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Currently there are 2 type of MLM.

Amway, Cosway is also MLM similar type of company, but they actually do sales and product sales did actually generate profit that enable to sustain the 'pyramid scheme' of their commission structure. (We take aside whether their product is overly price and pyramid structure of their commission). This kind of MLM business is sustainable because income for their member is through product profit.
This kind of structure is not against the law and perfectly legal and perfectly ok in business world.

The other one is more on recruitment based, which basically take the late comer joining fee to feed the early bird, this pyramid structure can be sustained for sometimes as later comers keep on joining non-stop and become more and more. But we know, this cannot last forever, once there is not enough late comers joining, the whole structure will collapse as the source of income is the late comers joining fee only. This kind of structure is totally against the law. Previously a lot of pyramid scheme is run based on this structure but had been cracked down by the authorities.

So this kind of company become more clever become a variant that use some products just to make it legal, but the actual company objective is not meant for the product sales, only concentrate on recruitment of late comers. The main income of the company is not the product profit but joining fee so it is not sustainable. This kind of company, any country authorities will find very hard to charge them as they can claim they are doing product sales when come to law on paper but actually they didn't care about the product sales at all. Get it? But we are know it is a ponzi money game.

This are some distinct different between the 2 as mentioned:
The pyramid structured based on recruitment generally will offer their 'investors' a fixed payback/bonus on a period of time so that it looks lucrative and can easily lure people into the recruit.

This post has been edited by cherroy: Oct 25 2007, 05:20 PM

In the real world, there is no such thing is guaranteed return except may be FD and bonds that's why their return rate is low (still you have the chance of banks default).

Even Warrent Buffett or Coco-Cola, or McDonalds or whatever profit making company also not date to guarantee they will make x% profit each year although they are pretty sure they are going to earn that much.

The bottom line and main question to be asked:

1. How company generate enough profit to provide return to their 'investors'?

2. Since it is not an investment company, so the company must be doing some business to generate profit that eventually give it as a return to their investors
Then, what are the company selling since it is not an investment company? <-- this is key.

Until now, a lot of people struggling to know what is the company business? what are they selling? Can't find in their website or information regarding it.
Anybody knows?

The overrated or overpriced product is the company profit that make it sustainable and survive which is also make it legal and not against the law. Morale and business ethnic is another issue.
After all, what is matter is the company profit and cash flow through the product/service selling.

If based on recuritment/joining then it is purely a money game, or Ponzi game as descirbed by others.

Kind to elaborate what is 'point' mentioned, can't find any explaination or details about it in their website either.

Then how company making profit from it and how the profit is distributed?

What is the amount of the profit distribution as company projected for their 'investors'?

This post has been edited by cherroy: Nov 1 2007, 08:43 PM

I found this phrase is something wrong with its word. Is it needed to emphasis your businesses are legal? while joining member won't be harmed?

The company also involve in finance, insurance, telecommunication? if it does then what a congolmerate. Then why it is under the scurinitised by Singapore, Malaysia as well as China authorities, those businesses are perfectly legal, what?

Confused confused

Normally rich people won't claim he/she is rich, smart people won't claim they are smart, this is as far as I know.

So far, in information ages *based on internet application, google is the most successful party as to date.

Just hope to clear up the situation. As the more we read the more we are confused now.

This post has been edited by cherroy: Nov 4 2007, 02:47 PM

Rm3 billion *even divided into half as it mentioned KL & Melaka for project as large as a football field or a condo?

If there is really a Rm3 billion project then shouldn't be hard to find out or coverage in media and newspaper? A Rm3 billions project is huge.

Whatever happened, it is the public's hard-earned money that under risk not the founder. The founder won't lose.

Banks short of money?

and MAS put SE on alert list because of this?

This excuse somehow childish, try to fool a three years old kids? not offence though.

I am not against MLM business, just it must legitimate as a lot of pyramid scheme using MLM business as camoufloge and make it fall in the grey area of law, which by then authority has difficult to find it out (like recruitment based one).

But if said a company is an investment company then surely it is against the law as no company is allowed to do financial business with public without MAS or SC license.

This post has been edited by cherroy: Nov 11 2007, 08:48 AM

You also find hard time to believe the excuse, right? We are not flaming at individual nor have quarrel here, most are very nice and being quite peaceful to have proper discussion. Just as you said, it is money in stake, can't be fool around which might have significant financial implication for some that's why we care and ask question and raise some doubt if something is not making sense.

MLM is a legitimate business, any country authority won't list someone into alert list just because of MLM business or too many want to join the MLM.