New MLM company-M.I.T

last SG · 2003-11-29T10:20:15+00:00

and not only that, got n number of topics

G.H.O.S.T SG

a new mlm rising up fast in the market by the name of M.I.T anione out there knows any ideas of its strategy?...all i noe is dat it goes by binary system…

laurence82 SG

Hi
perhaps u are mistaken. It is probably NTIparis

weidev SG

binary? how many bits?

Alex Wong SG

2 bits?
01 or 10 or 11 or 00

laurence82 SG

Seriously, its mlm binary system. Said to be very unstable, but me no expert in this. Haha, me reminded of Sega 32 or 64 megabits consoles

G.H.O.S.T SG

yea,laurence tks 4 the remind…ure rite..stil not sure how many bits…oni noe dat they deal wif aromatherapy…oni 2mths if im nt wrong…situated at tanjong pagar..very near to L.P.S

laurence82 SG

G.H.O.S.T
Have u been invited by friend to go down there? I seen their presentation, and was quite scared by it. They emphasise heavily on recruitment, and have products which they hardly sell. I was told the join-in fees is $288 including products, plus maintenance was $50 per month. They were evasive when questioned, and seems like brainwashed too. My friend enter for few months, now he is earning by the hundred or thousands.

Why was I scared? Everything looks awfully like disguised pyramid. I checked up on binary system, and correct me if I am wrong, it was known to be unstable, invented by a certain Nigerian, and banned in US due to the collapses of companies and lawsuits involved.

Yet, people in this company are going around with a piece of paper, writing out the binary system and applauding the effectiveness of the system. My friend did mention earning commission by recruitment first, then by sales. By binary system and this, I could see that they could earn a large amount of money within first few months.

I hope I am wrong on these few points, and would like some opinions on this. Cheers.

Alex Wong SG

chim chim chim...
best is to avoid it. haha

laurence82 SG

Wish I can avoid it, but my friends are in it. So is my friend's brother.
We could wait for company to collapse, but what if police get the whiff of it in time......Wish those scammers would just die and stop cheating people of money.....

the Bear SG

ever heard of the term "Nigerian scam"??

preys on the greedy

laurence82 SG

Well, for many people it sure look like a very legal MLM company. But for experienced network marketer, they can see through the business plans and realise it is a very sophiscatedly disguised pyramid. Many of the young ones who joined are inexperienced and have never seen other MLM companies. Plus, being brainwashed, they sure to argue back the legality of the company. The only way is to wait for the company to fail.

True, Bear, that my friends are attracted by the large sums of money that can be earned in the first few months (but they never show me their paycheck). But true MLM is suppose to be a long term career, not moneygame. I wish I can slap my friends on the face to wake their idea up.

http://www.dsa.org/selling/info.htm
for those who need to know features of a disguised pyramid

Parka SG

If they can't answer your question, you walk.

If they aren't truthful, you walk.

Alex Wong SG

why walk?

jogging is good for health.

the Bear SG

i find any scheme that does not add value to the product will not last..

MLM?

care to explain to anyone how the end consumer benefits from this type of marketing?

i could not get any straight answers from anyone yet..

Parka SG

That's why we walk.

Laughing

laurence82 SG

Bear,
well there are many reasons why network marketing benefits products consumers and business do-er. I juz put them in points.

1.Many MLM companies usually have some of the best products of that category in the market, in terms of quality.This is especially true for companies that bought the distributorship rights of products that they found to be good, compared to products that are self researched. Many of these are even patented. Even for AMH, I will never disparage their products effectiveness, no matter how many people attack the company's structure.

2. Products sold thru MLM are cheaper, considering that many middleman between manufacturers and consumers are eliminated. This is the key point of MLM. There are no regional distributors, no advertisers, no wholesalers ...etc, so unneccessary cost is eliminated. So, lets say Panadol is a quality product. If I were to sell you directly thru MLM, it might cost $2 per packet. You might say expensive, but it would be sold at maybe $4 in retail shop.

3. MLM eliminate advertising cost by bringing the products directly to you from your friends. If I were to watch Matrix and declare its good, I would share the appreciation to my friends, and they would watch it.Am I bringing profits to the producers indirectly, but not earning from this free "advertisement"?

4. Most importantly, do not brush off friends who try to sell you stuff, especially nutrition products. They might be holding an 'immortality pill' and you didnt know it. When I have good stuff in my hands, the first people I would share this is to my family, relatives and friends. I wouldnt share it to strangers.

BUT, to all consumers you must check the products before you buy it, especially nutrition products for ingestion.Best if they are safe, effective, no drugs, used by hospital and doctors, and had good accreditation from recognised world and local body.

Personally, after seeing so many MLM companies, I have seen ONLY two companies with good accreditation for their products. These accreditation comes from Japan Health Food Association, FDA, PSB, SIRIM, HSA, White House, Sportsmen and Medical Hospitals such as John Hopkins.

This points are not exhaustive, and I hope u guys can add more.

Look out for this page for the next segment 'How true MLM can benefit people financially' followed by 'How to look out for disguised pyramids and 101 ways to knock these scammers' balls off'

Stay tuned.

the Bear SG

first time someone tried to answer the question without being hostile...

1.Many MLM companies usually have some of the best products of that category in the market, in terms of quality.This is especially true for companies that bought the distributorship rights of products that they found to be good, compared to products that are self researched. Many of these are even patented. Even for AMH, I will never disparage their products effectiveness, no matter how many people attack the company's structure.

question: if it is so good, how come MLM is necessary.. also, if it is so cheap for the consumer, how come the MLMs keep saying those who work for them earn big bucks? where is the money coming from if the margin and volume isn't that big?

2. Products sold thru MLM are cheaper, considering that many middleman between manufacturers and consumers are eliminated. This is the key point of MLM. There are no regional distributors, no advertisers, no wholesalers ...etc, so unneccessary cost is eliminated. So, lets say Panadol is a quality product. If I were to sell you directly thru MLM, it might cost $2 per packet. You might say expensive, but it would be sold at maybe $4 in retail shop.

question: you still need costs which are not reflected.. no matter what.. so, how do you sell them that cheap? if they are cheap at all?

3. MLM eliminate advertising cost by bringing the products directly to you from your friends. If I were to watch Matrix and declare its good, I would share the appreciation to my friends, and they would watch it.Am I bringing profits to the producers indirectly, but not earning from this free "advertisement"?

advertising aside, word of mouth for MLMs have been bad.. severely bad.. so how come they still run if they are not out to get the greedy? what are the products?

here's a question for you... if their product is so good, why haven't the bigtime multinationals come to offer to buy all rights from the person?

laurence82 SG

Hi Bear
I start with your second question first. MLM products are not cheap. Personally, I would be suspicious of quality products that are cheap. But they are CHEAPER than it would be sold through retailers.

Lets say a Coke cost price cost 10 cents.
It would move from manufacturer to company, then regional distributor, national distributor, wholsaler, retailer and lastly consumers. Let say each of these guy mark up the price by ten cents to earn their profit, including the manufacturer. So we calculate to be 70 cents when it reach consumers. Lets not forget to add media advertising cost, let say 10 cents. So total 80 cents.

In MLM, products move from manufacturer to company to distributors to consumers, each one marking up also by ten cents, so it will be 40 cents price for consumers. We cannot add agvertising because there are none. This is the simplest way to explain the MLM distribution system.

Lets say Pepsi is a lousier brand, but it cost 30 cents. If people ask me why Pepsi can be so cheap, I would tell them "Look, Coke is a quality brand.By bringing it direct to you, our company eliminated 40 cents.'

So MLM is a way to bring quality products cheaper, not cheap.

Now then, you ask me, so they are quality stuff and they are more expensive, but people still buy them and making MLMers earning big bucks?That is your first question.I would like to emphasise that I have seen this scenario personally, but it works in successful NUTRITION products companies.

Mainly older people have much higher spending power than us young guys, and they really spend it on health and retirement funds. But for many reasons why nutrition products work is this.

They are consumables. If I were to sell you mattress, I would not see you for many years to come, so where does my income comes in once I depleted my sources of consumers? So nutrition products is one product where people buy every month. Once this month supply is finished, just buy some more. Intro it to more people, they will buy more too. Mind you, one company doesnt just sell one product, they have many.

They are ingested. Seriously, why doctors introduce pills and not aromatheraphy is that they know the drugs enter the body and react directly with your cells. Same goes for nutrtion products. Now nutrition products are not drugs, so people can eat as much as they want, incurring large volume of sales. People ask me how come, it just that older people really care for their health more than us young scums and willing to invest in health.

Thus, once a products is good,sellable and consumable, it incurs large sale volume.

But this is not all how MLMers earn the rest of the big bucks. I will explain in my next segment as promised Very Happy

I am not sure what u meant by ur 3rd question. Let me guess, you mean people try to sell but unsuccessful? Well, blame it on the company marketing and training system. MLM is suppose to be for any people of all walks of life to succeed, not just saleman. If the company is inadequate to provide training, and good sale kits and tools, it will fail. Even training and sales tools must be simple, so that Ah Soh selling vegetables also know how to present their products.This is VERY IMPORTANT. Successful companies I seen make good use of sales tools and documentation to enable ANYONE to sell their products.

For your last question, do you mean someone created something and why not the MNCs buy over the distributorship? Well most MNC products are self researched. If a MLM company see one good product and buy over the rights, and market it successfully, wont they also become a MNC themselves. A lot of MNC also started this way, not just MLM companies.

timandra SG

Greetings, the below info is meant for those who can see the potential of MLM as a legitimate business/ marketing strategy.

The conversation regarding the compensation plan of ntiparis spurred my interest to participate again. :p

Hmmm... As of today, from my own personal knowledge, there's currently 4 main compensation plans in the industry. 1) Stairstep Breakaway 2) Matrix 3) Unilevel 4) Binary (latest compared to the previous 3). Each of these individual plans has their pros and cons. But since the emphasis is on Binary Plan, allow me to share my 2 cents worth.

One of the common misunderstandings revolving around Binary Plan is that it's a money game, get rich quick scheme that should be avoided at all costs, by any networkers. I must confess that I had that perception before, but after reading through some books and mags, it brought a whole new insight to my belief system. Also, the misunderstanding was brought about by many unscrupulous companies that employed the explosive growth of the Binary Plan in the past. To the extent of overpaying to distributors that ultimately results in the closure of such companies... This sure sounds like a pyramid scheme! Shocked

If anybody wants to realise the benefits of Binary, you must look at it from a neutral point of view without any bias tendency towards other plans. One unique aspect about Binary plan is that it focus on 2, no more or less, income centres as your frontline. Which is beneficial if you were to take into account the amount of focus you can employ, thereby improving your effectiveness, as compared to other plans which recommend more frontlines eg 3 and more at one time. Also, commission will only be rewarded if one can balance the volume their 2 income centres. Let's say for eg, my LH group achieved $1000 sales volume, RH group $500, I'll not get anything if the company commission payout is at $1k. Until my RH group can achieve the remaining sum. It propels the upline to focus on helping the weaker side.

Other than that, additional sales volume, sponsoring performed by the upline group MUST be added down the list. So those along the line will benefit together from it. Profits are shared among them. Hardly noticeable in other plans, whereby , upline sales volume will normally be absorbed by he, himself. That's when one WILL see EXPLOSIVE growth in their group, thereby giving Binary plan the bad name of money game... Also, there's no Breakaway from the group! Which is beneficial for many networkers who often have a hard time of re-establishing a new group all over again.

However, some cons include no max. cap for the amount one income centre can earn. Some Binary companies employ the tatic of grossly exaggerated figures one can earn with no limits! Please be careful then, because based on figures, it will shutdown in a few months time.. Reason? Over payout of more than 100%. Imagine monthly turnover to be $1k but commission payout of 1.2k... So legitimate Binary MUST include a max cap. Also, some companies practises flushing of unbalanced sales volume. From previous eg. 1k & 0.5k will be flushed if you can't balance it!! A good Binary company MUST safeguard against this. Another point to note for any plans is the safeguarding against extreme front loading!! I've heard of many 'reputable' companies asking new distributors to pump in thousands of dollars for the inital investment... *faint*

One more thing to note is the accountability of people, because of the explosive growth, it makes accountability of uplines and downlines confusing... Imagine I bring in a friend but he's placed 10 levels below me.. That's when you must find a good company that employs a good system! A good MLM company should employ such a system whereby your presense is not absolutely essential of the success of your group! Talk about time freedom.

Reason why Binary looks like a pyramid because of the idealogy of income centres being added down the group. Also because of it's explosive growth since 2 is the max for frontline directs. But please bear in mind that income centres MUST also include sales volume, not solely on sponsoring! Which means there must also be sales/ customers etc. Guess those people whom some of you met dunno what they're saying, if not careful, they'll have authorities coming after them. However, this is something very contradicting, because MLM is a business, in which sales should be accomplished without door to door retail sales. If people focus solely on looking for customers, they're just doing direct selling & not employing the power of leverage... if they focus solely on sponsoring, it's pyramid... Wink a balance is the best from my point of view of cos.. I guess it's safe to say that the people you all met merely meant personal sales is minimised but not totally eliminated.

Binary can fulfil much explosive growth as compared to other plans, but the ideology is the same. The same amount of effort applies! Not just because it employs a different concept, it should be 'condemned' by many networkers alike. Very Happy If you do look at it carefully, the emphasis meant growing 'deep', unlike other plans which go 'wide', as to which is better, I leave it to individuals to decide! Wink Also for information, we do have a reputable local Binary company doing well! Heard of WBG?? it has already internationalise to korea, australia, japan, and the regional countries within 2 years! Shocked Guess this plan is not that bad after all lah... Cool

Also, haha, guess I can never end... due to this new wave in network marketing, more hybrid plans (combination of 2 of more plans etc) are coming out, so be amazed by what the future can behold! Be expected to see even more exponential growth for the same amount of effort one may be putting in! The power of evolution! So let's keep an open mind Smile Would love to share about other plans if I have the time... Haha. And please, I come in peace so no flaming... turns people off.. Also hope that this topic is unlike those topics about other networking companies... plenty of flaming.. we're doing quite fine till now. Till then! Rolling Eyes Any queries, just private msg me.

laurence82 SG

Thanks Timandra for your sharing. Nothing against binary, just that many people use the explosive growth of the plan as pyramid like business or fly by night MLM where they run away with the money.

Hope you also can give us some references like websites or books on binary system, and features of pyramids that uses binary system, especially in the US, I heard.

Btw, I i did PM you, hope you can give me some more insight on the features I mentioned. Very Happy Smile

Cheers