Saturday, August 19, 2006

Too many new comers in MLM are misled

There are many MLM (or so called direct sales, network marketing, or networking business) companies in Malaysia. Including DCHL is just one of them.

And well, since I've been involved in this industry since I was still a teenager and as raw as any new comer into this field. I'm glad that I joined into a right and legitimate company (not DCHL or any pyramid schemes) and learn a lot of useful skills and knowledge from the training and seminars they offered. And having a right person to guide me through all the ups and downs was just wonderful enough for me to learn and share at the same time.

Having to believe the genius that has been in this industry, it really changes my point of views on most people's lifestyle nowadays. Well, I believe that one day, this MLM industry will take over many of the other marketing ways to sell their wide ranges of products. All the advertising cost will be saved and spend on its network group or its organization filled with its companies' distributors. All the bonuses paid to all the distributors for selling their products are the cost that they once spend on advertising companies.

There are a lot of things using the concept of a pyramid and a lot of people are confused by it. Everything in the law of nature is almost like a pyramid. Examples are, the ecosystem, in a company staffs' positions, in a school, or anything that can be call as an organization. "Pyramid scheme", having this name on all those scam and illegitimate MLM companies making people think and use the word "pyramid" without a proper understanding on its concept. The concept of a pyramid can be applied on many things. Not only on "pyramid scheme" or "get-rich-quick scheme".

For those who know too little about MLM, please don't make too much insulting statements on this industry. There are a lot of genuine and fake MLM companies that need to be spot-out before we can actually make any statement on them.

Pyramid schemes nowadays they come in so many forms that they may be difficult for us to recognize it immediately. And not to say about all the new comers(especially all the new members in DCHL), they are not capable of doing it so because most of them are blinded by their own greed since they are still new to all the big numbers that had been shown to them by their up-lines and by their BOT(Business-Opportunity-Talk) presentation. To spot out an illegitimate MLM company, it requires a certain level of knowledge in this industry and it needs a certain period of time to do so. Of course, this kind of knowledge people won't simply share without having any reason to their own benefits. In other words, when someone teaches you all these things, it's like putting money into your pocket. Only those genuine MLM companies will teach and share this kind of knowledge with its fellow distributors under its company in order to improve their knowledge so that they won't fall into other fake MLM companies which promise a much more faster substantial turn-over with less hard-work. (normally a genuine MLM companies' business is harder and slower to build comparing to fake ones, because the turn-over only based on retails and actually selling product to end consumers)

All of the pyramid schemes are sharing one overriding characteristic. They always promise consumers or investors large profits based primarily on recruiting others to join their programs, and are not based on profits from any retail or actual sale of products to the public. Some schemes may seem to sell a product, but they often simply use the product to hide their actual pyramid scheme structure.

There are two signs that a product is simply being used to disguise a pyramid scheme:
i) Inventory loading
ii)Lack of retail sales.

Inventory loading occurs when a company's incentive program forces new distributors to buy more products than they could actually sell, and most often, they are all at inflated prices. If this occurs throughout the company's distribution system, the people at the top of the pyramid reap substantial profits, even though little or no product moves to the public. The people at the bottom make excessive payments for inventory that simply accumulates in their store room. A lack of retail sales is also a sign of that a pyramid exists. Many pyramid schemes will claim that their product is selling like hot cakes. However, on closer examination, the sales occur only between people inside the pyramid structure or to new distributors joining the structure, not to consumers out in the general public.

Well, it's wise not to be easily blinded by our own greed. Although money can make our lifestyle better, but it doesn't mean anything to us. Except only to our own greed. Imagine if we live in this world alone, what does money mean to us? It's nothing to show off when we are alone. It's just because we are living in an organization, and we always compare ourselves to each other, then we tend to feel that money could actually make us live a better lifestyle and to show off sometimes by buying things we don't need, to impress people we don't like. It's really funny, and we could actually feel how childish we actually are when we think about ourselves on these.

The DCHL culture is to love money, and money will love you in return. What a crap of this quote! I went for a talk and there is a guy by the name Wong, giving off an insight of what is MLM. Well, the talk was perfect and it was really an eye-opening to all the new comers to the MLM industry. But in fact, all the MLM companies do the same including all the genuine ones. Except for the way they sell their products. And the way they distribute and as well as teaching their distributors the real moral value based on humanitarian ground. As we hear-said, most of the dukes in DCHL they earn money from those misery people. It's sad why people could be easily blinded by their own greed. I think it's time for us to stop this kind of trap on all those youngsters and inexperience MLMers.

All the best to those who have been putting up hard work going against the DCHL/SYN network distribution so far. Great job! We will never give up and will be on-looking for any more of this kind of pyramid schemes in the public. We should make a proper study, investigate and keep our eyes on any new MLM company coming into the market.

So far through my observation, there are only a few MLM companies that could actually do very well in the market and bring in more and more beneficial products to us Malaysian consumers from other countries. And some of the products could actually save many people from spending too much money on doctors and specialist regarding their health problems. Such as kidney failures, diabetic, stroke, no-cure-found skin disease, and so on. Well, great job to all those MLM companies!