04-08-2017, 09:57 PM
Taiwan Market:
Legal Entity:
BWI owns Best World Lifestyle (Taiwan) Co., Ltd in Taiwan –(a.k.a BWL Taiwan), the one and only one legal entity it has in Taiwan as at end of 2016.
FY2016 revenue :
~ SGD 123 million.
Business Model:
Export/DS with multi-level-compensation structure.
Export Model: From Singapore to Taiwan
BWI exports to BWL Taiwan
DS Model (with multi-level-compensation structure) in Taiwan
BWL Taiwan > IBOs > End consumers/members.
Distributorship agreement (DA):
ðSigned between IBOs and BWL Taiwan,
ðIncludes policies and procedures governing what the distributors can or cannot do etc.
ðIncludes ranking and ranking advancement criteria.
ðIncludes compensation plan (detail commission earn at each ranking, passive income from downlines, bonuses)
ðEtc.
Tracking and monitoring systems
ðEssentially, BWL Taiwan must have a ROBUST system to track (a) the ranking and advancement of its IBOs (b) to track every sale made © to track and compute all commissions derived from each sale and correctly allocate them to the right IBOs that are entitled to earn them, etc….
Payments /source of income / sustainability of passive income scheme:
ðIBOs get paid by BWL Taiwan - from sales generated by themselves and their downlines (passive income), as per the compensation plan.
ðPayments of commissions to the 6 Global top earners and all IBOs in FY2016 are paid out from the FY2016 revenue of SGD 123 million generated.
ðPassive income scheme works and made sense.
China Market for DRs Secret products:
Legal Entities
BWI owns BWL (Best World Lifestyle Pte. Ltd), in Singapore.
BWL owns BWZ (Best World (Zhejiang) Pharmaceutical Co., Ltd.) in China.
BWZ owns BWL/Shanghai (Best World Lifestyle (Shanghai) Co., Ltd, ) in China.
BWL/Shanghai and BWZ being the only two legal entities BWI has in China.
BWL/Shanghai has not commenced commercial operations).
BWZ distributes Aurigen lines of products (health dietary supplementary), it manufactured in its GMP certified China plant, through a distribution network comprising of 236 agents and drugstores throughout 31 provinces in the the PRC.
In 2016, a DS license has been awarded to BWZ to sell 6 Aurigen line of products in Hangzhou.
BWI/BWL/BWZ has no DS permit to sell DRs Secret in China yet.
Drs Secret product is not being distributed via BWZ's distribution network.
FY2016 Export revenue :
~ SGD 53 million.
Export revenue is recognized once goods are shipped.
Business Model:
Export/Retail
Export Model: From Singapore to China
BWI exports to Export Agent
Retail Model in China:
Export Agents > Outlets Owners > End consumers/members.
Wholesaler > Retailers > End consumers
The retail supply chain consists of manufacturers, wholesalers, retailers and the end consumer.
The retail transaction is at the end of the chain.
Contractual Agreement (CA):
ðSigned between BWI and Export Agent
ðTerms and condition => ???????????
ðNo contractual relationships between BWI and outlets owners.
Tracking and monitoring systems
ð?????????
ðtheoretically should only be able to track how much it has sold to the Export Agent and not further down the distribution channel
Achievements under the Export / Retail Model:
1) CGL, a China distributor who had worked with BWL China for 8 years before he passed away, is entitled to passive income from his downlines built-up over the years.
2) CGL is one of the Global Top 10 Earners (4 from China) with an FY2016 income of at least RMB 2. 0 million (~SGD 500,000)
3) New SDA – DMJ – also one of the Top 10 earners.
4) Many new PD, GD, SD, etc being "created"
5) CEO made representation that China distributors are entitled to passive incomes.
Questions:
1) Where is the source of income for CGL/DMJ for FY2016? From the FY2016 China Export revenue of SGD 53 million? Or from other sources?
2) How is their incomes being tracked and calculated?
3) Do they have a contractual relationship with BWI? If so, with which ENTITY?
4) What is the basis for awarding them such entitlements if they do not have a contractual relationship with BWI?
5) Does the passive income scheme work or make sense?
6) The list could go on...........................
Passive income scheme doesn't make sense.
Legal Entity:
BWI owns Best World Lifestyle (Taiwan) Co., Ltd in Taiwan –(a.k.a BWL Taiwan), the one and only one legal entity it has in Taiwan as at end of 2016.
FY2016 revenue :
~ SGD 123 million.
Business Model:
Export/DS with multi-level-compensation structure.
Export Model: From Singapore to Taiwan
BWI exports to BWL Taiwan
DS Model (with multi-level-compensation structure) in Taiwan
BWL Taiwan > IBOs > End consumers/members.
Distributorship agreement (DA):
ðSigned between IBOs and BWL Taiwan,
ðIncludes policies and procedures governing what the distributors can or cannot do etc.
ðIncludes ranking and ranking advancement criteria.
ðIncludes compensation plan (detail commission earn at each ranking, passive income from downlines, bonuses)
ðEtc.
Tracking and monitoring systems
ðEssentially, BWL Taiwan must have a ROBUST system to track (a) the ranking and advancement of its IBOs (b) to track every sale made © to track and compute all commissions derived from each sale and correctly allocate them to the right IBOs that are entitled to earn them, etc….
Payments /source of income / sustainability of passive income scheme:
ðIBOs get paid by BWL Taiwan - from sales generated by themselves and their downlines (passive income), as per the compensation plan.
ðPayments of commissions to the 6 Global top earners and all IBOs in FY2016 are paid out from the FY2016 revenue of SGD 123 million generated.
ðPassive income scheme works and made sense.
China Market for DRs Secret products:
Legal Entities
BWI owns BWL (Best World Lifestyle Pte. Ltd), in Singapore.
BWL owns BWZ (Best World (Zhejiang) Pharmaceutical Co., Ltd.) in China.
BWZ owns BWL/Shanghai (Best World Lifestyle (Shanghai) Co., Ltd, ) in China.
BWL/Shanghai and BWZ being the only two legal entities BWI has in China.
BWL/Shanghai has not commenced commercial operations).
BWZ distributes Aurigen lines of products (health dietary supplementary), it manufactured in its GMP certified China plant, through a distribution network comprising of 236 agents and drugstores throughout 31 provinces in the the PRC.
In 2016, a DS license has been awarded to BWZ to sell 6 Aurigen line of products in Hangzhou.
BWI/BWL/BWZ has no DS permit to sell DRs Secret in China yet.
Drs Secret product is not being distributed via BWZ's distribution network.
FY2016 Export revenue :
~ SGD 53 million.
Export revenue is recognized once goods are shipped.
Business Model:
Export/Retail
Export Model: From Singapore to China
BWI exports to Export Agent
Retail Model in China:
Export Agents > Outlets Owners > End consumers/members.
Wholesaler > Retailers > End consumers
The retail supply chain consists of manufacturers, wholesalers, retailers and the end consumer.
The retail transaction is at the end of the chain.
Contractual Agreement (CA):
ðSigned between BWI and Export Agent
ðTerms and condition => ???????????
ðNo contractual relationships between BWI and outlets owners.
Tracking and monitoring systems
ð?????????
ðtheoretically should only be able to track how much it has sold to the Export Agent and not further down the distribution channel
Achievements under the Export / Retail Model:
1) CGL, a China distributor who had worked with BWL China for 8 years before he passed away, is entitled to passive income from his downlines built-up over the years.
2) CGL is one of the Global Top 10 Earners (4 from China) with an FY2016 income of at least RMB 2. 0 million (~SGD 500,000)
3) New SDA – DMJ – also one of the Top 10 earners.
4) Many new PD, GD, SD, etc being "created"
5) CEO made representation that China distributors are entitled to passive incomes.
Questions:
1) Where is the source of income for CGL/DMJ for FY2016? From the FY2016 China Export revenue of SGD 53 million? Or from other sources?
2) How is their incomes being tracked and calculated?
3) Do they have a contractual relationship with BWI? If so, with which ENTITY?
4) What is the basis for awarding them such entitlements if they do not have a contractual relationship with BWI?
5) Does the passive income scheme work or make sense?
6) The list could go on...........................
Passive income scheme doesn't make sense.