MLM in the Philippines
MLM stands for Multi-Level Marketing. In the Philippines, this is also called Networking or Network Marketing. This is a business model that allows you to earn commissions from people who join your business network. There are various styles of it. One popular type of MLM is the Binary System. In a Binary MLM system, a person can get commissions on each pair of people that has joined his/her network. There is a left and right group. Each left-right combination is one pair. One pair gets you commissions.
Say whay you want to say about MLM but it is really a PROVEN business model. Someone once told me that MLM is being studied in the various Manila
Business Schools. I once met a lady who actually made a thesis about
it. They analyzed how it actually provides REAL opportunities for ordinary people to become wealthy. We really can't deny the fact that people HAVE BECOME RICH through MLM. Their testimonials, cheques, and toys (like new cars) provide enough evidence of the effectiveness of MLM.
People, however, are still afraid that this is like a Pyramiding Scheme, where people at the very top of the Pyramid earn the most money. Those into it will vehemently deny it. They explain that some MLMs are designed in such a way that people below the network can earn more than those at the top. Give them your ear and they would provide more info on the intricacies of MLM.
I do believe, however, that there is still some hint of truth that those at the top of the MLM registrations generally get wealthier.
There are some really annoying things about MLM. One of the basic teachings when you become a member is to invite people, but don't tell them details of the invitation. This has gone to a point where some MLM members LIE outright to other people, just to get them to come to an orientation/presentation. A friend tells me how some of his buddies were told to go to a wedding, only to discover it was a MLM orientation instead.
If you are aware of such methods, you already know when people invite you to an MLM orientation. When somebody tells you, "Hey, I've got a business opportunity you might be interested in..." but don't tell you any details, that's definitely a MLM invite. Be prepared to say NO if you really don't want to go.
The 'deceptive' way some members approach their potential clients has given Multi Level Marketing a very bad rap. Why couldn't they just tell you honestly, "Hey this is MLM but still, hear me out.." I still think honesty works. The old 'secretive' style doesn't really work for Pinoys anymore.
Talking about this, there is a another NEW MLM in town. They are currently based in Ortigas, Pasig City. They just launched this March.. As of last tuesday, April 25, I was informed that there were less than 500 members registered.
Talk about opportunities! For the MLM enthusiasts out there. You might want to get into this boat. Watch out for it.
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April 1st, 2007 - 15:02
Bah. 90% of the filipinos doing MLM are also doing MLM spam .. I’m from India, certainly not going to participate in local MLM scams let alone Filipino MLM scams, I still get at least a dozen of these scam emails a week from various Filipino overactive marketers.
The solution for MLM is simple – if someone comes to you with a MLM pitch kick him out. Immediately. Dont buy anything at all that is sold with MLM, buy some other product, it’ll be cheaper and of better quality.
October 10th, 2007 - 05:57
“Say whay you want to say about MLM but it is really a PROVEN business model. Someone once told me that MLM is being studied in the various Manila
Business Schools.”
I’m a commerce major in De LaSalle Taft. I think MLM sales people tend to exaggerate the fact that MLM is mentioned a few times in certain classes and make it sound that the academia are dedicating a whole chuck of time on it. The fact you mentioned “Someone once told me” shows that there is a lot of hersay going on about the greatness of MLM.
It is true, we do discuss MLM in our classes but we don’t necessarily sing praises about it.
December 4th, 2007 - 07:44
I agree with Nordic. I’m also a business major in Ateneo and the claims of those in the MLM industry is greatly exaggerated. As far as I know, I don’t think there are courses in Ateneo that deal exclusively on network marketing.
December 17th, 2007 - 20:21
Just reading this guys with interest – more about the concept than anything else – so you guys did business majors – are you rich now?
Or did you learn how to learn? (Rather than to earn?). Every mother and his dog has done a business major – including me – don’t tell me that – tell me what you’ve achieved in the business world.
March 11th, 2008 - 08:52
To you Indian and other foreigner, if you have nothing good to say, park your mouth….Do what you’re best at where you are……….In the first place what brought you to this site?
April 21st, 2008 - 15:02
hi!
this post may get different types of reactions regarding multi level marketing. in college my boyfriend was recruited by this company (which i will no longer mention, since its already closed after 2 years of operation) he paid almost 10 gran for membership and was not able to get it back. since then, i swore not to even hear about networking! i never thought i would end up working for one though! i am currently connected with HDI NETWORK PHILS INC. (formerly HIGH-DESERT PHILIPPINES) we are an MLM company. i am not discouraging or encouraging everyone to join. i would just like to point out that there is a company that is not after the distributor’s money. HDI Network has never been involved with scams of any sort. the products really does make a difference! to the point that even US Presidents Bush, Sr., Bill Clinton, Reagan used our products. even Sr. Senator Tom Harkin was amazed with the product, that he financed the study for Alternative Medicine at the National Institute of Health. (you may do your research on this) you see, our products originated from the US this is why they have access to it. Lydia de Vega and Alvin Patrimonio used our products long ago, when they were in the height of their careers. we are very proud of our products, because it does do wonders especially to those who cannot afford to bring their loved ones to the hospital. the business side is just an addition on top of the benefits they get from our supplements. the reason why i am posting my comment here is because i would like to invite you to check us out. i am not asking you to sign up, all i am asking is for you to see that not all MLMers are scammers. we are launching our Business Club, and yes, we claim that this is the best MLM opportunity that you can venture into. i was once a victim of pyramiding, and i shall never stay and be with this company had it been a scam. i am asking you to check us out, you may call or visit our branch at 3f unit 302, Jollibee Plaza Bldg, Emerald Ave., Ortigas Center, Pasig City. 6352431 or 33. i also encourage you to check out our website.
July 9th, 2008 - 00:55
“Just reading this guys with interest – more about the concept than anything else – so you guys did business majors – are you rich now?”
I think before you question their credentials – tell me how much are YOU earning? How much have YOU archived in the business world?
I doubt you have the right to ask those questions unless you show us your credentials. In fact ,you sound like a very defensive “Network marketer.”
July 11th, 2008 - 04:03
@sam
And what gives YOU the right to tell them this? If you look at many of the business, economic, social and political leaders of this nation you will see that these people are graduates of top universities such as Ateneo and DLSU. Now – YOU tell me of a Network Marketer who has become a leader in ANY of these fields?
Old rich such as Henry Sy may have started from no education but why does he send his children to study in top universities here and abroad to take over his businesses empire and not into MLM? There must be a reason.
August 15th, 2008 - 09:07
1 thing for sure: to those who don’t know exactly about or failed in MLM they MUST be always talking about the badside of MLM! I used to be 1 of them :-) but after starting my 1st SERIOUSLY MLM in SMARTNACO 1 year ago, NOW 1 thing always kept in my mind is POSSITIVE THINKING and POSSITIVE FEELING! Life is hard. Some MLM do scam but not all!
You’ll feel a great “soul” satisfaction when you can help others reach their dreams both HEALTH n WEALTH!
“GREAT people talk about ideas; average people talk about things; small people talk about other people”.
Mariabun@live.com smartnaco philippines, pasig city,manila.
August 26th, 2008 - 02:11
I see there’s a lot of heated debate about MLM/network marketing in here so I just want to clear a few things up, offer my advice and answer any questions I can.
Network marketing is a proven business model and very effective at distributing products (obviously otherwise companies would not use that method); however, as many people have correctly noted, most network marketing companies basically set people up to fail which is why the industry has such a negative perception amongst many people.
I am a network marketer and most of the people, in my opinion, who fail do so not because of their own lack of ability, nor of their company’s, but as a result of poor, little or even no training and guidance.
Some of you have drawn a parallel between network marketing and a regular career. This is a professional career in my opinion, and like any other career there should be training involved.
As for the comment about people inviting you to a wedding and then taking you to a network marketing presentation, they are obviously not professionals and when you see that these people are often not doing well, that is not a result of the network marketing model, rather it is a reflection of the poor marketing strategies they use.
A word of advice, for those of you attempting to take people to a presentation, make your people fully aware of what it will be. Offer network marketing to those who want a home based business! You wouldn’t try to sell somebody a hat if he/she wants a pair of shoes instead so why treat this differently!?
I represent a network marketing company (rated number 1 ten years in a row) and my team and I will be expanding into the Philippines later this year. We are looking for a few key leaders in the Philippines to help us expand into that market. I am only interested in working with highly motivated people!
For those of you who know about network marketing, going into another country is absolutely huge and offers a truly life changing opportunity.
If anyone would like to learn about this lucrative opportunity, or to get any guidance related to my company or even your own network marketing ventrures, or even just to ask any questions about network marketing in general, I would be happy to hear from you.
Contact: kaysomji[@ ]gmail.com
Thanks
September 19th, 2008 - 17:38
Hi SmartNaco Member (Mariabun?)
I am interested with your product and the company’s business opportunity. Where is your website here in the Phils? Whenever I tried to surf the net, I always see SmartNaco Indonesia or Malaysia. Please tell me more about this company. Thank you very much.
ollymontarde@yahoo.com
0920 9614865
October 13th, 2008 - 18:50
mabuhay! great morning to all you guys. well as what i have read with those amazing, overwhelming, exaggerating etc!..comment regarding mlm let me add a little different point of view. For me its a matter of choice & this choice belongs to the chooser if you feel good at it go for it but if you feel bad then look for another field that best fits you. for me in this world there is no more security but there so many opportunity & it dependents to that person on how he/she seize up that opportunity. i do believe a very successful person looks, feel, think positevily in every way. a piece of advice as long as the opportunity is moral, legal, ethical go for it you cant go wrong.
peace be with you & God bless
November 27th, 2008 - 11:56
for me there is nothing wrong in mlm. if you did not succeed in this kind of business you cannot blame the mlm company. you yourself should be blame of, like in school if you cannot graduate you cannot blame the capacity of the school. there are mlm that are legals not all are illigals.
March 28th, 2009 - 10:47
hi every one
going through all the comments.
iam sure you all wil agree with me that internet has affected every aspect of our lives and transformed entire industries. means any business including MLM also. i would like to share with all of you about new new revolution in internet communication technology products. with this technology any present business can be promoted thrugh mass video mail right from desk top. many feature like videomail, video conference, video webcast right from desk top more over have very high global potential. to get demo videomail mail to>> nirmal.mvt3@gmail.com
skype- nirmal.singh6
YM- ask_2unique9
May 22nd, 2009 - 15:23
It seems we all familiar with MLM terms and I know too everyone in this blog are professionals to dealt with this kind of business and oppurtunity as they called. All ideas are good no doubt about it its personal perspective and choice. If anyone heard about AIM Global with “Alive” products called in the market some product in lines. I wish that this company will alleviate the moral concerns of the network market which has been destroyed by those scammers alone. With 84% returnable value of the payment invest plus a transferable scholarship of any course, plus a free one time medical checkup I think your money are worth to value with. if anyone never heard of it let me know. Here’s my contact email me at jzaire2@yahoo.com.ph or text me at 09272217003.
Thanks and God Bless to everyone..
June 2nd, 2009 - 21:52
well guys gudmorning. i think this there is no more debate about MLM nowadays.because of the Co.First Vita Plus. if you want some details Email me at alonapangan_27@yahoo.com or call me at 09287915321.common guys lets out from our shells.this is a new opportunity for all Filipinos.kung and saudi may langis at japan may electronics ang Pilipinas ngayon ay may VITA PLUS.and this amazing.GLobally n tayo. See you guys.thn ang God Bless us.
June 11th, 2009 - 10:19
galing ng sales pitch nyo Alona. How’s your business now?
July 1st, 2009 - 18:05
ehem well thanks ntawa namn ako sa comment mo sannie. well its getting better right now kala ko at first mahirap magmarket.pero pagmaganda pala ang product uulit ang tao.minsaN mo lang pwede lokohin ang tao but not twice. kaya kayong mga mhilig mgbusiness dyan tyr our own.and i tell you guys it really works.una lang yan sa FIRST VITA PLUS.CALL ME.sa oOrtigas lang yan. Thanks.
July 1st, 2009 - 18:09
ehem well thanks ntawa namn ako sa comment mo sannie. well its getting better right now kala ko at first mahirap magmarket.pero pagmaganda pala ang product uulit ang tao.minsaN mo lang pwede lokohin ang tao but not twice. kaya kayong mga mhilig mgbusiness dyan tyr our own.and i tell you guys it really works.una lang yan sa FIRST VITA PLUS.CALL ME.@ 09287915321.sa Ortigas lang yan. Thanks.
July 4th, 2009 - 11:30
mlm is a great industry to be involve in and has an educational system that you could learn for free depending on your business group. If you are in the industry you should be bold enough to let people know that you are involved in it nothing to be shame in it. to invite them tell them that it is a networking business opportunity. and be ready to share what you have learn about network marketing. many still don’t know what is MLM.
July 7th, 2009 - 10:24
hi alona.
my friend once told me his mother joind vita plus mlm (im thiking its the same company u r refering to). he told me this becos i was asking his opinion on mlm since i am planning to join one company.he told me not to join coz of scams but in the end he told me that his mother earned 70k in 10 months, for me there is nothing wrong with wat his mother achieved, his mother bot d product for 7k(i mean the starting money every person in mlm gives to the company)well wats the deal his mother’s 7k became 70k?wats wrong? its just so sad for him he whines that his mother got scamed,duh
well im joining a company located at tomas morato,
if anyone is interested email me at putzi019@yahoo.com
MABUHAY!
July 15th, 2009 - 16:10
MLM is a great kind of business opportunity, but before joining at any of it be sure to consider some factors how the proposition would be, in yourself and to the others as well. This was my reference key before i join to AIM Global Phils.
1.) Determined the four way test.
2.) The amount you invest should return a 72% either in the form of products or services.
3.)Competitive market of the product (since most of the MLM deals with supplement products, does retail price suited right to its content?)
4.)Company profile and Market Plan proposition.
5.)Consider your upline profile. How should he/she help.
There’s many ways you should ask before joining one, just to make sure everything is in proper place. If theres one i could offer such good MLM try to visit http://www.natureswayph.com or http://www.aimglobalinc.com. :)
July 15th, 2009 - 16:26
Sheesh, I’m getting bored with your MLM ads people.
July 17th, 2009 - 06:34
I used to be very anti-MLM… but I have gotten involved with a couple in the last few months to take advantage of their great products. It is a known fact that the highest quality products are often marketed through networking. As I told others about how much I liked the products, I began building a network almost on accident. I now have 2 networks with over 300 people. I have an excellent job as a doctor and don’t need the extra income, but I am making more each month from networking than most people make in a year.
MLM can be very effective!
July 28th, 2009 - 13:51
hi dodie, i think it is the same company.why dont you try the product first..
then do a research about this co.if you have doubt. and how come people earn 70k for the initial investment of 7k.if you want to0, attent sminar located at metrowalk ortigas.bakit d natin sumubuk ng iba wala naman mawa2la db.ok thanks SEE you.
July 28th, 2009 - 13:52
hi dodie, i think it is the same company.why dont you try the product first..
then do a research about this co.if you have doubt. and how come people earn 70k for the initial investment of 7k.if you want to0, attent sminar located at metrowalk ortigas.bakit d tayo sumubuk ng iba wala naman mawa2la db.ok thanks SEE you.
July 28th, 2009 - 13:59
want more details email me @ alonapangan_27@yahoo.com
nothing is impossible to those who have great Faith, who is very indutrious,and and have knowledge.
knowledge is POWER……………………………..
August 17th, 2009 - 13:03
people doesn’t really know the real essence of MLM.. some are just joining its because of the group bonding, some are because they assume that they’re up line would make them rich, some are because of the compensation plans, some are just really trying but doing nothing… in a networking industry, u must have to pay attention on your network as u started even though that u r not in a networking company but u r still living in a networking world, whether u like it or not, all u need to do is to accept the reality of life… anyways… for those people who can’t wait to earn the said amount target by every individual in an MLM companies.. all u need to do is QUIT, u know y? ‘coz u r so uneducated even though that u r a masteral or what ever… all u need to do is to understand the system… dont make ur own system.. u wer guided by the system… the company doesn’t care of u if u success or if u fail… as u entered the MLM industry… that is ur own on how will get rich with ur own way but guided by the system… all i can say as of now for those not really a network marketer but a notwork marketer..
January 17th, 2010 - 20:56
There is nothing wrong with network marketing. The problem is how the networkers are doing the marketing.
Most are told that there is no selling involved; it’s just ’sharing.’ That’s why they don’t know how to sell or market. Just look at all the ads here. It’s a complete turn-off.
There’s a right time and place to provide details about your opportunity.
January 28th, 2010 - 22:55
NETWORKING: BUILD OR BAN THE BINARIES?
By: Prof. Josiah Go
Note: The author is chairman of the Direct Selling Association of the Philippines and is the first professorial lecturer on network marketing in the Philippines and in Asia. He is recipient of The Outstanding Young Men (TOYM) award in 2001 for business education.
What is a Binary Plan?
A binary plan is a network or multilevel marketing compensation plan, which allows distributors to have only two direct or first-level distributors. Any additional distributors sponsored have a “spillover” effect, meaning; they are placed at levels below the sponsoring distributors’ first-level.
What is the Problem with Binary Plans?
Legitimate network/multilevel marketing companies have been grouped together with the bad eggs of the industry. The worst scenario in the late 1990s was the realization that China banned all direct selling or network marketing operations because of the presence of many unscrupulous individuals and companies that gypped consumers of their money into investing in pyramiding operations. Government of other countries have also been more vigilant in protecting consumer interest.
Since binary plans are quite new and do not have any precedent in the Philippines, a look at the abuses of binary plans in the United States reveals potential huge penalties not only to the companies operating binary schemes wrongly but also to the independent distributors promoting them,
The legal principles governing the network marketing industry have not been adhered to in many binary plans, leading to the belief that they are pyramiding schemes. These includes:
a. Emphasis on recruitment
Companies paying its distributors based on the recruitment of other distributors rather than for legitimate sales to end consumers are guilty of pyramiding. In this day and age, no company in their right mind would of course expose themselves to outright pyramiding. Most would sell some products or services to hide the scam but their products or services have no real world value and/or are overpriced such that only those interested to participate in the compensation will buy these products just to comply with their company’s requirements.
A good test is to ask, “Is there a direct one-to-one correlation between recruiting and distributors’ commissions?” If the answer is yes, it is a pyramiding case. An investigation of the many binary plans reveal that many companies classify the enrollment of a business centers as a sale, hence the problem.
Another good test is to ask is “If recruitment were to be stopped today, will distributors still make money?” if the answer is no, isn’t the principal source of commissions coming from recruiting and not from retail sales? hence, a pyramiding.
A 3rd test is to ask is “Will people buy without joining the compensation plans?” If the answer is no, the products being sold have no real world value and/or is overpriced, hence, a pyramiding. If a product is priced so high that no reasonable person would buy it, it is obvious that the main motivation for distributors to buy the product is to join in the company’s compensation plan, a pyramiding scam (profiting from recruiting) disguising as a legitimate network marketing operation. b. Buying of multiple business centers
When a distributor enrolls, he is automatically assigned his first business center or a position within his own personal sales organization (PSO). To maximize earnings, the distributor are then strongly encouraged to purchase additional business centers and place as much as seven business centers at strategic locations within his PSO with each business center costing a few thousand pesos each for a total of a few hundred thousand pesos. Each of these business centers must independently meet their two recruits requirements with their corresponding purchase. However, the probability that a distributor will be able to use or resell these inventories is dubious.
Three important questions must be asked as far as purchasing multiple business centers are concerned:
1. Isn’t the intent to sell “positions” more than to sell products to end consumers?
2. Isn’t there existence of significant investment and inventory loading?
3. Isn’t the focus to gain from recruiting rather than sale of products since upline distributors get commissions on the purchase of these business centers?
c. Unregistered Investment
The Securities and Exchange Commission (SEC) regulates selling of investment instruments. The relatively big amount of investment required for buying multiple business centers may constitute selling an unregistered investment contract, a serious offense where both criminal and civil penalties can be imposed to the offender. Since binary plans are known for their “spillover” effect, the distributor-investor is led to anticipate profits primarily from the efforts of the others, constituting a passive investment.
The above are some of the more obvious violations of binary plans. Unfortunately, when pride and emotions get in the way, logic is seldom followed and the companies, as well as the plan originator, defend their defective binary plans instead of listening to potential remedies.
March 1st, 2010 - 00:45
You people are giving your best and worst ideas. You, who are negatively commenting about networking, maybe victims of your own short minded belief. Wherever you are and whatever you do, you cannot gain success if you don’t work on it. Work for it first…