Please bear with the incoming great wall of text, but having
seen the recent article on ST and the recent arguments on SGForums,
I can't help but feel the need to point out how Mr.Phang's business
module has deviated from what we know as MLM in Singapore. I am
saying deviated, but I am NOT implying that it is a scam. If you
are planning to read ahead, please be aware the following is just
SPECULATION and information gathered from misguided downlines. I am
NOT saying any of the below are undisputed facts and neither should
you have complete faith in my statements. Also, if the mods find it
defamatory or crossing certain boundaries please feel free to
delete. I DO NOT in any way wish to defame or damage credibilities
or all parties involved.
Now I know there is a certain stigma associated with MLM (thus the
need to define it and clarify misunderstandings)and while I am not
exactly a fan or one of the "workerbees" of MLM, I have a fairly
good idea of how it works. This is just a general definition , and
I am NOT claiming to be an expert on the subject.
The general concept of MLM is such that the money is mainly
contributed as a DIRECT transaction whereby money is exchanged
directly for marketable products (Very Tangible and Real). These
products are then sold and marketed off by the members themselves,
at the same time attracting membership of new members (Their
downlines).
Each member's income is made up of : <Own sale
income> + and
In this equation, in order for MLM to be LEGAL in Singapore,
certain regulations are set in place such that the Uplines at the
top CANNOT draw commission beyond a certain level of downlines.
(Eliminating the concept that top feeders gain rapidly increasing
incomes from introduction of bottom feeders.) The existence of a
break off point prevents the "Idle blood sucking" that will happen
indefinitely. Certain companies also have regulations that prevent
commission drawing should an account remain inactive in its own
sales. While different companies may vary slightly in policies, the
government's stand is such that it is legal due to sufficient
measures to ensure a FAIR and MERITOCRATIC environment whereby
pioneers sitting on top of the sale pyramid CANNOT idly draw
commissions, and latecomers stand a very equal opportunity to move
up the hierarchy with sales and introduction of downlines. In fact,
theoretically in this system the concept of sales pyramid is no
longer valid, as bottom feeders can move up the top and become
equally high flyers. There is NO one person allowed to feed off
commission by sitting comfortably at the top.
More importantly, keep in mind that these people are selling VERY
tangible products. They are doing SALES, as well as particpating in
network marketing.
Now recent forum topics have people protesting against claims that
Mr.Phang's module is a scam. Surprisingly people do this by coming
up with claims that his products are entirely valid and true or by
challenging others to find evidence that suggest otherwise. Whether
the products are entirely valid or not I can definitely admit I
have no idea. (Then again, can YOU claim to have absolute concrete
evidence in favour of Mr.Phang?). To these people i can only say
:You have COMPLETELY MISSED THE POINT.
Mr.Phang has emphasized in an article that his is an MLM company.
Keep in mind the definition of the system that I have just stated
above.
Having heard arguments from real downlines from SE, I can only say
the company is doing a very sloppy and half-hearted job of
educating them. Some still believe that the company is investing
money for them to reap returns, thinking that SE is an INVESTMENT
COMPANY, something which I believe Mr.Phang has so strongly
denied.
This is evidence of people rushing into schemes that have
ABSOLUTELY NO IDEA ABOUT. Now I *assume* Mr.Phang's module is such
that : Money is injected into the scheme by joining members (Let's
say $3000). Now, when asked where the $3000 went to, a SE downline
answered "To the company lor, it makes the investment". This guy
has ABSOLUTELY NO IDEA where the $3000 just went to. And Neither do
we! In MLM the money is NOT INJECTED, but used by the member to BUY
TANGIBLE products whereby he will have ownership over (after which
he will transfer through SALES).
Now think about this : He is NOT BUYING products from the company
in a very direct transaction. This is not like in MLM, where the
products are HIS, he has ownership over what he bought, and he will
sell these products and market them HIMSELF.
UNLIKE in SE, where a member claims that the company DOES have the
products (I have no doubt the company actually DOES), but the point
is, the member just gave $3000 TO THE COMPANY. He did NOT just buy
any of the company's products AT ALL. (At least this is the info i
got from their downlines) He does not own ANY of SE's products,
much less sell them to other people.
If I am not wrong (which of course I very well may be) , a SE
member's income equation is made up of = +
Now Notice SALES has completely been removed from the Equation.
(This applies for the downline I asked.)
Now MLM = and , HOWEVER, there is ABSOLUTELY NO SALES in the above
equation.
From an Economic viewpoint, Output = Capital + Human Labor
In MLM, your role in SALES in such that you make up the Human Labor
section.
However, *IF* you DO NOT DO SALES, your existence to the company is
merely as simple as $3000. You are PURE CAPITAL. The downline
system is such that you attract even more units of CAPITAL to the
company. But you are not doing SALES at all. Some argue saying that
when introducing the downlines, you are selling the product of
"business partnership"
I say that is COMPLETE BULL. For all you know, your existence to
the company might just merely capital. You have NO OWNERSHIP over
any products of the company, much less have the RIGHT to sell
business partnerships. Wake up man, this is a word game. You are
merely attracting like minded people like youself to hand over
CAPITAL to company. Is your CAPITAL used to buy products for
YOURSELF like in MLM? *IF NOT* , Then what is your money used for?
No, I am sorry to burst the bubble, but I seriously *think* you are
NOT doing MLM, but a twisted capital money game where YOU, and all
of YOUR downlines and uplines are Throwing Capital INTO this
Moneypot. The reason for not having the need for sales quota like
in MLM is because you don't even HAVE any products. (This is purely
my speculation) They belong to the Company, NOT YOU. You are, as I
say again, as important as just $3000 to them.
If you are not doing MLM at all, why are you suddenly being ALL
pouring money into a "Business Module"? (which so many naive
members themselves are SOOOO blur and clueless about). The answer
is, of course, most apparent : The Sweet Deal in front of you. Who
would resist the payments? The Programs, policies what not, most of
you are just concerned with the sweet returns right?
Bear in mind PLEASE, *IF*this is the truly the capital throwing
game I think it is, this Money Pot as I call it, is NOT a
sustainable system, and NEITHER is it LEGAL in Singapore. It will
reach a critical point whereby Money Injected by new downlines are
NOT enough to sustain payments rewarded to old uplines.
Either way, when the cookie crumbles, PLEASE think of the new
downlines who can pour up to $12k of money into their "brilliant
module" . Can you imagine their pain and loss? I understand some of
you are already earning more than your original investment (even
though you might be clueless about the system), but this is
ultimately a game of musical chairs. When the Music stops the ones
who suffer are going to be those still left standing. Can you
imagine the pain of having just invested your life savings in a
company that crumbles and disintegrates without leaving you a cent?
Do YOU want to be the upline that just introduced him to the
company? Do You want to bear that burden on YOUR shoulder? This is
not referring to any company in particular. It can happen to ANY
such dealings.
Now the company might be completely legal and doing valid
businesses. (Or otherwise.) However in any case what you are doing
is not MLM, in fact most of you come up with invalid unconstructed
arguments when posed the question : What exactly are you doing with
that $3000? Why are you earning WITHOUT doing sales? Please be
FULLY AWARE attracting downlines is NOT SALES. Saying it is will be
a twist of logic and a word game so lame it is insulting the
intelligence of the person you are using it on.
*Also, note that the I am comparing the system to my own definition
of MLM. I am NOT saying that this system cannot be, or eventually
be acknowledged as a deviation of the more widely accepted and
legalised MLM in Singapore.
