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Poverty has been the primary problem of

our country today, it was due to this that


many people risk their security in order to
attain their goals or lift their way of life.
Many people tend to get fooled when
being told of an easy way to earn money,
without any much work to do, or just the
term work at home, especially those who
are so busy with their chores at home.

There is a business model where a person


can earn money primarily from bringing
other people into the business rather than
selling real products of good products. It is
called Networking and Pyramiding.

A good legitimate networking business


can give you both active and passive
income. As you probably know, there are
two kinds of income active and passive.
-Active income is earned by your actual
physical effort.
-Passive income is earnings received with
little
effort.
It
is
sometimes
called
unearned income.

It is always best to have both active and


passive income to grow your wealth.
Thus, networking and pyramiding is
definitely a very interesting and lucrative
source of both types of income for many.

A method of increasing a position size


by
using
unrealized
profits
from
successful trades to increase margin.
Pyramiding involves the use of leverage
to increase one's holdings by making
use of an increased unrealized value of
current holdings.
Since the use of leverage is involved,
this is a riskier strategy than one which
only makes use of cash to purchase
securities.

A pyramid scheme is an unsustainable


business model that involves promising
participants
payment
or
services,
primarily for enrolling other people into
the scheme, rather than supplying any
real investment or sale of products or
services to the public.

Networking is a marketing system.


It is not by itself a business.
As a marketing or sales system,
networking has proved to be quite
effective for selling certain types of
products and services directly to the
consumer.
It bypasses media advertising and is
usually via word of mouth.

Because
networking
has
been
successful in a number of companies, it
has also been abused and twisted to the
detriment of those who join with the
mistaken notion that networking is a sure
way to make money.
Many believe that they dont have to do
much and the income will automatically
pour in.

Multi-Level Marketing (MLM) is a


marketing strategy in which the sales force is
compensated not only for sales they generate,
but also for the sales of the other salespeople
that they recruit.
This recruited sales force is referred to as
the participant's "downline", and can provide
multiple levels of compensation.
Other terms used for MLM include pyramid
selling, network marketing, and referral
marketing.

MLM is one type of direct selling.Most


commonly, the salespeople are expected to
sell products directly to consumers by means
of relationship referrals and word of mouth
marketing.
MLM salespeople not only sell the
company's products but also encourage others
to join the company as a distributor.

Companies that use MLM models for


compensation have been a frequent subject of
criticism and lawsuits.
Criticism that is focused on:
similarity to illegal pyramid schemes
price fixing of products
high initial entry costs (for marketing kit and
first products)
emphasis on recruitment of others over actual
sales
encouraging if not requiring members to
purchase and use the company's products

exploitation of personal relationships as both


sales and recruiting targets
complex and exaggerated compensation
schemes
the company and/or leading distributors
making major money off training events and
materials
and cult-like techniques which some groups
use to enhance their members' enthusiasm
and devotion

1. Network marketing is NOT a get-richquick scheme.


Network
marketing may
be
very
lucrative,
but
it
is
also
a
tough
business. Right from the start, genuine
businesses will tell you that the results
happen only if you put in the time and
effort.
Any company that promises you an easy
way to riches should be regarded with
caution.

2. Direct selling companies deliver quality


products or services.
Pyramid schemes have no legitimate
products or services.
Good direct selling companies dedicate
substantial resources to research and
development to create quality products that
are of actual use to people.

3. Direct selling companies have


restrictions in their compensation plan.
Reputable direct selling companies limit the
number of people who can earn a commission
through sales. This is to level the playing field
for its members.
In a pyramid scheme, the uplines or the
ones at the top make all the money, while the
downlines or the ones at the bottom, lag
behind due to late participation.

4. Network marketers do not earn


commission solely through recruitment.
Recruiting new members is NOT a
requirement for real network marketers to
earn a commission.
The reason why is that legitimate
companies are structured to reward people for
promoting their products. If there is a
commission for recruitment, it is also for sales
of the companys products.
In a pyramid scheme, there is no financial
return unless others are successfully enrolled.

5. Direct selling companies give their


network marketers a return guarantee.
Overstocking is not allowed.
When dealing with inventory, representatives of legitimate direct selling companies
are required to abide by rules and
regulations.
Product loading, or the excessive stocking
of the companys products, is not allowed. This
allows representatives to focus on networking,
as they need not worry about clearing
excessive stock.

6. Network marketing opportunities have


a solid training system.
Direct selling companies place great
emphasis
on
training
their
network
marketers. Organizations like QNet have
qualified trainers equipped with the expertise
and experience to help their members better
understand the business and products.
They serve as mentors and motivators to
grow the business.

7. Network marketing opportunities come


with the support of business tools.
A legitimate company helps you to keep
track of purchases, commission earnings and
the status of product deliveries, as well as full
customer support.
Other forms of support include regular
product
information
releases,
marketing
materials and promotional offers.

8. Direct selling companies have proper


policies and procedures, as well as
ethical marketing codes.
Carefully review the companys policies and
procedures before making a decision.
Genuine direct selling companies aim to
achieve sustainable growth by fostering a
culture of ethical marketing.

Remember not to get carried away


by promises of financial freedom and
the fulfillment of life-long dreams.
All network marketing does is
provide you with a business model; it
is still up to you to do the hard work.

Pyramiding, ponzi schemes and other forms


of investment scams are not a unique problem
of the Philippines.
It is a worldwide phenomenon. Human
greed induces the anomaly and the Internet
facilitates its aggravation

Under Republic Act 7394 a.k.a. Consumer Act of


the Philippines,
pyramiding schemes or chain
distribution plans are defined as sales devices
whereby a person upon condition that he makes an
investment, is granted by the company or its
representative a right to recruit for profit one or
more additional persons who will also be granted
such right to recruit upon condition of making
similar investments, provided that the profits of
the person employing such plan are derived
primarily from the recruitment of other persons
into the plan rather than from the sale of consumer
products, services and credits

Sad to say that our country still,


doesnt have and yet in need to adopt
tough
measures
to
protect
small
employees, retirees, overseas workers
and many Filipinos who have been falling
prey to this investment scammers that
rob them of their precious savings.

Another important consideration is the


track record of the company. The longer
the company has been in business, the
better
chance
of
its
legitimacy.
Companies with a buy back guarantee
also have more credibility. Check the
efficacy of their products and their
training system carefully.

If the product or the offer to join is


being presented as an investment, the
company and/ or agent must produce a
secondary license from the SEC (i.e., a
securities broker or dealer license) to
sell their investment products.

The product itself, must be registered


by SEC as a legitimate investment
product. This is a specific SEC product
registration document which specifies the
total amount allowed to be sold over a
specific period, which is usually a year.
Finally, sales agents of investment
products need to be licensed by the SEC.
A networking company must have all
these
licenses
and
registration
documentation in order to be legitimate.

You have to clearly understand how


you make your money as a networker.
The legitimate way is for you to earn
based on actual selling of the products
either directly by you or indirectly
through your downlines. This means
that the market price of the product
allows for good commissions to be paid
out.

List of Networking and Pyramiding Scams in the Phils.


Agel Enterprises
Aim Global Inc
Alivemax
Amway
AVON Products Inc.
Bionutriwealth International Corporation
Business Empire, Inc.
CF Wellness
Charmica Power Life Corporation
Classique Herbs Corporation
Custrich Healthcare Products, Inc.
Diamond Lifestyle Corporation (DLC)
DXN International Private Ltd
E. Excel International (Philippines)Inc.
Edmark International

List of Networking and Pyramiding Scams in the Phils.


Essensa Naturale
Felta Multi-media, Inc.
FERN Inc.
Fern-C
Filway Marketing, Inc.
First Vita Plus Marketing Corporation
FM Group Fragrance
Forever Living Products Philippines, Inc.
Frontrow Enterprise Philippines, Inc.
GanoiTouch
Global Fusion Incorporated!
Global Green Life
Global PINAS
Global Pinoy Remittance and Services (GPRS)
GMACS Cosmetic Distributor - SkinGlow by GMACS

List of Networking and Pyramiding Scams in the Phils.


GNLD International
GOLDEXTREME
HB&W Marketing
Health and Wealth (Green Barley)
Herbalife
International Marketing Group
Lifemax
LifePharm Global, Inc.
Lifestyles Asia
Mary Kay Philippines, Inc.
Max International
Maxceemum Corporation
Mega-C
MIYO Marketing Systems

List of Networking and Pyramiding Scams in the Phils.


MMobile Technologies Inc.
ModelCoup International Inc. e-NuVVo Division
Momentum Kinetics International
My Jinga Juice Incorporated
MyBeeWay Corporation
MyOwnBiz
New Image International F.E. (Phils.), Inc.
Nikken Philippines, Inc.
Nu Skin Philippines, Inc.
Nutribiz International, Inc.
Oks Global Wellness, Inc.
Organo Gold
PlanetBizWorld RENEFX
QDynamics Global Corporation
Reliv Philippines, Inc.

List of Networking and Pyramiding Scams in the Phils.


Royale Business Club, Inc.
Samerica
Sante International
Sunrider Philippines Inc.(MLM)
Supreme Wealth Alliance
Symmetry Phils., Inc.(MLM)
Syntek Global, LLC.
Tianshi Philippines, Inc.
TodayAdz
Triumph International
UBX Online
Unicity Network Philippines, Inc.
Unlimited Possibilities World Marketing Corporation
UNO (Unlimited Network of Opportunities)

List of Networking and Pyramiding Scams in the Phils.


Usana
Victory Global
Vital C
VMobile Technologies Inc.
Waters Philippines
Winalite International
Zmartpro International

Baldejo, Allan
Sialana, Christian
NSTP
AS115