i joined since Jan 2008, considered 1st batch. Till now my Return of investment are all paid, juz mb sometimes 1-2days late from the dateline.

Now this company is running some 'ding-dong' plan, wonder why the boss doing this kind of thing, spoiled the reputation only.

Hi tt_ren,

I am just wondering as some of forumers here might, what is the value of your 'investment' now, and after 1 year.
From what I read,
Your initial investment was 6,000
You already go tback 3,600 + 1,200 (food voucher)
>> Total return you got back = 4,800/6,000 = 80% /year     (This is a damn good return).
>> But, on the other hand, this is also a very high risk (because you never know when the scheme fails).  It might fail at 2nd year or 3rd year ...  So, if you sell your share and hope to make a profit from it, then you are making the buyer bear the high risk, while you are making a handsome profit from it.  Sounds good for you, but not the buyer.
Unless you are willing to forego a part of your return for the buyer because you have already got rid of the high risk.

No buyer will want to bear the high risk of buying over unless there is a better return because of a higher risk for the remainder of the scheme (48mths worth = 300x48= 14,400 if all goes well).  Forget about the food voucher, it can be thought of as something to be given away, because if you cannot consume it, neither can the buyer buy your good voucher and try to consume it on your behalf.  Effectively, the return is only 300/mthx48mth.

You cannot hope to sell it at 14,400 because it is a risk someone will have to take to buy over from you.
The 1st year risk is the lowest, each year thereafter, the risk goes up.
Chances of loosing 6,000 on the 1st year is almost zero.
Rightly, the value of the scheme now has a value of only 4/5 of 6,000 because you already utilised 1/5 of 6,000
But because the risk on the remaining 4 years is higher, the seller will have to forego a little (got back 1/5 of total return). 

This will work out to 4/5 x 6000 = 4,800  and a 5%discount for having to take a higher risk for the remaining 4 years.  So, a reasonable value for a buyer would be between 4,560 (=4,800-240).  The food voucher cannot be forced sold to interest buyer, because there will be new food voucher of 100 every month.  In fact, buyer may not want the RM100 food voucher, because it may not be easy to consume that much of food, because it may not be convenient (just like what you experience).

So, if you are willing to sell it, maybe a reasonable price tag might be 4,500 subject to willing buyer willing seller.
Your profit will be based on this:
Your investment is 6,000
Your return is 4,800 (includes Food Voucher)
Your return from selling the scheme 4,500
Total return you get is 4,800
Your cost is reduced to 6,000 - 4,500 = 1,500
ROI = 4,800/1,500  = 3.2x (320%)  (this is still a very good return by any standard)

If you bear it through, your ROI = 400*60/6000 = 4x (400%)  .
You will not get a 400% return if you sell it off now for reasons mentioned above.
This will give you an idea of how much you can expect to gain by selling your so called 'share' of the 'investment'  now.

So, you still want to see off your 'golden egg' ???
Note: This is not an offer to buy, but just for discussion on how to value an offer.

the second year cash value return is RM300 and 3rd year to fifth year is RM 100 and
food voucher is RM 100 per month throughout. So total remaining cash value is RM 7200 + food voucher RM 5800

As you said for those that involve actively in the current plan to look for new member, the food voucher got it's attraction.
In stead of every  month spend RM360 using the cash buying food voucher, now in my hand i got RM1000 food voucher + the future food voucher,
it save significantly.

So the total up is RM 14,000 + after fifth year IRC might give you a share of profit, this point i have to mention also although it's uncertain
whether the IRC still can run at that moment.
...
The value of the offer?
4k will do as i earn 1.3k, initial cost 6k + RM300 legal fees on agreement with IRC.
So i get beck 3.6k + 4k = 7.6k - 6.3k = 1.3k net profit

and your return is RM 300 x 12month + RM 100 x 36month = RM7200 + food voucher RM 100 x 48 = RM 4800 + i transfer to you one RM 1000 food voucher.
Total is RM 7200 + 4800 + 1000 = 13k
Totak return on investment for you 13k/4k = 325%

Worth to go for the risk now?

Hi TT_ren, I am not offering to buy.  I am just showing you how it can be valued.  The calculation was based on assumption that the return of300 per month is every year. 
But, now you said return for
2nd yr is 300/mth,
3rd yr is 100/mth,
4th yr is 100/mth,
5th yr is 100/mth,
then the calculation is not correct anymore.

Then provided if there is no problem, the total return will be 12(300+100+100+100)=7,200 (4.8K food not cash).  You cannot exchange the food for cash.  So, the food can only be thought of as savings in expense if you consume it.  But, if not consumed then it is not savings.  It cannot be valued as a fixed return, but as only a gift.  You will have to keep your 1000 fv for your own consumption, as the buyer will be getting 100/mth worth of fv anyway.

Friend, you cannot take 13K as return.  The return is only 7.2K cash not 13K provided nothing prevents the scheme from going bad.  If scheme goes bad, return may not be even 7.2K.
So, potentially the return is 7.2K and investment is what 4K?  ROI is 7.2/4 = less than 2x for all the high risk.
It's not a good investment, considering the 1st year return is 3.6K/1.5K >2x.  So, the investment from 2nd yr cannot be 4K now. Because of higher risk, ROI for 2nd year must be at least better than ROI for 1st yr, then maybe buyer may consider the deal.  Note Food Voucher is not cash you can redeem and put into your pocket to buy something else.  It can at best be considered as a gift (or a present for taking the scheme offer).

If scheme fails on 3rd yr, then effectively return is only 3,600.  And investment is what... 4K?  This may be extremely risky.  Go figure what the fair value given the above scenario. 

I would not even want to consider if I don't get back my capital in 6 months. Hence 1.8K might be a reasonably fair value. Yes, you may end up getting only 3.6K/4.2K if you sell off your golden egg now, because of lower return and higher risk 2nd yr... onwards.

Ideally, your return is only (7.2+3.6)/6 = 10.8/6 for the 5yrs.  And it works out to only 1.8x or 80% or 16% pa if the scheme runs till end of 5yrs.  (still a damn good investment by any standard).  So, keep the golden egg till all the golden goose can be slaughtered and eaten.   

who said the food voucher cannot redeem for cash?
i already got offer,i can sell it to other ppl at a lower value. BUt the value i not satisfy.

Quoted for truth. The ultimate destruction is on the way.

Quoted for truth. The ultimate destruction is on the way.

wat you mean by ultimate destruction?
please explain?

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Added on April 22, 2009, 1:05 pm

whoever IRC member wanna sell out your food voucher?
i got fren offering 30% cash value to buy from you and the food voucher will made transferable through online,
i can give you my fren number and u can contact him, it is a deal between member and member not with IRC compnay.

Somehow, i want this fellow Mr Jason to apologies for his statement first.
DUN SIMPLY SAID AND BLUFF PPL

Apologise for the destruction of IRC caused by their own member?
Don't make me laugh.

You never even tried to understand why it will fail and now making accusation.

Please Don't divert my topic , i am talking about Food voucher,

who care about wheter IRC fail or not,
Now i am talking food voucher can exchange cash value,
u said what ultimate destruction?
why u not answering my question?????????


HOpe that u wont laugh untill pengsan there, what a funny ppl.

Wish to join..then go ahead..
If not..plz shut up..dun hv to make up all these unidenfied rumors..
Most of the market are function by using sales method..(im not saying ALL)
Becoz it will save a lot of unnecessaries expenses..
Even a medical check up, u will oso nid to sign up as member..

For those who dun care to take a risk..
Its a good try though~~
As i hv joined some networking b4..this one consider conservative n safe..(my personal view, u can simply ignore)

There r many types of investment..i do think we can choose the one which more suitable to ourselves

I personally think IRC is not bad

As long you can sell your voucher, it's one of the main recipe required for a ponzi scheme to fail.
No matter whom you sell it to.

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Added on April 22, 2009, 9:18 pm
Why the emotion.
Truth do hurt doesn't it.

The more I bad mouth it, the harder for you to make money?
So what is the motive for a newbie like you having the first 2 posts in this thread?

can sell voucher = ponzi scheme??
What a comment?
dont get you at all.

buy and sell as long as there is demand and sell, y not?

according to you, bursa malaysia and the world stock market are all ponzi scheme since it allow ppl to sell is it??
And i remember my college time, i should go beck and tell the canteen management that they are ponzi scheme by selling food voucher in the canteen.

So, whatever from your comment is logic, and whatever from other ppl one is not logic.

Wish to join..then go ahead..
If not..plz shut up..