This MLM is trying to spread its wings through Facebook as its site does not provide access unless you are a member. While it promises huge income, you would need to enrol about one crore people to reach the 10th level and earn Rs24.48 lakh as gift income

Moneylife Digital Team

Despite the crackdown on various multi-level marketing (MLM) companies like SpeakAsia, Swarna Labh and Forex Dhamaka, scamsters are finding new ways to lure gullible people into their networks by promising huge and easy money. This time, it is Giftredbook.com that claims one can earn Rs61 lakh in just three months flat without joining a single downline and selling anything.

The website claims to provide “Lal Kitab” or the Red Book, a book on astrology, supposedly written by one Rupachand Joshi. The site claims that the original “Lal Kitab” written in Urdu, is a wonder book on astrology, which provides remedies for solving chronic and critical human problems. However, the book is not used as gift. Instead, one is required to transfer money. This looks like a money circulating scheme rather than an MLM or Ponzi scheme.

While the website is in a ‘locked’ state, people behind the MLM are busy promoting the scheme through social networking sites like Facebook. In the postings, they claim that one can become a member by paying Rs600 as registration charges and would be provided a login ID and password for giftredbook.com. In the member's area, the new joinee would be provided the name and bank account number of and old member. The new joinee would then have to contact and transfer Rs1,200 in the account of the old member within 72 hours. Over the next 8 to 15 days, this new member's name would be sent to five new joinees, who in turn would send Rs1,200 each or together Rs6,000 to him. What an idea to earn money as a gift!

Here is posting about the scheme on Facebook...

Since, this is a limited time offer, one can join with as many as IDs (remember, you have to pay Rs600 as registration fee for a single ID?) and increase his earning potential and thus profit. It promises you a net profit of between Rs4,200 (your ‘gift’ income of Rs6,000 minus your ‘investment’ of Rs1,800) to Rs24.48 lakh, if at all you reach at 10th level.

In simple words, to earn Rs24.48 lakh, you would need to have a downline of 97.65 lakh members! This may look easy on paper but in reality, this is just not possible. Because, the moment new people stop joining the scheme, it is bound to collapse under its own weight.

Remember, even SpeakAsia, the most rapidly-spread MLM could garner only 20 lakh members, before it become defunct.

In addition, it does not say a single word about how the members are selected for receiving gift income and how it would get newer people into the network.

The site, Giftredbook.com is not an open site. That means, unless you are a member, you cannot access the vital information. Even on Who.is, the site that keeps record like ownership and registrar details of each website, there is no information available about the owner, registrar of Giftredbook.com, as all information is kept hidden by using PrivacyProtect.org services.

In short, don’t fall prey to schemes like Giftredbook.com and keep reading Moneylife.in for “How to be safe and smart” with your hard-earned money.