29-08-2017, 12:20 PM
(29-08-2017, 03:13 AM)Value Explorer81 Wrote: [ -> ](28-08-2017, 11:24 PM)Boon Wrote: [ -> ]To CONvince or CONfuse?
Be CONvinced or CONfused?
Without a product, what do you sell? It has to be people focus…………….
People focus without a product is not sustainable for sure. This is pyramid scheme and it is illegal.
With a product, but without people, how do you sell?
To sell a product under DS model, you need to pay someone to do it.
How do you compensate a salesperson?
A) Single level commission (based on his own sales only)
B) Multi- level commission (based on his own sales + commission from his downline)
BOTH A & B could be sustainable business and people get "self-employed" making a decent living by promoting a product that works for them.
But in China, B is illegal, for ALL business model be it retail, online, DS etc - that’s the MAIN difference.
B is an act of 传销 under the Chinese law
Has BWI been granted a DS license to sell Drs Secret? NO !
From the videos, CGL/BWI had been engaging in DS without a DS license
From the videos, CGL had been receiving passive income under BWL, which is an act B above or
传销
Double violation of the Chinese laws.
Hi Boon, thank you for your reply.
Yes you are right: "BOTH A & B could be sustainable business and people get "self-employed" making a decent living by promoting a product that works for them."
And yes you are right that B is also illegal in China IF:
报酬计算上,直销以直销员个人销售业绩为计算报酬的依据,其他任何人的销售业绩都不与自己的报酬挂钩。传销以发展团队人员的数量或以团队人员的业绩,即以“个人发展人员数量+下线发展人员数量”或“个人销售业绩+下线销售业绩”为计算报酬的依据。传销常用的计酬方式有五级三阶制、双轨制、级差制+双轨制等。 直销中,支付直销员的报酬总额,不超过其直接向最终消费者销售产品的收入的30%。传销活动允诺的报酬绝大多数超过30%,有的根本不限制报酬。http://www.saic.gov.cn/hd/gzly/cjwt/zx/2...64066.html
You highlighted the earlier part of the paragraph but i think u missed out the 2nd half of the paragraph. According to Chinese regulators, commissions are to be kept under the 30%. Most pyramid schemes would not be able to operate if their commissions are capped at 30% and below.
I think both parts of the paragraph are not meant to be interpreted on an "either or" basis. Rather, it is likely both conditions needs to be met if a business is to be deemed as DS. I can see why Boon only highlighted the first part as the videos shared suggested at least some focus of the BWL employees is on building up a network effect reminiscent of MLM. Another video on the supposed first Star Diamond Ambassador from China suggests the same:
https://youtu.be/ZQZK4RaRmtE?t=496
On a personal note, the videos Boon posted were also rather cringeworthy as it reminded me of a short 3 month stinct (not something I am proud of mind you) that I had with an MLM company more than 16 years ago: the focus on "system" -notice how many times the "663 system" was mentioned whatever that is- and the glitzy settings for award ceremonies which tend to portray the top salesperson and often head of the largest network as "superstars", etc.
Anyway, just my 2 cts worth as I am not vested and have never invested in Best World before, probably a result of my brief and unpleasant experience dabbling in MLM.