Well, to make things clearer, i would like to point out some of the Multilevel marketing company like Amway,Cosway,Lampe Berger ,etc.
Anywhere, time will tell everything.
Bad business will be advertised in the local news.
Good business won't but usually circling through the people word of mouth.
I am glad to point out a few important points about direct sales. As MLM is just a business model.
People greediness and want to get rich quicker that kill.
I hope the following points are to be taken into consideration before anyone decide to join a business.
Just be remembered:
1.Don't Come out with your money in advanced in dealing with a recruitment business.
2.What benefits you gain from buying a single product? E.g.Does it caters on your need? Are you able to try the product?
Does it comes with 100% money back guaranteed?
3.Don't ever join a business that needs you to keep stock just to achieve a quota.
4.Avoid a system that accumulate your investment.Like,the more you invest(come out money),the more you earn.
More crazy,this is done on a piece of paper.
Let's say a top upline just wants to hit a monthly quota to get qualified profit sharing. He/she will try everything to order stock to meet the requirement. What will happen? They will definitely pile up stock in their house for months or years. How are they going to do with their excessive stocks?
They might slash their price for clearing all the stock in their house. Hence,would you still want to join such company as a new comer? As new comer, how are you going to sell a product with the price you are not afford to sell? What are the consequences from there on...you guess it?
Today, even Amway used pyramid methods to ask people to join, no more selling item by item. this kind of strategic is not really applicable to today society as you will definetely piss other people off.
1.What if such company is recognised by Malaysia government? E.g. Selling Educational systems?
2.What if our government rented land for seed oil plantation? Such company will find referrals to make money.
E.g to start with, you need Rm6k to plant 1000kg of seed oil, this seed oil will then export to other country for Rm1.20 per kg. I am not sure about the costs.But,it seems that the more you invest, the more income you get.You will make income every 4 months, according to them.
The answer is very simple, this is because not every countries government is 100% practice on excellent and perfect in ethics value.
For example in a country, even human bombing case can be close so easily and even many corruption government related to some companies case happen.
Why not government legalize such business if the top person or company operator provide something so called "present" or benefits to top government related VIP? Once again govenment is just a politic parties who rule the country, they are not a programmed robot machine that can 99.9% ensure rules and regulations being followed.
Heres a question again: what if some scratch and win companies still exit in malaysia? For me it wont be suprise.
If talk about investment, why invest in such company that required earn money by just sell their product that is 300 times and above markup price and had a very low consumers' demand?
I agreed about "high risk will lead you to get high return" but in mlm company who is the top earner?, obviously the person who makes milion is the first network starter or the company itself made huge money not the mlm members. The mlm members just having small percentage part of it because you need to get 3 left and 3 right = 6 referrals only you get $200-300 USD, but the company already made 5.7k(6k-300) USD if let say the so called "product" price is 1000USD each.
But once again, some mlm company do use so called "invest" to required the signup person to buy certain value of products in order to join their business, but when you look closer and think out of the box you will see actually yourself just part of a salesperson who help the company gain more % on profits, yet you still need to pay them for "extending investment product plan".
So, why dont we just invest in a company that we have sufficient knowledge than instead of a company that we had less knowledge about it?
{even wallet buffert said that "invest your money only into a company that you had sufficient knowledge about it"}
Actually this is a very good website to make your own judgement here.
http://www.dsam.org.my/dsam/industry/what-is-direct-selling/
I found that although the company is under Direct Sales category, the system structure is none.
I don't see like this.=(
Manufacture(Direct Sales)>Consumer. That's it.
Legitimate Direct Selling Companies
Source:http://www.dsam.org.my/dsam/industry/what-is-pyramid-selling/
1. The start-up fee for all ethical multi-level selling companies is generally low, primarily to cover training materials, sales aids or demonstration kits.
2. Such companies sell a wide range of quality products to the general public. The bulk of the sales are on repeat sales form satisfied customers. This is only possible because these companies spend millions on research and development to develop quality products.
3. Many companies have a 100 percent money-back guarantee. Dissatisfied users (and there are relatively few) could exchange the products back for money or for an equivalent amount in other products.
4. These companies are interested in long-term business. In every country that they operate, this criterion is important because the companies have an obligation to their distributors who are small businessmen in their own rights.
5. Recognition of achievement is based on efforts. This means that a distributor’s income is commensurate with the efforts he/she puts into the business.
6. Established companies depend on selling to customers quality products which offer value for money in order to establish a market.
7. These companies build up networks of independent distributors to sell products.
8. They have strict Rules of Conduct which, among other things, forbids its distributors to load up on inventory.
9. Distributors sell products and or services.
10. Direct selling is a popular method of retailing which is recognised as a lawful and legitimate business in many countries including the U.S.
For 1.) Very low, yes.
For 2.) 60 days free trial, yes.
For 3.)We give 100% full refund even you are not happy.
For 4.) Not really. No need a distributor. Direct to consumer.
For 5.) No distributor.
For 6.) Yes, consumer decides the product in our company.
For 7.) Yes, that's right.
For 8.) No inventory to keep.
For 9.) No distributor. No selling.Consumer direct to the company.
For 10.) Absolutely yes.
So,
To evaluate a company before joining, here are my points consideration.
1) The company must be listed in US Inc.500 companies.
2) Must have received Blue Chip Enterprise Award from United States Chamber of Commerce.
3) Must Achieve "A" Profit rating and received award from Ernst & Young and CNN.
4) Must have participation from advanced countries.
This really make my day.
Cheers=)
