HGI pyramid scheme is it similar to Amway

[HugoStrange]

1 hour ago, Moon_Walker said:

Lowlives kaabatte aa pani chesthaaru..i had previous experiences in Dallas in walmart for Amway. Uncle 45+ yrs and works as project manager and everday in evenings his job is to trap new bakras for his pyramid scheme. Asalu lafoot gallaki nidra etla paduthadhi okarini mosam chesi paiki vasthe. Em bathuku raa intha chaduvulu chadivi last ki bicchagalla laaga adukonni mosaalu cheyyadam.

my roommate had similar experience, walmart lo thagulukuni seminar ki thisukelladu. maa vadu padaledu. Sodi yeadava ani malli calls answer cheyadam manesadu

[HugoStrange]

4 hours ago, Telugodura456 said:

insurance companies pay them one year premium as sales comission. That too they only pay the life insurance part of it.

the pyramid scheme is that if you recruit five people and then they recruit three each - you get a part of each of the 15 peoples  comission.

but yes it can destroy relationships.

one year premium is 500 or 1000 anuko bro, millionaire avali ante entha mandini cherpinchali, and nee paina vadiki kuda cut untundi. They are not adding any value other than a broker. Not sure why you need them to invest in ETF's or retirement accounts. Actual employee join chepinchi commission thisukunte (like gieco) its employment, cherinavadu inkokadini cherpinchi vade thisukunte pyramid scheme avuthundi. 

[telugu_fan]

On 1/22/2023 at 6:52 AM, HugoStrange said:

kaka, if insurance companies are backing this up how these assh*les are making millions? nuvu 2.5k per month kaduthunte if they are paying 10% of it to insurance and getting half of that to themseleves means they are making 125 per month, entha mandini cherpisthe millions vasthai? 1k people? and also remember this is a pyramid scheme. nuv okkadive kadu paina chala mandiki pothai money.  They are taking more than 10% for insurance or their percentage per month. Oka vela 15years taruvatha evakapothe bakara avuthav. Insurance chesthunnam antadu kani vadu entha isthadu. And why cant u do it yourself, oka robinhood account create chesukuni ETS lo montly 2500 vesav anuko and bayata nuvve insurance thisukunte 100 ki, u will be safe kada. U r saying to give 500k to them. Why would you do that?

Hugo Strange bhayya,

Nuvvu rasinadi anta correct ee. But from what i understand from their pitch and what @GTR wrote,

they will take a cut out of what you pay every year and most of it is taken from the first few years as cuts, the actual money keeps filling as the time goes on.

After his pitch and calculations, we decided against it as we can take gap insurance for very much less and can invest money as and how we please since its a 10year-15 years.

I have written my experience as i felt it might give more clarity to people reading on what this scheme is/was when it came to me. Not that i am endorsing it.

[telugu_fan]

21 hours ago, maverick19 said:

be it pyramid scheme or what ever if the end result is i am getting Life Insurance. what is the problem here? is the problem that somebody is earning because of me? my money goes to life insurance company directly and gets invested into index funds and  no intermediary at all. i heard the pitch from my colleague just trying to understand. what is the downside? 

because you can get insurance paying far less than what you are getting here, if you shop individually around per month and you can invest that 2500-3000 per month using any account in index funds.

All the money that you pay is not going into account and a good part of it in the first 3-5 years goes to the people who joined you into this scheme and to the people who joined them and upwards.

Not everyone will be a millionaire, but the very top guys/gals will make a lot and the rest at the bottom will be fighting to join more people for the scraps.

[hydusguy]

3 minutes ago, telugu_fan said:

Hugo Strange bhayya,

Nuvvu rasinadi anta correct ee. But from what i understand from their pitch and what @GTR wrote,

they will take a cut out of what you pay every year and most of it is taken from the first few years as cuts, the actual money keeps filling as the time goes on.

After his pitch and calculations, we decided against it as we can take gap insurance for very much less and can invest money as and how we please since its a 10year-15 years.

I have written my experience as i felt it might give more clarity to people reading on what this scheme is/was when it came to me. Not that i am endorsing it.

i felt product insurance is good.. but pyramid business i dont like

[BReBeL]

Insurance bane untadi ..but dont go and join them waste muchata antha paina unna valake paisal its as it is Amway only thing change is amway products veelu insurances anthe migatha antha same to shame😁

[SwamyRaRa]

Ltt

[gattimelam]

On 1/22/2023 at 10:01 AM, iddaritho said:

My cousin called me saying this HGI financial planning service similar to pyramid scheme , he said this is not cheap like amway and people are earning millions in this scheme. 
he is saying we have to work 10 hours a week and make sure our friends are joined 

is this something I should run away from ??? 

All pyramid schemes are scams 

[Jalsarayudu9]

Never combine investments with insurance. Take term insurance.

Ee simple logic telistey, ilantivi enni vachina lite

[maverick19]

2 hours ago, Jalsarayudu9 said:

Never combine investments with insurance. Take term insurance.

Ee simple logic telistey, ilantivi enni vachina lite

logic chepakunda logic ela telustadi? 

[Konebhar6]

On 1/22/2023 at 6:04 PM, HugoStrange said:

my roommate had similar experience, walmart lo thagulukuni seminar ki thisukelladu. maa vadu padaledu. Sodi yeadava ani malli calls answer cheyadam manesadu

Okappudu nenu Ohio lo undevadini. Its very common for an indian to talk/greet another indian even if they don't know, as its very small indian community.

When I moved to Cali, ilane walmart lo okadini palakarincha telugodani, vadu paripoyaadu. Enduko ardham kaala, tarvata friends chepparu ee Pyramid schemes gurinchi, valllu ninnu ade anukununtadu ani. Never greeted another desi unless i know them

 

[nizambadnarsingyadav]

Another terminology used regularly in this LOB

financial advisor

retirement planning 

dont fall prey for these

my recent experience was with a colleague/friend from my previous company… he called me after longtime  .. saud he got his GC…. Then he started saying he earned a certification and now he is a “certified financial planner”  …next he messages me saying his “firm” is organizing a zoom call to go over the details and he needs my email id… ok i understood the whole point by then  and he kept calling every week being pushy and i kept dillydallying on this topic but one fine day i sent him a detailed message to never contact me again if he were to discuss this topic … eventually the calls stopped

[raccharambola]

On 1/21/2023 at 6:01 PM, iddaritho said:

My cousin called me saying this HGI financial planning service similar to pyramid scheme , he said this is not cheap like amway and people are earning millions in this scheme. 
he is saying we have to work 10 hours a week and make sure our friends are joined 

is this something I should run away from ??? 

My besrt friend called me and asked me to join HGI, I said i am not the right person for pyramid marketing, and asked me to leave me. finally he never called me since 5 years. Our friendship broke..sad

[Konebhar6]

4 hours ago, nizambadnarsingyadav said:

Another terminology used regularly in this LOB

financial advisor

retirement planning 

dont fall prey for these

my recent experience was with a colleague/friend from my previous company… he called me after longtime  .. saud he got his GC…. Then he started saying he earned a certification and now he is a “certified financial planner”  …next he messages me saying his “firm” is organizing a zoom call to go over the details and he needs my email id… ok i understood the whole point by then  and he kept calling every week being pushy and i kept dillydallying on this topic but one fine day i sent him a detailed message to never contact me again if he were to discuss this topic … eventually the calls stopped

Same experience, but a former colleague who is not even close to me. When I posted this in our group, everyone blocked him or did not take calls from him.

[Sann]

Am seeing good number of people posting information about less researched domain. May be a broader vision could highlight the reality.

1. Pyramid Scheme: By definition, A pyramid scheme is a business model which earns primarily by enrolling others into the scheme, however rather than earning income by sale of legitimate products to an end consumer.

My take: First of all any money moving business is built on a model. HGI is more of a marketing and business opportunity and not for everyone. In case someone makes money on overrides and bonuses shared its not a pyramid model as its an income stream. HGI doesnt have only overrides but also has real products that can be planned for individuals and families to generate income though slower. A traditional pyramid model is mainly recruiting based. Again having a network of good 10 20 people to help grow business is not essentially a pyramid/ponzi. You have to see it as a whole from the perspective of compliance and licensure.

2. MLM : Yes this has an MLM or Multi-level-marketing element in it. Am not questioning.

My take: Is MLM bad though? MLM in itself is not an illegal concept. But with HGI its not the same in principle even though you associate with Amway and the like. Consider you have a shop in each state and have very few people managing the same, so essentially you would have to recruit at least a few to manage this distribution. And your distribution grows, you can grow faster. But HGI does not own its products rather works as a broker for wide range of insurance for both life and health, etc. So recruiting and buying products for yourself is not a requirement, its an option if one sees the benefit.

Again, its not a job, its a brokerage like expedia (maybe in its own niche on a more private scale) where families get help to plan their financial future and HGI has to have interested licensed professionals to provide proper financial education. Maybe many recruits have to be well-trained and astute builders to build and expand their businesses using the HGI platform. HGI cannot be blamed for its model as its a financial distribution platform helping to build networks (which may start with your friends and families). Yes the growth and potential to earn might take a couple of years depending on how one builds their network of distribution. If it were so easy, everyone would be making millions in few years and without following the correct LFS system of HGI its just blames and name calling.