Is BizGurukul Another E-Biz Scam in the Making?

UPDATED on 11 August 2021 at 10.45am to include response obtained from BizGurukul 

BizGurukul, because it describes itself, is a web based e-learning platform that sells ability growth programs associated to entrepreneurship, profession and enterprise growth and moreover gives coaching to earn cash with the assist of social media. However, although BizGurukul has its personal web site the place these programs have been marketed, one can not purchase them instantly from the web site, with out placing in the sponsor ID.

 

One should go through what they name their associates program, which by the way, is being projected as spectacularly profitable. More importantly, this chance to make huge cash has nothing to do with both the course content material or the {qualifications}, age or work expertise of the affiliate. It manifests by way of the fee that BizGurukul pays to the affiliate for each one who buys the course materials.

 

This is not like different gross sales program that enables customers to buy instantly from the web sites with out utilizing an affiliate hyperlink. BizGurukul against this sells its course materials by way of affiliate hyperlinks ONLY, and such a hyperlink is supplied to the potential purchaser.

 

 

It can be not like different affiliate packages whereby a possible affiliate isn’t required to buy the father or mother firm’s product. But to develop into a BizGurukul affiliate, one should compulsorily purchase one in all the programs on supply. There is not any compulsion, nonetheless, to develop into an affiliate after making the buy. The affiliate then proceeds to promote the course to others, incomes a hefty fee from the firm for every closure of a sale. 

 

Upon enrolment, college students get their very own dashboard the place programs are pre-recorded and solely coaching and webinars for easy methods to earn as an affiliate are reside in addition to pre-recorded. Training is supplied to new associates in order that they know easy methods to promote the product and begin incomes. This coaching is supplied freed from price.

 

Thus, after making the buy, the purchaser stands at a forked path, one going in the direction of utilising the information gained from the course for searching for a job or organising one’s personal enterprise, and the different, resulting in the associates program, which entails promoting the course in the market and incomes a fee by way of every sale. 

 

Most desire the latter resulting from the dazzling show of the phenomenal wealth earned by associates, prominently displayed in the BizGurukul commercials. 

 

 

Affiliates who’ve been requested if this enterprise mannequin resembles the multi-level advertising (MLM) mannequin, normally reply by claiming that BizGurukul is a personal firm underneath the Companies Act 2013 and is registered in New Delhi, with the registrar of firms underneath the ministry of company affairs (MCA). However, their authorized standing doesn’t justify their enterprise practices.

 

Hence BizGurukul seems to be neither fish nor fowl however an efficient pink herring certainly, as in the garb of a advertising firm, they’re really an associates program behind the façade.

Why have they executed that?

 

LinkedIn Post

I first turned conscious of BizGurukul after studying a publish on LinkedIn (see right here). I didn’t reply to the individual in the feedback part and as a substitute reached out to her through direct message (DM), at which level she gave me her cellular quantity. 

 

Currently, one can develop into an affiliate marketer for any enterprise by selling the merchandise of the firm on any social media deal with or a web site. People can create their very own weblog pages, and clearly, they might want to buy domains, and SSL certificates however they don’t have to pay for affiliate internet marketing itself. To develop into an affiliate marketer, BizGurukul requires individuals to enrol for his or her course. The course is thus a camouflage for the associates program.

 

The analogy supplied by the affiliate in this screenshot is thus flawed, as a result of it doesn’t present the quantity paid by the affiliate to buy the course.

 

BizGurukul Courses: Are they price it?

BizGurukul course packages are divided into three classes: Gold, Sapphire and Platinum, with sub-courses, in totally different value brackets. Buying any one in all the packages requires the buyer to offer sponsor particulars, that’s, details about the affiliate, who closed the sale. 

 

You can try their course content material (right here). These programs are pre-recorded, and most of the content material coated could be discovered on YouTube, Google, and in a number of different free on-line programs.

 

BizGurukul additionally affords reside webinars and pre-recorded or reside coaching periods for rising gross sales. In these coaching periods, BizGurukul associates are supplied coaching on easy methods to improve the sale of their programs. 

 

However, we have no idea, who’s instructing these programs. 

 

(A screenshot of Copywriting course content material supplied by BizGurukul)

 

(A screenshot of copywriting programs obtainable without cost on different platforms)

 

(A screenshot of programs supplied by BizGurukul in their Sapphire bundle)

 

(A screenshot of comparable advertising programs obtainable without cost on different platforms)

 

As an institute that focuses on imparting and coaching college students with the needed digital advertising expertise, BizGurukul has by no means marketed the success tales of its college students. Unlike different institutes that deliver their analysis to the desk, BizGurukul doesn’t supply business insights, as a substitute it actively solely seeks to broaden the affiliate packages, whereas the course is only for namesake to forestall it from wanting like a pure MLM. 

 

In a typical MLM, the sponsor will get a fee for recruiting a brand new individual under his stage with none restrict and can even assist his downline to recruit new individuals under their ranges. There are two buildings, one the sponsor will increase the variety of downlines under his stage horizontally (1: n or many) and two, he will increase his downline in binary mode vertically (1:2). 

 

Most MLMs pay fee on recruiting new individuals after which the ‘so-called’ royalty earnings on the variety of new recruits in binary mode. BizGurukul doesn’t have royalty funds since its total enterprise mannequin is predicated on promoting its schooling bundle to as many individuals as attainable in ‘1: n’ module. For this, it pays fee on to the sponsor based mostly on the bundle purchased by the sponsor and the recruit. (See picture under) 

 

 

Furthermore, the LinkedIn profile of BizGurukul founders has no point out of digital advertising expertise. As an institute that focuses on imparting and coaching college students with the needed digital advertising expertise, BizGurukul has by no means marketed the success tales of its college students. 

 

Let us undergo the LinkedIn profile of BizGurukul Founders.

 

Rohit Kumar Sharma- co-founder, enterprise head. Graduated in 2014 from Northern India Engineering College. Although BizGurukul was included in 2020, Rohit mentions in his profile that he has been chief working officer at BizGurukul since 2011. Rohit has 6,348 followers on LinkedIn, however solely has two or three likes on his posts, indicating a really low engagement fee (maybe his programs should not serving to him anymore!) and lots of of his followers are repeating themselves ceaselessly.

 

 

Existing Digital Marketing institutes

In this part, I’m together with hyperlinks to some web sites of digital advertising institutes that provide several types of programs with reside courses (on-line or offline), the place you should buy the programs instantly from the web sites with none associates, and which have robust placement alternatives as properly.

  

 

 and there are numerous extra.

 

(Note- I’m not affiliated with these institutes. I carried out a easy Google search to seek out further institutes providing packages in digital advertising. I intend to attract a comparability between these web sites, their method of operations and BizGurukul’s method of operations and its web site)

 

Is BizGurukul deceptive younger individuals?

BizGurukul associates publish profitable job openings on LinkedIn, with no eligibility necessities. Well, they are saying that their associates program is open just for individuals, who’re 18 plus. See the screenshot under. Yet, the identical affiliate in my contact has posted a WhatsApp standing exhibiting earnings made by one other affiliate by promoting BizGurukul programs. This different affiliate is a pupil in the tenth commonplace! Well, she could also be 18+ and nonetheless in tenth commonplace! Hard to consider. 

 

  

As a subsequent step, the associates publish extraordinarily attractive content material and screenshots of their earnings, generally even describing what they bought with the cash earned as commissions.

 

Lack of Regulations

An rising variety of on-line skill-based packages can be found that provide certificates, diplomas, coaching, and tutoring. Moreover, these programs allow college students to develop expertise that make them extra employable, since curricula supplied by universities don’t mirror the expertise demanded by industries. 

 

Though these institutes supply certificates packages, they fall underneath unregulated schooling sectors and are registered as personal firms. When designing programs, they set their very own course construction, charges, high quality, strategies of analysis, and coaching. In absence of any rules that present minimal benchmarks for the course content material supplied by such personal firms, there’s a proliferation of firms promoting profitable incomes for graduates as soon as they be part of their programs.

 

Currently, on-line rules by the University Grants Commission (UGC) govern solely universities or institutes deemed to be universities, whereas All India Council for Technical Education (AICTE) rules govern institutes that present technical programs.

 

Even if such unregulated e-learning platforms are labeled as e-commerce entities, however there are not any specified high quality requirements for such programs. Hence, it’s tough to dispute the high quality of companies. 

 

Why should motion in opposition to BizGurukul be taken?

We are staring historical past in the face. Like BizGurukul, there was an organization by the title E-Biz, which supplied numerous IT-related programs by way of its affiliate internet marketing program. 

 

E-biz programs had little or no worth, however younger individuals have been interested in the prospect of extra money, simpler and faster. Over Rs5,000 crore of funds had been siphoned off by this unlawful operation. In a complicated space of Noida, the workplace area of E-biz was unfold throughout a multi-storeyed development of 500 sq. yards. 

 

In March this yr, the Enforcement Directorate (ED) filed a prosecution grievance in opposition to Ebiz.com Pvt Ltd and its managing director Pawan Malhan in the Prevention of Money Laundering Act (PMLA) particular court docket. 

 

According to the ED, the accused ran an MLM scheme for the sale of nugatory merchandise like pc schooling packages which have been downloaded freely from the Internet. It says, “Ebiz merchandise have been just for title’s sake. The major goal of the members becoming a member of the scheme was to get a fee from enrolments and never for the merchandise. They extensively marketed their fee mannequin in which very excessive commissions have been paid to sponsoring members for enrolment of recent members.”

 

BizGurukul associates typically mislead younger individuals by exhibiting how they earn cash in lakhs in a month, in addition to by buying costly equipment like iPhones, laptops, and automobiles. By doing so, they encourage individuals to take up BizGurukul programs and register shortly. 

 

It is pertinent right here to cite the cautionary notice issued by the Reserve Bank of India on 1 January 2015: “The Reserve Bank of India has cautioned the public in opposition to Multi-level Marketing (MLM) actions in order that buyers don’t fall prey to unscrupulous entities.”

 

Explaining the functioning of those entities, the Reserve Bank acknowledged that MLM, chain advertising or pyramid construction schemes promise straightforward or fast cash upon enrolment of members. Income underneath such schemes majorly comes from enrolling increasingly more members from whom hefty subscription charges are taken slightly than from the sale of merchandise they provide. 

 

It is incumbent upon all members to enrol extra members, as a portion of the subscription quantities so collected is distributed amongst the members at the high of the pyramid. Any break in the chain results in the collapse of the pyramid, and the members decrease down in the pyramid are the ones which are affected the most.

 

The Reserve Bank has suggested that members of the public shouldn’t be tempted by guarantees of excessive returns supplied by entities operating multi-level advertising, chain advertising and pyramid construction schemes. The Reserve Bank has reiterated that falling prey to such affords may result in direct monetary losses and so they, in their very own curiosity, ought to chorus from responding to such affords in any method.

 

The Reserve Bank has additionally mentioned that acceptance of cash underneath multi-level advertising, chain advertising and pyramid construction schemes is a cognizable offence underneath the Prize Chit and Money Circulation (Banning) Act 1978. Members of public coming throughout such affords ought to instantly lodge a grievance with the State Police.”

 

UPDATE: On 26 July 2021, Moneylife had despatched emails to BizGurukul’s obtainable emails on its web sites searching for solutions to some particular questions. After practically 15 days, Kartik Dang, enterprise assist head of BizGurukul, replied to our questions.Here are questions requested by Moneylife and the response (verbatim) given by Mr Dang from BizGurukul…

 

1. What is the churning ratio of associates? On common, what number of associates be part of and depart BizGurukul in a 12-months interval? What is the associates’ retention fee in this line of promoting?BizGurukul’s Reply: Bizgurukul is an e-learning platform offering wonderful ability growth programs. Users enrol for the paid programs supplied by us and get a lifetime entry to the programs designed by our skilled panel of trainers. BizGurukul believes in the holistic growth of the learners. Therefore, together with the programs, we additionally present them a number of live-training periods each month for his or her profession growth and development into numerous areas and elements of life. Some of the coaching periods that we have now performed embody subjects similar to e-mail etiquettes, monetary planning, public relation expertise, emotional well-being, choice making expertise, grooming expertise, oral hygiene, eye well being care, weight-reduction plan & well being and so forth.Users enrol to study and apply the expertise taught in the programs in a number of methods like freelancing, beginning their very own digital companies, incomes from social media by way of influencer advertising and so forth. The enrolled customers have an choice to develop into our affiliate and promote these programs, provided that they need to take action. Hence, there isn’t any mounted variety of the customers who choose to develop into an affiliate, or persevering with the affiliate promotions as it’s as much as their very own free will. Whether the customers work as an affiliate or not, they nonetheless get lifetime entry to our programs, different assets and coaching.As of now, we have now roughly 70,000 customers enrolled and studying with us. Every person is a learner however not essentially an affiliate.2. What is the common quantity, an affiliate sometimes earns in a yr?BizGurukul’s Reply: The tenure for which an affiliate promotes the product is unpredictable. The earnings additionally varies based on the curiosity and efforts of a person affiliate. Although, it’s not attainable to share the actual determine, however a fairly lively affiliate earns roughly 2.5 to three.5 lacs each year. Again, it solely relies upon upon the person’s option to earn by referring the course or not. Bizgurukul is a studying platform the place the customers enrol for studying the expertise and never advertising/incomes which is simply an choice solely.3. How many associates earn lower than Rs1 lakh as fee in a yr?BizGurukul’s Reply: That’s our confidential knowledge, we might not be capable of disclose the specifics.4. What is the most quantity an affiliate has earned in a yr as fee by way of your advertising scheme?BizGurukul’s Reply: Please make notice that we aren’t operating any advertising scheme right here. We are an edtech platform focussed on high quality schooling, persistently upgrading and including new programs as per the want of digital entrepreneurs. We are additionally planning so as to add a whole bunch of ability growth programs which are concurrent with the ongoing market and profession calls for. Just like many different edtech platforms like Udemy, Unacademy and so forth. that are operational in the market, we additionally supply our customers an choice to advertise our programs and earn referral commissions. A learner who likes the programs and opts to advertise, will get referral incentive, which is after all not the major or solely motive to hitch the programs supplied. As per our document/ info, the most quantity earned by one in all our associates is roughly 45 lakhs rupees in an approximate interval of over a yr.5. Are the merchandise bought by BizGurukul priced competitively? If not, how a lot is the distinction? Is it true that these merchandise are costlier by over 100% than related merchandise obtainable in the market since BizGurukul you declare to offer a number of cash as fee?BizGurukul’s Reply: Our merchandise are undoubtedly priced competitively.It could be unfair to state that our programs are overpriced.We have made the programs extremely reasonably priced and supply extra worth than the quantity we cost for them.Our fee percentages are related as in comparison with what worldwide and distinguished affiliate packages like ‘clickbank’ present on digital merchandise like programs, ebooks, digital instruments and so forth. Since the programs should be created as soon as and the price of upkeep could be very low, we’re in a position to present a very good quantity of fee on the programs. It completely in no method implies that the price of the programs are excessive resulting from excessive affiliate commissions being supplied. In truth the high quality of the content material supplied in our programs is far increased in worth as in comparison with the value and the rivals.6. Who has licensed your coaching packages/webinars? Is there any certification from UGC or some other regulatory physique in India?BizGurukul’s Reply: BizGurukul is a registered personal firm providing e-learning programs. Our programs, coaching and webinars want no affiliation or certifications from any regulatory physique as we don’t present any faculty/ school levels or any technical schooling. Like many different edtech start-ups in the nation, we’re providing ability growth programs designed and performed by professionals who’ve expertise in the particular subject. We take utmost care and due diligence in deciding on the subject-matter skilled coach for our programs. We do present a certificates of completion to our college students for the programs they full after they clear a web based take a look at for the identical.7. If somebody determined the direct promoting enterprise isn’t for him, what’s the refund coverage of BizGurukul?BizGurukul’s Reply: To make it clear, we aren’t a direct promoting organisation. Affiliate advertising is solely totally different from direct promoting.We are an e-learning platform the place we cost just for the programs from our customers and supply a refund coverage of 24 hours, which is clearly talked about on the web site residence web page and on our registration web page by way of which an individual registers himself as a person/ learner with us. It is just after agreeing to our phrases & circumstances and refund coverage can one make fee to register/ enrol with us for our programs.We take no costs/ funding by any means for our associates program. It is totally non-obligatory for our customers to refer our programs. The choice to develop into an affiliate is out there solely to our prospects as a result of we wish solely real referrals/promotions to be executed which solely a buyer can do after utilizing the programs i.e. finding out our programs in our case. The identical mannequin is adopted by quite a lot of trainers, coaches and edtech platforms operating throughout the globe.8. On your web site, you acknowledged, “Unlike MLM/ Network Marketing/ Chain Systems/ Pyramid Schemes: 1. You get fee just for the gross sales made instantly by you thru your private hyperlink & efforts. 2. You do not receives a commission for the sale made by any affiliate who registered with BizGurukul by way of your hyperlink.”You are promoting the Gold product for Rs3,499, nonetheless, you might be providing a fee of Rs2,000 to an affiliate who sells this product. How’s this attainable or how are you going to supply greater than 60% as fee?https://bizgurukul.com/affiliate-commissions.aspxBizGurukul’s Reply: Please consult with the reply to Question 5 for the identical.9. On social media, your associates are seen advertising your merchandise with a suggestion to earn month-to-month Rs50,000 for ‘anybody’ by working 2-3 hours day by day. Does this imply, your merchandise don’t require to have a fundamental or minimal schooling qualification for an affiliate?BizGurukul’s Reply: We supply ability growth programs and to study these expertise there isn’t any want for any prior academic qualification. To develop into our affiliate, the buyer must have a sound picture id proof and PAN for TDS deduction functions. We additionally present correct disclaimer on the web site and in our webinars about our affiliate internet marketing program and incomes claims.(Harshita Shah is a pupil of regulation and is strongly satisfied that there isn’t any straightforward cash.)

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