MLM Multi Level Marketing-1/3
May upset some of us who involve in MLM, but worth reading before stepping even deeper into….
These information are meant for you to know and warn your family members and loved ones before they become victims.
“People got victimised by scams because they don’t know about it and they don’t know about it because those who knew about it did not share it”
Here are some hot scams in Malaysia in brief.
1) The Cafe Scams – Island Red Cafe & Stevens Corner (strange, both in Pandan Indah) – Island Red Cafe collects members RM6,000 each and promised 5% return every month and even give you a name in the ROC as a shareholder but what’s the point when they run away ? Stevens Corner, the famous indian coffee shop follows due to drop of business since their renovation. They collect RM3,000 per member and promise return of RM150 monthly and plans to open nice fanchisee cafe called StevensTeaGarden. Someone mentioned they will make you sign an agreement that give them the rights NOT to pay you anything in future.. If you really wish to join, ask for a copy of their agreement and consult your lawyer BEFORE paying them. Bet you will NOT get a copy. Both collect monies from new members with MLM recruitment schemes and pay the old members like Sunshine Empire. You never know when they will run away.
2) Sunshine Empire – This licensed and legal Company has an impressive office at the ground level of KUB building along Jalan Yap Kwan Seng, near Menara Public Bank and AmBank Building . They also have a showroom office at the ground level in the next building. 2 or 3 months ago, Singapore ‘s Straits Times and The Paper published big news reminding their people to be careful and NOT to believe in them. Hope someone can put up the link or google for it. (As expected, they STOPPED paying back members now and all investors LOST their money).
Someone below has put a link to the Singapore news. In fact there are more to it. Although Singapore is investigating them, they did not stop their business as the business is legal and so far, no Singaporean have failed to receive their commissions as promised. Thus, the government cannot stop them yet.
The news published that the founder, director and group president is someone named James Phang but he is NOT the owner. Isn’t this quite strange ? At the end of the game, James Phang can just disappear from the Company easily and claimed that he was just “employed”.. Such trick always happened in scam businesses.
Now, the Company has STOPPED paying commissions and interests to members with the excuse that the Singapore government has freezed their bank account while under investigation. Do you think their boss will be so stupid to keep much monies in the bank to be freezed ? They are all transfered away. It’s just an excuses not to pay back to members and members are only paid “e-bonus-points” which is cashless. If they wish to convert to cash, they have to recruit new members to pay them cash and the recruiter less out trom the amount. So victims act like Vampires and “forced” to victimise other victims if they wish to get their monies back. And their victims will later transform to vampires and the scam carries on…..
3) MOBILE WALLET – This Company owned by 2 young men, Stanley & Rey Gan, office in Queens Avenue Park has collect multi-millions the last 2 years. Claimed that they tied up with Telekoms, Utility Board payment like Water & Electricity bills, even Maybank got fooled by them. Advertisement Billboards everywhere. They STOPPED paying back their members few months ago and the members cannot do anything because they are made to sign an agreement unaware that they have to claims if the
company stopped paying them by CHANGING terms and policies.
4) Water businesses – Oxygenated and alkaline water products – Some of these are bottled water and some are filters or equipment that claimed the trick.. One of the better known Company that sold “oxygen” water is SITO(supposed to stand for Selangor International Trading Organiszation and claimed Selangor State Government owned some share in it). The key person and founder is a Dato Robert Ong from Rawang but his name is no longer in the business now. Their products are sold for RM2 to RM3 for a 350ml bottle and now concentrating mostly in the Indian market. Their Chinese and Malays market are long gone since a year or 2 ago. Their customers are made to believe that their water has more oxygen and able to give miraculous effects for the body. Water is H2O, how to put more O into it ? Anyone knows how much oxygen do we breathe into our body everyday at FOC ? Latest news is that this SITO Company is going to create new label to market under a new Company since the SITO name has already gone bad. Someone informed that this Company is owing alot of money (due to refunds) to ex-stockists but just refuse to pay them.
(Latest news, SITO shifted to another place and their MLM business has closed but planning to start again with a different name, beware !!) Alkaline Products – Can anyone explain how it can work for the body ? The stomach’s gastric liquid is so acidic that water of any pH that goes through it will not make any difference.
5) Car Fuel Booster – K-Link, the famous scam MLM Company that sold the footpatch TAKARA, later the “cock-ring” and energy-card launched the patrol-saving pills last year. Got so hot that even grocery shops are selling for them. Recently many of these cars that used the pills are rushing to the workshops to clean the residual. Few months ago, another MLM Company launched a fuel booster gadget, claimed that saves up to 20% fuel, that is attached to the cigarette lighter. Started off well using binary plan but businese begin to fade now and most users find it NOT effective.
A business is called by the people a scam or a bad pyramid when it closes down and the partners loses or being cheated of some or all the monies they put in without reasonable cause or explanation, among other things.
Only at that time of the loss or deprivation could one define the business as a scam or a bad pyramid.
Before that happens a rational person would not call it a ‘bad’ pyramid or scam. The last situation “bad pyramid or scam” has not happened yet.
Which famous manufacturers, factories or MNC do not have a pyramidal organization structure?
So, there are good and bad pyramids.
When the partners or members earn money, they would not call the business a scam or pyramid. However, at the time of loss they blame everyone except themselves.
The Golden Rule:
Willing Buyer and Willing Seller.
Caveat emptor!
The main crux being if one is afraid of losses then stay put in employment. Don’t ever talk or discuss about business because it irks to talk things one does not know,understand and appreciate fully.
Business normally has certain risks. To invest or not is ones’ own judgement.
One can drag a bull to the water, but one cannot force it to mate.
The end results would show the good or the bad part of one’s judgements.
If the business turns out to be a profitable and not a scam, then one’s judgement must also have a name to be called, for example wrong judgement or something not so nice such as s**pid f*ol?
To call it a scam or something nasty before the actual happening is to project one’s wisdom and judgement unnecessarily.
Be rational, stay and watch the show if one does not want to participate. One would know whether one strikes a lottery.
A final word:
1) MLM is not for everybody or for one’s interest or having or not having interests. One must have the special skills, commitments and stamina to succeed. Interest is not the sole element.
2) One must have the capability to command a line-up to effect the best harvest for one’s own team.
3) It is not an employment or an ordinary 9 to 5?o clock job. If one can achieve this fast and the team earns money and profits, the fear of losses or risks do not exist anymore.
1Yeah.. i fully support what TiongHua has comment… as I was being stu*id last time.. cannot blame now, the best thing is to ‘bring eye to know people’
Though i had a bad experience, but i never give up myself and keep looking for good opportunity. As what i found one lately in Parttime.com.my
Cheers!
2For an insight into Island Red Cafe goto:
http://www.iota.org.hk/edu_public-b.htm
3If one is not stupid, then it could mean one is clever or what? Now being clever is not good enough:
1. One must be real clever. Do not be a false hero!
2. Do not jump from the frying pot into the fire.
Real clever can only be obtained thru many experiences and vast exposures.
One has to give up and chuck off any MLM type of things, if one really believes it is no good. Not to give up is foolhardy. If one does not give up, then it means to say MLM is still the best for him.
If one has a choice then choose a better choice. If one has no choice but only the MLM way, then it is real stupid to burn the MLM bridge by condemning it too much.
4I have been looking looking around for this kind of information. Will you post some more in future? I’ll be grateful if you will.
5Penang Tionghua,
Most of the advice you put up are being used exactly by all those SCAM Companies.
Have you ever thought why are such words used ? This is to confuse the prospects and actually challenged the prospects to join them. It doesn’t give any real advice to people.
The real advice should be if a business ask prospects into paying money for nothing of good value in return, it is a scam. If you are told to invest and work hard to make money and if you don’t make it and get to lose those money, it is a scam. Sure scammers will say every business has risk, but we are refering to MLM or pyramid systems now.
6Here is a good thread some good info and discussions;
http://forum.lowyat.net/topic/615194
http://forum.lowyat.net/index.php?showtopic=1254569&hl=
7Gold trade is good enough to earn but not for investor who invest in Tignet. They had taken my mom`s gold and refuse to give discount and gold even after one month of the date suppose to delivery of gold.
There is discount of 3 percent every month once the gold is renew. The minimum purchase is 100g and we had bought 350g. Very obvious scam happen that they do not give out discount and gold which we had bought it.Please advice on how should we do?
My contact 0173100861. Thanks.
8Valuable info. Lucky me I found your site by accident, I bookmarked it.
9I like reading and I believe this website got some genuinely useful stuff on it! .
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