Today, my first post will be... a continuation from my previous http://zhukoliang.blog.com .. 2year back i started this blog n my first post was about MLM - what people dunno about.. Recently i read about Sunshine empire and some reporters go and check Taiwan and Malaysia... Sunshine DID NOT INVEST IN ANY WIRELESS PROJECTS IN TAIWAN AND MEGA THEME PARKS IN MALACCA.
Anyway this very long essay i wrote is with my half-pailed ang moh.. Sorry about my poor language in advanced..
Here it goes..
First and foremost, this essay is solely written by me, ZhukoLiang. And if u wana copy my views, u must ask permission from me @ ZHU_GE_LIANG_PLAY_CS@hotmail.com , or otherwise I will sue you till bankrupt... hahahaha... Reminds me of that time, I saw JBJ taking public transport bus, guess what? He dun have ezlink card!!! He used coins! JBJ was a judge... POWER! So if u die die copyright my essay, I will sue u till u use coins take bus... hahahahahaha...
Reading tip: Read those RED highlighted to scan tru my essay for easier and faster reading
MLM - What many people don't know about
Hi, its me zhuko once again... Recently, i was approached to join an MLM company... Well this is the 7-8th time I am being bombarded by hyperpositive people who does not regard reality into consideration. Itz a pity that hardcore MLMer's hyperpositiveness has made themselves hypnotised in a dreamland an illusion that they will succeed their 5figures and BMW in no time to come. I have seen Forever Living, NTI, Newskin, Astrol Mag, Diamond water, Amway, etc... etc... So this paper I am writing now will explain all my fuck damn shit I know about MLM, and why it is destinied to fail in long run.
1) What is MLM?
MLM is multilevel marketing, and they recruit people to advertise and promote their product... They call themselves "network marketing", ""unconventional", "Business Plan", "Opportunities", whatever cheebye shit u can think of... Binary plan, Breakaway plan, Matrix plan or Unilevel plan --> Sounds familiar? In short, when u r recruited into their scheme, and you are asked to recruit more peers under you, and the peers will recruit more under them. In this manner, Your uplines will earn a certain % of the commission of the downlines. Simply speaking, they are earning each fren's money, while the MLM boss will earn the most. So basically, it is MAKING ONE's RICH AT THE EXPENSE OF OTHERS. Sadly speaking in today's MLM, it is rather seen as a "cult" rather than a company. This is because their "over-positive" mindset is not practical.
2) The basic knowledge you should know
MLMers usually do not sell external. They are enforced to market within their own network of peers/relatives/contacts. Imagine this: You are earning your brother's (downline money), Your mother who recruited you (upline) is earning your money... Then your ah gong earns your mother's money... Do you think your family can prosper like that? This shall be one reason why MLM is doomed to fail unless he recruits more and more. When recruitment stops, the whole upline and downline will topples. This is the very main reason why you don't see MLMers survive long in a fixed company. (Example Astrol Mag) THEREFORE, MLM will concentrate their energy on recruitment rather than selling the product given certain constrains of market resources.
Every MLM in Singapore usually emphasized their uniqueness. This is in order to recruit foolish youngsters into their scheme, thinking that it is a "FANTASTIC AND BOMBASTIC OPPORTUNITY"!!! Some will assert that they ARE NOT MLM!!!! (Example NTI), Some assert that they do not force u to join... Some says no need deposit any cash (Astrol Mag), etc etc... They will find their own uniqueness so that recruitment becomes possible since survival of the company depends on the members to sell their inflated products. Remember, their products are inflated! Look at inflated Forever Living's Aloe Vera products.
They are "over-positive". They think that miracles WILL happen as long as they work hard. This usually does not happen to everyone when everyone can successfully be awarded a BMW or condo. This is due to competition, where MLMers does not have knowledge in it. All they know is "I believe I can do!!! I can do it!!!" Believe your lanjiao ah!
3) Why do some Business Owners choose MLM?
Firstly they have already acknowledged that their products are inflated. They chose to market their product outside the economy zone, believing that the market forces of demand and supply has no influence on them. They chose to make consumers first "believe" in their product and hence the purchase, and then hence the recruitment into their network. Sadly speaking, usually approx ¾ of all commissions earned are being absorbed by the top uplines and the boss. So, how successful do you think you can get your BMW if you are the 100th downline?
Look at Forever Living. overproduces tons and tons of their own species of aloe vera. If they were to compete with other Aloe Vera in oligopolistic market, they are likely to dip their prices and they will fail miserably. So they chose MLM to maintain their price. Too chim? Ok. Simply. You buy 1 Aloe Vera in NTUC how much? $1 right? But Forever Living sells their detox Aloe V product how much? $40-100+ right? Then the uplines and boss will pocket all the commission while the downlines will so cham sell until very jialak right? If they were to fight with other Aloe V brands, they hor sey will die liao, moreover, they are over-producing their Aloe V, much more than market demands. So how? They must get more demand out of inelastic Aloe V market demands. Then they used Forever Living to brainwash consumers in order to multiply their demand so that they can suit their supply!
Let me explain what is inflated. Inflate means Supplies much much GREATER >> than demand. But producers are not able to control demand. But these business owners duwan 2 slash their prices. They beh gang wang. So how? Use NLP brainwashing technique and brainwash them lor... This is called pathetic.
They want to sell their product, but duwan employ salaried employees under them. So no need to pay CPF, employees act, etc etc... Instead of recruiting salaried promoters, they recruited commission-based intraprenuers.
4) Their tactic
- 1. your friend will bring you (his prospective downline) to a talk, usually 1on1. Your friend normally tells you about a "good business opportunity", which allows you to "learn more", or "mature yourself", etc etc... He will not tell you that it is MLM, otherwise it will scare you away...
- 2. You r then introduced to a glib tonguer who will tell you about a product, usually health product, or trading etc... This guy will wear a gold watch. He will describe to you how he earned his BMW, condo, 5figures salary. Do note that these earnings are false given ex-MLMer's testimony. (Click here: http://www.richardseah.com/news/mlm-1.html )
- 3. After introducing the product, he will explain to you the "business opportunity" where you can have many people under you (downlines).
- 4. He will claimed about how you "help" people, how your uplines "help" you so kind-heartedly. He will teach you how to be kindhearted etc... etc... He will teach you how to become successful, etc...
Note that all words in inverted commas such as "help", "business opportunity" relies on NeuroLinguistic Programming (NLP) of the mind, which seldom people points out this fact.
For example they chose to use positive words such as
"Help", instead of "leech your commission" so that u feel appeased.
"Business opportunity", "BMW", "be successful in life" à grabs hold of human nature greed.
all will claim how
1)Different from other companies, etc etc...
2) Claim how strong they r.... blablabla...
3) Claim that they are not MLM, they r networking marketing (NTI), binary or whatever plan they says...
4) Claim they r different from others. (So that people will forget their biases onto MLM)
5) Why MLM will not last long (die die must read)
5.1)
They believe in infinite using Mathematics, but that is not true in reality. These young people does not know what is Market Saturation, and the pyramical structure which is designed to doom. (http://www.vandruff.com/mlm.html ) In Math Geomatric, where 1 MLMer recruits 10 members, 10members recruits 100 members, and then 1000, 10000, etc... etc... They will recruit non-stop. But the problem is the market demand for the product is fixed constant. Lets take for example, Singapore got 3million citizens. 1.5millions are females, of which say 500,000 are young females. Out of which 100,000 take health supplements. Out of these, 30,000 STRONGLY wants LFI's B&H detoxification product. This figures r arbitruary. But the problem is LFI keeps on recruiting non-stop. Assuming the number of distributors is too large, ∞, and all commissions are being shared. Then on the average, how much do you think the average profit per member can earn. Assume company profit = $1million for month July, and assuming ALL Singaporeans are inside LFI.... So the no of members = 3million. But the uplines and MLM boss is earning 70% of the profit, leaving $300,000 distributing among young downline fools.
So $300,000÷ 3million Singaporeans ≈ $0.10 ! So 1 downline earns 10cents for the month of July, assuming Ceterus Peribus, everything made constant. Since any_number ÷ ∞ no of members= 0, ... Hence, on the average, you earn nothing. But the uplines and the MLM boss is earning like 5digits right?
Hence, my conclusion is your BMW dream becomes impossible unless your uplines siam the company for no reason.
5.2)
"Everyone Will Want to Buy This Product!"
All products and services have partial market penetration. For example, only so many people wish to use a discount broker, as evidenced by the very successful but only partial market penetration of Charles Schwab. Not everyone wishes to join a particular discount club, or buy gold, or drink filtered water, or wear a particular style of shoe, or use any product or service. No one in the real world of business would seriously consider the thin arguments of the MLMers when they flippantly mention the infinite market need for their product or services.
5.3) They have no knowledge of fundamentals of economics even though they have attained the rank of "Distribution Managers". These names were merely empty names, where they do not possess economic knowledge. They believe they lead a monopolized market in the absence of competition and their product is being "wanted", and their BMW will come one day, but hardly that is a fact. Let me Zhuko explain more with ideal scenario, here it is: Lets say you are the 100th downline, and from 1-99th upline are struggling very very very hard to get the BMW. And, assuming everyone in the MLM company puts in highly equal amount of hard work, sales, then you think the MLM boss will get a BMW and five figures for everyone from 1st to 100th downline?????? Even if that really happens, isn't it common-sensensical that BMW price will rise due to increased demand, such a way that no ordinary rich people like you and me can purchase a BMW? Most likely, u r going to argue to me that, you will rise to the top few distributors in no time and get your BMW. When that happens, u r trying to say that the 1st to 99th upline has left the company letting you to be the top uplines. But the question becomes why did they leave the company since they have a hardworking downline like you??? Unless, something must have failed somewhere that cause the 1st to 99th upline quit the company and sooner you will quit with your dreams unfulfilled in no time to come.
In actual reality where my above "ideal scenario" happens, commissions were suppressed and denied so that the MLM boss do not pay the commission. Usually, the MLM boss will make 1 to 5 guys a BMW and 5digit, and keep on saying these 5people are earning a lot. But did not explain that the rest are earning peanuts. Testimony by exMLMer (http://www.richardseah.com/news/mlm-1.html)
5.4) For MLM to function, there must be some fools to buy the inflated products. Otherwise the network topples. So one day when the people matures and learns from their own mistakes, there will be lesser fools to sustain the company. Hence, the 1st to 1000th downlines topples!
6) My Arguments to MLMer's brainwashing words
1)
MLMer: How I grow up in MLM.
ZhuKoLiang: You don't grow up in MLM. You grow from your mama's stomach, drinking milk, kindergarden, school, Poly, University. This is merely a brainwashing sentence to attract youngsters.
2)
MLMer: Your uplines will not cheat your $$$. Your uplines will "HELP" you and TEACH you to get sales.
ZhuKoLiang: Of course, if he don't help, he earn nothing. By the way, u said "HELP", do you know what is help? In my poly days, I coached a class of 30 ITE students FREE of charge in his Mathematics, Programming. If you helped an old lady cross the road for free, this is called genuine HELP. Not by lusting for certain commissions of your downlines. So, if you truly want to help me, why not let me be your upline? This will "help" me believe in the MLM scheme.
3)
MLMer: MLM is about sharing.
ZhuKoLiang: Do you share your salary with your managers/supervisors? Do you share your food, your underwear with your superior? When u strike 4D, do u share all your winnings with your friends even if you bought the number by yourself?
4)
MLMer: If you never try, you never know
ZhuKoLiang: Very true, if you never try, you will never know how skeptical, scheming, and brainwashing it is to youngsters like you. This sentence above is another NLP technique to lure your curiousity.
5)
MLMer: I learn a lot in MLM.
ZhuKoLiang: You learn things in school, workplace acquiring experience, Everywhere you go, you learn. Internet, Library, etc... But you are now implying as though MLM is the only place for you to learn. Hence this is another NLP brainwashing technique to psycho young fools.
6)
MLMer: Nothing is impossible.
ZhuKoLiang: You are trying to say that getting the dream 5digit, BMW is NOT impossible? When you say this, you don't seem to count the opportunity cost, the practicality, the reality. Will your MLM boss will buy a BMW for all 10,000 downlines assuming all hit the target? Hahahahahaha...
7)
MLMer: Loose this opportunity by not joining.
ZhuKoLiang: The company has schemingly labeled this as an "opportunity". Another scheming use of words.
8)
MLMer: My company (LFI) does not do aggressive selling.
ZhuKoLiang: if you are saying that, then how are you going to be successful in this line? This is contradicting your confidence in being "successful".
9)
MLMer: Must put in hard work... etc...
ZhuKoLiang: If your hard work is concentrating on product selling, well fair enough... But if your hard work concentrating on recruiting friends into the CULT, then do u think it is morally correct?
10)
MLMer: MLM is not salary, is called commission.
ZhuKoLiang: Isn't SALARY = $$$ = COMMISSION = $$$. same? Just different words. MLM tends to use different acronyms to confuse victims and act lawful, act professional, act corporate, and act innocent.
11)
MLMer: Govt encourage citizens to join MLM.
ZhuKoLiang: (I know u r referring to the exclusion order by Ministry of Trade Industry, MTI in year 2000) MLM has effectively twisted the meaning of the exclusion act, and portray that govt is trying to encourage....... This technique is used in NLP, Neuro Linguistic Programming.
12)
MLMer: If convincing others to be your downline and product is not important, would anyone join in???
ZhuKoLiang: Yes, ignorant youngsters who wants to strike rich fast. On the other hand, if you were to claim that your company is good, different from others, will not do agressive selling and recruiting, then how to strike rich? CONTRADICTION!
13)
MLMer: You may regret when one day i strike rich, you will regret that you never join when given opportunity in the first place.
ZhuKoLiang: Many people used this sentence to me. This is another mind tricks used in manupulating people's mind. Just like in Supermarket, where they say "Whilst Stocks Last", but the truth is stocks will NEVER LAST!!! They say that just to sell! Just like MLM say that just to RECRUIT people!
14)
MLMer: I will be rich in no time, since I work so hard
ZhuKoLiang: Ok, I will contact you exactly 1year after today and see your status.
(After 1year, I contacted those who wana psycho me to join. Either the company becomes dormant, or he quit, or not contactable!) look at Astral Mag, http://www.astralmag.com/ , it is dormant now, although he had claimed that it is solid and strong, and unfellable in 2004.
15)
MLMer: No! There is no risk involved! You dun need to put in $$$ into this GREAT business!
ZhuKoLiang: But there is time involved. And time is priceless... The amount of time I input into the MLM company could be exchanged to earn some guaranteed salary.
16)
MLMer: Many HongKong actors have represent this product. So it must be good.
ZhuKoLiang: Actors representing the product is just a mere form of advertisement. Click here http://mrbrownnetwork.com/media/mb/tmbs-061005-truth_in_advertising.mp3 hahahaha...
Note: Although MLMer says these, I am sure they are not out to bluff u and trick u up. They intro these to u, and have positive intention for u! However these young punks are not aware that they are brainwashed living in a fantasy world of illusions. Which mad guy will admit himself mad? Which brainwashed guy will admit himself brainwashed? Until these hardcore MLMers wake up from the illusion, he'll find himself awaked from a nightmare!
ZHU_GE_LIANG: Teenagers today dream and aspire to be quick Sim Wong Hoo or Bill Gates overnight. But they have nothing to start with. So MLM boss portray themselves as an business opportunity to lure victims. The MLM pyramidical structure is in such a way that the boss and top uplines earn approx 70% of OVERALL company profits while 30% is being distributed to a great number of downlines. So pretending got 10,000 members of downline. 30% distribute to downlines, u guess 1person can earn how much?
Alas, victims think that they r going to be successful entrepreneurs, but they r merely intrapreneurs being manipulated by the MLM pyramid scheme. Hence an intrapreneur in an MLM company is very different from a true entrepreneur who can exercise FULL creativity and dynamism.
In summary, MLMers does not know the Oligopolistic Competition in Economics, even though they attained the rank of "Distribution Managers" Directors, etc... These are merely names where these youngsters knows nothing in economics in their head.
9 in 10 MLM fails because they are not sustainable. (source: http://www.wwlegal.com/module-subjects-viewpage-pageid-23.html) This is because MLM aims to grow at exponential rate. They believe in infinite, which is not true in reality.
7) My other experience with other MLMers
7.1) That time in poly got one muther fucker named Zh*o Zh*nB* . haha, then he intro me to a celebration by Astral Mag where 9top distributors were awarded BMWs! To my horror, when the named of the awardee was called on staged, his downlines were SCREAMING and YELLING so HAPPILY, and was ear-bursting to me. I knew something was wrong. Do you scream and yelled when your BOSS strike lottery? So it was either an act OR these poor Univeristy & poly students cum distributors were entirely brainwashed? I pity them
7.2) Astral Mag was selling a magnetic bed for close to 1K I think. They claimed that the magnetic energy can stimulate blood circulation with improved health. So limbei, ZhuKoLiang that time Physics Aw Aw Chow Chow got a A distinction... So wana smoke me about magnetic energy? So why not I buy a $10 magnet and place under my bed oso can improve my health DIY, instead of spending 1K???
7.3) This guy surname Lim from Forever Living introduced me the detoxification Aloe V.
So he asked me "You one day eat 3meals right?"
ZhuKo: "Ya..."
Lim: "Then u pang sai 1time right?"
ZhuKo: "Ya..."
Lim: "Then u eat 3meals but pangsai 1time, so where the other 2meals go? U need to detoxify!!!!"
ZhuKo: "hahahahahahahahahahaha... U think I small boyboy ah? At least limbei Biology distinction ok??? I still PJC top in class for Bio oso.. Smoke me!!!! Hahahahaha... Of cos, some food matter goes into the bloodstream for respiration la!!!! Walao..."
7.4) Got some MLMer guy wanted to intro me but end up telling me about "happiness", "success in life"... They claim that their company are very "corporate". They behaved and act as if they are top managers, CEOs. Lets say u r in a cooperate world.. Say, Singtel wana make a business deal with DBS... example... Where got u represent your company go there, talk about philosophical things like success, happiness, learn a lot la.. , ... Wtf?!!! WHAT THE MUTHER CHEEBYE FUCK! The other business party only wana hear, what can they BENEFIT from the deal... not about all these philosophical rubbish... These talk big philosophy can only trick those young young people, puberty just over lanjiao just developed then can successfully psycho and conned them into your downline! Then they still believe they r doing cooperate business!! Who knows my one is not called LanJiao, mine is called LaoJiao... Experienced LaoJiao is different from young young kukujiao, puberty jus over... LaoJiao is big big hard hard very knowledgeable one... Dun believe c 4 urself lor.. Hahahahaha!
7.5) I was comparing extensively lfi's product. Check it out here: www.lfi.com.sg ... So one day, i went to my house downstairs and i told the uncle at the chinese medicine shop, "Uncle, i wan detox product, any recommendation" He gave me one bottle is $6.50... ya... really, as compared to lfi's which cost $65. Ingredients? i checked out with the uncle. i can get the watever red ginseng, american ginseng at a cheap price too... So i was wondering wat am i actually paying extra for if i pay more to buy the same ingredients. the upline's commission?
Got a lot of stupid stories to add here la... But now I wana sleep... yawnzz... actually got a lot to add la... but I have spent the whole night writing this damn blardy cheebye essay just to showcase to future frens who wana recruit me.
8) Other arguments against MLM: (adapted from http://www.vandruff.com/mlm.html ) Do read up this page... very useful! This article damn POWWEERRR....
Summary
- Market Saturation
- Pyramid structure designed to doom
- Morality and Ethics
- Relationship issues
