From Strait times Forum
Dangers of multi-level marketing
I ma writing to raise awareness of teh recent rise of multi-level marketing firms that may engage in underhand or even illegal tactics.
Several weeks ago, I attended a seminar on multi-level marketing in Shenton Way. During the seminar, the audience, mostly teenagers, were subject to what could be tremed 'brainwashing'.
They were inundated with fantastic claims of paths to riches, using a gimmicky prsentation style which involved loud cheering and enthusiastic clapping from staff. At the end of the seminar, which focused almost exclusively on the cost of livingand how the company can help one achieve one's dreams of material well-being, I was left bewildered. Thre was absolutely no mention of teh product they were selling.
When I questioned this, I was told: "Does the product really matter? I could go on and on about the benefits of aromatheraphy, but what is important here is our marketing technique."
As it turned out, this marketing technique closely resembles pyramid selling. To join the scheme, you pay a fee to buy an aromatheraphy product. For each person you sell more products to, you receive a commission. And for each sale, the person who got you to join the scheme receives the same commission.
The chain continues ,with more people pulled into the scheme, and those on top getting rich quick.
What is suspicious is first, the focus is on the sales method rather than the product. Second, they seem too eager to impress the audience and the potential customers with flashy presenters and pushy marketing.
Third, the commission structure is strange, to say the least. The commission is the same for the person who sells the product, and the person above him in the chain. This means those higher in the chain can simply live off the fruits of others labour. It encourages continuous selling until there is no one left to sell to.
I hope to draw attention to such schemes as the amounts involved are not small and those who join later will definitely be left disappointed.
As such scheme proliferate, I hope the authorities can clarify what is legal and take action against any perpetrators who are engaged in illegal activities.
Leow Zi Xiang
Beware of hard-sell tactics
I refer to Mr Leow Zixiang's letter, 'Dangers of multi-level marketing' (ST, Dec 30).
I was recently persuaded by a friend to go for a talk about a "business plan". It turned out to be a talk by an MLM company. Like Mr Leow, I was told it was the 'business plan', and not the product, that was important.
I succumbed to the pressure from the sales representatives and paid $864 to start three accounts and to buy some aromatheraphy products.
I was taught the methods they use to get prospective members to join the scheme, which include:
a) Never telling the 'prospect' that it is an MLM scheme. Just say it is a business plan.
b) Not letting the 'prospect' go home and 'think about it', as he is likely to have second thoughts.
I felt cheated as these tactics were used on me and I was now expected to use them on others.
I demanded a full refund but was told this was possible only if someone else come and took over my account.
I wish to alert the public about such hard-sell techniques. I advise those who are easily persuaded to stand their ground and join only when they thoroughly understand what the company is offering.
Lim Jia Qing
One more victims of sales scheme
I refer to Mr Lim Jia Qing's letter , 'Beware of hard-sell tactics' (ST Jan 1). Like him, I paid $864 for three accounts and I am sure that we fell prey to the same multi-level marketing (MLM) firm.
In one meeting I had with its representatives, the firm arranged for three people to turn up, evidently to try to intimidate me. They were willing to drive me to the nearest ATM at 1 am to make sure I did not back out.
A week later, when I asked for my money back due to financial difficulties, they laughed and said the only way out was to get someone to take my account.
I have since realised I have been cheated. Can I lodge a police report about it?
The start up cost in this scheme is unreasonable for the amount of products paid for. The aromatheraphy products are also not described clearly in presentations and on the company's website.
I hope the Direct Selling Association of SIngapore and the authorities will act against this firm. I have gone for talks by other more reputable MLM companies and I ams sure the one Mr Lim and I have been pressured into joining can be deemed illegal.
Lastly, I would like to appeal to all to be wary of this company, which has an expensive-looking flash website and claims international links. In fact, all it does is to emphasise recruitment.
Lim Yan Ting (MS)
Cops to probe multi-level schemes.
We refer to the letters from Mr Leow Zi Xiang (ST, Dec 30), Mr Benjamin Tan, Mr Lim Jia Qing, Mr Tan Soon Meng, (ST Jan 1) and Ms Lim Yan Ting (ST, Jan 3).
The Multi-Level Marketing (MLM) and Pyramid Selling (Prohibition)Act prohibits multi-level business schemes, except for those which satisfy certain conditions. Information on the Act and Frequently-Asked Questions relating to MLM can be found on the Ministry of Trade and Industry' website (www.mti.gov.sg) under 'Legislation";
The Commercial Affairs Department (CAD) of the Singapore Police Force (SPF) investigates offences under the MLM legislation. We request Mr Leow, Mr Lim and Ms Lim to contact ASP Mohd Shahri on 6557-5458 so that the SPF can look into the matter.
ASP Chua Chee Wai
Assistant Director (MEdia Relations) (Covering)
Singapore Police Force
Lim Chuen Ni (MS)
Corporate Communication Manager
for Permanent Secretary
Ministry of Trade and Industry.
I ma writing to raise awareness of teh recent rise of multi-level marketing firms that may engage in underhand or even illegal tactics.
Several weeks ago, I attended a seminar on multi-level marketing in Shenton Way. During the seminar, the audience, mostly teenagers, were subject to what could be tremed 'brainwashing'.
They were inundated with fantastic claims of paths to riches, using a gimmicky prsentation style which involved loud cheering and enthusiastic clapping from staff. At the end of the seminar, which focused almost exclusively on the cost of livingand how the company can help one achieve one's dreams of material well-being, I was left bewildered. Thre was absolutely no mention of teh product they were selling.
When I questioned this, I was told: "Does the product really matter? I could go on and on about the benefits of aromatheraphy, but what is important here is our marketing technique."
As it turned out, this marketing technique closely resembles pyramid selling. To join the scheme, you pay a fee to buy an aromatheraphy product. For each person you sell more products to, you receive a commission. And for each sale, the person who got you to join the scheme receives the same commission.
The chain continues ,with more people pulled into the scheme, and those on top getting rich quick.
What is suspicious is first, the focus is on the sales method rather than the product. Second, they seem too eager to impress the audience and the potential customers with flashy presenters and pushy marketing.
Third, the commission structure is strange, to say the least. The commission is the same for the person who sells the product, and the person above him in the chain. This means those higher in the chain can simply live off the fruits of others labour. It encourages continuous selling until there is no one left to sell to.
I hope to draw attention to such schemes as the amounts involved are not small and those who join later will definitely be left disappointed.
As such scheme proliferate, I hope the authorities can clarify what is legal and take action against any perpetrators who are engaged in illegal activities.
Leow Zi Xiang
Beware of hard-sell tactics
I refer to Mr Leow Zixiang's letter, 'Dangers of multi-level marketing' (ST, Dec 30).
I was recently persuaded by a friend to go for a talk about a "business plan". It turned out to be a talk by an MLM company. Like Mr Leow, I was told it was the 'business plan', and not the product, that was important.
I succumbed to the pressure from the sales representatives and paid $864 to start three accounts and to buy some aromatheraphy products.
I was taught the methods they use to get prospective members to join the scheme, which include:
a) Never telling the 'prospect' that it is an MLM scheme. Just say it is a business plan.
b) Not letting the 'prospect' go home and 'think about it', as he is likely to have second thoughts.
I felt cheated as these tactics were used on me and I was now expected to use them on others.
I demanded a full refund but was told this was possible only if someone else come and took over my account.
I wish to alert the public about such hard-sell techniques. I advise those who are easily persuaded to stand their ground and join only when they thoroughly understand what the company is offering.
Lim Jia Qing
One more victims of sales scheme
I refer to Mr Lim Jia Qing's letter , 'Beware of hard-sell tactics' (ST Jan 1). Like him, I paid $864 for three accounts and I am sure that we fell prey to the same multi-level marketing (MLM) firm.
In one meeting I had with its representatives, the firm arranged for three people to turn up, evidently to try to intimidate me. They were willing to drive me to the nearest ATM at 1 am to make sure I did not back out.
A week later, when I asked for my money back due to financial difficulties, they laughed and said the only way out was to get someone to take my account.
I have since realised I have been cheated. Can I lodge a police report about it?
The start up cost in this scheme is unreasonable for the amount of products paid for. The aromatheraphy products are also not described clearly in presentations and on the company's website.
I hope the Direct Selling Association of SIngapore and the authorities will act against this firm. I have gone for talks by other more reputable MLM companies and I ams sure the one Mr Lim and I have been pressured into joining can be deemed illegal.
Lastly, I would like to appeal to all to be wary of this company, which has an expensive-looking flash website and claims international links. In fact, all it does is to emphasise recruitment.
Lim Yan Ting (MS)
Cops to probe multi-level schemes.
We refer to the letters from Mr Leow Zi Xiang (ST, Dec 30), Mr Benjamin Tan, Mr Lim Jia Qing, Mr Tan Soon Meng, (ST Jan 1) and Ms Lim Yan Ting (ST, Jan 3).
The Multi-Level Marketing (MLM) and Pyramid Selling (Prohibition)Act prohibits multi-level business schemes, except for those which satisfy certain conditions. Information on the Act and Frequently-Asked Questions relating to MLM can be found on the Ministry of Trade and Industry' website (www.mti.gov.sg) under 'Legislation";
The Commercial Affairs Department (CAD) of the Singapore Police Force (SPF) investigates offences under the MLM legislation. We request Mr Leow, Mr Lim and Ms Lim to contact ASP Mohd Shahri on 6557-5458 so that the SPF can look into the matter.
ASP Chua Chee Wai
Assistant Director (MEdia Relations) (Covering)
Singapore Police Force
Lim Chuen Ni (MS)
Corporate Communication Manager
for Permanent Secretary
Ministry of Trade and Industry.
posted by little cow @ 1:52 PM
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