Best World

[moneyspinner]

I am curious. How does so many DS companies manage to thrive in China having to comply with this  Single Level Commssion Rule?  Some made tonnes of money doing direct sales.  How do they do it?  Don't tell all of them are MLM sales and so are operating 'illegally' in China for so many years and yet  China hasn't stop them?  Why?  If so, why have the Single Commssion Rule and yet not enforcing it strictly?  Again, with MLM practices being so widely practised in China, is this now considered an accepted market practice despite having this rule?  Enforcement may only be done on a case by case basis when there are complaints or malpractices.

All in all, I have a feeling that operating in China is a big black box.  You can do anything so long so long as you don't get caught!

Try google/baidu “非法传销"。

Being investigated or reported as being investigated could sometimes be very damaging to share price and reputation which could in turn lead to lawsuits etc

As investors of BWI or for that matter any other DS company operating in China this is a risk which one has to recognise as otherwise the company just can't compete with their peers doing similar businesses in China. Regulatory risk is always the greatest risk facing DS companies operating anywhere in the world!

Definition: Regulatory risk is the risk of a change in regulations and law that might affect an industry or a business. Such changes in regulations can make significant changes in the framework of an industry, changes in cost-structure, etc

http://economictimes.indiatimes.com/defi...atory-risk
 
Rules across different country could be different (multi-level-compensation is legal in Taiwan but not in China).
 
Rules within a country is the same.
 
The regulatory rules in China are the same for ALL DS players in China.
 
If there is a change of rules in one country, it affects all players in that country – It is an even playing field.
 
Rules are set or change by regulators over which businesses have no control.
 
Gaining an unfair advantage by intentionally breaking the rules is called cheating………………
 
Some businesses resort to “cheating” in order to “survive”.
Some do it in order to make decent profit.
Some do it in order to make “LARGER profit”.
Some do it in order to make “ABNORMAL profit”
 
Where do you think BWI fits?
 
Does BWI have to do it?
 
Does BWI have a choice?
 
Your unfair advantage. (Or, cheating legally.)
by Kristin Swartzlander | Jul 10, 2014 | 
http://www.dirtymouthcommunications.com/...g-legally/
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Gaining an unfair advantage by intentionally breaking the rules is called cheating………………
 
“Concealing” or “disguising” such “illegal activities from investors/shareholders is called “misleading” – another form of “cheating”  - the Company is subject itself to being sued by its shareholders.

Is it worth doing it?
 

Aiyoh! If one has a vested interest in the company, would you sue the company when its intention is to try to beat the competition especially when the ground is uneven and everybody else is doing it?  By so doing you are actually shooting your self in the foot!