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Date Posted: 04:27:32 10/21/06 Sat
Author: Sponsoring in Singapore (James Leong - Advanced Member)
Subject: Battling misconceptions about multi-level-marketing

JamesLeong
Advanced Member

Singapore
Joined: Dec 1, 2005
Posts: 1491
Status: Offline Sponsoring in Singapore Reply to this Post
Reply with Quote

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Battling misconceptions about multi-level-marketing
27 September 2006

The following is an article by Mira Kashinath in TODAY newspaper...

SINGAPORE: It's been over five years since the law was amended to allow legitimate multi-level-marketing (MLM) firms to operate here came into effect, but the direct selling industry remains dogged by the negative image many associate with pyramid selling.

"In the early tough days, legitimate direct sellers were held back by suspicion. But sadly, this scrutiny of legitimate direct sellers continues till today; it is uphill still for us," said Mr Benjamin Tan, a founding member of the 30-year-old Direct Selling Association of Singapore (DSAS).

To improve its image and win public confidence, the body - which is made up of 22 of Singapore's biggest direct-selling companies - is calling for tougher self-regulation.

It is drafting rules to tighten loopholes in the industry - currently the association doesn't step in if any of its member firms collapse. With the new rules, it will step in to help affected consumers.

Also, it will step up on checks on its members: Those who repeatedly don't abide by its code of ethics and conduct will face expulsion.

"We will look into how we can better protect consumers' interests, whether through further collaboration with the Consumers Association of Singapore, or through local regulatory and industry partners," said Mr Nicholas Chia, chairman of DSAS.

The association is setting up a one-stop information centre for the public next month.

This centre will allow consumers to check - for free - the legitimacy of any direct-selling company, and help organise public education forums to inform the public on the differences between direct selling and pyramid selling (see box).

"However, if the negative mindset about the industry persists, we are under severe threat of losing a large pie of the potential multi-billion revenue that the global industry will generate," said Mr Chia.

While one in every 10 Singaporean buys from direct selling companies now, Singapore is still falling behind the rest of South-east Asia in grabbing a share of the US$101 billion ($160 billion) global direct selling industry, he said.

Last year, Singapore generated US$330 million in direct sales, compared with Malaysia's US$1.4 billion and Taiwan's US$2.1 billion.

Said Mr Chia: "We need a big mindset shift fast or we will be outstripped by other stronger direct selling markets in Asia for a large share of the global industry pie."

Multi-level marketing (MLM) and single level marketing (SLM) are the two forms of direct selling practised in Singapore. Consumers still tend to confuse the two forms of direct selling with pyramid selling, which is prohibited in Singapore.

"Direct selling is the sale of a consumer product or service, person-to-person, away from a fixed retail location. It is a popular alternative to traditional employment for those seeking to supplement their household income, or whose responsibilities or circumstances do not allow for regular part-time or full-time employment," said Mr Tan.

Pyramid selling on the other hand, requires participants to make a lump sum payment upfront to join the scheme, and the driving force to recoup the initial fee is the recruitment of more members, rather than the sale of goods and services. Many participants lost huge amounts of money under the scheme, and subsequently an Act was passed in 1973, declaring pyramid selling illegal in Singapore.

Posted by

James Leong

[Sep 29, 2006 11:30:14 PM] [218.186.9.4]

JamesLeong
Advanced Member

Singapore
Joined: Dec 1, 2005
Posts: 1491
Status: Offline . Re: Sponsoring in Singapore Reply to this Post
Reply with Quote

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Latest News:

Three of my friends (top Neways leaders in Singapore) has
migrated to Xango. Apparently they were presented with
offers they cannot refused.

I wished them all the best in their new opportunity.

James

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[Edit 2 times, last edit by JamesLeong at Oct 21, 2006 10:51:27 AM]
[Oct 21, 2006 7:55:33 AM] [First IP: 218.186.8.12 - Last IP: 218.186.8.12]

Website - http://mlm.com/mlm/user/viewthread?thread=12486

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