Misconception about MLM
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SINGAPORE: It's been over five years since the law was amended to allow legitimate multi-level-marketing (MLM) firms to operate here came into effect, but the direct selling industry remains dogged by the negative image many associate with pyramid selling.
"In the early tough days, legitimate direct sellers were held back by suspicion. But sadly, this scrutiny of legitimate direct sellers continues till today; it is uphill still for us," said Mr Benjamin Tan, a founding member of the 30-year-old Direct Selling Association of Singapore (DSAS).
To improve its image and win public confidence, the body - which is made up of 22 of Singapore's biggest direct-selling companies - is calling for tougher self-regulation.
It is drafting rules to tighten loopholes in the industry - currently the association doesn't step in if any of its member firms collapse. With the new rules, it will step in to help affected consumers.
Also, it will step up on checks on its members: Those who repeatedly don't abide by its code of ethics and conduct will face expulsion.
"We will look into how we can better protect consumers' interests, whether through further collaboration with the Consumers Association of Singapore, or through local regulatory and industry partners," said Mr Nicholas Chia, chairman of DSAS.
The association is setting up a one-stop information centre for the public next month.
This centre will allow consumers to check - for free - the legitimacy of any direct-selling company, and help organise public education forums to inform the public on the differences between direct selling and pyramid selling (see box).
"However, if the negative mindset about the industry persists, we are under severe threat of losing a large pie of the potential multi-billion revenue that the global industry will generate," said Mr Chia.
While one in every 10 Singaporean buys from direct selling companies now, Singapore is still falling behind the rest of South-east Asia in grabbing a share of the US$101 billion ($160 billion) global direct selling industry, he said.
Last year, Singapore generated US$330 million in direct sales, compared with Malaysia's US$1.4 billion and Taiwan's US$2.1 billion.
Said Mr Chia: "We need a big mindset shift fast or we will be outstripped by other stronger direct selling markets in Asia for a large share of the global industry pie."
Multi-level marketing (MLM) and single level marketing (SLM) are the two forms of direct selling practised in Singapore. Consumers still tend to confuse the two forms of direct selling with pyramid selling, which is prohibited in Singapore.
"Direct selling is the sale of a consumer product or service, person-to-person, away from a fixed retail location. It is a popular alternative to traditional employment for those seeking to supplement their household income, or whose responsibilities or circumstances do not allow for regular part-time or full-time employment," said Mr Tan.
Pyramid selling on the other hand, requires participants to make a lump sum payment upfront to join the scheme, and the driving force to recoup the initial fee is the recruitment of more members, rather than the sale of goods and services. Many participants lost huge amounts of money under the scheme, and subsequently an Act was passed in 1973, declaring pyramid selling illegal in Singapore. - TODAY
http://sg.news.yahoo.com/060927/5/singapore232742.html
with reference to the above text, some so-called MLM seems like pyramid selling rather than MLM companies...
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I was about to post this and you win me ~ Dotz ~
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yeah wanted to use this article too
a lot of things i wanted to say abt DSAS and its operations, but lets just say, one of the easiest measure of legality is whether the company focus more on recruitment and system, rather than products and services
Something you could see at at outset, something you might also need to sit in and observe -
the day mlm's image improves is when the ah beng mlmers stop showing off 'their' bmws
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and start showing their IR8AsOriginally posted by leddy:the day mlm's image improves is when the ah beng mlmers stop showing off 'their' bmws
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ya... mayb just drive a normal car will do...Originally posted by leddy:the day mlm's image improves is when the ah beng mlmers stop showing off 'their' bmws
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This article comes out in Yahoo News, today and strait times.
Hmm, lets just look at it in a more open way ba -
i think it is a good time to go into MLM now.
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Duh...Originally posted by WongCH:i think it is a good time to go into MLM now.