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patrick_amdg

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Posts posted by patrick_amdg

    Networking / Multi Level Marketing

    in Money, Finance, Investments, Crypto, Stocks, Banking, Business, Loans

    Posted

    Hello.  I have a few questions for the MLM experts here.

     

    I have attended a few seminars associated with MLM; anything and everything from vitamins, shampoo, real estate, clothes, underwear, makeup, etc.

     

    Always in at the end of the "performance" of the speaker is the presentation of the MLM scheme:  networking a.k.a pyramid (hey... it's my opinion; let's face it... kahit anong drawing or illustration ninyo as long as there is a triangle shape in my book its considered as a pyramid).

     

    Even a Multinational Company Organization is a pyramid. The Church Bureaucracy is a pyramid. :) But technically, there's really a difference between pyramiding and network marketing. Just see DSAP website and the book Wave 3 (which is being used in Harvard University)

     

     

    If the networking strategy is considered as a win-win situation and that anyone and everyone who actively participates in it gets to be millionaires; bakit sa mga middle-class earning people ang inaalokan ninyo and not the low-income people?

     

    Im sure kung effective ang MLM and they are given the chance to be millionaires eh by hook or by crook they would come up with the starting fee di ba?  naghinihntay ako ng success story from the low income people; panay mga middle class people galing ang mga success stories like they shifted from one business and then to MLM or they got bored with their jobs so naging sideline or alternative lang ang MLM for them.

     

    and what's up with the huge starting fee?  bakit masyadong malaki palagi; bihira ako makakita ng below 10K.  Kung talagang nangeenganyo why do you MLM guys relate the huge fee as a sign of the person's "committment" to the cause/job?  more of a hindrance pa nga ang malaking starting fee eh.  in my opinion kung qualified and committed ang isang tao why don't you give them something like a joint now and pay later program; like they pay the starting fee as they work in installments?

     

    In finance, high returns come with high risks. That's why franchising McDonalds/Jollibee costs over 20 million while K.I.S.S Fishballs is only less than a million. There are success stories from the low income people. You don't hear it often coz it's difficult for a poor person to have the "winner" attitude. The poor are busy dealing with surviving their everyday life. Not all are willing to do what it takes to be successfull.

     

    The speakers themselves... they almost always say that they are millionaires by their own admission.  If they are millionaires and they speak in front of the presentation to "share in the bounty/grace" isn't it a bit illogical for them to be there in the first place?  I mean.. if im a millionaire then id hire someone else to do the talking for me.  and kung im a millionaire then hindi ko na kailangan to amass more wealth and let someone else do the talking para sa kanila mapunta ang "investment" opportunity related to the recruitment process and network scheme.

     

    some would point out that im closed minded on this but if you think about it open minded ako because I ask questions.  kung maganda ang mga answers ninyo about these I think some misconceptions could be cleared; all the more na maenganyohan ang mga tao na sumale sa recruitment ninyo.

     

    Millionaires/Billionaires speak not to convince but to serve as an inspiration. MLM is more than building product channels. Really healthy relationships/friendships are built over the years, relationships with customers and business partners. And if its relationship-based, it appears just logical to keep in touch with everyone in the organization.

     

    Other notes:

     

    *Globally, all MLM companies which have closed down or have really declined after 5 years of existence are Binary Companies.

    *Read Wave Three. Read wave Three. Read Wave Three. It will change your life.

    *Think about this. Colgate-Palmolive is a good company. SM supermarket is one of its "distributors." What if Colgate-Palmolive is a MLM company. And 15 years ago, it asked you to be one if its "recruits" / "distributors." My family has been using Colgate Toothpaste for the past 10 years and some other products as well. What if, you were the distributor to every family that has used Colgate toothpaste in the past 10 years. Ano ka na kaya ngayon?

     

    Bottomline: 1.) Choose a stable company. No start-ups (experimental???) They must be committed to product quality and innovation.

    2.) Products must really be excellent. Something na babalik-balikan ng customers. You know why the cigarette industry is booming? How about "shabu"? Kasi their addicitve. Find a company which offers something that will really change the lives of people (in a good way). Yung tipong matatanong mo sa sarili mo: What if wala tong company na ito? Would living on Earth still be the same? (Think Microsoft, IBM, Nike, McDonalds...pano kng wla tong mga companies na to????

    3.) Compensation Plan: Track Record. Statistics. There's this island in Europe/America. Only two houses stand there. One is owned by Bill Gates. The other one is by 2 humble distributors (mag-asawa) of a certain MLM company. Research what that company is. The marketing plan of the company should be that it can support its distributors in the long-term. Binary Plans work only in the short-run. That's why it's considered to be close to illegal.

    4.) In the end, it all depends in the person. That's why we have rags-to-riches stories like Gokongwei and Henry Sy. The people you know who are very successful (and i mean ung mga multimillionaires tlga) in other MLM companies. They're successful because ginusto nila maging succesful. They worked hard for it. They might have been in the wrong company but it still worked out bcoz of their attitude.

     

     

    *There is no sudden leap to greatness. Success in most things comes not from some gigantic stroke of fate, but from simple, incremental progress.

    Networking / Multi Level Marketing

    in Money, Finance, Investments, Crypto, Stocks, Banking, Business, Loans

    Posted

    http://www.dsap.ph/directory.html

     

    MEMBERS DIRECTORY

     

    Index of Member Companies

     

    * Amway Philippines L.L.C

    * Avon Cosmetics, Inc.

    * Cosway Phils., Inc.

    * Felta Multi-media, Inc. (Associate Member)

    * Filway Marketing, Inc.

    * Footworks Marketing Corporation (Sundance Direct Sales)

    * Forever Living Products Phils., Inc.

    * Gano Excel Philippines, Inc.

    * Gioielli International,Inc.

    * GNLD International

    * Herbalife International Philippines, Inc.

    * Lux Marketing, Inc.

    * Mary Kay Phils., Inc.

    * New Image International F.E. (Phils.), Inc.

    * Nikken Philippines, Inc.

    * Nu Skin Phils., Inc.

    * The Peak Marketing Group, Inc.

    * Phoenix Educational Service, Inc.

    * Reliv Philippines, Inc.

    * Sara Lee Direct Selling

    * Sunrider Phils., Inc.

    * Symmetry Philippines, Inc.

    * Tupperware Philippines, Inc.

    * Unicity Network Philippines, Inc.

    * Waters Philippines

     

    This is interesting, pipol.  A lot of people are posting and selling, pero as i read in the article of

    the DSAP president, the bottom line seems to be that binary plans are not illegal per se, but

    when the abuse of the design results in an emhasis on recruitment rather than product movement.

     

    There are quite a number of DSAP member companies that are using the binary system, like FQ.

     

    Perhaps we can get some feedback on this thread where we see how the binary system is being

    used correctly, as per DSAP definition.

     

    Oh, btw, to all IGEN peeps out there, take advantage of the clearance sale happening now till the

    weekend.  Nkabili na ako ng power rangers para sa anak ko at 70% off, pero ubos na ata stock e.

     

    laki ng bawas off of the SRP and even discounted prices.  buti lng d pa ako bumibili ng maong, tignan

    ko muna yung sale.

     

    CL:  see you later at the igen ofc, bka maka score ka ng polo na sinabi mo dun sa PM.

     

    GT babywaby:  kita kits, miss din kta :-)

    Networking / Multi Level Marketing

    in Money, Finance, Investments, Crypto, Stocks, Banking, Business, Loans

    Posted

    Be careful. Our watchdog on the Philippine MLM industry is the DSAP (Direct Selling Association of the Philippines)

     

    http://www.dsap.ph/industry-networking.html

     

    What is the Problem with Binary Plans?

     

    Legitimate network/multilevel marketing companies have been grouped together with the bad eggs of the industry. The worst scenario in the late 1990s was the realization that China banned all direct selling or network marketing operations because of the presence of many unscrupulous individuals and companies that gypped consumers of their money into investing in pyramiding operations. Government of other countries have also been more vigilant in protecting consumer interest.

     

    Since binary plans are quite new and do not have any precedent in the Philippines, a look at the abuses of binary plans in the United States reveals potential huge penalties not only to the companies operating binary schemes wrongly but also to the independent distributors promoting them, to wit (source: Spenser Reese, 1997):

     

    1. On February 4, 1997 the Arizona Attorney General entered into a settlement agreement with Tele-Sales, Inc. wherein the company was required to pay a $25,000 settlement fee. More importantly, however, the Arizona Attorney General also sent letters to the company's top distributors in the state, accusing them of violating the state's pyramid law. The letters demanded that the distributors enter into a settlement agreement and that each individual distributor pay a $25,000.00 fine, otherwise, the Attorney General would sue them individually.

     

    2. On February 28, 1997, the Alameda County Prosecutor and the California Attorney General entered the offices of Destiny Telecom and seized business records to be used in actions against the company. The same day, they filed a $20,000,000.00 civil suit against the company, alleging it was promoting an illegal pyramid. Two weeks after the suit was filed, Destiny settled the case for $1.6 million.

     

    3. In 1996, Strategic Telecom Systems, Inc. was investigated by the states of Pennsylvania and Florida, which resulted in fines against the company, and the imposition of sales requirements, which required the company to dramatically change the way it conducted and promoted its business.

     

    So why have government regulators in other countries been increasingly paying attention to companies utilizing binary plans than the more traditional compensation plans like stair step/breakaway plans adopted by the most members of the Direct Selling Association?

     

    1. The stair step/breakaway plans popularized by Amway have been ruled legal in a landmark decision by the U.S. Federal Trade Commission in 1978.

     

    2. The legal principles governing the network marketing industry have not been adhered to in many binary plans, leading to the belief that they are pyramiding schemes. These includes:

     

    1. Emphasis on recruitment

     

    Companies paying its distributors based on the recruitment of other distributors rather than for legitimate sales to end consumers are guilty of pyramiding. In this day and age, no company in their right mind would of course expose themselves to outright pyramiding. Most would sell some products or services to hide the scam but their products or services have no real world value and/or are overpriced such that only those interested to participate in the compensation will buy these products just to comply with their company's requirements.

     

    A good test is to ask, "Is there a direct one-to-one correlation between recruiting and distributors' commissions?" If the answer is yes, it is a pyramiding case. An investigation of the many binary plans reveal that many companies classify the enrollment of a business centers as a sale, hence the problem.

     

    Another good test is to ask is "If recruitment were to be stopped today, will distributors still make money?" if the answer is no, isn't the principal source of commissions coming from recruiting and not from retail sales? hence, a pyramiding.

     

    A 3rd test is to ask is "Will people buy without joining the compensation plans?" If the answer is no, the products being sold have no real world value and/or is overpriced, hence, a pyramiding. If a product is priced so high that no reasonable person would buy it, it is obvious that the main motivation for distributors to buy the product is to join in the company's compensation plan, a pyramiding scam (profiting from recruiting) disguising as a legitimate network marketing operation.

     

    2. Buying of multiple business centers

     

    When a distributor enrolls, he is automatically assigned his first business center or a position within his own personal sales organization (PSO). To maximize earnings, the distributor are then strongly encouraged to purchase additional business centers and place as much as seven business centers at strategic locations within his PSO with each business center costing a few thousand pesos each for a total of a few hundred thousand pesos. Each of these business centers must independently meet their two recruits requirements with their corresponding purchase. However, the probability that a distributor will be able to use or resell these inventories is dubious.

     

    Three important questions must be asked as far as purchasing multiple business centers are concerned:

     

    1. Isn't the intent to sell "positions" more than to sell products to end consumers?

    2. Isn't there existence of significant investment and inventory loading?

    3. Isn't the focus to gain from recruiting rather than sale of products since upline distributors get commissions on the purchase of these business centers?

     

    3. Unregistered Investment

     

    The Securities and Exchange Commission (SEC) regulates selling of investment instruments. The relatively big amount of investment required for buying multiple business centers may constitute selling an unregistered investment contract, a serious offense where both criminal and civil penalties can be imposed to the offender. Since binary plans are known for their "spillover" effect, the distributor-investor is led to anticipate profits primarily from the efforts of the others, constituting a passive investment.

     

    The above are some of the more obvious violations of binary plans. Unfortunately, when pride and emotions get in the way, logic is seldom followed and the companies, as well as the plan originator, defend their defective binary plans instead of listening to potential remedies.

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