FREQUENTLY ASKED QUESTIONS : 1. What is Network Marketing? Network Marketing is a legitimate distribution scheme, where products and services are offered directly to consumers from the manufacturers thru a pool or network of distributors. 2. Is Network Marketing a Scam? Network Marketing is a type of Direct Sales / Marketing, the concept and scheme itself is legitimate. What makes it controversial is the manner by which the term is being abused to conceal Chain Distribution and Pyramiding Scheme. 3. What is Pyramiding? Pyramiding is a non-sustainable business model that involves promising participants income primarily for enrolling other people into the scheme, rather than from any real sale of products or services to the public. Pyramid schemes are a form of fraud and are illegal in many Countries including the Philippines. (en.wikipedia.org/wiki/Pyramid_scheme) 4. How do I know if a Networking Company is Pyramiding? There is a very basic and simple parameters in gauging legitimacy of a Business Model used by a Networking Company ; - Is there a product with real market value and a compelling reason to buy? - Is commission paid on the sale of the product and not on recruitment of people? The DSAP and the DTI have formulated an 8 point rule on its ANTI-PYRAMIDING CAMPAIGN, to determine legitimacy of A NETWORK MARKETING operations. If the answers to those questions are yes, then you are assured the Business Model used in paying commission is Legal and Legitimate and conforms with the DSAP and DTI guidelines. 1. Is there a product? 2. Are commissions paid on sale of products and not on registration/entry fees? 3. Is the intent to sell a product not a position? 4. Is there no direct correlation between the number of recruits and compensation? 5. If recruitment were to be stopped today, will the participants still make money? 6. Is there a reasonable product return policy? 7. Do products have fair market value? 8. Is there a compelling reason to buy? 5. What is Binary? Binary is a Business Model designed to pay commission using the concept of building 2 sales team where commission is paid on predetermined bracket of volumes of the 2 sales group (balanced or 2/3rd type) 6. Is Binary Illegal? Binary is a legitimate business model for network marketing. Amidst controversies, Binary have remained the most popular commission pay plan in the local and international MLM market. Binary becomes illegal when it is used with deceit and manipulated to drive on income solely from recruitment without product movement 7. Is UNO using Binary? UNO uses HYBRID. A Hybrid is a business model that uses 2 or more commission schemes. UNO uses a combination of UNILEVEL and BINARY in its commission plan.
Posted on: Sun, 06 Jul 2014 00:31:50 +0000
Recently Viewed Topics
© 2015