QUOTE(lurkingaround @ Dec 15 2019, 07:57 AM)
Amway, Shaklee, Cosway, Usana
and other Direct-Selling companies are marketing schemes/scams selling hyped-up products at twice or more the normal retail price.
Eg Vitamin supplement selling for RM50 a bottle/30 pills at Guardian/Watson, the DS companies sell the same for RM100 a bottle/30 pills by hyping or falsely claiming extra health ingredients, benefits and blah blah blah.
The extra RM50 profits(= RM100 - RM50) is used to pay commissions to downline and upline recruiters/direct-sellers, up to 3 or 4 levels of recruitment and for the coffers of the DS companies.
1 top person or upline direct-seller recruits 3 Level 1 downline direct-sellers,
the 3 Level 1 downline direct-sellers in turn recruit 9 Level 2 downline direct-sellers,
ie 1 person recruits 3 other persons,
the 9 Level 2 downline direct-sellers recruit 27 Level 3 downline direct-sellers,
the 27 Level 3 downline direct-sellers recruit 81 Level 4 downline direct-sellers.
.......
1 recruits 3, 3 recruit 9, 9 recruit 27, 27 recruit 81 =
a pyramid.
Direct-selling is a limited pyramid scheme = limited to a few levels of recruitment.
Ponzi schemes and MLM scams are unlimited pyramid schemes that eventually runs out of new recruits after a few years.
Hence, the need for the masterminds to later repackage MLM scams in another form, in order to evade early detection or rahsia bocor.
DS and MLM money scams mimic normal retail businesses and financial investments except for the requirement to recruit new members for profits or commissions.
.
1 Level 4 downline direct-seller sells 1 bottle of the RM100 Vitamin supplement and
gets about 15% commission or RM15.
1 of the 27 Level 3 d-s who recruited the above Level 4 d-s and gets about 10% commission or RM10 from the above sale.
1 of the 9 Level 2 d-s who recruited the above direct-sellers and gets about 7% commission or RM7 from the above sale.
1 of the 3 Level 1 d-s and gets about 5% commission or RM5 from the above sale.
The 1 top upline d-s and gets about 3% commission or RM3 from the above sale.
Total payout in commissions by the DS company to the top upline and Level 1 to 4
direct-sellers is RM40 (= RM15 + 10 + 7 + 5 + 3)
=
company pockets RM10 out of the extra RM50 profit from the above sale of the RM100 Vitamin supplement.
If all 81 of the Level 4 downline direct-sellers each sold 1 bottle of the RM100 Vitamin supplement,
the top upline direct-seller gets RM243 commissions/income
(= 81 X RM3 from every sale) from his/her simple recruitment effort.
If all the 81 Level 4 d-s each sold RM1k of stuffs per month, the top upline d-s gets RM2,430 commissions/income per month
(= 81 X RM30 or 3% of RM1k).
....... If the 27 Level 3, 9 Level 2 and 3 Level 1 d-s also sells RM1k of stuffs per month,
the top upline d-s also gets about RM2,000 more per month.
That is how top upline direct-sellers can earn RM 5-figures per month and show off their Mercedes and bungalows to tempt and recruit new members.
Oct 18 2020, 10:08 PM

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