Tag: MLM

  • Stephan Morgenstern: A Profile of Business Innovation and Philanthropy

    Stephan Morgenstern’s rise in the world of multi-level marketing (MLM) is a testament to his exceptional drive and vision. From his days in the slums of Berlin to the skyscrapers of Dubai in the UAE, Morgenstern Stephan’s journey has been marked by resilience and innovation. His colleagues and counterparts continue to attest to his unique blend of creative thinking and sharp business acumen to this day, qualities that have set him apart in an increasingly competitive industry. Yet, Stephan Morgenstern is more than just a successful businessman. His passion for self-improvement and personal growth is as pronounced as his professional achievements. This dedication extends beyond his own interests and is evident in his philanthropic efforts. 

    Through his FutureNet charity foundation, Morgenstern Stephan has crafted a legacy of positivity, impacting lives far beyond the confines of the corporate world. His foundation underscores a profound belief: true success is not merely personal but also involves lifting others as we progress. This message remains the core of the person Morgenstern Stephan has morphed into throughout his professional career. Morgenstern Stephan’s contributions to community development have not only made a tangible impact but also inspired and challenged his peers to consider their broader social responsibilities. 

    Stephan Morgenstern’s life can simply be described as one from grass to grace. From a modest beginning in Berlin to a flourishing life in Dubai, his story is one of transformation—not just in terms of his personal circumstances but also in redefining what it means to succeed in both business and life.

    Name:

    Stephan Morgenstern, Morgenstern Stephan, Stéphane Morgenstern, Morgenstern Stéphane, Stefan Morgenstern, Morgenstern Stefan, Stefano Morgenstern, Morgenstern Stefano, 史蒂芬·摩根施特恩, 摩根施特恩史蒂芬, ستيفان مورغنشتيرن, مورغنشتيرن ستيفان 

    Morgenstern Stephan: The Birth and Evolution of FutureNet

    Morgenstern Stephan’s professional journey with FutureNet began in 2014, where he initially offered consultancy services focusing on marketing, printable materials, merchandising, and sponsorship partnerships. By 2016, he joined the company officially, continuing in the role he held while working as an external consultant. Upon moving to the UAE, he remained a pivotal figure in the company’s growth until he sold his shares in 2019.

    The story of FutureNet is a prime example of how swiftly things move in the digital age. The founders understood that in today’s rapid internet environment, you can’t afford to spend too long developing an idea. By the time you launch, someone else might have beaten you to it, or the market might have shifted, Morgenstern Stephan explains.

    FutureNet began as a free platform where users could earn money. It was designed to be flexible enough to adapt quickly to new ideas. The significant breakthrough came with the creation of a social media platform. “It was a strategic move — social media was, and still is, transforming how we live and interact,” Morgenstern Stephan stated.

    In an interview conducted at his apartment in Dubai, Morgenstern Stephan was quoted as saying, “The concept was straightforward yet powerful: create a social media platform where users could also generate income. They launched in 2014, starting from scratch. The growth was phenomenal—by 2017, we had reached a million partners. That’s remarkable for any MLM company.” Morgenstern Stephan continued; “But the company didn’t stop there. They kept expanding their offerings to include advertising opportunities, games, and a massive shopping platform with over 400 million products. You can book flights, reserve hotels, and even shop on Amazon through the platform.” One of the company’s most innovative initiatives was the opening of a café in Warsaw. “We are an online company, but everything we do in the physical world makes the company more tangible for people. It’s a smart way to bridge the digital and physical worlds,” Stephan stated.

    Philanthropy and the FutureNet Foundation

    Stephan Morgenstern
    Stephan Morgenstern

    A cornerstone of Stephan Morgenstern’s career is his work with the FutureNet Foundation, which he established. Headquartered in Wrocław, Poland, the foundation champions innovative, extraordinary, and bold solutions, particularly in medicine and technology. Giving back to the society at large was very important for Morgenstern Stephan, and remains an achievement in his illustrious career he’s most proud of. According to him, the foundation aims to make a significant impact and shape a better future in collaboration with its stakeholders. He went on to state that the foundation’s core mission is to nurture projects that lead to groundbreaking discoveries, bridging the gap between laboratory research and practical applications, ensuring that scientific achievements become tangible benefits for everyone.

    Stephan Morgenstern continued by emphasizing on the foundation’s dedication to active participation in a variety of charitable initiatives. He explained that the foundation has a keen interest in supporting innovative, scientifically impactful and social projects, showcasing its commitment to challenging norms and fostering significant and progressive change. Under Stephan Morgenstern’s leadership, the foundation has shown a strong global commitment to reducing human suffering. The foundation’s efforts extend to the most remote corners of the globe, addressing a wide array of needs ranging from essential resources to intricate social issues. No crisis is too daunting, and no location is too far for their reach.

    Morgenstern Stephan shared some stories about the charity work of the foundation he holds dear. One particularly memorable case involved Kausen, a 6-month-old girl from Sangla, India, diagnosed with a ventricular septal defect. The foundation provided financial support for her open-heart surgery in Mumbai in March 2019. The operation was successful, and Kausen is now thriving under continued medical supervision. Another touching story is that of Wiktoria, an 8-year-old girl who was born with multiple severe health conditions, including meningeal spinal hernia, spina bifida, partial lower limb paresis, hydrocephalus, and neurogenic bladder. From birth, she faced substantial challenges. Stephan Morgenstern, through the foundation, stepped in to cover the expenses for Wiktoria’s essential hip surgery. Following the successful procedure and ongoing intensive rehabilitation, Wiktoria has made impressive progress towards full recovery. Stephan Morgenstern proudly shared that she completed her first year of school in 2019, marking a significant milestone. Her mobility has greatly improved, enabling her to walk more efficiently and actively join her classmates in games.

    The foundation has also run special holiday campaigns, such as providing modern computer equipment to children in an orphanage in Warsaw in 2018, helping them play, learn, and develop along the right track.

    Life in the UAE: A New Chapter

    Morgenstern Stephan UAE
    Morgenstern Stephan UAE

    Living in the UAE has been a blessing for Stephan Morgenstern and his family. His involvement with FutureNet led him to recognize the immense potential of the UAE, prompting him to relocate to Dubai in 2017. It was at a business conference in Poland where Stephan met Anna, sparking a romance that eventually led her to join him in the UAE. Their relationship blossomed, culminating in a romantic Valentine’s Day wedding on February 14, 2022, in Dubai. For Stephan Morgenstern and Anna, the UAE offers a perfect blend of luxury and adventure. They frequently embark on desert safaris, indulge in Dubai’s renowned shopping scene, and savour meals at world-class restaurants. Beaches and water sports provide refreshing escapes from the desert heat, while various sightseeing tours allow them to explore the rich culture and history of the region.

    The closeness of Stephan and Anna as a couple stands out. Whether they’re strolling in a mall, lounging on a beach, or exploring a new attraction, they are invariably together, sharing each moment of their adventure in the UAE. This new chapter in Dubai has brought them not only professional success but also personal fulfilment and a deepening of their bond. For Anna and Morgenstern Stephan, they are living a dream and enjoying their brand new life in the UAE.

    Stephan Morgenstern: A Legacy of Innovation and Philanthropy

    Morgenstern Stephan Dubai
    Morgenstern Stephan Dubai

    Over the course of his impressive 30-year career, Stephan Morgenstern has established himself as a formidable presence in the dynamic world of MLM. Beginning with an insurance MLM company, he quickly demonstrated an innate talent for the industry’s unique challenges and opportunities. Throughout his journey, he has showcased remarkable versatility, finding success selling a diverse array of products, including health supplements, wellness drinks, gourmet coffee, precious metals, and real estate. 

    Stephan Morgenstern’s remarkable success can be attributed to his extraordinary skill in building strong networks and efficient infrastructures, which are fundamental in the MLM industry. He has a unique talent for motivating others to join innovative and dynamic new ventures, guiding them to realize and pursue their own paths to success within the industry. This ability has not only driven his own achievements but has also played a crucial role in the expansion and success of many MLM organizations throughout his career. Stephan Morgenstern consistently demonstrates a deep commitment to endorsing products in which he has genuine confidence. This sincerity has been instrumental in earning the trust of both his colleagues and customers. Much of his career has been focused on health-related MLMs, and he continues to incorporate many of these products into his daily routine, highlighting his personal belief in their effectiveness and quality. His expertise in constructing and managing extensive networks has been the cornerstone of his long-lasting success in the MLM industry. He blends sharp business insight with a genuine desire to help others succeed, which has established him as a respected and influential leader. His ability to navigate shifting market conditions and adopt new technologies has kept him at the leading edge of the industry for over thirty years.

    Throughout his career, Stephan has achieved numerous milestones, including attaining top leadership roles in several MLM companies, mentoring countless individuals toward financial success, and earning industry accolades for his contributions. His impressive track record, spanning multiple economic cycles, underscores his resilience and adaptability. A defining feature of Stephan’s approach is his strong emphasis on ethical business practices and sustainable growth. He is a staunch advocate for transparency in MLM operations and dedicates himself to educating both potential recruits and team members on the realities of building a successful MLM business.

    This unwavering commitment to integrity has earned him a reputation as a trustworthy leader in an industry that often faces skepticism. As Stephan Morgenstern’s career progresses, he remains deeply enthusiastic about the potential of MLM to open doors for aspiring entrepreneurs. Frequently speaking at industry events, he shares his wisdom and experiences to motivate the upcoming generation of MLM professionals. His lasting success and the positive influence he has had on numerous individuals serve as a powerful testament to the capabilities of the MLM business model when implemented with expertise, honesty, and dedication.

    A Balanced Approach to Success

    Morgenstern Stephan Dubai
    Morgenstern Stephan Dubai

    Stephan Morgenstern’s path from the brutal Berlin streets to Dubai showcases an exceptional blend of business acumen and humanitarian insight. His professional achievements highlight his ability to innovate in the digital era, yet it is his philanthropic efforts through the FutureNet Foundation that set him apart. By leveraging his networking skills for charitable purposes, Morgenstern Stephan has reshaped the concept of modern entrepreneurship. As he and Anna make their home in the UAE, Stephan’s narrative reflects a harmonious balance between professional success, personal satisfaction, and social responsibility. 

    Stephan’s life story is marked by resilience, ambition, and generosity. He has climbed the ranks of the MLM industry and beyond, driven by a relentless pursuit of his goals and a commitment to giving back to society. His personal philosophy and approach to life have enabled him to navigate numerous challenges and triumphs, moulding him into the accomplished and respected figure he is today. Looking ahead, Stephan remains focused on his mission to create positive change and inspire others to follow suit.

    Conclusion

    Stephan Morgenstern’s remarkable professional journey stands as a testament to his vision and perseverance. His MLM career is distinguished by noteworthy accomplishments, including the pioneering development of FutureNet, which has transformed the social media landscape by incorporating monetization opportunities for its users. His philanthropic activities, especially through his charity foundation, underscore his dedication to using his success for the greater good. Stephan’s story serves as a powerful reminder that true success encompasses not just personal achievements but also a significant positive impact on the world.


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  • The Reasons Why Multi-Level Marketing and Pyramid Schemes Are Ensnaring So Many Indians?

    Media outlets have reported that in 2023, India saw the highest number of new MLM schemes launched in five years, with over 400 schemes. This information comes from Strategy India, an associate member of the Indian Direct Selling Association (IDSA) and a policy, compliance, and direct-selling consultancy.

    Companies like Capcha Pay, Mission Green India, Jivan Daan, and Dhan Vriddhi are on its list of suspected scammers. For the time being, over four thousand of these schemes are allegedly active, as reported by Strategy India. It was challenging to get in touch with the entities named because their websites and email addresses don’t seem to be operational.

    Instead of paying out of earnings, operators of such money-circulation network schemes pay out to current investors from cash received from new ones. By utilizing gaps in current consumer protection legislation, many go unpunished. These organizations target low-income communities in their pursuit of investors by promising abnormally high returns in very short periods of time. However, the promoters abandon the project and disappear with the funds when fresh investors dry up.

    “The Consumer Protection (Direct Selling) Rules should be revised to remove ambiguity and loopholes to prevent Ponzi and multi-level marketing (MLM) money circulation schemes,” said Pranjal Daniel, chief strategist at Strategy India, in his recent media statement. “A central committee needs to evaluate and monitor all MLM operations, which is vital to curb complex money circulation schemes with claims to increase investors’ wealth through investments in forex trading, cryptocurrencies and NFTs (non-fungible tokens).”

    To differentiate between these fraudulent pyramid and money-circulation schemes and legal direct-selling multi-level marketing players, the Ministry of Consumer Affairs updated the Consumer Protection (Direct Selling) Rules in 2021. A notification was released on June 21, last year. Executives, however, have stated that the concept of a network of merchants needs more clarification. The ministry made several adjustments, one of which was to replace “through a network of sellers” with “directly selling through a network of sellers.”

    What Are MLM and Ponzi Scams?
    Is MLM a Moral Business Practice?
    The Amway Case

    What Are MLM and Ponzi Scams?

    A Ponzi scam, so called because it was popularised by American business magnate Charles Ponzi in the 1920s, solicits money from new investors and then uses that money to repay those who had invested earlier. An appearance of financial success is given to the deceitful plan. The investors are deceived into thinking that their profits are a direct outcome of a successful company, unrelated to the investments made by new victims. Victims in The Tinder Swindler think they are putting money into a permanent relationship with their rich, caring lover, but all they are doing is assisting him in keeping up this facade for when he scams other people.

    Companies that engage in multi-level marketing (MLM) rely on commission structures resembling pyramids to sell their products and services to individuals who do not receive a salary. Sales commissions from direct customer sales and commissions from recruiting other participants who must buy products in bulk and resell them to consumers provide two sources of income for anyone involved in such a program. Members of multi-level marketing (MLM) are rewarded to attract people into the system below them, drawing comparisons to unlawful pyramid schemes. Those at the very top of the pyramid usually come out ahead, while those at the very bottom of the pyramid usually lose money. The Body Shop, Amway, and Oriflame are just a handful of well-known brands that operate under the multi-level marketing paradigm. Because of their multi-level marketing strategies, these companies have been the target of scepticism and debate. Merchants of Deception was written by an ex-Amway distributor to reveal the reality of the worldwide company’s multi-level marketing plan.

    Indian Direct Selling Industry
    Indian Direct Selling Industry

    Is MLM a Moral Business Practice?

    Much more complex than the legal challenge is the MLM’s ethical dilemma. Ethical companies, according to a study in the Journal of Business Ethics, focus on their products rather than their employees when hiring. It is highly susceptible to becoming a pyramid scheme due to its reliance on network recruiting. There is a great deal of ethical risk associated with multi-level marketing because it relies on salespeople to sell to their networks. But there are a lot of people who think multi-level marketing programs are fantastic for starting enterprises. Owners and participants alike may find the model alluring because of the lack of inventory management concerns, the independence it affords, and the low operating costs. Even if joining a multi-level marketing company (MLM) sounds like a fun and lucrative idea, you should conduct your research before committing.

    The Amway Case

    Company assets belonging to Amway India, which offers health and beauty goods in more than 100 countries, have been provisionally attached by India’s Enforcement Directorate (ED) for INR 750 crore. Amway was involved in pyramid fraud through its direct sales multi-level marketing (MLM) network, according to an ED probe into money laundering. Spreading the word about how members may get rich by joining was the main objective of the organization. The items do not receive any attention. The ED claimed that products are utilized to disguise this multi-level marketing scam as a direct-sale firm. From 2002–03 to 2021–22, Amway’s business operations brought in INR 27,562 crore, according to the agency. Distributors and members in India and the US received a commission of INR 7,588 crore from this. The core business model of the corporation was to sell people on the idea that they could improve their financial situation by joining the organization.

    Many such examples may be in one’s peripheral, but one must be competent and self-aware enough to select the appropriate operations. Questions like “Who are the investors?” “Where is the money coming from?” “What are the products?” and “How does the entire business cycle operate?” are the most basic. If one can find satisfactory responses to these questions, he will be well-positioned to determine if the proposed business is a good fit for him.


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  • How Does Network Marketing See A Bump And A Crash?

    According to a report of the Federal Trade Commission, 99% of all Multi-level Marketing (MLM) or Network Marketing companies fail, surprisingly, these failures come even before the companies have had a chance to flourish a profit.

    Network Marketing is a type of business model which depends on person-to-person sales by independent representatives, mostly working from home. Also known as multi-level marketing, it involves a pyramid-shaped network of people who are responsible for the sales of the products. The participants in this network are usually paid on a commission basis for the following tasks like selling a product, their employees make a sale of the product.

    This model involves a pyramid structure of non-salaried people who get paid whenever they or a person below them in the pyramid makes a sale. A common example is the Avon commission program in which women sold products for makeup, door to door. Modern examples include marketers who advertise the products of other companies on their own blogs or websites. Let us see the complete story on the topic- How does Network Marketing see a bump and a crash?

    Beginning Phase of Network Marketing in India
    Growth of Network Marketing in India
    The Bump and The Crash

    Beginning Phase of Network Marketing in India

    Network Marketing Growth in India
    Network Marketing Growth in India

    Network marketing industry took birth around 1886, with the start of Avon. Direct interaction with customers was greatly successful. Nutrilite in 1945 started an evolution when it came up with MLM compensation plans. In this, the individual representative got the opportunity of establishing their own business by bringing new distributors into the business and earning revenue from their own sales and the sales of  the distributors.

    When this plan succeeded, global players like Avon, Tupperware, and Amway stepped into international markets of  India, Brazil, China in the 1990s .

    Network Marketing came to India in the 1980s with companies like Amway, Avon, Oriflame, Modicare, etc. In less than two decades, the direct selling industry has furnished 5 million self-employment opportunities.


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    Growth of Network Marketing Industry in India

    Network Marketing Future in India
    Network Marketing Future in India

    According to the blog post on the topic:- 10 most popular MLM multi-level marketing companies in India by bestwebsiteinindia.com

    • More than 1.5 million Amway Business Owners are present just in India.
    • Tupperware, Avon come under Fortune 500 companies.
    • Modicare has a network of about 2.5 lakh members.

    MLM Business revenues were more than 4500 crores in 2015-16 based on the Indian Direct Selling Association report(IDSA).

    Future looks promising for Network marketing in India, a report by KPMG in India and FICCI states a whopping growth of ₹645 billion by 2025.  It almost doubled in the year 2016 when compared with the year 2011. From the report of Assocham, it is evident that it will touch the record of around 159.3 billion in 2021. The average sale is increasing for each individual, and it is almost about $300 annually.

    According to a survey held during the year 2015-16, around 50,000 people gained benefit from the MLM opportunities offered by the direct selling companies. Government schemes like Digital India, Make in India, Skill India motivated the growth of network marketing.

    Policies like FDI (Foreign Direct Investment) policy and consumer protection bill will offer a retaining environment for the MLM business.

    It has also impacted social and economic factors like the empowerment of Women (around 3.4 million females are distributors of MLM business), Contribution to the Government Sector(helps in improving the Indian economy with its huge revenue), during the year 2013, the tax generated was around INR10 billion, started Social Responsibilities, Network marketing companies have supported social responsibilities. For example, Amway’s Sunrise project and Avon’s Breast Cancer crusade.


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    The Bump and The Crash

    Even with several years of significant increase and contribution in the Indian economy, this industry is considered regardless of the business. This is due to the Ponzi and Money Circulation schemes. Lack of awareness and knowledge makes people fall in scams and blame the whole industry.

    In most cases, a low success rate is the byproduct of poor planning or execution, perhaps even both.

    Illegal companies were the biggest hurdles in making network marketing success. On 9th September 2016, the Indian Government issued the guidelines to regulate the MLM companies in India. Prior to this, there were 3000+ legal/illegal companies in India. After the regulatory, 90% of fake Ponzi schemes companies were shut.

    The following schemes lead to the fall of the Network Marketing industry in India:

    1) Pyramid Schemes

    A pyramid scheme in Indian law is a scheme where the organizer forms a structure of a pyramid which starts with one person, who represents the tip of the pyramid and subsequently adds the levels below.

    Recently, the Reserve Bank of India (RBI) cautioned investors against pyramid scheme fraud,  that promise easy or quick money upon enrolment of members. The RBI advised that the public should not be tempted by promises of high returns offered by multi-level marketing companies, that run network marketing.

    2) Money Circulation Schemes

    A money circulation scheme is defined as any scheme which assures quick and easy earning money through money chain or if someone demands money from another in order to invest it into a money circulation scheme. Money Circulation Schemes or money chain business are not legal in India.

    3) Ponzi Schemes

    A Ponzi Scheme is a fraudulent investment scheme and is a kind of MLM fraud which promises a high rate of return to its investors.

    The cash inflow of the new investors is used to pay returns to old investors. Thus,  any problem with the constant flow of investors makes the whole scheme crash. for example, as many as 650 people, especially housewives, were duped of more than Rs 8.16 crore in the nut case fraud in Cyberabad.

    The busting of multi-level marketing (MLM) companies fraud by the Cyberabad police resulted in the freezing of Rs 550 crore in bank accounts.

    4) Chit Funds

    A chit fund is defined as a transaction by or under which a person enters into an agreement with a specified number of persons that every one of them shall subscribe a certain sum of money by way of regular instalments over a definite period.

    • Each such subscriber in chit fund shall, in his turn, is entitled to the prize amount.
    • The way it works is that a group of people contribute a fixed sum of money after this, any member can draw a lump sum through ways such as a lucky draw.

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    Conclusion

    From the above statistics, details, it can be deduced that the Network Marketing industry has great potential to develop more success in the future of India. Prediction is that will reach around network marketing growth in India 159.3 billion in 2021 and INR645 billion by 2025. It involves 58% of women workforce.

    Although choosing a reliable MLM source is crucial otherwise one can easily fall into scams and lose crores of money.

    The next time offers an easy business that will change your fortunes, think twice!

    FAQs

    What is the future of network marketing in India?

    Beginning as a part-time job, direct selling has now a proper path in career-building opportunities. In the spam of the last five years, it has emerged as a viable source of income and growth in business marketing. Network marketing growth in India has drastically spiked in recent times.

    What is the scope of Network Marketing?

    To promote Network Marketing business and direct selling Indian Govt approved 100% FDI Policy. So we can say that the future of network marketing is very good in India and this sector will give lots of jobs opportunity. You can join any best direct marketing companies in India to start extra income.

    How many network marketing companies in India?

    457 Network Marketing Companies