Facts* and Current Scenario in India – #Ponzi & #MLMScams


1)  About 400 operations promoting products by deploying the MLM compensation plan


2)  Majority (more than 80%) of the 400 operations follow the binary /hybrid compensation plans


3)  About 1000 scams (nonviable /deceptive) are operating which deploy the MLM compensation plan.


4)  Data of scams deploying Single level marketing /Agent models like Sardha, Sahara, PACL , Rose Valley , etc is not available, but are estimated to be more than 5000 and fly under the radar of SEBI , RBI and the Police


5)  An average of 100 operations deploying the MLM compensation plans start up every month


6)  70 % of them are nonviable/deceptive/illegal – as per their compensation plans , or products  (investments , etc without the permission of RBI , SEBI , etc) or deceptive – Misleading information on the websites


7)   80% of the Scams (nonviable/deceptive) are intentional


8)   20% of  Scams (nonviable/deceptive) are unintentional (copy the business model/modus operandi of scams )


9)  About 60 lac people are engaged with operations which deploy the MLM compensation plans


10)  About 10 to 15 thousand people are involved full time in Scams which deploy the MLM Compensation plans -Nonviable/Deceptive they include Promoters, Software developers, Chartered accountants, Legal advisers and direct sellers/agents.


11)   Scams spell trouble (arrest, suspension, etc) for police officials who look the other way in exchange of favors.


12)   Turnover of Scams deploying the MLM compensation plans exceed INR 10,000 crores annually.



*As per the research by

Strategy India is a direct selling consultancy firm with expertise in Single level marketing and Multilevel marketing compensation plans (SLM/MLM)

Scam alerts on


#ponzi , #mlmscams #directselling #mlmconsultant #sebi #rbi #police

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