BINARY! OH MY GOODNESS!

IS THIS THE MARKETING PLAN YOU WANT?

+
A STUDY ON OTHER MARKETING PLANS
Eddy Chai
1998 Outstanding Role Model Businessman of the Year
2002 Time Elite Award
3 million downlines in more than 20 countries
With the Minister of Examination Yuan,
Mr. Hsu Hsuei Te
With Vice President Lien Chan during the New
Year's Marathon Run Event
With the President of the Republic of China, Ma
Ying Cheou
Eddy awarded R.O.C. Outstanding Role Model
Businessman with the Senior Adviser to the
President, Mr. Chiu Chuang-Huan
With wife Grace, Minister of Interior Wu Poh-Hsiung
and Congressman Wu Tze Yan
Awarded R.O.C. Outstanding Role Model
Businessman 1998, in photo with Vice-President
Lien Chan
With Senator John S. McCain, U.S.
Annual Grand Rally, Linkuo Stadium. Over
20,000 people attended.
Received the Time Elite Award from Minister of
Economic Affairs, Christine Tsung
Participants had to drive 24-hours to attend
Eddys training in Czechoslovakia
Eddy organized the Taiwans New Year's
Marathon Run Event. Over 100,000 people
participated.
Eddys training in Turkey. Over 7,000 people
attended.
Eddy and Minister of Defense Chen Li An.
Training for over 20,000 in Linkuo Stadium.
Let the Journey begin !
DEDICATION
This essay is dedicated to all victims of pyramid schemes and to all
committed distributors who did not prosper, through no fault of their own,
but merely for the sad reality of joining companies where the owners do not
know how to write a marketing plan.
Thanks to Grace Co and Kath Gilles for editing my English that no one
would have understood otherwise.
To those victims and to those who are losing hope, do not give up on your
dreams in this industry.
A few words of advice for you to ponder on when you do your MLM
business:
Your MLM business will grow when you build your organization...
Your organization will stay when your organization is
proftable...
Your organization is profitable when it can build a
solid customer base...
Your customer base cannot be solid when your
leaders do not emphasize on retailing...
Your leaders cannot emphasize on retailing when you have
few and overpriced products.
You cannot achieve the above when you join pyramid schemes and play
games.
This essay is divided into two parts. Part 1 will be a study on the binary
marketing plan and Part 2 will be a study of other marketing plans. Okay!
Let the journey begin.
Eddy Chai
Website:http://www.eddychai.com Email:eddy@dlcorp.com
Introduction
This is my 30th year full-time in this business and in the last 30 years I have not come
across a marketing plan I dislike more than the binary marketing plan. The marketing
plan where the owners openly tell distributors that they will short-change and steal
from them. You may argue, why then are there so many binary companies and how
come so many distributors get involved in this kind of plan today? You may also ask,
Are you saying this out of jealousy or envy their success? My answer is I am not the
kind of person who gets jealous or envious of the success of others. I have done well
over the years and do have a little bit of money today so money and rich people do
not impress me anymore. Do not be surprised that I am wealthier than most owners
of binary companies and normally, people do not get jealous or envious of those who
are of lesser fortune than them. I do not judge the success of a company based on the
amount of money the owners are making. There are many company owners involved
in pyramid schemes that have gotten rich out of fooling people, and as far as I am
concerned they are the garbage that pollute this industry. Frankly speaking, I despise
these people.
My personal deliberation of a company, the owners and the companys marketing plan,
are all based on whether they are helpful or detrimental to the distributors. It will be
diffcult to fnd a marketing plan that is worse than the binary system. In this essay, I will
break down and analyze the binary plan for you. Study it with an open mind especially
if you are a distributor in a binary company today. Then ask yourself if this is the
marketing plan you want. I am not here to brainwash you because I do not like binary.
I am simply offering you this information with only my best intentions at heart to open
your mind to the truth. At the end of the day, youll be in a better position to decide if
you really are where you intend yourself to be.
John 8:32 Then you will know the truth, and the truth will set you free.
Why, then, are there so many binary companies today?
Why are there so many companies using this kind of marketing plan today and how
come so many distributors have jumped on the bandwagon? The following are the
reasons why:
BINARY ! OH MY GOODNESS !
IS THIS THE MARKETING PLAN YOU WANT ?
Part 1
1. They think it is something new and that stair steps is out of date.
Over the last 50 years, the most common and popular marketing plan is the stair
steps. It has been around for a long time. As a result, it is very easy to convince and
excite distributors that the stair steps plan is already obsolete and that binary is the
IN plan today. Most distributors do not understand the intricacies of marketing plans
and can easily be misled by opportunist wolves in sheeps clothing. Tell them anything
and they will believe, especially when the presentation is in a jam-packed room with
registered distributors, all trained to stir up the energy and the level of excitement for
the opportunity meeting.
However, a distributor like me, who has great interest in studying marketing plans, is
not that easy to convince. I need to sit down, to study and analyze the plans. What I
want to know, and am most concerned with, are the end results of marketing plans. The
key indicators are: the amount of money the companies really pay out; the misleading
tricks normally used by bad companies when they write marketing plans; the amount of
bonuses that leaders can be entitled to; and the spirit and culture the marketing plans
will produce. I hope all of you will develop an interest in this area. A distributor who
does not understand his marketing plan is like an employee who does not know how
much salary he is getting for his work or a professional who does not understand his
profession.
This problem gets even worse when it is promoted by charismatic speakers who also
do not understand marketing plans, and sincerely believe they are promoting a new
idea that will positively change the industry. Of course along the way, they hope to
make themselves rich as they are failures or at best, mediocre leaders in the stair
steps system. How great it is now to change from a foot soldier to a General in a new
company. We have seen many of these people over the years. They are the ones who
introduced us the 5-lines system, the quadruple matrix system, the triple matrix system
and now the binary system. They are promoting something they do not understand and
sometimes the dream of money and success have blinded their eyes and muddled up
their brains.
The bad news is Generals cannot have the mentality of foot soldiers; they cannot be
lazy, negative, or lacking in confdence with themselves and their soldiers. Foot soldiers
who do not know how to fght and are proven failures in battles cannot just assume the
role of General without laying down the ground work, otherwise the companies where
they pretend to be Generals, will soon collapse, and they fnd themselves out on the
streets again as foot soldiers. These Generals are a dime in a dozen in our industry.
Surely you have met quite a few of them. You see the same old faces whenever a new
company opens. Most of them have already joined at least 3 or more companies.
2. They think it is easy even though it is not true.
Binary is one of the hardest marketing plans for most people. I will show you how hard
the binary plan is later.
Attend any binary opportunity meeting and 90% of the time you will hear the speakers
telling the audience that they should do binary because the stair steps plan is too
diffcult. Remember they also sold the same message in the quadruple matrix and triple
matrix system too.
It is a common weakness of many distributors who want to generate easy money from
very little or no effort at all. This is the main reason why there are so many fraudulent
companies over the years and why many owners of pyramid schemes have made a
great fortune out of misleading people. They invest in having charismatic speakers
on stage who convince people that binary is easy, and youll see the growing flock
of sheep who will sign up and be misled, ready to be slaughtered. Some add more
excitement by claiming that they only need to build one active leg, because the
company or uplines will provide them with ready downlines, and so, the expectant
distributors immediately pull out their credit cards from their wallets. Taking money from
these lazy and weak people is like taking candies from children.
It is sad that after 50 years there are still so many who believe that there is such a
thing as free lunch. There is no free lunch (by the way, there is no free breakfast or
dinner too). I will advise all prospects that if they are afraid of hard work and are not
willing to pay the price, please do not join multi-level marketing. Just like in any other
occupation, MLM also entails work. It is a channel to sell goods and services. Do you
think you need to work if you are a regular employee or when you start a traditional
business? MLM is not a place for you to play the money game where you end up with
only distributors and no retail customers. By the way, you also need to work to get
people to join to play the money game. The only question is, whether this is the kind of
work you want to do as a real network marketer? Like a vampire who preys on victims
and sucks them dry. Tell me the answer after your friends and relatives have lost their
money because of you and they no longer talk to you. Over the years I have met so
many pyramid scheme people who blame their sponsor and uplines for the money they
have lost and for the roomful of expired products they are left with at home. I want to
tell all these people: You are also part of the problem. You thought you can be one of
the vampires, but you end up as a victim too. Learn from it. When people tell you that
you can get something out of nothing, what they want from you is only your money.
Please wake up and smell the coffee. Multi- level marketing has been around for 50 to
60 years now and pyramid schemes have been around for just as long. Heellllooooo!
You will be surprised too, how easy it is to convince many prospects and distributors
that they are weak and not good enough. Therefore, theyre only suitable to do a binary
plan and they will believe so. Question is: Is binary really easy as they claim? You will
fnd out later as I show you how diffcult binary is.
By the way, how many of you believe you are weak, stupid and are not good enough?
I bet none of you will answer yes to this question and yet many of you enjoy, laugh and
agree as one with people in a binary meeting. How sad!
It is far worse and even more unfortunate if you are the speaker who convinced others
that they are weak, stupid and cannot do much. Do you know the grave consequences
of the poison you have poured into the brains of your downlines and crosslines?
Please stop the damage you are doing to other peoples children. I have no opinion if
you do this to your own children but when you do this to other peoples children, may
the GOOD GOD punish you with a family of failures for the next two generations: yours
and your children. As the Lord said in Luke 6:38: "For with the same measure that you
use, it will be measured back to you." What you sow, so shall you reap. Please do not
go to church on Sundays and spend the rest of the week working for the devil.
Story: Little Johnny.
A kindergarten teacher wants to teach her class about self-esteem. So she says:
Anyone here who thinks you are dumb, please stand up. She wasnt expecting
anybody to stand up, and thus prove her point that no one is dumb. Suddenly little
Johnny stood up. The teacher was puzzled and didnt quite know how to react, so she
asked: Johnny, do you really think you are dumb? Little Johnny replied, No maam, I
just feel sorry for you there standing all by yourself.
When you sit in a binary meeting and the speaker tells you that you are dumb, guess
who is the only one standing up? Of course you can decide to stand too.
3. Many prospects are convinced that it is faster to earn easy money
in binary. They have been brainwashed to believe that the stair
steps system is slow, as binary companies promise instant profit the
moment they make somebody pay-in into their system. This get-rich-
quick scheme can be very tempting and attractive. But the instant
gratification also makes them very short-sighted, thus making them
unaware of the pitfalls that lie ahead.
Fact 1:
You can make fast and easy money in any marketing plan, be it binary or stair steps or
triple matrix or quadruple matrix if you can convince people to invest and play games.
Bad distributors have been doing this for years and look at the damage they have done
to this industry. Distributors end up losing all their money, with maxed-out credit cards
and still have a room full of expired products. Be careful whenever you see companies
that promise you fast and easy money. You will get hurt. Many have been devastated.
Why do you think many people avoid networkers like the plague?
Fact 2:
Let me show you how you can make fast and easy money in stair steps too. If you put
a no reversion clause in the plan and the highest level in a stair steps is 5,000PV and
the percentage is 21% (See the stair steps monthly bonus schedule below). It is easy
to convince the sheep they should buy up to this level immediately as they only need
to reach this level once and be paid at this level forever. Since it is a no reversion
plan they are stupid not to buy up because if they dont, then they will miss the golden
opportunity to maximize their bonus.
Chart 1.
Put some more icing on the cake and add a no pass-up clause to the no reversion
clause. Show them how to fnd 5 investors and ask each one of them to invest 1,000PV
or USD1,000 (if 1PV=USD1) then buy the 5,000PV at the last person so that all 5
investors will now be pushed up to the 21% level forever. Fast and easy money will
start to come.
Chart 2:
Fact 3:
Since distributors can make fast and easy money in any marketing plan that allows
game playing, this gives way to a destructive breed of parasites I call the MLM feas
They jump from one dog to another. They aim to be the frst fea to jump on the dog
and some lucky ones have made blood money by mere accident and not because they
are good networkers. The dog they jumped on now is called binary.
Companies that encourage game playing do not last. I wonder what the name of the
next dog will be. What could be the next evolution of a marketing plan or company
where these feas would convince others again that stair steps, and eventually binaries
too, are too hard and that this new big thing shall change the World of Multi-Level
Marketing. Actually, we are already seeing several binary companies changing their
A
B
C
D
E 5000PV(21%)
21%

21%

21%

21%

Dist
3%
6%
9%
12%
15%
18%
21%
250
500
1000
2000
3000
4000
5000
marketing plan and putting down other binary companies old plan. Please dont get me
wrong! Improvements are always good. But the funny thing is, I can guarantee you
the more they try to change and to improve their original binary system, the more they
will end up closer to the stair steps plan. Love to see the day when they slap their own
face and tell their fellow binarians they can now be uni-level or have more than two
lines. Therefore, their company is no longer binary. Yes, the new plan that combines
the uni-level system plus binary can be called the uni-bin plan or dustbin plan.
Fact 4:
There is no such thing as "fast" if you want a good solid organization that is going to
give you a good solid income. Any good solid foundation takes time to build. Building
a huge organization is what the game is all about. Without the huge organization, then
theres no point talking about the Law of Leverage and multiplying your time through
others (because you will only be multiplying by 1). Like I mentioned in earlier pages,
these Generals would one day be back as foot soldiers if they dont lay down the
groundwork right. You cannot be a General or remain a General with only a platoon
of soldiers or sometimes no soldiers left.
There is a science in designing plans.
Story: Doctor, I Do Not Like The Medicine.
A man was very sick and he went to his doctor. The doctor examined him and told
him that he knows his sickness. So he prescribed a medication for the man to take. It
is in liquid form, looks like vomit and smells awful. When the patient saw and smelled
the medicine, he was horrifed, because he totally hates it. In fact, he has never taken
medication in liquid form. So he told the doctor that he is not able to drink the medicine
and begged for a different prescription that is in tablet or capsule form. Even though the
doctor initially said no to his request, the patient persistently pleaded for another kind.
So fnally, the doctor gave in and prescribed some medicine in tablet form.
A week later, the patient visited the doctor again and complained that he is still very
sick. The doctor told him that if he really wants to get well, he needs to take the right
medicine and cannot have the option to choose whatever medicine pleases him,
otherwise he will remain sick.
Multi-level marketers, take your medicine if you want to be successful in this business.
You cannot just choose the medicine you like, but you must take the right medicine.
You cannot choose a marketing plan you like, on a whim. You must choose a marketing
plan that is written right. There is a science in designing plans. We cannot design a
workable plan based on the desires of lazy and weak people. We cannot write any plan
based on what we like, but what needs to be written.
The same principle applies when we design a 20-storey building. We need to know
the proper engineering and architectural rules and regulations involved in construction.
If not, the end result will be a catastrophe and the building can collapse. We cannot
build it based on feeting emotions or what we like. We must know exactly how deep
we must excavate, how much concrete and steel we need to use, precise locations of
the supporting beams in every foor, the height of the ceiling, the electrical structure,
the plumbing system and the drainage system, the elevator access and necessary fre
escape system for the building the list goes on... We cannot be too quick to judge
that building a good, solid foundation is too hard, time consuming and too expensive.
The engineering and architectural designs must be done. Visualize the end result.
We must know exactly what we want, before we send the bulldozer over to dig the
foundation.
If you want to be a distributor of any company, it is very important for you to know
exactly how the plan was designed and the end result that you will achieve for the
work that you will put in. It is crucial for you to study this before you start the business
venture or sponsor anyone. Is it a worthy plan for you or will it result in the eventual
collapse of your organization and income?
BIBLE: Luke 6:49 But the one who hears my words and does not put them into
practice is like a man who built a house on the ground without a foundation. The
moment the torrent struck that house, it collapsed and its destruction was complete.
Let us begin with a study of the binary plan.
Remind you again: John 8:32 and the truth will set you free.
Promise to study my essay with an open mind. Do you know how much one has to pay
for a training like this? But you are getting it for free today. So I hope you appreciate
this valuable learning.
Oh! By the way, when youve fnished, you may want to ask around if you know of any
instructor who has done a training of this depth and magnitude on this topic.
A. Binary companies brainwash distributors that the stair-
steps is obsolete.
1. Ok! Shall we remove the stair steps?
When we write a program with the stair steps the company has to pay out a monthly
bonus or monthly volume bonus or monthly rebate or monthly overriding bonuses.
They are all the same no matter what label you call them. Normally for this bonus,
most companies have to pay out 18% to 21% of the monthly sales and some even
go as far as 25%. So if a binary company removes the steps, then it need not pay out
18% to 21% of the monthly sales. That is to say if a very successful binary company
is generating a monthly sales volume of USD100 million, the 18% to 21% range that
this company doesnt have to pay out will yield a huge savings for the company in the
amount of USD18 million to USD21 million a year. An extra USD18 million to USD21
million proft into the pockets of the Fat Cat a year. Wow! Can you imagine the money
the biggest company in the world can save if they remove the stair steps? Their
worldwide sale was USD8.2 billion for 2009.
USD8,200,000,000 x 21% = USD1,722,007,250 (USD1.722 billion)
Wow! Wow! Wow!
So what do you think? Removing the stair steps is it still a great idea?
Your answer: yes or no?
2. Is Binary a stair steps plan?
Of course it is! Actually it is even a double stair steps plan.
I do understand some of you may be confused what a stair steps plan is and binary
may be the frst and only company you have joined to date. So let me take all of you,
step by step, as to what a stair steps plan is.
First, there is the stair steps monthly bonus schedule. Here is an example.
Chart 3.
Monthly Bonus Schedule
Note: Let us say 1PV = USD1
With this bonus schedule, the stair steps will pay a distributor an overriding bonus
based on the difference between the volume of sales done by the distributor and that of
the downline or downlines.
In the stair steps, you are not limited to only 2 legs and this may be the structure of your
organization. Here is an example. You have 3 downlines: A1 doing 250PV, A2 doing
250PV and A3 doing 500PV. As a result, you hit the 1,000PV level at 9%. At 250PV
your downlines, A1 and A2, are at the 3% level, therefore you get a 6% override
from them. Because A3 has a volume of 500PV, he is at 6% and your override from
him is 3%.
Dist
3%
6%
9%
12%
15%
18%
21%
250
500
1000
2000
3000
4000
5000
Chart 4.
Calculation.
A1 = 250PV = USD250 x 6% = USD15
A2 = 250PV = USD250 x 6% = USD15
A3 = 500PV = USD500 x 3% = USD15
Total bonus received = USD45
Let us say this is the weekly bonus schedule for a binary company and the fxed weekly
bonus pay out in USD:
Weekly Bonus Schedule
Left Leg Right Leg Fixed Weekly Bonus
250 PV 250 PV USD25
500 PV 500 PV USD50
1000 PV 1000 PV USD100
2000 PV 2000 PV USD200
3000 PV 3000 PV USD300
4000 PV 4000 PV USD400
5000 PV 5000 PV USD500
Note: Let us say 1PV = USD1
This schedule can also be drawn this way. What I see is a double stair steps.
You
1000PV
6%
6%
9%
3%
3%
A1
250PV
A2
250PV
A3
500PV
Chart 5.
You have 2 downlines, Left leg A1 and Right Leg A2 and they each do 250 PV and
as a result you hit the 500PV. For having 2 legs doing 250PV each, you get USD25 or
USD12.50 for each leg.
Chart 6.
In binary what they do is they will pay you in USD. You must also know that even
though you are paid in USD you can still calculate to know the exact percentage paid
out. When the Left leg or Right legs does 250PV or USD250 and the bonus received
=USD12.50 for each leg, the percentage paid out is
USD12.50/USD250 x 100 = 5%
Now let us make it a little more complicated and make the legs wider and deeper.
Talking about legs being wider and deeper, here is another story:
One day, a very beautiful downline asked her upline: What must I do to make a lot of
money in this business? He answered: Your legs must be wide. She slapped him.
Dist
USD 25
250+250
(500)
500+500
(1000)
1000+1000
(2000)
2000+2000
(4000)
USD 50
USD 100
USD 200
USD 300
USD 400
USD 500
3000+3000
(6000)
4000+4000
(8000)
5000+5000
(10000)
12.50(5%) 12.50(5%)
A1
250PV
A2
250PV
You
500PV
Chart 7. Go deeper in Stair Steps.
You will observe in this diagram, that the stair steps pays you the percentage of the
exact PV done whereas in the binary system it pays only with a fxed weekly amount in
USD rounded down to the nearest PV schedule above, averaging at 5% for every leve
Now, let us also make the right leg of a binary line deeper.
Chart 8. Go deeper in Binary
6%
3%
3%
3%
3%
6%
9%
12 %
18 %
You
5475PV A4
4000PV
B1
2000PV
B2
2000PV
C1
1000PV
C2
1000PV
D1
E1
E2
E3
E4
E5
E6
E7
E8
E11
E12
E15
E16
E13
E14
E9
E10
500PV
D2
500PV
D3
500PV
D4
500PV
D5
500PV
D6
500PV
D7
500PV
D8
500PV
C3
1000PV
C4
1000PV
18%
18%
6%
15%
3%
3% 3%
21%
A1
275PV
A2
350PV
A3
850PV
5%
5%
You
8000PV
B1
2000PV
B2
2000PV
C1
1000PV
C2
1000PV
D1
E1
E2
E3
E4
E5
E6
E7
E8
E11
E12 E15 E16
E13
E14
E9
E10
500PV
D2
500PV
D3
500PV
D4
500PV
D5
500PV
D6
500PV
D7
500PV
D8
500PV
C3
1000PV
C4
1000PV
5%
5%
5%
3000 Flush out
A1
4000PV
A2
4000PV
Dist
USD 25
250+250
(500)
500+500
(1000)
1000+1000
(2000)
2000+2000
(4000)
USD 50
USD 100
USD 200
USD 300
USD 400
USD 500
3000+3000
(6000)
4000+4000
(8000)
5000+5000
(10000)
Dist
3%
6%
9%
12%
15%
18%
21%
250
500
1000
2000
3000
4000
5000
Look at Chart 7 and Chart 8 again. Compare Leg A4 in Chart 7 (Stair steps) to Leg A2
in Chart 8 (Binary). Do you see anything different?
Now let us put Chart 3 and Chart 5 to see what I mean by a double stair steps?

Is Binary a stair steps plan?
Your answer: yes or no?
12.50(5%) 12.50(5%)
A1
250PV
A2
250PV
You
500PV
B. Binary companies pay more.
From the sample shown above, a binary distributor may immediately want to claim that
binary companies pay out more in terms of percentage. When the Left leg or the Right
leg does 250PV or USD250 and the bonus received is USD12.50 for each leg, the
percentage paid out is:
USD12.50/USD250 x 100 = 5% and most stair steps only have a 3% override for every
level.
Over the years, I have seen the following tricks used by binary companies.
1. 1PV in all binary companies is never equivalent to USD1. For example,
in the Philippines, if we use 1PV = USD1= 47 pesos, I have seen binary
companies using 1PV equivalent to 80 pesos.
So let us say:
Left Leg Right Leg Fixed Weekly Bonus
250 PV 250 PV USD25
Chart 9.
Leg A2 does 250PV but 1 PV = 80 Pesos
So A2 = 250PV x 80 pesos = 20,000 pesos volume done
When the total volume done is 20,000 pesos and the bonus received is USD12.50 x 47
pesos = 587.50 pesos, the percentage paid out is:
587.50/20,000 x 100 = 2.94%
2. They pay using the smaller leg. I will do the calculation for this later.
3. They round off to the nearest PV schedule. For instance, if the smaller
leg used to count the bonus does 2880PV, the payment is based on
2000PV. I will do the calculation for this later.
4. Flush out, where all the PV above 5,000PV is ushed away. I will also
do the calculation for this later.
With all these tricks, never believe any binary company telling you they pay out 5% or
6% or 7% or 8% in their weekly bonus. I can safely say their weekly bonus schedule
will be in the region of 3% to 4% or maybe even less.
I challenge any binary company to prove me wrong by allowing my computer experts
and accountants to go through their computer information and the bonus pay out done.
If I am wrong, I will apologize for my mistake. Binary companies, why dont you just
tell us how much you pay out as this is so simple. You know the sales done and the
amount of bonus paid out in your computers. My experts will tell you the answer within
5 to 10 minutes.
All distributors be warned. Be suspicious whenever you see a company paying with a
fxed weekly amount in US dollars as bonus payout. Even though you buy the products
in your local currency and they can easily pay you in your local currency, why do you
think they choose to pay in US dollars? Why cant they just convert it to the actual
percentage paid out like in stair steps? This is how the owners of binary companies
steal from you. They want to confuse you and keep you in the dark, so you wont
know exactly how much they are paying you. Of course this trick will work as there will
always be distributors who do not analyze how much they are being paid and will just
talk like a trained parrot after being brainwashed by the company or the trainers that
the company pays a lot. When you train a parrot to say, I love you do you think the
parrot really understood what it just said?
Distributors are the same. When they say, Binary pays a lot, how many of these
people really understand what they are saying?
You can see this as I continue to tell you the horrible things you are going to face when
you join a binary company and why people in binaries look poor and are poor in reality.
C. Many binarians like to claim the binary plan, unlike most
stair steps is a no reversion plan. Is this true?
When you have 2 legs, Left doing 5,000PV and Right doing 5,000PV and you were
paid USD500 last week based on the above weekly bonus schedule. If this week your
2 legs now drop to 3,000PV each, your bonus will also drop from USD500 to USD300.
Chart 10.
So what do you think? Is binary a reversion or no reversion plan?
Your answer: yes or no?
5000PV
Last week
Bonus = USD 500
You

5000PV 3000PV
This week
Bonus = USD 300
You

3000PV
D. In a binary system, you must have 2 legs to be paid vs.
stair steps where you will also be paid for only 1 leg.
You have a big downline and this line does a huge volume of USD1 million a month
and because you have only one leg, in binary, you get nothing. You may think that I am
trying to exaggerate by using a huge volume of USD1 million a month to frighten you.
Well, I got bad news for you. I personally know a big leader with over 40 legs and she
is probably the biggest in the world today and her organization does over USD1 billion
a year or over USD100 million a month.
Chart 11.
So what do you think? Is it a good idea in binary, that you must have 2 legs to be paid,
otherwise if you only have this 1 leg, youll get nothing?
Your answer: yes or no?
You
But no second line
Big
Line
E. In binary, you can only have 2 lines. You are not allowed
to have more than two.
Let us say, you are the big leader I mentioned earlier, who has 40 legs. But the binary
company limits you to only two legs, so that means you have to give up the 38 other
legs.
Chart 12.
So what do you think? Is binary a good idea, where you can only have 2 legs?
Your answer: yes or no?
A1 A2
Have to give up
38 Line
You can only use
2line.A1+A2
You
Note:
I do understand about a policy of re-entry that stipulates: when youve already reached
the maximum level of 5,000PV for your left and right legs, you can now start another
business center under your downline. What a ridiculous policy! Your downline now
becomes your upline. What spirit and culture will this lead to?
By the way, I also understand theres a clause where the company teaches you to
double your money by getting 3 heads or business centers and play games. Some
uplines may even encourage you to buy up to 7 heads or business centers all at the
same time. I have even heard something called Commission Deduction (CD) where
some binary companies will give loans to distributors to buy heads and this loan is
deducted from their bonuses.
I was born in Borneo, the land of the headhunters. The natives of Borneo have stopped
this practice over 100 years ago. You guys still doing this? The Government of Borneo
banned headhunting to stop this bad practice. It is time for the Governments of
countries where pyramid schemes practice head hunting to enforce the law on these
companies.
During one of my visits to the Philippines an idiot asked me if I would like to be one
of the investors because their group still needs another 3.8 million pesos to play their
money game. What spirit and culture are these people teaching again?
When companies and uplines teach you to play games by recommending that you take
more money out of your pockets and buy more distributorships for a chance to increase
your income, this constitutes as grounds for illegal pyramid schemes.
It is time that Governments enforce the Anti-Pyramid Law in their country to put some
of these fraudulent leaders in jail. Even a week behind bars will do them a lot of good
as well as for this industry.
The anti-pyramid laws of every country should have a clause that states: All distributors
are only allowed one distributorship because more than one is illegal.
I am also aware of the clause where you can carry over the extra PV from the bigger
leg to the following week. Why not just pay exactly what each leg does every week
without all these nonsense?
F. In binary, you are paid using the volume done by the
smaller leg.
That is to say, if your left leg does 1,000pv and your right leg does 3,000pv, you are
paid only at 1000PV for both legs even though your right leg has 3,000PV. Payment for
both legs is based on the volume done by the smaller left leg at 1,000PV. Therefore,
the extra 2,000PV from your right leg was stolen from you.
Chart 13.

Money stolen is: 2,000PV x 5% = USD100. (USD100 stolen)
When you do a sales volume of: 4,000PV (Left 1,000PV + Right 3,000PV), but is only
paid USD100, the actual percentage paid is:
100/4000 x 100 = 2.5%
I believe even a person with no formal education can see that when the right leg does
3,000PV but only 1,000PV is used to calculate the bonus, the binary company has
stolen 2000PV from the right leg. It doesnt take a rocket scientist to understand this.
Please do not be stupid.
So what do you think? In binary where you are paid based on the smaller leg - is this a
good idea?
Smaller leg. Bigger leg.
Volume Done=4000PV
1000PV
You
3000PV
2000PV stolen
from bigger leg.
1000PV
You
1000PV
Your answer: yes or no?
Story: Animals Going on a Vacation.
A bunch of animals were on a ship going on a vacation. Suddenly, there was a bad
storm in the middle of the sea and because there were too many of them in the boat,
they needed to reduce the weight, in order to remain afoat. Unfortunately, there was
no other way but to sacrifce somebody by throwing them out into the sea.
Of course, nobody was willing to volunteer to jump. So, they decided to have a
contest... they will tell a joke and the joke must be so funny that it should make
everybody laugh. If at least one of them does not laugh, the storyteller will have to jump
aboard.
The monkey volunteered right away because hes smart, has a very good story and he
s an excellent storyteller. His joke was really good, everybody laughed... except one...
the pig, the baboy. (Philippine Tagalo) And so, the monkey had to jump into the sea.
The second storyteller was the rooster. Hes also a great storyteller and has a very
good joke, so he was confdent too. His joke was also really, really good and everybody
laughed... except one... the pig, the baboy... he did not laugh. And so, the rooster had
to jump.
And now, it was the lion's turn. He's really worried because hes a lousy storyteller and
his joke was not so funny. Anyway, since his life was at stake, he did his darn best in
delivering his joke well... and everybody laughed... except one... the pig, the baboy...
he did not laugh. And so, the lion had to jump into the sea.
After the lion jumped, the pig started laughing... rolling on his sides... and everybody
was surprised and puzzled. So they asked him: "Did you fnd the lion's story really,
really funny?"
The pig replied, "No, no, no! The monkey's story was really, really funny!"
Conclusion:
It took the pig a very, very long time to understand the joke. Some of you may be slow
and would take a longer time to understand. But the people I dislike the most are the
uplines or trainers in binary companies who know what the problems are, but because
of money or offers (cars, position, salaries, speaker's fees), they continue to promote
binary for their own selfsh ends. This group of people are the real pigs... the Baboy.
Oink!
G. In all binary companies, when your left leg does 3,800PV
and your right leg does 3,700PV, they round off to the
nearest PV schedule (as shown above). That is to say the
bonus payment is based on 3,000PV or a fixed weekly
amount bonus payout of USD300 as above.
In the stair steps plan, when your left leg does 3,800PV and your right leg does
3,700PV and you get a 5% override, you get exactly 5% for each leg. Stair steps plan
do not steal from their people.
Chart 14.

3,800PV (Left) x 5% = USD190
3,700PV (Right) x 5% = USD185
Total = USD375
However in binary even when the volume is 3,800PV(Left) + 3,700PV(Right) =
7,500PV, they will round off to 3,000PV for each leg. You can easily see the binary
company has stolen 800PV from your left leg and 700PV from your right leg.
5% 5%
3800PV
You
3700PV
Chart 15.
When the bonus received is USD300 as in the above weekly bonus schedule. You can
see:
USD375 USD300 = USD75 was stolen.
Dont tell me, Its OK. It is NOT.
So what do you think? You like a company to round off the bonus paid to the nearest
PV schedule?
Your answer: yes or no?
When volume done is USD7,500 (USD3,800 + USD3,700) but the bonus received is
only USD300, the exact percentage paid out is:
USD300/7,500 x100 = 4%
Remember my warning when you see a company that pays with a fixed weekly
amount in US dollars for their bonus payout system. That means the owners of these
companies will short-change and steal from you. They use this system because they
know most networkers are not very professional and do not have the habit of using their
calculators. Observe what I do and how I use my calculator. Be an expert in this area
if you want to make MLM your profession. Professionals must know their profession.
You cannot be a sailor if you cant swim. I have seen many networkers who have been
in the business for over 10 or 20 years and they still do not have a clue as to what they
are doing.
Left leg. Right leg. Left leg. Right leg.
Round down to the nearest PV schedule means 800PV stolen 700PV stolen
3800PV
You
3700PV 3000PV
You
3000PV
H. In a binary plan where the maximum weekly bonus
schedule is 5,000PV, they will max you out at 5,000PV,
that is to say everything above 5,000PV is ushed out.
What this means is, even if your left leg does 15,000PV and your right leg also does
15,000PV, the maximum pay out you can receive for your weekly bonus is limited
to 5,000PV. You are paid USD500 only at 5,000PV for both legs. Everything above
5000PV is fushed out. So 10,000PV for each leg is fushed out.
Chart 16.
When your 15,000PV(Left) + 15,000PV(Right) = 30,000PV or USD30,000 volume
done, the bonus received is only USD500.
The real percentage paid out is only:
USD500/30,000 x100 = 1.66%
Remember I wrote above, Never believe any binary company telling you that they pay
out 5% or 6% or 7% or 8% in their weekly bonus. I can safely say their weekly bonus
schedule will be in the region of 3% to 4% or maybe even less. Leaders, please learn
how to use your calculator.
Go one step further where 1 PV = 80 Philippine pesos.
Left leg. Right leg. Left leg. Right leg.
10000PV flush out 10000PV flush out
15000PV
You
15000PV
30000PV
5000PV 5000PV
You
10000PV
15,000PV(Left) + 15,000PV(Right) = 30,000PV
30,000 x 80 pesos = 2,400,000 pesos/47 = USD51,000
When you only get USD500 for USD51,000 business volume done, the percentage
paid out is
USD500/USD51,000 x 100 = 0.98%
If you think this is bad, you should look at the loss of your upline. Your volume is
30,000PV and if his right leg also does 30,000PV, he can only use 5,000PV for each
leg. 25,000PV is fushed out from each of his legs. Now, what about his upline X with
55,000PV fushed out from each leg? And Xs upline Y with 115,000PV fushed out from
each leg. And Ys upline Z with 235,000PV fushed out from each leg?
To the frst fea of all binary companies, do you know how many PVs have been fushed
out that should have been yours. How much money has been stolen from you if your
companys sale is 50 million or 100 million pesos a month? We are talking about
millions of pesos being fush out from each leg every week. My Chart below is just to
give you an idea with up to Upline Z at 480,000 pesos. Keep going up baby if you are
the few frst feas.
Chart 17.
Stair steps plan do not steal from their people. When your left leg does 15,000PV and
your right leg does 15,000PV and you get a 5% override, you get exactly 5% for each
leg.
Chart 18.
15,000PV (Left) x 5% = USD 750
15,000PV (Right) x 5% = USD 750
Total = USD1,500
30,000
You
60,000
Upline
120,000
Upline-X
240,000
Upline-Y
480,000
Upline-Z
30,000
Right leg
60,000
Right leg
120,000
Right leg
240,000
Right leg
480,000
Right leg
25,000
Flush out
55,000
Flush out
115,000
Flush out
235,000
Flush out
475,000
Flush out
PV
Flush out
PV
Flush out
475,000
Flush out
235,000
Flush out
115,000
Flush out
55,000
Flush out
25,000
Flush out
Now add every week. Wow.
5% 5%
15000PV
You
15000PV
You can see that when a distributor is supposed to get USD1,500 but only received
USD500, then USD1,000 has been stolen by the company. Again, dont tell me, Its
OK. It is NOT.
I would also like to tell all owners of binary companies: The hard work and PV done by
your distributors are not human feces that you can conveniently fush down the toilet.
In some stair steps company, when the downlines do so much more than required, it is
normal practice they even give an extra 2% or 3% for the additional business volume
done.
Chart 19.
So what do you think? You like a company that has a maximum pay-out of 5,000PV, so
whatever extra you worked hard for, will only be fushed out like human feces?
Your answer: yes or no?
If your answer is yes, I can only say, Oink.
8%(5%+3%) 8%(5%+3%)
15000PV
You
15000PV
I. They tell you binary is easy. Is doing 2 legs at 5,000PV
each leg every week easy?
If the max out is 5,000PV every week and 1PV is 80 pesos and since it is binary, you
must have two legs, the volume you have to do is:
5,000PV x 80 pesos = 400,000 pesos a week for each leg. That is to say your left leg
must do 400,000 pesos x 4 weeks = 1,600,000 pesos a month and your right leg must
do the same.
1,600,000 (Left) + 1,600,000 (Right) = An outrageous 3,200,000 pesos a month!
Chart 20. Note: Weekly.
In the stair steps, if we also use 5000PV and 1PV is also 80 pesos, the volume done is:
5,000PV x 80 pesos = 400,000 pesos a month for a leg.
Chart 21. Note: Monthly.
5%
weekly
5000PV X 80P=400,000P
400,000P X 4=1,600,000P/per month
5000PV X 80P=400,000P
400,000P X 4=1,600,000P/per month
5%
Binary
5000PV
You
weekly
5000PV
5%
monthly
5000PV X 80P=400,000P/per month
Stair step
5000PV
You
Now compare Chart 21 to Chart 20.

Also remember in the stair steps, you will be paid even if you only have 1 leg. So which
is easier? 3,200,000 pesos a month for binary or 400,000 pesos a month for stair
steps?
So what do you think? Binary is easy?
Your answer: yes or no?
Note:
Isnt it amazing that this same group who believe that stair steps system is hard
because they cannot do 5,000PV per month now become dreamers who think they can
do two legs at 5,000PV per week. Oink!
Binary is only easy when you start in the beginning with 250PV(left) + 250PV(right) =
500PV. It is also easy to do 500PV at 6% in the stair steps.
5%
monthly
5000PV X 80P=400,000P/per month
Stair step
5000PV
You
5%
weekly
5000PV X 80P=400,000P
400,000P X 4=1,600,000P/per month
5000PV X 80P=400,000P
400,000P X 4=1,600,000P/per month
5%
Binary
5000PV
You
weekly
5000PV
J. Be warned. Binarys leadership bonus is one of the lowest
in the industry.
I have seen several binary companies that pay only a 3% leadership bonus. Most MLM
companies today pay a lot more. Most companies pay over 5% to 10% with several
over 15% and I know of one that pays nearly 20%. Distributors in binary companies
should see the movie, Jerry Maguire where he was asked, Show me the money!
How can there be any money when the percentage paid is so low? The calculator will
never lie.
USD100 million sales x 3% = USD3 million.
USD100 million sales x 20% = USD20 million
So what tricks can a company play when the bonus percentage paid is too low? The
same trick all bad companies play every time. Make the leadership bonus so diffcult
that very few can qualify for the bonus. Of course when only a few can qualify, the
bonus checks will be big. These few qualifers will then jump around onstage to excite
a bunch of sheep that will never qualify for this diffcult bonus. Here is how it is done:
In the stair steps when your downline A go over 5,000PV = USD 5,000 in a month, he
is considered a break off leadership line and let us say the leadership bonus is 5%, the
pay out is:
USD5,000 x 5% = USD250 a month in Leadership bonus.
Chart 22. Stair steps. Note: Every month.
5%
Leadership Bonus
5000PV
Leadership line
A1
You
In binary, you need to have a leg A1 that breaks off 2 legs and max out at 5,000PV (B1
+ B2) to be considered a leadership leg every week and you get 1 point to share the
3% pool for the week. In other words, your A1 must have 2 legs B1 + B2 and they
each have to do way over 5,000PV a week but max out at 5,000PV to be considered a
leadership line.
USD5,000 x 2 legs = USD10,000 a week x 4 = USD40,000 per month
Chart 23. Binary. Note: Every week.
Look at the charts again. Can you see how hard it is for a distributor to qualify for a
leadership bonus in a binary company? Compare Chart 22 (stair steps) to Chart 23
(binary)
Chart 22. NOTE: EVERY MONTH. Chart 23. NOTE: EVERY WEEK.

Leadership line
But max out at 5000PV
1 point to share 3% pool.
A1
You
10000PV
B1
5000PV
B2
5000PV
5%
Leadership Bonus
5000PV
Leadership line
A1
You
Leadership line
But max out at 5000PV
1 point to share 3% pool.
A1
You
10000PV
B1
5000PV
B2
5000PV
Do you now know why most people in binary companies are poor? The marketing plan
is for the Super Stars and not for the Twinkle, Twinkle Little Stars. Twinkle, Twinkle
Little Stars, please wake up and do not be star-struck when you look at the Super Stars
showing their checks on stage. Maybe it is time to grow up and not get excited with the
checks of others that are beyond your reach.
By the way, I would like to remind you that these Super Stars are but the lucky frst
feas. They are not real MLM leaders. What they are getting is not a Leadership bonus
but a Lucky bonus. You will see their true leadership level and what they know when
they join a proper MLM company. They also know their own true colors, and will leave
a good company in a matter of weeks or months.
You may also want to try your luck and look for a new company to see if you can have
the chance to be the frst fea especially if the binary company you are in, is already a
few years old. Everybody knows, including the owners, that the company will not last
long in a country, so they go there, suck it dry and then move on to another country. If
the business has already hit a plateau or already on the decline, some of your uplines
or crosslines might have already been on the lookout for another company, just like
the owners of these companies are on the lookout for a new country. If you are one
step ahead, they may be your downlines and you now become the new General. Of
course, one day when the dog dies, you will become a foot soldier again.
What some binary owners may do instead of going to a new country is to start a new
company with a new name and sell a new set of products. The purpose is to reshuffe
the cards as they know there will always be distributors who would like to be the
first fleas. The dream that their former uplines or even crosslines may now be their
downlines is always very tempting. Even though they have been hurt or have lost
money in the previous company that closed down, they will still join these wolves.
So allow me to give an advice to all the high pin people who account for the majority of
the sales of pyramid schemes or binary companies. Get ready this advice is worth
millions...
Group together all the important leaders (even those from other companies) and start
your own company before the owners start theirs again. It is easy:
1. products are easy to source.
2. computers are cheap.
3. rental is cheap in many countries especially in the Philippines.
4. the binary software program is already available.
5. you and your big crossline leaders already account for the majority of the companys
organization anyway.
I will not be surprised if the owners will beg all of you to stay and make you all partners
in their companies. When that happens, buy me dinner.
To all distributors who are in companies that do not last Please know how to manage
your money when it comes. You should not go out and buy fancy cars to impress
others. You should never overstretch yourselves with mortgages on houses, cars and
other toys you cannot afford to sustain, in the eventual collapse of your business. Hope
you have heard the wise advice of Robert Kiyosaki, bestselling author of Rich Dad,
Poor Dad, where he teaches us if the thing is feeding you, it is an asset but if it is
eating you, it is a liability. Can you afford the liability when the income stops because
your business has collapsed or the owners of the company have decided to run away?
BIBLE: Luke 6:49 But the one who hears my words and does not put them into
practice is like a man who built a house on the ground without a foundation. The
moment the torrent struck that house, it collapsed and its destruction was complete.
So binary is easy.
Your answer: yes or no?
Note: I have seen a change recently in some binary companies and, who knows,
maybe my essay may force them to improve their marketing plans even more. When
that happens, all binarians must not forget to write me a thank you note. The ones
stealing from you are the binary company owners. I am not the enemy and you should
thank me for writing this essay and telling you the real score.
For the binary companies that claim that they have already made improvements, I
would like to say, Well done. Continue to improve and please do not steal from people
who believe in you. Also, please do not just execute band-aid changes to cover up or
mask the mistakes done, to excite people with trivial amendments, while you continue
to steal from them. By the way, I am not interested nor do I have the time to keep up
with most of you as you change your marketing plans every year. I hope the day will
come when some of you will have a change of heart and would start to look at these
people with love and compassion. These are people who believe and trust in you, look
at them with the eyes of a shepherd instead of those of a wolf.
Conclusion:
Read my essay again even though analyzing marketing plans is a very dry and diffcult
topic. You must know what binary companies are doing to their people especially if you
are in a binary company today. Be aware of all the tricks they play and the lies they
tell you. You should know that the owners of binary companies are wolves in sheep
s clothing. They will short-change and steal from you. Do not believe when they tell
you they are your friends and you are like family to them, and that the spirit of their
company is Love. I cannot see it from the marketing plan they have written. Can you?
I do not know the person who frst wrote the binary plan. I can only say a person needs
to have the brain of a crook to write a plan like this.
If you are or were a distributor in a binary company and youre not doing well or did not
do well, please dont beat yourself up for failing. You really cant be successful in this
system, unless youre one of the frst feas to jump on the dog.
Advice:
With the way binary marketing plans are designed, all distributors in binary companies
must work as a team. Treat the binary business as an investment. Let us say 1 share
is 250PV and a distributor can buy as many shares as they like, the team or investors
must then arrange the investment in such a way that they do not go over the PV set out
in the weekly bonus schedule and do not go over 5,000PV to be fushed out. Make sure
your team arranges enough to qualify for the most important 3% Leadership bonus.
100 million a month x 3% = 3 million to your group if no one else qualifes. You are
likely to impress many when you receive your checks but of course you must not let
others know that it does not totally belong to you as you still need to divide the check
among the other investors in your team. (And since this big bonus check does not
completely belong to you, dont wonder why youll end up looking poor and feeling
poor.)
I know this is already done in many binary companies and that is why many binary
companies are threatening their leaders with termination of distributorships. They can
steal from you but they dont allow you to work together as a team to maximize your
income. Distributors in binary companies: Dont you feel like a gambler in a Vegas
casino, whos desperately trying to beat the house? I must warn you: No matter what
game you all try to play, you cant possibly beat the house. The owners will just get
annoyed that they are making a bit less.
Story: Chili sauce or ketchup?
A new vacuum cleaner salesman knocked on the door of the frst house in the street. A
tall lady answered the door. Before she could speak, the enthusiastic salesman barged
into the living room and opened a big black plastic bag and poured all the cow dung on
the carpet.
"Madam, if I am not able to clean this up with the use of our new powerful vacuum
cleaner within 15 minutes, I will EAT all this dung!" exclaimed the eager salesman.
"Do you need chili sauce or ketchup with that?" the lady asked.
The bewildered salesman asked, "Why, madam?"
The lady replied: "There's no electricity in the house..."
Moral of the story: Many excited new distributors promise their new prospects all kinds
of outrageous income without understanding the marketing plan of the company they
have just joined. Believe me, with the way many plans are designed, especially the
binary plan, there is no money (electricity) there. Be prepared to eat the cow dung you
have scattered on the carpet.
A STUDY ON OTHER MARKETING PLANS.
This essay on binary should end here but I am reluctant to do so until I touch on a few
more problems faced by distributors in other marketing plans to complete this study.
The science of designing an MLM marketing plan is indeed a very complicated subject
understood by only a few. Im not trying to be conceited, but for the last 30 years in this
business, I have yet to come across anyone who knows how to write a perfect plan that
I cannot improve on. Even the MLM companies that have been around for decades
with sales of hundreds of millions to billions, still have loopholes in their plans that
need to be improved (of course, we could also take into consideration that the owners
may have purposely incorporated these loopholes and that is how theyve made their
millions).
For decades, we have been sold the idea that there is no perfect marketing plan. I
am sorry but I do not agree. Any MLM company who knows that their marketing plan
is not perfect should analyze further which part of the plan was written wrong and
consequently take steps to remedy the situation. This is a responsibility that owners
must take seriously, because distributors are putting their hopes and dreams in us.
They have to put food on the table for their families, send their children to school, pay
their debts and, of course, they are hoping to improve their present lifestyle.
An advice to entrepreneurs who want to start a new MLM company: Please do not
totally believe and entrust everything, in blind faith, to the consultants and speakers
who propose to help you design your marketing plans. Never forget that these groups
of people were failures, or at best, mediocre leaders from other companies. Why do
you think they are just consultants and speakers today? They left their former company
because they have no organization, no stable income or they simply dont have the
guts to build their own business there. Sometimes, the problem may not even be about
the guts, but they just dont know how to walk the talk. All they are good at is how to
chatter. As a common Chinese saying goes, There is lightning and thunder but no
rain. In the Philippines, hanggang salita ka lang. Be warned that there are many of
these charismatic people. They are also the speakers in the companies they have left
and even though they are skilled in public speaking and in trainings, it is unfortunate
that they do not have an organization of their own. So they just try to earn from
speaking to the network of other successful leaders. They do not know how to build an
organization. You may hire them as speakers for structured trainings, but never listen
to their suggestions or advice. Their identity is more suitable for playing games and
pyramid schemes. In their mind, they would like a marketing plan written in such a way
that:
Part 2
1. They want to make money for no effort
2. Their downlines do all the work, but they themselves need not work
3. They can manipulate others to invest so they can reap more proft
I guarantee you, this is the kind of marketing plan they will help you write: A marketing
plan that is bound to fail. However, if your intention is to build a fy-by-night company,
they can probably help you with their suggestions in pyramid schemes, although I still
doubt if they even have the ability to write this kind of plan. They can help you build a
doghouse but to build a 20-storey building? They dont even know where to start! Of
course, if your intention is just to build a doghouse and not a proper MLM company,
you already know what I think of people like you: garbage that pollute this industry.
If you sincerely want to start and own a good MLM company, it will be my honor to help
you. I can point out to you the common mistakes of several companies that you must
learn to avoid.
To all distributors who love networking and would like to make this business as your
source of income, whether part time or full time: You must also learn to identify these
common mistakes in marketing plans, otherwise you will be wasting valuable time
and effort. An army cannot fight a war with weapons that do not work; neither can
networkers go out into the battlefeld with marketing plans that are geared to fail.
Let us now continue with your education.
Clause A: Very small minimum requirement.
This is probably the most serious mistake any company can make when it comes to
designing a plan and the major cause why 99% of all MLM companies fail. It is as bad
as committing a cardinal sin. When the minimum requirement to be a 21% is made
small, distributors cannot make enough money to feed their families or pay their bills,
thus they will eventually quit. It is ironic, however, that these quitters are the same
people who want the company to write a small requirement, because they share the
common weakness of aspiring to make money from very little or no effort at all.
Let us use again the monthly bonus schedule of the stair steps plan below.
Chart 24. Monthly bonus schedule.
First let us study the overriding bonuses you will get. You are the 21% level and the
minimum requirement to a be a 21% used is 5,000PV or USD5,000.
Dist
3%
6%
9%
12%
15%
18%
21%
250
500
1000
2000
3000
4000
5000
Chart 25. Overriding Bonus.
Leg A at 3% 21% - 3% = 18% x USD250 = USD 45
Leg B at 6% 21% - 6% = 15% x USD500 = USD 75
Leg C at 9% 21% - 9% = 12% x USD1,000 = USD120
Leg D at 12% 21% - 12% = 9% x USD2,000 = USD180
Leg E at 15% 21% - 15% = 6% x USD3,000 = USD180
Leg F at 18% 21% - 18% = 3% x USD4,000 = USD120
Total Bonus = USD720
Let us now reduce the minimum requirement to be a 21% to 500PV or USD500 and let
us see the end result of the overriding bonuses.
Chart 26. Reduced Monthly bonus schedule.
18%
3%
6%
9%
12%
15%
$10750
18%
A
$250
B
$500
C
$1000
F
$4000
E
$3000
D
$2000
You
21%
15%
12%
9%
6%
3%
Dist
3%
6%
9%
12%
15%
18%
21%
25
50
100
200
300
400
500
Chart 27. Will also lead to reduce Overriding Bonus.

Leg A at 3% 21% - 3% = 18% x USD25 = USD4.50
Leg B at 6% 21% - 6% = 15% x USD50 = USD7.50
Leg C at 9% 21% - 9% = 12% x USD100 = USD12
Leg D at 12% 21% - 12% = 9% x USD200 = USD18
Leg E at 15% 21% - 15% = 6% x USD300 = USD18
Leg F at 18% 21% - 18% = 3% x USD400 = USD12
Total Bonus = USD72
We should also study how a small minimum requirement to be a 21% will affect one
of the most important income in MLM: the Leadership Bonus. This is a bonus that is
awarded to those who reach the 21% level and, at the same time, have a break off leg
at 21%. If the minimum requirement to a be a 21% is USD5,000 and the leadership
bonus is 5%, the check you will receive is:
USD5,000 x 5% = USD250.
When we reduce the minimum requirement to be a 21% to USD 500, the check you will
receive is:
USD500 x 5% = USD25.
Remember, you have expenses when you do networking and this money is not enough
to pay for the gasoline to go to your office or to group meetings, for the babysitter,
for the training and rally tickets, DVDs, for the coffee and muffins you offer to your
prospects when you present the business plan in a coffee shop. You cannot even buy a
good bottle of wine with USD25.
18%
3%
6%
9%
12%
15%
$1075
18%
A
$25
B
$50
C
$100
F
$400
E
$300
D
$200
You
21%
15%
12%
9%
6%
3%
Chart 28. Result.
Over the years I have heard many companies laugh at the biggest company in the
world because their leadership bonus is only 4% and these companies claim that
they are paying a lot more. I have even seen one company that pays up to 7% in their
leadership bonus but their minimum requirement to be a 21% is only USD100 whereas
the biggest companys requirement is USD10,000.
USD10,000 x 4% = USD400.
USD100 x 7% = USD7
Now USD7 is not even enough for you to have coffee at Starbucks with your
prospect.
For a person like me who studies marketing plans, what I see as the end result is only
USD7, and this bonus compared to the bonus paid by the biggest company is only:
USD7/USD10,000 x 100 = 0.07%
Rule 1: 4%, 5%, 6%, 7% or 8% Leadership Bonuses are only significant after we
multiply it with the minimum requirement to be a 21% to see the end result.
Rule 2: A small minimum requirement to be a 21% will also lead to buying up, playing
games and very weak organizations. When distributors can buy and play
games, they need not sponsor to get their bonuses and other incentives.
5%
5000PV
USD 250
A
You
5%
5000PV
USD 25
A
You
So what do you think? Is a small minimum requirement to be a 21%a good idea?
Your answer: yes or no?
How much, then, is a good and effective minimum requirement?
The answer to this depends on several factors:
1. The number of products the company sells. Can we use a minimum requirement to
be a 21% at USD10,000 when the company only sells one product?
2. It also depends on the per capita income of a country. Is the end result of the bonus
received satisfactory to the distributors of that country? Say for a rich country like
USA if the end result received is only USD250, then the minimum requirement to
be a 21% is too low. However in some Asian countries where the monthly salary is
under USD200, a USD250 end result is outstanding.
3. It also depends on the percentage paid out by the company. The biggest company in
the world uses USD10,000 and a 4% leadership bonus.
USD10,000 x 4% = USD400.
If a company is willing to pay 8%, it can lower the minimum requirement to be a 21% to
USD5,000 and the end result will still be the same.
USD5,000 x 8% = USD400.
Note to owners of network marketing companies:
Be careful about lowering the minimum requirement. Even as you lower the minimum
requirement to be a 21% and try to be generous by giving a higher percentage for
bonuses, this may still lead to playing games. Keep in mind that there is also a
crucial purpose for setting a high requirement, and that is to compel the
leaders to build solid organizations.
I have seen several big companies make their minimum requirements around
USD2,000 to USD3,000. Trust me. This is too low and dangerous and will result in
low bonus checks, playing games, buying up and price-cutting. For this reason, even
if some companies claim to pay more percentage-wise, but their total sales worldwide
lag so much less than the biggest company in the world, then the end result will still be
incomparable. The worldwide sales of the biggest MLM company amounted to USD8.2
billion in 2009. Now compare this to the pathetic sales your company is doing. You
know your fgures. We, the distributors, also know as this information is in the Internet.
Some of you have not reported your sales for 2009 and some have not reported for
several years now. We know why.
Yes, a low minimum requirement to be a 21% of around USD2,000 to USD3,000
would make it is easier to excite people to join. I can also sense the fun you and your
distributors have in putting down the biggest company in the world: how diffcult their
marketing plan is and how low the percentage they are paying; versus how good and
easy yours is and with a higher percentage. I will not be surprised your company sales
will boom and in some countries you may even overtake the sales of this big company.
I have heard enough of your rhetoric for the last 30 years about how you are going to
be a 5-billion dollar company within a few years, and, before we can blink our eyes,
your company will be the biggest in the world. But when the dust settles, you will know
what I mean most of you cannot even do an annual rally in a venue that sits 2,000
to 3,000 when your sales plateau. This is the result of a USD2,000 to USD 3,000
minimum requirement.
Some of you may now ask what is the ideal minimum requirement? Eddy, what is the
answer? Well, do not go under USD100 or go over USD10,000 ha, ha, ha, ha.
For this essay, I have used 5000PV or USD5,000 as Part 1 of this essay deals with
the binary plan. However, please avoid coming to a conclusion that this is the fgure
I am recommending to be used. I will tell you now. I will not use this minimum
requirement to be a 21% in my marketing plan in a developed country. As
a rule of thumb, it must be high enough for distributors to be compelled
to build a good and solid organization.
Clause B: Reduce the minimum requirement to be a 21% after breaking
off a leadership leg. (Note: Breaking off only one leg)
That is to say, when you break off a 5,000PV leg, we reduce the 5,000PV
requirement that you need to complete, in order to get your leadership bonus to
only 500PV, for example.
This is one of the favorite demands the fleas would like companies to write
into the marketing plan. This group does not want to work but they also hope
their stupid downlines will work so that they can make money. Marketing plans,
however, must be fair and equal to all and what we write for the upline also
applies for the downlines. If we allow you to reduce your requirement to 500PV
after your Leg A breaks off at 5,000PV, what requirement do you think Leg A
needs to do when he breaks off Leg B at 5,000PV? 5,000PV or 500PV?
Answer: 500PV right? So what is going to happen to your bonus check now?
Be careful of the domino effect if your company ever makes this mistake in the
marketing plan. This is another cardinal sin.
Chart 29. The Domino effect.
Now look at the leadership bonus you are going to get. Result. You just
received a big pay cut and now your downline A makes more than you.
5%
5000PV
A
5%
5000PV
A
You
5000PV
You
500PV
You
500PV
5%

A
5000PV
B
5%
Chart 30.

Rule 1: When a sponsor only breaks off a leadership leg at 5,000PV, the
sponsor must also do 5,000PV to get a leadership bonus. Reducing it
will lead to a bad domino effect.
Rule 2: The leadership bonus is not a lucky bonus. If you break off a big leader
with a huge organization with over 100,000 distributors doing an
annual turn-over of more than USD20 million while you on the other
hand, cannot even do 5,000PV monthly from your non-break-off lines,
I would like to ask you a question: Are you a leader or are you just a
sponsor who just happened to sponsor a leader?
So, is reducing the minimum requirement to a be a 21%after breaking off a
leadership leg - a good idea?
Your answer: yes or no?
Note:
When a leader breaks off more than one leg, the minimum requirement to be
a 21% can be reduced. Frankly speaking, if I am a consultant for a company, it
would be my recommendation that the minimum requirement to be a 21% must
be reduced. If a company does not do this, they should not talk about paying a
royalty or permanent income and that distributors can retire or die and still be
paid. I have seen companies where leaders must do a minimum requirement
to be a 21% no matter how many break off legs they have. The owners of
these companies think MLM is like all traditional businesses. You work or
else, you dont get paid. They do not understand that other than the minimum
5%
5000PV
A
You
You
500PV
5%
A
5000PV
500PV
B
5%
USD 250
USD 250
USD 25
requirement, there are many things leaders with huge organizations need to
do, so they can have the option to retire when their lines are wide and solid
enough.
All owners of MLM companies who sincerely want to build a good company and
for all good networkers who despise pyramid schemes and the feas, Please
read Clause A and B again:
1. The minimum requirement to a be a 21% cannot be too low, and
2. A distributor after breaking off one line must also do the maximum
requirement in the monthly bonus schedule.
These are 2 rules that cannot be broken otherwise a company will be
committing two cardinal sins. These two rules must be written in stone in your
companys marketing plan and can never be changed or else, your company
s business will crash or may not even be around anymore, in just a few years.
Because of these, I must also warn all owners and good distributors who want
to build a good company: there is a challenge that you are all going to face
when your company starts operations.
Remember the fleas? They will flock to your company the first few months
you open, as you are now the new dog and the excitement in your offce and
meeting room will be electrifying. You may think you have struck gold but let me
warn you on what will happen next. In just a matter of weeks or months, these
fleas will realize that they cannot play games and they have to work. Work?
This is a word that is not in their vocabulary, a word they do not understand.
Pretty soon, they will go away just as quickly as they came and the attendance
in the offce and meeting room goes down.
To the owners, be wary of this group. Some of them may stay longer and what
they will do is to try to convince you, the owner of the company, to change the
marketing plan to the one they want. A plan where they do not need to work
which, of course, is a marketing plan that is doomed for failure. They will sit
around in your comfortable air-conditioned facility talking negatives and trying
to convince other good distributors as they need more support to convince
you, the owner, of their demands. They will be saying things like: theyve
been discussing how much they love your company; their ability to make your
company grow and expand to be the largest in just a matter of months; and that
their good intentions are meant to beneft everyone, if only the company, which
is you, would listen to their "concerns".
Eventually this group will also leave and transfer to another new dog. Then they
will try to justify their twisted reasons for leaving by criticizing your management
abilities as to how stupid and stubborn you are and that is why they left. They
will also be boasting that they were 21% before and, even when they attained
this level, they still left your company and they will say that your company is too
diffcult. But the truth is, a strong leader pushed them up to 21% and most of
the volume was done by the strong leader. So when the strong leader breaks
off with 21%, he is left with none or very little volume at all. They are just
people who found a leader and are not leaders themselves. Since these people
are not leaders in the frst place, they dont have the stomach to build a group
again, so they left.
Of course, most new distributors are inexperienced and may get totally
confused. When the attendance in your company goes down, many good
distributors will also dive for cover and give up. To all good distributors who
despise these feas, be strong and stay focused.
Story: Archery competition.
Theres an upcoming archery competition and the teacher has to choose a
student to compete to represent the school. The top three students were all
very good, and the teacher couldnt decide who among them to choose. When
they were in the practice area, the teacher asked the frst student what he sees
in front of him.
The frst student said, I see the target, and some wildfowers on the bushes
behind the target. The teacher praised the first student that he was very
observant.
The second student said, I see the target, some wildflowers on the bushes
behind the target, and there's a tree and way behind is a mountain. The
teacher then praised the second student that he is even more observant than
the frst student.
The third student said, I see the target. The teacher asked him, What else do
you see? The third student answered, I just see the target. He got chosen.
My advice to all good MLM company owners and distributors: Do not get
discouraged and stay on course when these people no longer come. These
people are not supposed to join a good company in the first place. Stay
focused and understand that it takes time for an apple seed to grow into a tree
that is ready to bear fruits.
To all the good distributors, sit back and think. Are you affected by these people
who left? If yes, then they are your downlines and you can choose to leave with
them as you are probably one of the feas too. (Why dont you decide to stay
and not be a fea anymore? How long do you want to remain a fea?) If not,
dont feel bad, you are not a fea anyway. The feas are not supposed to stay
too, so when they left, you did not lose anything. You probably have very few
downlines at this stage as the big groups that came and flled the meeting room
were all the feas. You have not even started building your group yet. Should
you meet any of these feas, just tell them you do not like to be around negative
people and tell them to go away.
To show you the mentality of these fleas, let me tell you an incident that
happened to me. I was asked by one lazy bone how come he still couldnt retire
after 6 months working in a good company. A person who constantly complains
about working in a network marketing business, should just quit and go away. If
people can retire after 6 months or 180 days of work in MLM, then there will be
no taxi drivers, doctors, lawyers, waiters, secretaries, etc. and probably no one
even wants to be the President. I have been in MLM for 30 years and I am still
working even though I could have retired long ago. I enjoy and love what I do.
It is my life passion. MLM is my life. I eat, breathe and live MLM. Perhaps this
is why I know how to write this essay. I will do this business until the day I die
and when I go to heaven, I will still continue to do this business... International
sponsoring.
Note:
Entrepreneurs who want to start a good MLM company today must have
enough money before establishing one. This is the year 2010, not 1956 or
1959 when Shaklee or Amway started their companies or around 1980 when
companies like Forever Living Products (1978), Herbalife (1980), Sunrider
(1983) and Nuskin (1984) started theirs. MLM has been around for over 50
years now and the market is tough and competitive especially with the bad
label attached to this business because of the pyramid schemes. It will take
time for your company to stand on its feet. Perhaps this is the reason why we
hardly see any good companies being started for the last two decades. Most
companies start their operations with very limited funds and since the industry
today has been tough and competitive for the last 20 years, most investors
result to setting up pyramid schemes. Make some money and run.
However, should you start a good MLM company but eventually choke under
pressure. Out of panic and desperation, you make the mistake of yielding to
the demands of these opportunist people or sometimes, may even be stupid
enough to pay them a consultants fee for helping you change your marketing
plan into a pyramid scheme, I guarantee you that this money will go down the
drain and your company will fold eventually. Do not expect a butcher to do a
heart bypass. Moreover, a good MLM office, just like a traditional business
offce, cannot be a Beggars Den flled with people who think like beggars and
do not want to work.
It may be good to note here that pyramid schemes will also have to face the
old market phenomena. If your country is already an old market, even a new
pyramid scheme company will fnd it equally tough and challenging. After 10
or 20 years, the feas are now penniless and I have seen some of them who
do not have money even for transportation to come to meetings. So where
can they fnd the money to play games like before? Yes, some of them made
money when pyramid schemes started in your country ten years ago but when
it became an old market, theyre back to being poor again. Sometimes, I call
this group the Beggars Clan. If you are a new member of this clan, you must
realize the old feas or the old beggars depend on you, as you are the one who
brings in the new money. You must wake up now and realize that you will be
miserable when you end up just like them 10 years from now.
The time is now ripe for good MLM companies to start and save this
whole industry that has been turned into a circus these past few decades.
For the last 30 years, I have told my audience that in my eyes, there is
only one MLM company I recognize and this company is the biggest
in the world today. The rest are all pyramid schemes. All other MLM
companies where playing games has been rampant, where distributors
end up with products they cannot sell and where distributors have lost
their savings If you are not a pyramid scheme, then what are you?
I hope good entrepreneurs and people with money will take up this
challenge. MLM is a very important business for many people who have
no money or opportunity. Without your help, many may have to work as
employees until they retire. If you need my help, write to me but please be
prepared: the journey for a good company is tough. If you do not have a
sincere heart, please do not waste my time.
Sorry if I have expounded so much on Clause A and B, but these are two
cardinal sins.
Clause C: Personal PV (PPV) versus Group PV (GPV)
When we talk about doing the minimum requirement, this volume is the PV
done by your non-break off lines. I will call this Group PV (GPV) and this may
or may not include your own personal purchase. From what I wrote above, you
already know that I am in favor of using a fairly high GPV. However, there are
several companies that do not only expect the distributors to do the GPV, they
also want the distributors to do a personal PV (PPV) volume. For example:
5,000GPV or USD 5,000 minimum requirement to be a 21% plus a personal
purchase of 500PPV or USD500 or another example, 4,500GPV or USD4,500
plus a personal purchase of 500PPV or USD500. I have seen companies going
as far as over 1,000PPV or USD1,000 for this PPV requirement.
Chart 31. GPV + PPV
Distributors involved in companies with this clause, beware. Your company is
like an employer who, after paying your salary, will now force you to use your
salary in buying USD500 to USD1,000 of the company products. Imagine
working for McDonalds and, when you get your salary, they expect you to
spend USD500 every month eating at McDonalds or else! Like leeches, they
will suck the money back.
For the biggest company in the world, the PPV is zero. I do not mind if
companies write a very small PPV for fun. Say under USD50 or USD100.
5000PV
5000GPV+500PPV
You
5000PV
4500GPV+500PV
You
or
Clause D: NO REVERSION
First, let me explain what a reversion clause is. In a company where we have
a reversion clause, the percentage you get depends on the monthly bonus
schedule. That is to say if your downline As sales was 5500PV for this month
he is at the 21% level. If for next month it dropped to 4,250, his percentage
drops to 18%. If it crashes to 1,000PV, he will be at 9%. When his sales
volume does not exceed 5,000PV and above, he will not be considered a
break off leadership leg and his sales revert back to your personal sales and
you are paid the overriding bonus as before.
Chart 32. Monthly bonus schedule.
In a company with no reversion, this means when your Leg A reaches the
5,000PV level or 21% in the monthly bonus schedule, he will automatically be
considered a break off leg and will remain at the 21% level forever even if his
sales go below 5,000PV the next month. Actually his sales can drop to any
level and he will stay at the 21% level and remain your break off leadership
leg. He only needs to do the 5.000PV or 21% level once. What do you think is
going to happen to your leadership bonus now when the downline only does
500PV instead of the 5,000PV next month? Actually he can even do 1PV or
USD1 and remain a 21% break off line. What is 5% of USD1?
Chart 33. You must be kidding! USD0.05? Can I have a glass of free water please?
Dist
3%
6%
9%
12%
15%
18%
21%
250
500
1000
2000
3000
4000
5000
5%
US$1
You
USD 0.05
A free fall cannot be allowed. To solve this problem, all companies with a no
reversion plan will have to come up with this solution. In order for distributors
to receive the leadership bonus, they must do, say, 3,000PV for the month.
They cannot say we have a no reversion plan but distributors still have to do
5,000PV to get their leadership bonus. So with a no reversion plan, they have
already dug a hole for themselves. When they do this they are breaking one of
the cardinal sins: Clause B.
Rule: When a sponsor only breaks off a leadership leg at 5,000PV, the sponsor
must also do 5,000PV to get a leadership bonus. Reducing it will lead to
a bad domino effect.
No reversion also opens a loophole for playing games and I have seen that
many innocent new distributors being manipulated by bad uplines who tell them
to buy up to this level even when they do not have an organization as they only
need to do this once. Distributors in companies with no reversion, please do
not get into debt as your income is unstable and your organization is not solid.
So what do you think? Is no reversion a good idea?
Your answer: yes or no?
A no reversion clause only sounds great in theory. Actually many will even think
that the person who designed a marketing plan with this clause is a kind person
with a big heart. But believe me. It is a lousy idea.
Advice to new distributors: When someone wants to show you a company with
no reversion plan..RUN.
Clause E: NO PASS UP.
Let us cover one more clause and then Ill end this essay. This means when a
downline makes 5,000PV or 21% level, the upline or uplines are also pushed
up to this level. This clause again opens a loophole to playing games. Here is
how it is done. 5 distributors A, B, C, D and E each invest in 1,000PV
and they buy the 5,000pv under E so they all get to the 21% level.
Chart 34. Everyone above is pushed up to 21%.
No pass up by itself serves no purpose in a reversion plan. This clause is
always put in together with a no reversion clause. They are the inseparable
Siamese twins and when the owners of MLM companies do this, they know
what their intentions are. The owners purposely use these two clauses to
encourage playing games. Imagine the excitement and the number of people
we can get to join and play games when we have no pass up plus no reversion
in a marketing plan. The owners of such companies can make fortunes
because no pass up and no reversion are sweet music to the ears of the feas.
If you are a salesman and your quota is USD50,000 sales a month for your
employer to be pay you a salary, do you think you will still get paid if youre
not able to hit your sales target quota? The same thing is also true in MLM.
The question I would like to ask of distributors is this: Is it only logical that after
doing 5,000PV or 21%, you still need to do 5,000PV or 21% every month to
make a good bonus check? After doing 21% once and you get your pin, if you
no longer produce, you get no bonus check. But then, we will always have
numbskulls who will spend thousands of dollars for a USD50 pin and get a
high when they are pinned onstage in a rally. Just like taking drugs, when the
high is over and they wake up, they end up losing money and have a bunch
of products they do not want. These are the Type A people but we will not go
into this subject in this essay.
A
B
C
D
E 5000PV(21%)
21%

21%

21%

21%

Conclusion:
I hope you have enjoyed this essay. I have tried my best to make it as simple
as I can and have opted out:
1. Some details on the clauses in marketing plans I wrote above that should
only be for the experts who write marketing plans.
2. Areas in marketing plans where the answer is neither right nor wrong as
they depend on who is looking at them: From the owners perspective or the
distributors standpoint.
3. Areas where the mistakes are minor and will not lead to the collapse of the
company or organization. Here are a few examples:
i. The paying bonuses using PV or Wholesale or Retail price.
ii. Should we use a fxed or a variable retail proft?
iii. When a leader breaks off a line should we only pay one generation of
leadership bonus or two or three or more? The list goes on..
4. Minimum amount of requirement to use to be at 21%.
5. Minimum amount of requirement to use after breaking off more than one line,
etc.?
6. Clauses many owners write in their plans I call, Pie for you to see but not for
you to eat.
So this essay on understanding marketing plans is only about 80% complete.
For me to do a complete essay on this topic I need to go further and breakdown
the marketing plans of each individual company especially the big billion dollar
companies that have been around for over 15 years. Not only should I touch on
the mistakes they make, I must also praise them for the areas where they have
written them right. I should also take the opportunity at this time to thank them.
Thanks for areas where you have written your plans right and areas where you
made mistakes. Without studying what all of you have done, writing this essay
will not be possible. For this essay, the above written should be enough.
I would also like readers to note that when you read Part 1 of this essay you
can see that I absolutely disdain binary companies and come down very hard
on them. I can never accept this kind of company or plan where the company
openly steals from distributors. In Part 2, I am not so tough on the companies
of other plans for the wrong clauses they write in their plans. Actually, I wrote a
lot and explained things in greater detail on many clauses in Part 2 hoping the
owners can read between the lines so that they can see where they made the
mistakes and come up with improvements. The reasons are:
1. Do not be surprised if some parts that were written wrong are actually
honest mistakes that the owners or the person who wrote the plan may have
overlooked because they are not fully aware of what they are doing. I can
live with this.
2. Do not be surprised too that some of these mistakes were written by the
owners out of the goodness of their hearts. They put the wrong clauses,
hoping to make the marketing plans easy so that the weaker distributors can
also qualify and make money. I can already see many wolves now stand
onstage in their rallies claiming that they are in this group. Please do not
make this claim if this is not who you are. You do know who you are, dont
you? Please do not insult the intelligence of your distributors. Some of them
know who you are too. If you want my sincere opinion, some of you will be
spending time in jail if the pyramid laws are strictly enforced. Here is a story
for some of you.
Story: Honorable men.
One day, while a woodcutter was cutting a branch of a tree above a river, his
axe fell into the river. When he cried out, the Lord appeared and asked, "Why
are you crying?"
The woodcutter replied that his axe has fallen into water, and he needed the
axe to make his living.
The Lord went down into the water and reappeared with a golden axe. "Is this
your axe?" the Lord asked.
The woodcutter replied, "No."
The Lord again went down and came up with a silver Axe. "Is this your axe?"
the Lord asked.
Again, the woodcutter replied, "No."
The Lord went down again and came up with an iron Axe. "Is this your axe?"
the Lord asked.
The woodcutter replied, "Yes."
The Lord was pleased with the man's honesty and gave him all three axes to
keep, and the woodcutter went home happy.
Some time later the woodcutter was walking with his wife along the riverbank,
and his wife fell into the river. When he cried out, the Lord again appeared and
asked him, "Why are you crying?"
"Oh Lord, my wife has fallen into the water!"
The Lord went down into the water and came up with ANGELINA JOLIE. " Is
this your wife?" the Lord asked.
"Yes," cried the woodcutter.
The Lord was furious. "You lied! That is an untruth!"
The woodcutter replied, "Oh, forgive me, my Lord. It is a misunderstanding.
You see, if I had said No to ANGELINA JOLIE, You would have come up with
CAMERON DIAZ. Then if I said No to her, you would have come up with
my wife. Had I then said 'Yes,' you would have given me all three. Lord, I am
a poor man, and am not able to take care of all three wives, so THAT'S why I
said Yes to ANGELINA JOLIE."
The moral of this story is: Whenever a man lies, it is for a good and honorable
reason, and for the beneft of others. Yes, stick to your story. We know! - "YOU
ARE HONORABLE MEN!!!!!!"
To those who made mistakes because you have a caring heart, I have two
things to say to you:
i. If you pay peanuts, you get monkeys.
ii. Think with your heart in MLM and you will get a heart attack.
3. Of course there are those who purposely write the plans with loopholes and
make them easy so that innocent and inexperienced distributors can play
games and they can make money out of it and run. I do not like this but at
least you can see that they are not stealing from the distributors. Stealing
done in binary is a no-no, something all of us must not accept. How can
anyone accept a father stealing from his children?
There will be some who wouldnt like this essay and will fnd reading it painful.
It is alright with me as this essay is not for the unteachable. Just remember,
the truth will set you free. You are probably worried your downlines may also
get a copy of this essay, which they probably will with the technology we have
available today, and when they ask you about things I wrote, let me tell you
what I know you will do:
1. Should your downlines ask, I know you will tell them that what is written
here is untrue and that Eddy Chai is lying and does not understand your
companys marketing plan. You will begin to explain the band-aid changes
your company has made and as a result this essay does not apply to your
company even though you know the band-aid changes made by your
company is just to confuse distributors even more. The bad things written by
the owners remain the same. So before you continue your babbling like a
hypnotized idiot, please answer the questions below:
a/ Is the company still paying the bonuses using the volume done by the
smaller leg?
b/ Is the company rounding off to the nearest PV as set in the monthly bonus
schedule?
c/ Is the fushed out clause still in place?
d/ Is it a no reversion plan?
e/ Is it a no pass up plan?
f/ And most importantly, is your company a channel to sell goods and
services or a place where you all play the money game with over-priced
products? As a result, you only have distributors and no customers.
2. After reading this essay, some of you will be worried and/or become
protective or be in denial because you have downlines or income. I
understand and I dont blame you. I know the bonus you are now getting
may be your only income and you need to protect it even though you know it
is blood money.
3. I wont be surprised too, that if I do this training on how to analyze marketing
plans, you will walk out half-way through the training. I have been in this
business for 30 years; I can read the mind of distributors like a book.
I would like to remind you that I am not the enemy. Just know that the income
you are making now is only temporary. I have already seen thousands of
companies close down in Taiwan and in many other parts of the world. Most of
you will not last very long anyway if your company makes the above mistakes
in their marketing plan. You may want to know why some pyramid scheme
companies have lasted over 10 years old. You must understand that the only
reason why they are still around is because there are 190 countries in the world
for them to move around. They will not do well or last long in your country.
Know your business if you intend to make MLM your main occupation
and source of income. I am here to help you, not hurt you. I wrote in my
book before: It is a fact that Multi-Level Marketers are some of the most
unprofessional people in the world. If doctors were as unprofessional as we
are, I wonder how many sick people could ever hope to leave the hospital alive.
All too often, we behave like sailors who do not know how to swim.
Read this essay again. I will see you at the top.
To the Governments of all countries interested in stopping pyramid schemes:
The anti -pyrami di ng l aws of many countri es have been wri tten and
implemented but we still see that pyramid schemes are still rampant in every
country where MLM are allowed to operate. If the Government of any country
is concerned with the damage this kind of business has done to your country
and your citizens, I am willing to offer my free service to stop pyramid schemes
by incorporating additional clauses in your existing law. It is not difficult to
stop pyramid schemes and I guarantee you 90% success. Actually when we
include a few more rules and restrictions, most pyramid scheme owners will
not even dare to start their companies in your country. Please let me help you.
We cannot ignore the number of people who get hurt and devastated with their
valuable savings lost, despite the fact that we have a law that is supposed to
protect their rights against fraudulent companies. My service is free.
Note:
This essay is about binary companies and the mistakes made by some
companies in their marketing plans. How to write marketing plan is a different
topic, which I will not write as it is too diffcult or complicated to understand. A
marketing plan also needs to be customized depending on the percentage a
company is willing to pay. If you want to start a good company, I can only offer
you the following advice when you design your marketing plan:
1. You must close all loopholes to game playing or you will end up with a
pyramid scheme.
2. You must know the end result of the bonuses or incentives you put in your
marketing plan. This will depend on the per capita income of a country.
3. The kind of leaders you want to attract to your company.
a. The lower level leaders or the mid level leaders or the heavy hitters. Of
course all of them should be your goal. Achieving this will depend on how
much you are willing to pay.
b. Part-timers or full timers
c. The retailers or networkers
d. Singles or couples
e. The ladies, the men or both
f. The younger or the older age groups
4. The spirit and culture resulting from the plan.
5. The carrot and the stick plan. Can the marketing plan make the distributors
work on auto mode instead of manual mode where the leaders and the
company still need to push distributors before they work?
Let us end this essay with a story.
Story: Heaven and Hell.
A holy man was having a conversation with the Lord one day and said, "Lord, I
would like to know what Heaven and Hell are like."
The Lord led the holy man to two doors. He opened one of the doors and the
holy man looked in. In the middle of the room was a large round table. In the
middle of the table was a large pot of stew which smelled delicious and made
the holy man's mouth water. The people sitting around the table were thin and
sickly. They appeared to be famished. They were holding spoons with very long
handles that were strapped to their arms and each found it possible to reach
into the pot of stew and take a spoonful, but because the handle was longer
than their arms, they could not get the spoons back into their mouths. The holy
man shuddered at the sight of their misery and suffering. The Lord said, "You
have seen Hell."
They went to the next room and opened the door. It was exactly the same as
the frst one. There was the large round table with the large pot of stew which
made the holy man's mouth water. The people were equipped with the same
long-handled spoons, but here the people were well nourished and plump,
laughing and talking.
The holy man said, "I don't understand."
"It is simple" said the Lord, "it requires but one skill. You see, they have learned
to feed each other, while the greedy think only of themselves."
To all distributors in binary and pyramid scheme companies. Make your choice
today. Remain greedy and only think of yourself or decide to look after others.
Congratulations for reading the whole essay. You now possess more knowledge
on marketing plans than most networkers in the whole world including very
high pin leaders and owners from all companies and some world-renowned
trainers and speakers in this industry. I hope you will continue your interest
on analyzing marketing plans especially if you want to make networking your
business and occupation.
God Bless,
Eddy Chai
Website:http://www.eddychai.com
Email: eddy@dlcorp.com