Ngano man daghan nag lagot sa Networking Business?

[messerchtmitt]

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From Wikipedia:


MLM companies have been a frequent subject of criticism as well as the target of lawsuits. Criticism has focused on their similarity to illegal pyramid schemes, price fixing of products, high initial start-up costs, emphasis on recruitment of lower-tiered salespeople over actual sales, encouraging if not requiring salespeople to purchase and use the company's products, potential exploitation of personal relationships which are used as new sales and recruiting targets, complex and sometimes exaggerated compensation schemes, and cult-like techniques which some groups use to enhance their members' enthusiasm and devotion.

In contrast to MLM is single-level marketing, where the salesperson is rewarded for selling the product directly to the consumer.


Legality and legitimacy

USA

MLM businesses operate in all 50 states New businesses may use terms such as "affiliate marketing" or "home-based business franchising". Many pyramid schemes try to present themselves as legitimate MLM businesses. However, there are people who hold that all MLMs are essentially pyramid schemes even if legal.
The United States Federal Trade Commission states "Steer clear of multilevel marketing plans that pay commissions for recruiting new distributors. They're actually illegal pyramid schemes. Why is pyramiding dangerous? Because plans that pay commissions for recruiting new distributors inevitably collapse when no new distributors can be recruited. And when a plan collapses, most people - except perhaps those at the very top of the pyramid - end up empty-handed."

In a 2004 Staff Advisory letter to the Direct Selling Association, the FTC states:

Much has been made of the personal, or internal, consumption issue in recent years. In fact, the amount of internal consumption in any multi-level compensation business does not determine whether or not the FTC will consider the plan a pyramid scheme. The critical question for the FTC is whether the revenues that primarily support the commissions paid to all participants are generated from purchases of goods and services that are not simply incidental to the purchase of the right to participate in a money-making venture.

The FTC warns "Not all multilevel marketing plans are legitimate. Some are pyramid schemes. It's best not to get involved in plans where the money you make is based primarily on the number of distributors you recruit and your sales to them, rather than on your sales to people outside the plan who intend to use the products." and states that research is your best tool, giving eight steps to follow:

1. Find — and study — the company’s track record
2. Learn about the product
3. Ask questions
4. Understand any restrictions
5. Talk to other distributors (beware of shills)
6. Consider using a friend or adviser as a neutral sounding board or for a gut check
7. Take your time
8. Think about whether this plan suits your talents and goals

[messerchtmitt]

I have not read all of these, you may check the following website for information purposes,

MLM Watch

[Vino Kid]

^^nice info messer

[Dorjan]

@messerchtmitt:

Yes, it is viable. I never said it isn't. Me, myself, is also doing a traditional business, but it is not really a company. And, I am telling this based on experience, making your own traditional business is not just hard but is really really hard. I would not want to go out of topic, but let me just summarize how hard it is. In the foodcourt we are in, in just 2 months time, I have seen 3 food business went down, all those people invested more than I did, they are also as old as my father. One of them invested almost thrice of my investment. My total investments would be around 150k. Another food business there went down on the 4th month. I am not against traditional business, or making your own good company because the dream of owning own company is always the ultimate purpose of starting a small business. But the statistics are really not that enxcouraging.


Number of Establishments
As of 2009 count, there are 780,437 business enterprises operating in the Philippines. Of these, 99.6% (777,357) are micro, small, and medium enterprises (MSMEs) and the remaining 0.4% (3,080) are large enterprises. Of the total number of MSMEs, 91.4% (710,822) are micro enterprises, 8.2% (63,529) are small enterprises, and 0.4% (3,006) are medium enterprises.

Source: Department of Trade and Industry - MICRO, SMALL AND MEDIUM ENTERPRISES (MSMES) - Statistics

To summarize, 99.6% are MSMEs and only 0.4% are large businesses. On that 99.6%, only 0.4% are medium businesses. 8.2% are small businesses. and 91.4% are micro businesses. Micro businesses are businesses that have less than P 1,500,001 of capital. It also shows that 99% of all businesses do not grow to the next level in 10 years time, no growth.

And, most business experts conform to a theory of "thirds": Of all the new business startups, 1/3 eventually turn a profit, 1/3 break even, and 1/3 never leave a negative earnings scenario. According to a study by the U.S. Small Business Association, only 2/3 of all small business startups survive the first two years and less than half make it to four years. With numbers like that, it's no wonder so many would-be entrepreneurs think twice before taking the plunge. Now, if that is America that considers a company with less than 250 employees as a small business, then what do you think is the situation here in the Philippines?

People, people, I am not discouraging you to do business. I am just saying that all businesses have high failure rates. And, network marketing is also a viable business and that network marketing has also high failure rates. But let me tell you straight in your face, it is because network marketing is the easiest way to enter into business. Tanan people mo try og network marketing. It is not for everyone, even if everyone maybe can afford it. Daghan ayu mo apil2X jud gihapon og mg tuga2X, this profession requires unique characteristics and skills. I am not telling anang skill na ilad2X ky mao mn na ang naka dogang jud sa failure rate diri na industry. This industry is about building a customer&distributor base of good people and good relationships jud.

In network marketing, I do not technically own the company. I am a partner of the company. A company which is regulated by a reputable organization which is recognized by the governments around the world - The Direct Selling Associations. We are partners: The companies provides the products and we provide the cashflow. The real network marketing companies depends on its network marketing distributors, more than you think,, it is like the company depending on their shareholders, we are the lifeblood. The company needs to be in harmony with the distributors to earn profits and to even exists.

My friend, a sari-sari store (buy and sell) is a business. Yes, we have downlines, downlines with their own sari-sari stores. Network marketing professionals are the educators, the advertisers, the distributors, ansd also part of the consumers of their own products. Yes it is abused, but the system really works; it is real, legal, effective, and efficient. Many systems are more abused and will be continually be abused, like corporate employment, and even religion, politics and government. Negativity is always part of the world, it is always the other side of the coin. So, when you see a coin, please REALLY look on both sides. Network marketing existed more than 60 years, it stays for a reason. Everything is magnified in a network marketing because most people still don't know how it really works. But don't worry DSAP and other groups are really working hard on that. 10 years in the future, the lines between legit network marketing companies and illegal schemes or scams will be much much clearer.

My friend, in the future, the fixed salaries of the employment structure is not that secured anymore. Nothing is secured, we are in the hard times my friend. The world is going to shift to performance-based compensations, please read my older posts. Even the janitor who is earning 10k a month right now. Will be decreased to 2k a month. and will have to earn the 8k by the results he provides. By being charge per room. Dili na pwesde tapol2X my friensd. Lay-offs left and right, companies closing, downsizing, rightsizing, cost-cutting, etc2X, that are common nowadays. Do you think that it will not lead to the most efficient way of distributing the company's resources? which is Performance-based compensations.

Let me end this nlng ky taas na ayu.... my friend.
Employees will always be a LIABILITY in the minds of the company owners. They will always find ways to cut your shares.
While we, the network marketing professionals, are an ASSET to the company owners. IF WE PROVE OUR WORTH, they will find ways to inxcrease our profit shares, for who would want to lose an Asset my friends?

By the way, I hate UNO, I won't defend that part of your post. hehehe.

I like Jack Canfield, I will read that soon. thanks.
I would also like to suggest that you read this book by Josiah Go, Network Marketing Distributor Business.
Josiah Go was the 2002 chairman of the DSAP. At age 28, he served as the youngest-ever national president of the Philippine Marketing Association in 1991. He is the first university professor to have initiated and taught a 3-unit full semester course on Network Marketing and Direct Selling in Asia (I regret to tell you, it is not about owning your own network marketing company my friend). He has lots of other achievements and international awards, and basta he is reliable and a person you can trust. hehe. And, he is a good Filipino. By the way, the net proceeds from the sales of all his books goes to his charitable projects through the Josiah Go Foundation, Inc. cheers!

[Dorjan]

I have not read all of these, you may check the following website for information purposes,

MLM Watch

You should have read it my friend. Kapoy balik2X og storya sa ako point gud.

By the way, thanks for the website my friend. But it saddens me (but at the same time it makes me laugh) to see this tagline of the website "The Skeptical Guide to Multilevel Marketing". hehe. I closed it immediately. What an accurate informations they may have got there, sayang. hehehe.

I would love to refer you to the other side of the coin:
Direct Selling Association | Ethics, Trust, Confidence.
Welcome to the Frontpage
Archives | Network Marketing Pro | Free MLM Training <--- one of the best collection of Network Marketing Videos

[Dorjan]

I would again say this, I am also against scams, pyramid schemes, illegal and all things unjust.
I am doing my network marketing business, as honest and professional as i can. And, I am happy to announce to you that we are slowly growing numbers. We are real network marketing professionals, we deserve the respect and objectivity from you people. I am not picking a fight, never. It is unethical, it is against my business philosophy and my way of life. Some of the non-networkers here are of the same level of the networkers they really hate so much, IMHO. Thank you.

[arthexcalibur]

maglagot kog networking kay mag post2x didto sa ******************** nga "work as an encoder and earn up to 15k!" and blah blah but then again, NETWORKING -.-

[firestarter]

1st & foremost bro, you make it look like na sayun ra ayu mo himo og company... hehe. another thing bro, if the network marketing is a very viable and sustainable business, nganu mn dili mi mo apil? i believe a true entrepreneur does not limit himself on the things that are popular, they are very open to ALL opportunities... they analyze... the network marketing system is already proven legal by the Federal Trade Commission of the USA since 1979.... if you have read the posts iv made.... i am saying, network marketing is the most efficient system in delivering goods and services and it is legal whether you like it or not.... i hope you have read my older posts para dili mg balik2X ako storya diri bro...

so im going to say bro, naa ka company? maka himo kaha ka og company? not to put you down, pero are you really sure that it is that easy as you make it sound? me, im not sure, i will try, but i have small business mn pd,, a small food business, and a small RTW store, bisan daghan ayu mi na learn jud, di pa gihapon angay ipang hambog... pero ako lang ipang hambog gamay rn ha, im 24 and my GF is 21, amoa na businesses tanan,,, i believe we are doing a really good job as small time businessmen jud,, pildi pa namo ang doble sa amo edad didto sa foodcourt,, but all im saying, twice amo investment sa foodbiz kysa sa networking,,, we would be happy if ma recover na namo within 1 year ang food business investments... while sa network marketing bro, we will be sad if ma recover namo amoa investments in 6 months...

yes, daghan unsuccessful sa networking, ky i believe (im sorry to say) di mn sila kamao pd... sayun ra ayu mo sulod sa networking, gamay ra investments, mao daghan na paso,, ky di sila ready.... sa traditional business,, kahibaw ba ka na less than 5% lang ang nag successful pd? so whats the real difference jud? im not putting down other forms of investments,,, i just see network marketing as just another investment of mine... and it is a very good investment... network marketing, i would have to say this a thousand times, is not for everyone jud,,, it is a business,,, and we know that business is not really for everyone jud.


by the way,., im not calling you a shithead or an asshole, i would hope you are not.
and to add, im a network marketing professional, i always try not to lie... lying in network marketing, i believe, will be very very bad for your network marketing business... bisan pa og mka instant kwarta ka.... real network marketing is really about building good relationships,,, it is for long-term jud dapat, we earn in repeat purchases, so who will continue to do business from a person na inana? again, i always try not to lie, not just as a business philosophy but also as a part of my way of my life,,, and im trying to go to heaven, by the way. but not too soon.


allow me again to advertise this collection of videos: Archives | Network Marketing Pro | Free MLM Training
it is for everyone. but esp. to all network marketers here. we are the change we seek, real change starts within.

Unsa diay MLM\Pyramiding network nimo bro, it looks like convinced lage kaayo ka sa ani nga scheme?

Bro, take note we are talking about Networking kanang recruit2x diri ha.

And yes bro, I have my own company (pangan gihuptan). Ganahan ka patudlo unsaon pagsugod? hehehe joke..peace.
And yeah it is as easy as it sounds, put down? why should I be?

Bitaw bro, just because nag post mi diri doesn't mean nga diri ra kutob ang amo know-how sa business.
And just because you talk too much doesn't mean you know as much. Try to focus on one topic lang bro, not so much to fill the whole page.

Bitaw bro, just to give you a heads up, it looks man gud nga wala pa kaayo ka kaila sa mga tawo diri.
Actually most of the members diri nga nagpost mga sueto na sa business, ug mga bangason ug banggi-itan ug nanggamot na when it comes to business.

They had their share of frustrations, failures and sucess. Most of them have experiences already on MLM, Pyramiding, Recruit2x, they had their share of business failures and success.

Kanang imong gi post nga 5% mo survive, ug kanang imong gi sulti nga walay empleyado nga mamilyonaryo, ug uban, investing, lifestyle sa milyonaryo, ang very very common topics nga ma discussan diri.

In short kasagaran diri naa nay experience sa business, ug naa pud kaugalingon "OPEN mindedness" aning MLM, Pyramiding, matrix2x, recruit2x, ilad2x, milyon2x, selling of false hopes. Dili lang gyud nila makita ang ilang kaugalingon nga moapil aning recruit2x.



-->> Daghan istorya daghan sayop. Less talk more on the topic. <<--

[Dorjan]

maglagot kog networking kay mag post2x didto sa ******************** nga "work as an encoder and earn up to 15k!" and blah blah but then again, NETWORKING -.-

I share the same sentiments. Pero walay maka lupig anang style na ilaron na adto sila laag, pero business presentation d i. Daghan ko gikalagot jud sa gi unsa ang networking, pero ang networking itself, has no problems.

I don't blame politics, I blame corrupt politicians. <-- my other way of saying.

[lodyl]

Paring Dorjan o, mao ni ang proof nga bisan ug ordinaryong empleyado kay ma milyonaryo gihapon... c/o Makie sa IMG nga thread.....

Part 3 of 3

The Power of Compounding Interest and Rule of 72



Interest is one of the secrets in making money grow. Compound interest is a concept wherein both the capital and interest grows making its growth rate faster compared to simple interest (wherein only the capital grows). Compound interest can work for your favor or against you. If it's applied on savings and investments, it's working on your favor but if its applied on debt, it's working against you.

The rule of 72 suggests how long will your money double in reference to the interest rate. The higher rate, the faster doubling of your money. The interest will simply be divided to 72 and that's the number of years for your money to double.

At 4%, 72 divided by 4 is 18 so that means your money will double every 18 years.
At 8%, 72 divided by 8 is 9 so your money will double every 9 years.
At 12%, 72 divided by 12 is 6 so your money doubles every 6 years.

If given the chance, people will invest at either 8%, 12%, or even any interest higher than that but because people are so cautious or simply lack the knowledge on where to find these interest rates, they settle for 4% or even lesser than that hampering the growth of their money.

Banks are into lending or they simply reinvest the depositors money so what normally happens is that the money that is being deposited at 4% is simply being lent at 12% or reinvested at a higher yielding interest rate. After 36 years, the depositors money is returned. The bank made the P100T grow to P6.4M after 36 years and gave the depositor only P400T (because that is the interest rate that they have agreed). Unfortunately, most people are contented with small interest rates because that's what they only know or they became too cautious.

Normally, banks only give 1% for savings accounts. A bulk of many people's money are in savings accounts. That means, it will take 72 years for their money to double its value.

Put your emergency fund in the bank for easy access.
Put your investments into something that yields higher interest rates such as mutual funds, stocks, bonds, balanced funds, UITFs, etc. for better growth.