Ten Big Lies of Multilevel Marketing

Itachi

23 Apr 07, 03:17

http://www.mlmwatch.org/01General/10lies.html

wonder if this is useful.. keep seeing ppl kena con huge sum of $ damn sian.. those "big fishes" managed to get away wif the laws. recently my dad oso kena psycho into this thing.. den the ppl intro him crap internet investment plans like ebarrel, den now wad global forex sh|t den wad sunshine empire... saying how gd and how much u can earn tt quickly.. in the end $$$ fly. no matter how my bro n i talk to him abt it. he'll still belif wad the mlm ppl tell him.. damn worried will go bankrupt one day.. recently i saw wad he got back from the company.. an award saying "congratulation for being awarded position of manager". fark.. wad manager.. din even bring $ back one.

sonic_16

24 Apr 07, 12:44

good stuff...

Lie #10: MLM is not a pyramid scheme because products are sold.

Truth: The sale of products does not protect against anti-pyramid-scheme laws or unfair trade practices set forth in federal and state law. MLM is a legal form of business only under rigid conditions set forth by the FTC and state attorneys general. Many MLMs are violate these guidelines and operate only because they have not been prosecuted. Recent court rulings are using a 70% rule to determine an MLM's legality: At least 70% of all goods sold by the MLM company must be purchased by nondistributors. This standard would place most MLM companies outside the law. The largest MLM acknowledges that only 18% of its sales are made to nondistributors.

I wondered if sg have this 70% rule...

laurence82

24 Apr 07, 12:46

Originally posted by sonic_16:
good stuff...

Lie #10: MLM is not a pyramid scheme because products are sold.

Truth: The sale of products does not protect against anti-pyramid-scheme laws or unfair trade practices set forth in federal and state law. MLM is a legal form of business only under rigid conditions set forth by the FTC and state attorneys general. Many MLMs are violate these guidelines and operate only because they have not been prosecuted. Recent court rulings are using a 70% rule to determine an MLM's legality: At least 70% of all goods sold by the MLM company must be purchased by nondistributors. This standard would place most MLM companies outside the law. The largest MLM acknowledges that only 18% of its sales are made to nondistributors.

I wondered if sg have this 70% rule...

I believe its US courts, from some readings

sg dont have, the laws on MLM is as skimpy as spaghetti straps

lionsault

5 May 07, 11:53

I feel that it depends on our country. We are going through what US went through 40 years ago. Many unethical network marketing companies and agents. Need another 20 years to clear up the air.

KrU

9 Jun 07, 15:45

Hope people do not fall into this fatal trap.

RachelX

7 Jul 07, 21:44

Originally posted by lionsault:
I feel that it depends on our country. We are going through what US went through 40 years ago. Many unethical network marketing companies and agents. Need another 20 years to clear up the air.

Why not government of Singapore take serious action against MLM just like communist China did. Do you know mlm is completely illegal in China!

KrU

8 Jul 07, 04:38

Originally posted by RachelX:
Why not government of Singapore take serious action against MLM just like communist China did. Do you know mlm is completely illegal in China!

That will be great.

laurence82

8 Jul 07, 21:45

i keep hearing rumours, from eons ago, that China will lift the ban

So up to now, no confirmation that they will lift the ban?

Guoyao

17 Jul 07, 02:41

They lifted the Ban, but added very strict ruling like commission payout cannot exceed 3 levels, 400 million RMB deposit to the government for security, must be at least 6 years in the industry something like this, not exact figure though cos i read the news i think last year. Basically there are still company who is operating under radar too...

yawn... this 5 min for first 20 post is irritating =)