01-06-2014, 09:07 PM
(01-06-2014, 06:53 PM)greengiraffe Wrote: I have odd lots vested with Best World. Honestly, I am not impressed with the business model.
I think there is a rationale in paying high comm - probably coincided with Best World's glory days of high turnover growth and net profits. Back then, it was one of the darling stock backed by the then combination of 2G - Tommie Goh and Gay Chee Chong. Note here that I have never performed any correlation testing on your observations.
As for Sam Goi, he is the man with the midas touch in this bull market cycle so never under-estimate his ability.
The China acquisitions should be interesting but all that really matters is if anyone truly believe in MLM and again China...
GG
(01-06-2014, 05:37 PM)franko.yank Wrote: My auntie use to work as a part time downline in their MLM many years ago. I think they were really overpaying their sales staff as she admit she is just "average" performance was getting 5k+ in commission every month, much better than her 8-5 job as accountant.
During 2008, they restructure and change the sales scheme so now the payout not worth the effort according to her.
All MLM companies are Direct Sales companies.
MLM companies are a subset of Direct Sales companies.
Direct Sales companies are companies selling directly to the public without a retailer/store being involved.
MLM companies are Direct Sales companies with sponsored networks of agents and commissions divided between them according to who sponsored whom.
Direct Sales is legal in China but MLM is not. In China, the law allows only one level of commission being payout – and not multi-levels as in a pyramid scheme or MLM.
The business model of the newly acquired subsidiary, BWZ is not a Direct Sales model – it is a Manufacturer/Wholesale model.
Impressed or not impressed with the business model, the fact is Direct Selling is a multi-billion business/industry in China - it is easily scalable - and BWI has been trying very hard to obtain a Direct Selling license in this huge market.
(Vested)
Research, research and research - Please do your own due diligence (DYODD) before you invest - Any reliance on my analysis is SOLELY at your own risk.