAT TAX on MANUFACTURING COSTS 16Rs and sold at 120Rs to end consumer was illegal 100%.That MONEY IS MONEY CIRCULATION only.BUT
If AMWAY paid VAT ON 120 RS price to the END USER,then IT IS 100% LEGAL PROFIT MONEY Irrespective of MANUFACTURING COSTS.
They can distribute this LAWFULL PROFIT CASH MONEY to the END CONSUMERS WITH THEIR OWN marketing strategy.

If they did wrong in Previous business,they can correct lawfully by paying TAXES IN DISCUSSION MEETING With VAT and IT departments If possible.

2:

BUSINESS MODEL:
I respect HIGH COURT DESCITION.

If this business MODEL appear,found Illegal then It is illegal only but still They can desighn NEW MODEL and approach CUSTOMERS if COURT permits.THEN HOW THEY ARE STILL DOING BUSINESS AGAINST COURT DESCITION ? Which LAW was FAVOUR TO THEM to continue with old business model only ?

But as You expressed PROFIT SHARING of a PRODUCT to single ONE PERSON ONLY WAS WRONG view also,It is company strategy, can share their PROFIT on PRODUCT to their Distributors. Same is happening as you wrote in OPEN MARKETS also.

There is a HUGE network of business product SELLING profit sharing in other BIG companies also from TOP to bottom but all cant get same sharing as TOP person.

GROUP SHARING of a BUSINESS PROFIT IS LAWFULL when they paid TAXES IN lawfull business activity like DWCRA,Any company can follow,desighn their OWN BUSINESS MODEL which shouldnt be against LAWS.

1:
Can You post How Business MODEL of AMWAY was wrong in BRIEF ? You wrote INFINITE CHAIN.Can you explain more about this?
2:
Can You suggest,advice how BUSINESS MODEL SHOULD BE LAWFULLY? You must tell,post that one also.You must have a slution also for the sake of SOCIETY.

Thanks.

developmentfuture said...

A LAWYER OPENION :

The Prize chit & Money Circulation (Banning) Act is enacted in India was to prevent money chain/money circulation activities. The Ministry of Consumer Affairs has issued an order stating the Direct/Network/Multilevel Marketing will not fall under the purview of The Prize chit & Money Circulation (Banning) Act but as the Act is coming under Criminal Law, local police has authority to investigate or charge cases on the subject. Here you must prove that the scheme involved in your business is not coming under the purview of Prize chit & Money Circulation (Banning) Act.
In your case you are advised take a legal opinion Law with reference to the scheme involved in your business from a lawyer specialized in MLM Law and produce it before the police or you can directly approach the court to prevent the police taking any illegal action against you.

developmentfuture said...

Government of India Ministry of Consumer Affairs, Food & Public Distribution of Consumer Affairs IT Desk

Sub: Inapplicability of the provisions of the PrizeChits and Money Circulation Scheme (Banning) Act, 1978 to Direct / Network Marketing.

Ref: 1. D.O.No.21/22/IT/2001 Dt: 31.03.2003. 2. F.No. 21/22/IT/2001 Dt. 09.04.2003.

I am directed to refer your letter dated 22nd / 23rd March'2003 addressed to Hon'ble Prime Minister / Home Minister of India on the subject mentioned above and to say that Secretary (Consumer Affairs) has written to Chief Secretaries of all states and Union Territories clarifying the Position that agencies involved in sale of Goods through Direct / Multilevel marketing do not come under the provisions of the Prize Chits and Money Circulation (Banning) Act, 1978. A copy of the letter is enclosed for your information -- Ref.No.2

//Part of True Typed copy//

Note: The above referred letter was issued by was issued by Mr.Alice Chacko, under Secretary to Govt. Of India & Mr.Wajahat Habibullah, IAS, Secretary, Govt. Of India, clarifies the cited Subject herein.

// Compilation by//

developmentfuture said...

Government of India Ministry of Consumer Affairs, Food & Public Distribution Department of Consumer Affairs

LOK SABHA

UNSTARRED QUESTION NO. 4875 TO BE ANSWERED ON 20/12/2002 INDIAN DIRECT SELLING ASSOCIATION 4785 SHRI SUBODH MOHITE

The matter was examined in detail in consultation with concerned ministries. The need for a separate legislation was not felt in view of the fact that there are adequate provisions available in the Sale of Goods Act, 1930, (for regulating the sale of goods); the Indian Contract Act, 1872 (for the sale of services) and the Consume Protection Act, 1986 (to promote and protect the rights of the consumers). The provisions of the Prize Chits and Money Circulation Scheme (Banning) Act, 1978 seek to ban the promotion or conduct c Prize Chits and Money Circulation Schemes. The provisions of this Act had come up for scrutiny before the Hon'ble Supreme Court of India who has ruled that the "Network Marketing Plan" and direct sale of goods and services by the direct selling companies do not fall with the mischief of the aforesaid Act.

//True Typed part of copy//

Note: In view of the above Indian Parliament felt no need of separate Legislation for MLM/Network Marketing business

// Compilation by//


LOK SABHA

UNSTARRED QUESTION NO. 4875 TO BE ANSWERED ON 20/12/2002

INDIAN DIRECT SELLING ASSOCIATION 4875 SHRI SUBODH MOHITE

Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTE be pleased to state:

(a) whether the Government have received any proposal from Indian Direct Selling Association to enact legislation to weed out fraudulent element from direct sellers;

(b) If so, the details thereof;

(c) the reaction of the Government thereon ; and

(d) the effective measures proposed to be taken by the Government to save the interest of consumers ?

ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF CONSUMER AFFAIRS, FOOD& PUBLIC DISTRIBUTION
(SHRI V. SREENIVASA PRASAD)

a) to (d) : Yes Sir Proposals were received from the Indian Direct Selling Association as well as M/s Frontier Trading etc., requesting to enact a separate legislation to cover direct selling/multi level marketing / network marketing. The main contention of the representation was that members of Direct Selling Association are being targeted due to vagueness of the "Prize Chits and Money Circulation Scheme (Banning) Act, 1978" in distinguishing between Prize Chit Funds and genuine agencies involved in direct marketing. The matter was examined in detail in consultation with concerned ministries. The need for a separate legislation was not felt in view o the fact that there are adequate provisions available in the Sale o Goods Act, 1930, (for regulating the sale of goods); the Indian Contract Act, 1872 (for the sale of services) and the Consume Protection Act, 1986 (to promote and protect the rights of the consumers). The provisions of the Prize Chits and Money Circulation Scheme (Banning) Act, 1978 seek to ban the promotion or conduct c Prize Chits and Money Circulation Schemes. The provisions of this Act had come up for scrutiny before the Hon'ble Supreme Court of India who have ruled that the "Network Marketing Plan" and direct sale of goods and services by the direct selling companies do not fall with the mischief of the aforesaid Act.

//True Typed part of copy//

// Compilation by//

Nikhil Bhatia said...

It is good to see that finally David has given the free readers what they want.

'A little learning is a dangerous thing'

I am remembering the lines of Napolean Hill “The majority of people who fail to accumulate money sufficient for their needs are, generally, easily influenced by the 'opinions' of others. They permit the newspapers and the 'gossiping' neighbors to do their 'thinking' for them. 'Opinions' are the cheapest commodities on earth. Everyone has a flock of opinions ready to be wished upon anyone who will accept them. If you are influenced by 'opinions' when you reach decisions, you will not succeed in any undertaking, much less in that of transmuting your own desire into money.”

Any free reader would understand this and will do a sincere effort to understand the business model rather than making his decision based on what David or I write on these blogs.

Also David when you say "At no point in 'Think and Grow Rich' could Napoleon Hill have suggested that joining a'Multi-Level Marketing' scheme is a pathway to success" you are being incorrect.

The book is based upon the Success Principles that make people go RICH. Why do you want Napolean Hill to tell the readers what business you should and should not do?

Let the free thinkers take opinion themselves and read that book.

I believe he is not a free thinker to listens to 100 people and then say Amway is scam or who listens to 100 people and say Amway is legal.

I joined Amway myself; went to meetings; talked to millionaires whom you call Diamonds; studied the business model; bought the products and found company is paying all the taxes; used the products; studied why people fail and why people succeed and then I arrived on a decision.

Till now I have not sponsored because I wanted some facts from you; but instead of talking about Amway and facts David calls me NPD. That is really kiddo David :)

We are not here to discuss whether Nikhil Bhatia is NPD or not and you are not going to prove anything by doing that.

You should relax; take a deep breath and then write.