What is Private Franchising?

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mathrisk

mathrisk

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The other day some random guy in office started a casual talk with me and later asked my mobile number. Last weekend he called, and and somehow I missed it. But it felt somewhat creepy when he called 2nd time after few hours. I was with my friend at that time - and we both suspected 'is he a homo or something' :P

Anyway, he caught me again today in the office and started talking seriously about some passive income. He started with few jargons like "Private Franchising" etc and big number like 2 lakh per month etc.
He didn't tell me the things in detail, but he's some member of some group/club and he wants to come to my house to explain in detail with some senior guy of the group.
Googling I learn this Private Franchising thing is some kind of the "chain" thing (Amway was a hit in early 2000s, and many other) - but I am not very much sure. Well, I regard all these chain systems are bloody scams, I also don't expect any 'free - lunch', and I also know that 2lakh pm is absurd. But this guy is kinda senior in my company and he is bloody insisting just to listen to their presentation once.
So, do anyone have any idea about this Private Franchising?
Should I just decline this fellow or shall I listen to their story?
 
Listed to story, put here, and then decline :D

it u ain't too busy, 1 hr listening won't matter much, just ditch one of your tv show
 
@mathrisk your intuition is right. don't let them come to your house. such people won't mind introducing their relatives (wives and children) to you, just to gain your trust. they'll keep on pestering you if you listen to their scheme. there is a reason they do such activities in private. this guy could've explained you the scheme in your office cafeteria.

in most probability, it's amway.
 
Its not a scam but to make the money they talk about you have to move lots of product. How you going to do that.

Sell to your family, then bug your friends, then start on colleagues in the office :D

I've seen this model being used for cosmetics. Where the company does not want to sell from shops (shop rent + employee salaries etc) instead they do catalog sales. People buy from a central depot and sell to friends etc.
 
He will come, convince you to buy, later he will tell you to do the same (as he did to you) with your other friends and family members !

The 2 lac pm calculations are too much optimistic, like Amway there are thousands others who do such stuff, seen friends get punished (money and time wise)...
 
Pyramid Scheme: http://en.wikipedia.org/wiki/Pyramid_scheme

Mainly people at the top of the chain are the guys who can make a decent earning.

The essential idea is that Mr. X, makes only one payment. To start earning, Mr. X has to recruit others like him who will also make one payment each. Mr. X gets paid out of receipts from those new recruits. They then go on to recruit others. As each new recruit makes a payment, Mr. X gets a cut. He is thus promised exponential benefits as the "business" expands.

The flaw is that there is no end benefit. The money simply travels up the chain. Only the originator and a very few at the top levels of the pyramid make significant amounts of money. The amounts dwindle steeply down the pyramid slopes. Individuals at the bottom of the pyramid (those who subscribed to the plan, but were not able to recruit any followers themselves) end up with a deficit.
 
gauravH said:
@mathrisk your intuition is right. don't let them come to your house. such people won't mind introducing their relatives (wives and children) to you, just to gain your trust. they'll keep on pestering you if you listen to their scheme. there is a reason they do such activities in private. this guy could've explained you the scheme in your office cafeteria.

in most probability, it's amway.
Click to expand...
This^

Even I had such an experience but it was for a Landmark Forum - personal development classes. My lead's best friend was after me to go with him and attend one of the sessions. Apparently, they were asked to help a friend by bringing him to Wednesday sessions. I kept on declining and he kept on asking. The situation was so bad that I had to switch off my mobile and sit in the company library from 4-7 to avoid him completely - for 3 consecutive weeks. Finally, he got hold of another colleague. Then I came to know the bullying tactic they employed -- if you refuse, the trainer will chide "Is it about the money? You can earn money all you life. I am giving you - POWER". And being Indians; our pride gets hurt when that is implied. Many fall for it.

In my colleagues case, upon refusing another guy started --- "And this POWER is for FREE! FREE! FREE!" :p

So IMHO, dont even let them near your house.
 
Okay, thanks guys....I got the idea. And I feared the insurance agents the most, foolish me. :P
Its decided than - I am declining his offer.
 
More than money, these schemes destroy relationships with friends and family.

Find a legit business to do, or invest in someone you know who does. Far better than getting involved in get-quick-rich schemes.
 
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