straits times forum on MLM
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* credit to laurence82 for typing out these reports from the ST.
I ma writing to raise awareness of teh recent rise of multi-level marketing firms that may engage in underhand or even illegal tactics.
Several weeks ago, I attended a seminar on multi-level marketing in Shenton Way. During the seminar, the audience, mostly teenagers, were subject to what could be tremed 'brainwashing'.
They were inundated with fantastic claims of paths to riches, using a gimmicky prsentation style which involved loud cheering and enthusiastic clapping from staff. At the end of the seminar, which focused almost exclusively on the cost of livingand how the company can help one achieve one's dreams of material well-being, I was left bewildered. Thre was absolutely no mention of teh product they were selling.
When I questioned this, I was told: "Does the product really matter? I could go on and on about the benefits of aromatheraphy, but what is important here is our marketing technique."
As it turned out, this marketing technique closely resembles pyramid selling. To join the scheme, you pay a fee to buy an aromatheraphy product. For each person you sell more products to, you receive a commission. And for each sale, the person who got you to join the scheme receives the same commission.
The chain continues ,with more people pulled into the scheme, and those on top getting rich quick.
What is suspicious is first, the focus is on the sales method rather than the product. Second, they seem too eager to impress the audience and the potential customers with flashy presenters and pushy marketing.
Third, the commission structure is strange, to say the least. The commission is the same for the person who sells the product, and the person above him in the chain. This means those higher in the chain can simply live off the fruits of others labour. It encourages continuous selling until there is no one left to sell to.
I hope to draw attention to such schemes as the amounts involved are not small and those who join later will definitely be left disappointed.
As such scheme proliferate, I hope the authorities can clarify what is legal and take action against any perpetrators who are engaged in illegal activities.
Leow Zi Xiang
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Straits Times Forum, Jan 1 2003
Beware of hard-sell tactics
I refer to Mr Leow Zixiang's letter, 'Dangers of multi-level marketing' (ST, Dec 30).
I was recently persuaded by a friend to go for a talk about a "business plan". It turned out to be a talk by an MLM company. Like Mr Leow, I was told it was the 'business plan', and not the product, that was important.
I succumbed to the pressure from the sales representatives and paid $864 to start three accounts and to buy some aromatheraphy products.
I was taught the methods they use to get prospective members to join the scheme, which include:
a) Never telling the 'prospect' that it is an MLM scheme. Just say it is a business plan.
b) Not letting the 'prospect' go home and 'think about it', as he is likely to have second thoughts.
I felt cheated as these tactics were used on me and I was now expected to use them on others.
I demanded a full refund but was told this was possible only if someone else come and took over my account.
I wish to alert the public about such hard-sell techniques. I advise those who are easily persuaded to stand their ground and join only when they thoroughly understand what the company is offering.
Lim Jia Qing
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Straits Times Forum, Jan 5 2003
One more victims of sales scheme
I refer to Mr Lim Jia Qing's letter , 'Beware of hard-sell tactics' (ST Jan 1). Like him, I paid $864 for three accounts and I am sure that we fell prey to the same multi-level marketing (MLM) firm.
In one meeting I had with its representatives, the firm arranged for three people to turn up, evidently to try to intimidate me. They were willing to drive me to the nearest ATM at 1 am to make sure I did not back out.
A week later, when I asked for my money back due to financial difficulties, they laughed and said the only way out was to get someone to take my account.
I have since realised I have been cheated. Can I lodge a police report about it?
The start up cost in this scheme is unreasonable for the amount of products paid for. The aromatheraphy products are also not described clearly in presentations and on the company's website.
I hope the Direct Selling Association of SIngapore and the authorities will act against this firm. I have gone for talks by other more reputable MLM companies and I ams sure the one Mr Lim and I have been pressured into joining can be deemed illegal.
Lastly, I would like to appeal to all to be wary of this company, which has an expensive-looking flash website and claims international links. In fact, all it does is to emphasise recruitment.
Lim Yan Ting (MS)
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Straits Times Forum, Jan 6 20004
Cops to probe multi-level schemes.
We refer to the letters from Mr Leow Zi Xiang (ST, Dec 30), Mr Benjamin Tan, Mr Lim Jia Qing, Mr Tan Soon Meng, (ST Jan 1) and Ms Lim Yan Ting (ST, Jan 3).
The Multi-Level Marketing (MLM) and Pyramid Selling (Prohibition)Act prohibits multi-level business schemes, except for those which satisfy certain conditions. Information on the Act and Frequently-Asked Questions relating to MLM can be found on the Ministry of Trade and Industry' website (www.mti.gov.sg) under 'Legislation";
The Commercial Affairs Department (CAD) of the Singapore Police Force (SPF) investigates offences under the MLM legislation. We request Mr Leow, Mr Lim and Ms Lim to contact ASP Mohd Shahri on 6557-5458 so that the SPF can look into the matter.
ASP Chua Chee Wai
Assistant Director (MEdia Relations) (Covering)
Singapore Police Force
Lim Chuen Ni (MS)
Corporate Communication Manager
for Permanent Secretary
Ministry of Trade and Industry. -
woah, haben seen this for long time, i guess u took them out of the ntiparis thread..
these letters actually pin point ntiparis, since their description fit mostly that of this company....
the most ridiculous thing, and i heard this from an nti agent thru a fren, they simply dismissed it as tabloids...
which is crap, since ST is a reputable newspaper, mabbe except on area of politics, and to top it off, ST didnt write these letters, these were letters from the concerned public.... -
I hope the police can gather enough information to sue them. It's about time the authority do something to rid of the black sheep in this industry !!
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I would not say the straits times is a reputable Newspaper. In fact, imo, the straits times is just a teeny weeny bit better than some tabloids.
I have greater respect for the NewPaper because it doesn't pretend to be something its not.
Its good that they publish such letters, but its something to be expected of a national newspaper. -
The least they could do, as a national paper !!
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i tin the company tat they refering to is NTI paris!
beware ppl if NTI call u up. -
....greater respect for the NewPaper ...
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ello dude, NewPaper and LianHe WanBao arent called tabloids for nothing...
Its the way they report rumours and gossips and pry little into personal lives of people..which ST doesnt really do... -
hm... the people wrote in to ST during 2003 and the
" Lim Chuen Ni (MS)
Corporate Communication Manager
for Permanent Secretary
Ministry of Trade and Industry" wrote back in 2004 ??? a year later ? abit late, no ? -
Originally posted by elektra:
there is a typo up there...
[b]hm... the people wrote in to ST during 2003 and the
" Lim Chuen Ni (MS)
Corporate Communication Manager
for Permanent Secretary
Ministry of Trade and Industry" wrote back in 2004 ??? a year later ? abit late, no ?[/b]
all this happen around Dec 2003/Jan 2004... -
then how come til now, a year pass liao. NTI is still not crack down?Originally posted by laurence82:there is a typo up there...
all this happen around Dec 2003/Jan 2004... -
many scams or unethical companies have nt yet close..Originally posted by ben0704:then how come til now, a year pass liao. NTI is still not crack down?
I could refer the Speaker Corner and talk abt how the gahmen works, but then again, lets just say, unless something big happen which will cause the police officers to lose their jobs, they dont care....
just waiting for the bubbles to burts... -
in the above, it call the 3 person to call up ASP Mohd Shahri so tat SPF can look into it. now tat NTI still around, meaning tat the police after looking into the matter, also cannot do anything to them after they look into the matter?!?!?! WTFOriginally posted by laurence82:many scams or unethical companies have nt yet close..
I could refer the Speaker Corner and talk abt how the gahmen works, but then again, lets just say, unless something big happen which will cause the police officers to lose their jobs, they dont care....
just waiting for the bubbles to burts...
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probly the authorities are finding/collecting sufficient evidences... we wont know yeah...
wat we can do is remind of family, friends and relatives about such cases and discourage them from joining the schemes lo...
listen to 95.8fm, there are people who call up, go on air and complain about these cheating cases .
[/b]Originally posted by ben0704:in the above, it call the 3 person to call up ASP Mohd Shahri so tat SPF can look into it. now tat NTI still around, meaning tat the police after looking into the matter, also cannot do anything to them after they look into the matter?!?!?! WTF -
For example, there are 35 police reports made against Lux, reported in ST last year...u dont see Lux close down do u?
How abt Asayo, in which many forumers have complained? Also now alive and kicking... -
Say what you like, I don't have confident in Singapore Police.....
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Hi all,
Beware of a new coy called CosLab. They are cheaters as well. The top guys (Steve & Kelvin) are from NOP as well. Even the management level are from NOP. THEY ARE OUT TO CHEAT PEOPLE AGAIN.
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wow from anti mlmer to pro nti agent?
omg wtf.... -
* credit to laurence82 for typing out these reports from the ST.
I ma writing to raise awareness of teh recent rise of multi-level marketing firms that may engage in underhand or even illegal tactics.
Several weeks ago, I attended a seminar on multi-level marketing in Shenton Way. During the seminar, the audience, mostly teenagers, were subject to what could be tremed 'brainwashing'.
They were inundated with fantastic claims of paths to riches, using a gimmicky prsentation style which involved loud cheering and enthusiastic clapping from staff. At the end of the seminar, which focused almost exclusively on the cost of livingand how the company can help one achieve one's dreams of material well-being, I was left bewildered. Thre was absolutely no mention of teh product they were selling.
When I questioned this, I was told: "Does the product really matter? I could go on and on about the benefits of aromatheraphy, but what is important here is our marketing technique."
As it turned out, this marketing technique closely resembles pyramid selling. To join the scheme, you pay a fee to buy an aromatheraphy product. For each person you sell more products to, you receive a commission. And for each sale, the person who got you to join the scheme receives the same commission.
The chain continues ,with more people pulled into the scheme, and those on top getting rich quick.
What is suspicious is first, the focus is on the sales method rather than the product. Second, they seem too eager to impress the audience and the potential customers with flashy presenters and pushy marketing.
Third, the commission structure is strange, to say the least. The commission is the same for the person who sells the product, and the person above him in the chain. This means those higher in the chain can simply live off the fruits of others labour. It encourages continuous selling until there is no one left to sell to.
I hope to draw attention to such schemes as the amounts involved are not small and those who join later will definitely be left disappointed.
As such scheme proliferate, I hope the authorities can clarify what is legal and take action against any perpetrators who are engaged in illegal activities.
Leow Zi Xiang
--------------------------------------------------------------------------------------------------
Straits Times Forum, Jan 1 2003
Beware of hard-sell tactics
I refer to Mr Leow Zixiang's letter, 'Dangers of multi-level marketing' (ST, Dec 30).
I was recently persuaded by a friend to go for a talk about a "business plan". It turned out to be a talk by an MLM company. Like Mr Leow, I was told it was the 'business plan', and not the product, that was important.
I succumbed to the pressure from the sales representatives and paid $864 to start three accounts and to buy some aromatheraphy products.
I was taught the methods they use to get prospective members to join the scheme, which include:
a) Never telling the 'prospect' that it is an MLM scheme. Just say it is a business plan.
b) Not letting the 'prospect' go home and 'think about it', as he is likely to have second thoughts.
I felt cheated as these tactics were used on me and I was now expected to use them on others.
I demanded a full refund but was told this was possible only if someone else come and took over my account.
I wish to alert the public about such hard-sell techniques. I advise those who are easily persuaded to stand their ground and join only when they thoroughly understand what the company is offering.
Lim Jia Qing
---------------------------------------------------------------------------------------------------
Straits Times Forum, Jan 5 2003
One more victims of sales scheme
I refer to Mr Lim Jia Qing's letter , 'Beware of hard-sell tactics' (ST Jan 1). Like him, I paid $864 for three accounts and I am sure that we fell prey to the same multi-level marketing (MLM) firm.
In one meeting I had with its representatives, the firm arranged for three people to turn up, evidently to try to intimidate me. They were willing to drive me to the nearest ATM at 1 am to make sure I did not back out.
A week later, when I asked for my money back due to financial difficulties, they laughed and said the only way out was to get someone to take my account.
I have since realised I have been cheated. Can I lodge a police report about it?
The start up cost in this scheme is unreasonable for the amount of products paid for. The aromatheraphy products are also not described clearly in presentations and on the company's website.
I hope the Direct Selling Association of SIngapore and the authorities will act against this firm. I have gone for talks by other more reputable MLM companies and I ams sure the one Mr Lim and I have been pressured into joining can be deemed illegal.
Lastly, I would like to appeal to all to be wary of this company, which has an expensive-looking flash website and claims international links. In fact, all it does is to emphasise recruitment.
Lim Yan Ting (MS)
--------------------------------------------------------------------------------------------------
Straits Times Forum, Jan 6 20004
Cops to probe multi-level schemes.
We refer to the letters from Mr Leow Zi Xiang (ST, Dec 30), Mr Benjamin Tan, Mr Lim Jia Qing, Mr Tan Soon Meng, (ST Jan 1) and Ms Lim Yan Ting (ST, Jan 3).
The Multi-Level Marketing (MLM) and Pyramid Selling (Prohibition)Act prohibits multi-level business schemes, except for those which satisfy certain conditions. Information on the Act and Frequently-Asked Questions relating to MLM can be found on the Ministry of Trade and Industry' website (www.mti.gov.sg) under 'Legislation";;
The Commercial Affairs Department (CAD) of the Singapore Police Force (SPF) investigates offences under the MLM legislation. We request Mr Leow, Mr Lim and Ms Lim to contact ASP Mohd Shahri on 6557-5458 so that the SPF can look into the matter.
ASP Chua Chee Wai
Assistant Director (MEdia Relations) (Covering)
Singapore Police Force
Lim Chuen Ni (MS)
Corporate Communication Manager
for Permanent Secretary
Ministry of Trade and Industry. -
I refer you all to the story of ENRON, an energy company which used to be a fortune 500 company. Led by mainly Harvard MBAs and Various scholars, it's directors and managers make million dollar salaries. The business world used to think they are the star of the energy business, however for many yrs enron has been cheating the public and investors with it's creative accounting tactics, making up paper profits when the company is infact making huge losses. Look at what the company is doing now? Bankrupt, and along with them, they brought down Aurther Andersen, which was a Big 4 firm.
Those companies you know are up to no good, and may be doing fine now maybe not be so in the next couple of yrs... just watch out n stay away from companies that you think are unethical, coz retributions will come.... -
If you all want to know how Scholars and MBAs and even controlling agencies aka govt org can fail, go to this link http://www.pbs.org/newshour/bb/business/enron/index.html
Read how Enron collapse.
They collapse becoz they have no ethics.... no integrity... such people and companies are only waiting to collapse... never mind how smart they are -
It is these Copycats that take the MLM system and shove it down the throat of others SCAM
These companies and lousy staff and SCAMMERS aught to be Jailed and Fined, MLM is always about the product's effectiveness , not the Get Rich Plan . Only those effective salespeople from MLM should see the glamour and rewards. Telling people about business plan is as good as giving Non-Training.
The real training is somebody who brings you to meet your clients. Its a person to person sales and introduction never a Get Rich Quick plan with ineffective products. -
Some couple of years ago, there were illegal scamming company who really focus on recuritment and have no products at all. soon they were arrested, after a few years, mlm started and then nti started. they didn't follow proper mlm rules and want to behave as if like those cavemen in the past.
this is bad, real bad