Nagkakaroon ng misconception ang isang bagay pag ikaw ay kulang sa adequate knowledge. Impressions are based on limited experience of people met peddling illegal pyramiding schemes and using network marketing only as their "front" or parang extra income lang or isang maliit na bagay. Ang iba ay binabase lang ang opinion nila sa mga taong hindi naging successful sa network marketing. Still others simply do not have good impression about network marketing even though they do not know enough how the system works. Kaya ngayon ilalatag natin yung iilan sa mga misconceptions ng network marketing para makatulong at madagdagan ang kaalaman niyo on the subject matter.
1. Pyramiding Scams
Ang Network Marketing ay hindi pyramiding scam. Ang similarity ng network marketing at pyramiding na scams na ito is that they offer an incentive for one to introduce another to the business. However, they are different in three (3) aspects:
a. Pyramiding is fraudulent and not a sustainable operation.
Ang pyramiding scam ganito: ang narecruit na tao ay magbabayad ng "fee" tapos ireremit ang nasabing "fee" sa taong nag promote. They made a promise to a new member that his income will come from subsequent series of recruits and payment of fees to the promoter by others. Sa madaling salita, kailangan mong mag recruit ng tao para maka income ka.
Ang Network Marketing naman ay hindi ganyan. Walang fee na kinokolekta. Ang income ay hindi base sa taong narecruit mo. Ito ay base sa sales ng products.
Sa Pyramiding scams, usually, no products involved and those in the lower hierarchy or new recruits ay yun ang kawawa kapag nalaman na scam ang kompanyang sinalihan at mag sarado. Some pyramiding companies now offer products that have no real world value to hide their scam and but an investigation as to the true intent of their compensation plan remains the same --- a recruitment scam.
Sa Pyramiding scams, usually, no products involved and those in the lower hierarchy or new recruits ay yun ang kawawa kapag nalaman na scam ang kompanyang sinalihan at mag sarado. Some pyramiding companies now offer products that have no real world value to hide their scam and but an investigation as to the true intent of their compensation plan remains the same --- a recruitment scam.
b. Pyramiding is not legal
A pyramiding operations violates the Consumer Code of the Philippines, specifically Article 53 of Republic Act 7394. It also violates laws of the Securities and Exchange Commission (SEC) as they are not registered. Pyramiding schemes are securities and are therefore subject to securities law because there exists an investment contract.
c. Pyramiding companies pay commissions on people recruited while network marketing schemes pay strictly on retail sales and none on people recruited.
Kapag maka encounter ka ng pyramiding scams, eto ang dapat mong gawin:
1. Don't sign up. Lalo na kung kasali ka sa isang matatag na MLM companies or traditional direct selling company. They need semblance of legitimacy through your existing network so they will sweet talk and use you to establish their credibility.
2. Explain mo sa recruiter na illegal sila at sabihan na tigilan ang pag rerecruit.
3. Ireport sa Local Trade Ministry and the Direct Selling Association
Ang knowledge sa pagkakaiba ng Network Marketing at pyramiding scams ay malaking maitutulong sayo as network marketer. Please share mo to sa iba para alam din nila. ok?
Source: Build,, Grow and Sustain your Network Marketing Business - Josiah Go
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