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Another MLM scheme: SMS World Biz is trying the SMS platform to snare customers

SMS World Biz claims it’ll provide daily income just for ‘reading’ SMS messages. And it sports all the typical features of a typical MLM scheme—binary returns, referral income, and of course, a business model that won’t hold water

Pesky SMSs are often ignored and deleted by many of us. But here is a multi-level marketing (MLM) company, ‘SMS World Biz’, making an unbelievable claim that you can earn just by ‘reading’ an SMS. Experts say that SMS advertising seems to be the new happy hunting ground for MLM schemes.

SMS World Biz claims to be a mobile marketing company and says that it provides SMS advertising services. It proclaims, “SMS World is a service that offers users the opportunity to read advertisements and earn money. Users can also invite other users to read ads and earn—thus building a community of consumers. The bigger community you build, higher are the rewards.”

The company has a typical MLM business model. According to the company’s claim, one is paid just for reading an SMS. SMS World Biz claims that it will pay higher compensation if its SMS universe is expanded with the addition of more members. In simple words, this firm is inviting more people to join it—a typical trait of any MLM scheme.

It has advertisement packages ranging from Rs5,000 to Rs50,000. And the registration costs Rs2,000. The company claims daily compensation (income on a daily basis) depending on the advertising package. For instance for the ‘Pack-I’ advertising package, the daily compensation is Rs50 for one year, which would increase to Rs500 for another package.

SMS World is no exception to other such schemes in promising binary income, which is paid once you successfully enrol two people (on the ‘left’ and ‘right’ side) and they join the company. Interestingly, according to SMS World Biz, there is capping on binary income. For a package less than Rs50,000, there is a weekly cap of Rs5 lakh and it is Rs15 lakh for a package more than Rs50,000. It gives referral income of 10% only once, when a person referred by you joins in.

According to SMS World, the income earned can be withdrawn on either 15th or at the end of every month.

Experts say that such a business model is unsustainable, at least over the long run, given its claims of generating high income. And since the number of mobile phone users is rising, with such a lure of high easy income by the company, many gullible people would be a target. Now will somebody take a call on this before it is too late?




6 years ago

Ponzi Schemes – Frequently Asked Questions

Who is Bernie Madoff?

What is a Ponzi scheme?

Why do Ponzi schemes collapse?

How did Ponzi schemes get their name?

What steps can I take to avoid Ponzi schemes and other investment frauds?


6 years ago

There are many other such programs on the internet which lure people and offer income in dollars against reading of adv. after depositing Rs in thousands, people are believing it for easy income.
Also there are many Indian companies collecting money on monthly basis with a premiss to return double to the depositor with a commission for recruiting others.


6 years ago

Kerala : Chain companies back with a bang!

“Honest corporate citizen” Amway and “Transparent” RMP are heavily advertising in the newspapers about their “compliance” of the new Direct Marketing Guidelines of the Government of Kerala.

The General public still doesn’t know what the guidelines are. Public is really worried as the Government seems to be hand in glove with MLM companies and the chain menace may once again engulf the state of Kerala.


6 years ago

Is this was really true just to receive texts to make money, everyone in the world would do it. I would be highly skeptical.


6 years ago

The Binary Tree That flowers Crores !!

Dy Supdt. of Police (Crime Branch), Mr. P.P. Sadhanandan who was instrumental in solving many MLM crimes, especially Tycoon fraud, in Kerala recently wrote an article in a weekly (Malayalam Varika, The new Indian Express publication) captioned "The Binary Tree That flowers Crores" !!

There is also another article in the same weekly titled “Kerala – A paradise for Criminal Capital” written by V.K Suresh.

Great articles indeed.


6 years ago

I am asking again an oft repeated question - why are regulators silent?


Vikas Gupta

In Reply to Kishore 6 years ago

I also agree with Mr. Kishore that where are the regulators & what are they doing?


In Reply to Vikas Gupta 6 years ago

There is not any regulator for this.


In Reply to tripathi 6 years ago

MLM is illegal. Therefore there won't be any regulator for MLM. But there are other regulators. where are they? why cant they stop illegal MLM schemes?

Affordable housing project rating system: Ashoka Innovators for the Public aims to put this in place in 9-12 months

Affordable housing is crucial, considering the abnormally-high prices of real estate across the country. Ashoka: Innovators for the Public is looking to provide customers with quality for their money and will help them from being hoodwinked by huge property players via this proposed rating system

An association of social entrepreneurs (Ashoka: Innovators for the Public) and a global provider of technical, safety & certification services (TUV Rheinland) are collaborating to launch a rating system for affordable housing projects across India. While they have signed an MoU (Memorandum of Understanding) to that effect, the rating system is expected to come into force in nine to 12 months.

“We are only at the nascent stage; and (we are) drafting the entire process,” the director of Ashoka Housing For All, Vishnu Swaminathan, told Moneylife, “It is going to be the first attempt in this field.” The affordable housing projects Ashoka is going to focus on are 300-550 sq ft flats; priced at Rs4 lakh-Rs10 lakh—that can house a family of four to six, with a household income of Rs12,000 per month.

Mr Swaminathan said that TUV, the entity’s German partners, will be developing the certification project, and the long-term aim will be to set up a neutral authority (tentatively) titled ‘Affordable Housing Council of India’, that will own the certification. Ashoka is working on affordable housing projects all over India, and the rating system will look at certifying projects by other builders too.

“We are aware that it will take a few years to get the rating recognised, but after that, we are hoping that the builders themselves will try to get a rating because it will boost their image,” he said.

Four components will be taken into account while rating—construction quality, energy & environment management, community integration and financial viability. “We would not only go for a quality check on the materials used and the building techniques and environment management processes, but also try to get the latter certified at an affordable price,” Mr Swaminathan added.

About community integration, he said that for its customers, it is important to live in a place which supports community building and has some facilities nearby—like a garage near a project where a lot of auto-rickshaw drivers live. “We would ask the potential customers to visit the project and judge on the basis of their feedback,” Mr Swaminathan said.

“We will look at rating the project as soon as the approvals come in. But a builder can also get the certification before that—on the basis of the plans, designs and documentation. In the long run, I feel that if the project gets certified; it will help the government dispatch approvals faster,” he said.

However, most developers go ahead with construction only after bookings are going on. Mr Swaminathan said that the NGOs (non-government organisations) they collaborate with will make sure that the customers are not cheated of their money before the certification is awarded. He is also counting on the NGOs to spread awareness of the rating process among the customers. “These NGOs can explain our ratings; and then, it is left to the customer to make a choice between moving in, or opting for a home elsewhere,” said Mr Swaminathan.

He said that customers can learn of the ratings once they approach the agency. “It is like other credit-rating agencies, who give ratings to products on the basis of which customers make an informed choice,” he added.

In most cases, developers lay down only the foundation or have only primary groundwork in place when they call for bookings; and go ahead with the construction only after they get sufficient money from their customers. Mr Swaminathan says that the NGOs will make sure that the customers don’t enter into a ‘lock-in’ deal with the developer and lose their money. “The customers will not deposit their money with the developer. Only after the project is certified, and the documents are in place will the developers get the money,” he said.

However, it may be remembered that in many cases, approvals have been received much after—and instances are known where customers have moved in even before getting occupation certificates. In most cases, irregularities are either ‘regularised’ or the matter remains stagnant.

Ashoka is looking at affordable housing projects in cities like Ahmedabad, Madurai, Coimbatore, Bengaluru and Pune & Satara (in Maharashtra). “We are not looking at places like Delhi or Mumbai, because the land price is too high, and our customer base can’t go for such units. But if projects in those areas are to be rated; they will be priced higher than our target category—we have to set different parameters,” Mr Swaminathan said.


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