Proof that RMP is Scam

Hi recently I visited to RMP infotec seminar function. And I came to know some noticeable facts
(which were arguable in nature that I will share with you later).

About RMP

 RMP infotec started in 2001 is network marketing company

 RMP has total 23 products
 RMP means Resource money and power
 Gives opportunity to earn Rs 1000 – 130,000 per week
 14 office in India
 Website : http://rmpinfotec.biz/

Some Legal evidences:

 Member of FICCI
 Member of World Trade Centre (New York)

 Has Tie-up with MSIL (Mysore Sales International Limited a premier Government of
Karnataka marketing organisation
 The found of the company is Mahavir steel (no website found of it)
 Member of DSEI (direct selling Education Institute in Dubai) See appendix 1.2
 No.1 in Asia network marketing company
 Guinness world record for sending 2512 member of rmp to Thailand for convention

 RMP is LLC (limited Liability Company) company in Dubai.

http://rmpinfotec.biz/middleeast/Default.aspx

Achievements:
 250,000 car achievers
 1000 ceiling achievers
 200 Mercedez Benz achievers
 35 + BMW achievers
 500 crore
 10000 entries per day.

Compensation Plan:
Please go through link below
http://www.rmpinfotec.zoomshare.com/5.html
 Proof that RMP is Scam

The real facts

Websites of RMP:
1. http://www.mahavirgroup.net/index.html there is no mention of RMP infotec, not only this,
there is also no mention of Mahvir group in rmp website

2. http://rmpinfotec.biz/default.aspx RMP (however there was no mention of WTC member

accredition)

3. Infact it was later found it was member of WTC in Mumbai,.

4. No mention of DSEI membership in Dubai in website and to be more satirical there no

mention of RMP infotec in DSEI website as well http://www.dseidubai.com/index.php?
option=com_content&task=view&id=18&Itemid=35

5. No. 1 in Asia on what basis and parameters?

6. Guinness world not mentioned in the website of rmp as well there is no even mention of
rmp in Guinness website http://www.guinnessworldrecords.com/. Infact in year 2010 june
Amway chine sent 13000 chinese to salespeople to California
http://articles.latimes.com/2010/jun/01/local/la-me-amway-china-20100601

7. When I went through the website of MSIL there is no mention of RMP in their website.
http://www.msilonline.com/default.htm

8. There is no mention of its turnover in the website of RMP or in any news

9. Although it mentions how many people are enrolling but there is no mention of sales of
leading products

10. Even there is no mention about the quality of the products regarding how there are better
compared to the products which are available in the markets?

11. There is a sentence on RMP infotec which says that “RMP is a strong customer based
network driven company, which focus on customer satisfaction”. Ironically Distributors are
the only customers in the system. The compensation system is such that it is only
designed to be sold to the distributors

12. There is only compensation on recruitment through product which is sort of investment
that costs around Rs 7000. And of the other people wants to join the business they will do
the same. The compensation is payed from the investment and not from the sales which
is absent in the system.
 Proof that RMP is Scam
Every person when enrols in the business will buy product for one time,
afterwards there is no retail effort by him personally. He will benefited only from the
investment amount of the newly enrolled persons

Infact the whole system is works on enrolment of the people. So if there is no new
enrolment there will be no turnover.......

For e.g. In the system maximum ceiling per week is Rs 1,30,000 (which is Rs 5,20,000 for
4 weeks) which will be possible only if inleft there are 256 people enrolled and 256 on
Right (no mention of turnover). So in order to maintain the level of income the person has
to keep on enrolling new people.

13. Definitely there are many reasons which points out that RMP is not the network marketing
company, it following pyramid scheme practice. Firstly, let’s see what is network
marketing or mlm and what is pyramid scheme

There is classical distinction made by Federal trade commission regarding what is

difference between mlm and pyramid schemes

“Pyramid schemes now come in so many forms that they may be difficult to recognize
immediately. However, they all share one overriding characteristic. They promise
consumers or investors large profits based primarily on recruiting others to join their
program, not based on profits from any real investment or real sale of goods to the public.
Some schemes may purport to sell a product, but they often simply use the product to hide
their pyramid structure. There are two tell-tale signs that a product is simply being used to
disguise a pyramid scheme: inventory loading and a lack of retail sales. Inventory loading
occurs when a company's incentive program forces recruits to buy more products than
they could ever sell, often at inflated prices. If this occurs throughout the company's
distribution system, the people at the top of the pyramid reap substantial profits, even
though little or no product moves to market. The people at the bottom make excessive
payments for inventory that simply accumulates in their basements. A lack of retail sales is
also a red flag that a pyramid exists. Many pyramid schemes will claim that their product is
selling like hot cakes. However, on closer examination, the sales occur only between
people inside the pyramid structure or to new recruits joining the structure, not to
consumers out in the general public.”

“Multilevel marketing programs are known as MLM's, and unlike pyramid or Ponzi
schemes, MLM's have a real product to sell. More importantly, MLM's actually sell their
product to members of the general public, without requiring these consumers to pay
 Proof that RMP is Scam
anything extra or to join the MLM system. MLM's may pay commissions to a long string of
distributors, but these commission are paid for real retail sales, not for new recruits.”

Source : http://www.ftc.gov/speeches/other/dvimf16.shtm

According to World Federation of Direct Selling

Pyramid schemes which uses product as the way run its scheme as “Disguised pyramid -
wolf in sheep's clothing”

Further it states that

Some pyramid promoters try to make their schemes look like multilevel marketing
methods. Multilevel marketing is a lawful and legitimate business method which uses a
network of independent distributors to sell consumer products.

To look like a multilevel marketing company, a pyramid scheme takes on a line of products
and claims to be in the business of selling them to consumers. However, little or no effort
is made to actually market the products. Instead, money is made in typical pyramid
fashion, from recruiting. New distributors are pushed to purchase large and costly amounts
of inventory when they sign up.

For example, you might have to purchase $1,000 of nearly worthless products in order to
become a "distributor." The person who recruited you receives $500 (a fifty percent
commission) and $500 goes to the top (the company, in this case). Notice the similarity to
the simple pyramid scheme described earlier.

Source: http://www.wfdsa.org/about_dir_sell/index.cfm?fa=schemes3

According to Federal Bureau of Investigation:

Pyramid schemes, also referred to as franchise fraud, or chain referral schemes, are
marketing and investment frauds in which an individual is offered a distributorship or
franchise to market a particular product. The real profit is earned, not by the sale of the
product, but by the sale of new distributorships. Emphasis on selling franchises rather than
the product eventually leads to a point where the supply of potential investors is exhausted
and the pyramid collapses. At the heart of each pyramid scheme there is typically a
representation that new participants can recoup their original investments by inducing two
or more prospects to make the same investment. Promoters fail to tell prospective
participants that this is mathematically impossible for everyone to do, since some
participants drop out, while others recoup their original investments and then drop out.

Source: http://www.fbi.gov/majcases/fraud/fraudschemes.htm
 Proof that RMP is Scam

According to Chinese Prohibition of Chinese Pyramid selling Regulations

Article 7　The following acts are pyramid selling acts： 

1. an organizer or operator seeks illegal benefits by recruiting personnel， requiring the
recruited personnel to recruit other personnel to participate， and calculating and paying
remuneration （here and hereinafter including material rewards and other economic
benefits） to the recruited personnel on the basis of the number of personnel directly or
indirectly recruited by them through rolling recruitment； 
2. an organizer or operator seeks illegal benefits by recruiting personnel and requiring the
recruited personnel to pay fees， or fees in disguised forms such as order of
commodities， as a condition to being qualified for participation or recruiting other
personnel to participate； and 
3. an organizer or operator seeks illegal benefits by recruiting personnel and requiring the
recruited personnel to recruit other personnel so that an upline-downline relationship is
formed， and calculating and paying remunerations to an upline personnel on the basis of
the sales performance of his downline personnel. 

Source: http://tradeinservices.mofcom.gov.cn/en/b/2005-08-23/24294.shtml

According to Australian Trade Practices Amendment (Australian Consumer Law) Act

(No. 2) 2010

Meaning of pyramid scheme

(1) A pyramid scheme is a scheme with both of the following

characteristics:
a) to take part in the scheme, some or all new participants must
provide, to another participant or participants in the scheme,
either of the following (a participation payment):
(i) a financial or non-financial benefit to, or for the benefit
of, the other participant or participants;
(ii) a financial or non-financial benefit partly to, or for the
benefit of, the other participant or participants and partly
to, or for the benefit of, other persons;
b) the participation payments are entirely or substantially
induced by the prospect held out to new participants that they
will be entitled, in relation to the introduction to the scheme
of further new participants, to be provided with either of the
following (a recruitment payment):
(i) a financial or non-financial benefit to, or for the benefit
 Proof that RMP is Scam
of, new participants;
(ii) a financial or non-financial benefit partly to, or for the
benefit of, new participants and partly to, or for the
benefit of, other persons.

(2) A new participant includes a person who has applied, or been

invited, to participate in the scheme.

(3) A scheme may be a pyramid scheme:

a. no matter who holds out to new participants the prospect of

entitlement to recruitment payments; and
b. no matter who is to make recruitment payments to new
participants; and
c. no matter who is to make introductions to the scheme of
further new participants.

(4) A scheme may be a pyramid scheme even if it has any or all of the
following characteristics:
a. the participation payments may (or must) be made after the
new participants begin to take part in the scheme;
b. making a participation payment is not the only requirement
for taking part in the scheme;
c. the holding out of the prospect of entitlement to recruitment
payments does not give any new participant a legally
enforceable right;
d. arrangements for the scheme are not recorded in writing
(whether entirely or partly);
e. the scheme involves the marketing of goods or services (or both).

http://www.comlaw.gov.au/ComLaw/Legislation/Act1.nsf/0/4E8004BC23ACDE
BBCA2577620009E209/$file/1032010.pdf refer page 73.

So from above we can say that a company which is running pyramid can also involves the
product however, there is no encouragement on the sales of the product.
 Proof that RMP is Scam
14. Majority of the turnover of the company is through investment or enrolment of new
people.

15. All products which it is offering are durables. These products are not regularly purchased
by the people. Majority of distributors buys product only during recruitment.

16. The product cost is also an important factor in determining whether the company is
pyramid scheme or not. In case of RMP Infotec Pvt. Ltd. the lowest product cost is Rs
6990 which makes it even more doubtful that how the company would train them to sell in
the market.

After my careful observation I came to know that people recruited through buying a
product worth Rs 7000 and from that amount the recruiter gets benefited. This is another
important sign of pyramid scheme. In direct selling and network marketing or Mlm
Company one gets benefits mainly from his/her sales as well as sales made from his
recruits.

This makes it clear that the company lacks retail sales as well it is using inventory loading
to sell its products which is another important feature of a company which is running
pyramid scheme........

17. Although RMP may be having 1 crore distributors but it is not at all effective in terms of
sales effort made by the distributors. 1 crore distributors just contributing Rs 2310 crore
sales. Moreover, there is no any system which educates them regarding how to sell the
product.

Please go through the web-link below which states the top 100 direct selling companies in
the world according to sales and their number of distributors or sales people.

http://www.directsellingnews.com/index.php/site/entries_archive_display/global_100_the_
top_direct_selling_companies_in_the_world

As you will see that largest direct selling company Avon is having 67 million (67 lakh)
distributors generates Rs 49,350 crore !!!!!!

18. And last but not the least it is not a member of IDSA http://www.idsa.co.in/members.html

19. There are no such any articles regarding RMP in any news in India.

20. There is no commission structure regarding sales of the product only on the base of
recruitment.

21. Many people boost that RMP got an LLC status in DUBAI. But I am sure that most of the
people don’t what does it means, even though they may know its full form but they are
unaware of its meaning.
 Proof that RMP is Scam
According A news website called UAE interact which is supported by National Media
Council has explained it in a very comprehensive manner.

“Incorporating a Limited Liability Company

“Under the Commercial Companies Law or CCL (Federal Law No. 8 of 1984
Concerning Commercial Companies as amended by Federal Law No 1 of
1984 and Federal Law No 13 of 1988, Federal Law No. 15 of 1998), foreign
investors are permitted to hold up to 49 per cent equity ownership in UAE
companies, 51 per cent of the equity must be held at all times by one or
more UAE nationals. 

The Limited Liability Company or LLC is the most popular method of

establishing a commercial company in the UAE, unless the business
involves banking, insurance and investment activities conducted on behalf
of third parties where a Public Joint Stock Company is required. Articles
218 to 255 of the CCL (inclusive) regulate the establishment of limited
liability companies. The LLC requires a minimum of two and a maximum of
50 members and minimum capitalization of Dh300,000. Management of the
LLC is vested in the ‘managers’ (up to five natural persons) who may or
may not be UAE nationals. 

The procedures for establishing an LLC and obtaining a trade licence can
be obtained from the Chambers of Commerce of each emirate. There are
also a number of efficient law firms in the UAE who can assist you with the
process.

Other commercial structures regulated by UAE company law are General

Partnerships, Simple Limited Partnerships, Joint Participation, Public Joint
Stock Company, Private Joint Stock Company and Partnerships Limited
with Shares, most of which, except for the Private and Public Joint Stock
Companies, are not readily used.”

Source: http://www.uaeinteract.com/business/incorp.asp

Let us see what RMP as showing in its proof.

There is a website of RMP Infotec General Trading (LLC)

http://rmpinfotec.biz/middleeast/Default.aspx

And here is the link which shows its registration in Dubai

 Proof that RMP is Scam
http://rmpinfotec.biz/middleeast/Profile/Profile.aspx

As you can see that it is difficult to identify what is written in Registration form.

Besides this it should also have its name registered in Dubai Chambers of Commerce
directory. Here is the website of it http://www.dubaichamber.ae/

One can verify it whether the company is member of Dubai Chamber of commerce or not.
I went to E-service section and through that there is Commercial directory through which I
tried to find its name. And I found that there was no such company.

There is another shocking thing which I found in its website of Dubai. When I was
reviewing its products one of its products got my attention.

1. RGT Nano Bracelet Cost 165 USD or 605 AED

Benifits:

Bio Energy bracelets are effective for below mentioned body disorders:
1.Arthritis & Rheumatism 
 Proof that RMP is Scam
2.Joint & muscle pain4Backache and headache 
3.Respiratory Problems: Coughs & Asthma
4.Constipation 4Inflammation4Insomnia 
5.Stress4Diabetes and High Blood Pressure (Controlled)
6.Cholesterol

As you can see that benefits mentioned above are totally superficial in nature. There is no
proof to backing these claims which are superficial.

My conclusion:

RMP is having many characteristics which a pyramid scheme possess like Inventory
loading, lack of retail sales, enrolling members and lastly earnings which is earned
through recruitment of people. The whole business plan is on enrolling people. Besides
this majority of its claims are false.

So according to me it is definitely a pyramid scheme.

 Proof that RMP is Scam

Appendix 1
 Proof that RMP is Scam

Appendix 1.2

There is no mention of Rmp when I checked the website of RMP as well as DSEI
http://www.dseidubai.com/index.php?option=com_content&task=view&id=18&Itemid=35