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THE MLM QUESTION
tnesh
#1 Posted : Monday, July 09, 2012 4:00:43 PM
Rank: New-farer


Joined: 7/9/2012
Posts: 17
MLM is a marketing model that has been there for a while but came to be popular in Kenya just recently. Unfortunately, in Kenya most of us came to know about MLM through scam companies popularly known as pyramid schemes eg DECI. Such companies ride on the success of the marketing strategy abroad and take advantage of the ignorant.

Before joining any MLM it is important to do the following:-

1. Find — and study — the company’s track record
2. Learn about the product
3. Ask questions
4. Understand any restrictions
5. Talk to other distributors (beware of shills)
6. Consider using an adviser
7. Think about whether this plan suits your talents and goals

MLM has now developed and is on the internet with a slightly different but more productive approach; here the power of internet marketing is used with the MLM pay plan. This makes it possible for affiliates to achieve their goals faster and in a more efficient way.

I am currently an affliate with a great American company that I found to be the best. Very affordable and quite legit. The company has been going for 12 years. For an opportunity of a lifetime, Check out the company video at workonline.ws
chemos
#2 Posted : Monday, July 09, 2012 4:06:34 PM
Rank: Elder


Joined: 11/28/2006
Posts: 1,799
tnesh wrote:
MLM is a marketing model that has been there for a while but came to be popular in Kenya just recently. Unfortunately, in Kenya most of us came to know about MLM through scam companies popularly known as pyramid schemes eg DECI. Such companies ride on the success of the marketing strategy abroad and take advantage of the ignorant.

Before joining any MLM it is important to do the following:-

1. Find — and study — the company’s track record
2. Learn about the product
3. Ask questions
4. Understand any restrictions
5. Talk to other distributors (beware of shills)
6. Consider using an adviser
7. Think about whether this plan suits your talents and goals

MLM has now developed and is on the internet with a slightly different but more productive approach; here the power of internet marketing is used with the MLM pay plan. This makes it possible for affiliates to achieve their goals faster and in a more efficient way.

I am currently an affliate with a great American company that I found to be the best. Very affordable and quite legit. The company has been going for 12 years. For an opportunity of a lifetime, Check out the company video at workonline.ws



hehehehe QW ive beat u to it...

SSSCAAAAAAAAAAAAAMMM!!!!!!
ralp_mutu
#3 Posted : Monday, July 09, 2012 4:09:19 PM
Rank: Member


Joined: 3/26/2012
Posts: 232
Location: Nairobi
Joined: Monday, July 09, 2012

Last Visit: Monday, July 09, 2012 4:00:44 PM

Number of Posts: 1

This is where Wazuans shouts QW!!!!!
My folks told me that my very first word was 'billionaire'
ralp_mutu
#4 Posted : Monday, July 09, 2012 4:12:40 PM
Rank: Member


Joined: 3/26/2012
Posts: 232
Location: Nairobi
chemos wrote:
tnesh wrote:
MLM is a marketing model that has been there for a while but came to be popular in Kenya just recently. Unfortunately, in Kenya most of us came to know about MLM through scam companies popularly known as pyramid schemes eg DECI. Such companies ride on the success of the marketing strategy abroad and take advantage of the ignorant.

Before joining any MLM it is important to do the following:-

1. Find — and study — the company’s track record
2. Learn about the product
3. Ask questions
4. Understand any restrictions
5. Talk to other distributors (beware of shills)
6. Consider using an adviser
7. Think about whether this plan suits your talents and goals

MLM has now developed and is on the internet with a slightly different but more productive approach; here the power of internet marketing is used with the MLM pay plan. This makes it possible for affiliates to achieve their goals faster and in a more efficient way.

I am currently an affliate with a great American company that I found to be the best. Very affordable and quite legit. The company has been going for 12 years. For an opportunity of a lifetime, Check out the company video at workonline.ws



hehehehe QW ive beat u to it...

SSSCAAAAAAAAAAAAAMMM!!!!!!


Hehehehe Chemos Pewa chai ya saa kumi
My folks told me that my very first word was 'billionaire'
tnesh
#5 Posted : Monday, July 09, 2012 8:16:47 PM
Rank: New-farer


Joined: 7/9/2012
Posts: 17
Wazuans wazua, try to go through the stuff before shouting SCAAAAMMM!!!
iKenya
#6 Posted : Tuesday, July 10, 2012 5:25:00 AM
Rank: Member


Joined: 7/27/2008
Posts: 241
SCAAAAAAAAAMMMMMMMMMMM!!!!
Quote:
Buy when there's blood in the streets, even if the blood is your own...
tnesh
#7 Posted : Tuesday, July 10, 2012 8:16:45 AM
Rank: New-farer


Joined: 7/9/2012
Posts: 17
Quite extensive vocabulary. But thanks for the platform.....

GDI(Global Domains international) basically sells web domains. Considering the almost saturated nature of the .com extension, it gives individuals and small business enterprises a chance to get a website name that best fits them eg chemospub.ws or wanjikucafe.ws, these are not available in .com maybe at an extra fee.

GDI started off in 1999 and later decided to entirely use internet marketing to sell their business. In this they also had the genius to include a MLM pay plan approach to pay affiliates to market the product.

Many mlm based companies have been tainted scams and true many, many of them are suspicious and one has to be extra careful. GDI has not escaped the bad mouthing which is rather normal. Any successful business is always followed by a hoard of fraudsters, be it the banks, insuarance whatever even the small businesses. In Kenya the Chinese are doing great selling their gadgets but whats word on the street about china? real estate is notorious for its conmen, does that mean you wont invest in land? Everywhere there is money, be sure to find the trickster, its up to the individual to be vigilant and if you are chicken, stay out and stay put!!!

Many are too scared of the cut-throat business scene and will find any excuse not to do the wise thing and invest. Intelligent excuses will come up and boy, can they argue! but because the hare couldn’t reach the mangoes does not mean they are unattainable.
murchr
#8 Posted : Tuesday, July 10, 2012 8:59:37 AM
Rank: Elder


Joined: 2/26/2012
Posts: 15,979
QW's absence is too loud, has he been blocked? Where is he when we need him?
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
deadpoet
#9 Posted : Tuesday, July 10, 2012 9:15:21 AM
Rank: Member


Joined: 9/27/2006
Posts: 496
Here's a framework that uses MLM to support micro-finance organisations:

http://ocw.mit.edu/cours...rojects/money_final.pdf

It's from MIT, so don't be quick to yell 'SCAMMM!!' mmkay?
chiaroscuro
#10 Posted : Wednesday, July 11, 2012 2:25:38 PM
Rank: Veteran


Joined: 2/2/2012
Posts: 1,134
Location: Nairobi
I wouldn't go as far as calling MLM a scam; I prefer to call it a fallacy!

It claims to reduce "marketing" costs yet by having so many levels in the distribution channel [hence the term "multi-level"], it pushes the prices to the stratosphere.

Compare the price of GNLD's "Super-10" concentrate with the more popular "1001" cleaning solution found in most supermarkets. The performance is the same - I even think the latter is better on upholstery. But the price difference.... and availability....
alma
#11 Posted : Wednesday, July 11, 2012 2:35:19 PM
Rank: Elder


Joined: 7/20/2007
Posts: 4,432
tnesh I don't know if gdi is a scam or not.

But stop wasting people's time and your own buying a .ws domain. Now that is being stupid not being conned.
Jose: If I make it through this thug life, I'll see you one day. The Lord is the only way to stop the hurt.
McReggae
#12 Posted : Wednesday, July 11, 2012 2:38:56 PM
Rank: Elder


Joined: 6/17/2008
Posts: 23,365
Location: Nairobi
....Qsomething this time around amewezwa na admin!!!
..."Wewe ni mtu mdogo sana....na mwenye amekuandika pia ni mtu mdogo sana!".
tnesh
#13 Posted : Wednesday, July 11, 2012 7:27:54 PM
Rank: New-farer


Joined: 7/9/2012
Posts: 17
buying a .ws is being stupid????..... And how do I waste people's time doing personal shopping?
tnesh
#14 Posted : Wednesday, July 11, 2012 8:33:01 PM
Rank: New-farer


Joined: 7/9/2012
Posts: 17
And chiaroscuro, GDI has only 5 levels. The company clearly explains how the profits are distributed to maintain the business model. You clearly have had disappointment from GNLD but we're not talking about GNLD are we?
chiaroscuro
#15 Posted : Thursday, July 12, 2012 2:51:54 PM
Rank: Veteran


Joined: 2/2/2012
Posts: 1,134
Location: Nairobi
tnesh wrote:
And chiaroscuro, GDI has only 5 levels. The company clearly explains how the profits are distributed to maintain the business model. You clearly have had disappointment from GNLD but we're not talking about GNLD are we?


Same logic; "marketing" costs are replaced by distribution commissions... How much is domain name in GDI?

And I write "marketing" in quotation marks, because as far as I am concerned, distribution is an element of marketing...
tnesh
#16 Posted : Thursday, July 12, 2012 8:11:06 PM
Rank: New-farer


Joined: 7/9/2012
Posts: 17
Chiaroscuro. In GDI you pay a standing charge of $10 per month. GDI pays you a dollar for every one you bring into the business and the subsequent affiliates under those beneath you for 5 generations. You can have as many as possible in one generation. From this its clear that the company ends up keeping 50% from the $10 and the rest can be awarded the affiliates(check out the video for details). Pretty straight forward business model. The difference with other biz models is; here you are paid MORE, but you can see the company still has 50% to run the biz unlike in pyramids.

I will say this, mlm companies really are to blame for their bad name, simply because they lie a lot when hyping their opportunities. These brings in many people who think its automatic that when you join you earn. So they come in, sit on their rears and naturally wont have results, so what do they do? go out screaming scaaaamm! well the books show, many make a fortune, although MOST dont, just like in anything.(i'll have a different post on this)

MLM as in any other biz you have to work and work hard!! In the beginning I highlighted point no.7. In any job, YOU and only YOU can decide whether to be successful in ANYTHING. It helps a lot if you choose something that fits you.

Mkimwa
#17 Posted : Thursday, July 12, 2012 9:22:22 PM
Rank: Member


Joined: 10/26/2008
Posts: 380
A .ke domain is 2000kes per year (about $25). There are only 23,000 .ke domains - you can still get whichever domain you have.

So, why pay $120 per year for a .ws domain? 5 time more..

Now thats stupidity..
tnesh
#18 Posted : Friday, July 13, 2012 11:46:38 AM
Rank: New-farer


Joined: 7/9/2012
Posts: 17
You are not only buying a domain but the opportunity to earn from the marketing strategy hence the price difference. Plus you get free tools to help you create and manage the website. You also get free tools to popularize your website.

If you just want a domain and have the skills to create a website, go to godaddy get a .com(or whichever) domain for the cheapest offers!!!!! ama pia godaddy ni scaaaam!! te he he.
Ash Ock
#19 Posted : Friday, July 13, 2012 5:31:20 PM
Rank: Member


Joined: 8/27/2010
Posts: 495
Location: Nairobi
@tnesh,

Here’s a small example why MLM is a big-time scam (fill it in with you details should you so wish). If you don’t agree with it, then please let us know exactly what is wrong with this example, ok?

Quote:
“Assuming that your product requires each member in your downline to purchase $200 worth of product per month and you get an average of 10% of the money that flows up through your organization, you would need about 250 people in your organization for you to earn $5,000/month. This means that it would be about 5 levels deep and might look like this:

You + 5 + 25 + 125 + 95

For the sake of simplicity in building a 250-person organization, let’s just say your bottom level is still filling in and that’s why the bottom level has 95 people. If you got a 10% commission on all these people’s purchases, your monthly income would be $5,000/month. That sounds pretty good right? Well, here’s the rub. ALL of the 250 people in your organization are making little or no money, yet ALL of them were recruited so that they can get to where you are, that is, to financial independence. The people in the bottom level of the organization are spending $200 per month and making nothing. The 125 people in the level above them are spending $200 per month and are making less than $8 per month in commissions on average, so they are out $192 per month. The 25 people in the level above them each have an average of 9 people in their downlines and thus are making $180 in commissions and so they are losing $20 per month. The 5 people above them have an average of 49 people in their downlines and are making $980/month less the $200 they spend on products so they are clearing $780 per month. That’s not even equal to a $6/hr minimum wage job.

So, in order to achieve your financial independence, you’ve got an organization of 250 people and not a single one of them will be making more than the minimum wage. But ALL of them were recruited with the promise that financial independence was achievable. So in order to achieve YOUR financial goals, you have built an organization where fully 99.6% are unable to achieve THEIR financial goals.

You may say that all you need to do is to keep on building the organization and that will lift everyone up, right? That’s all well and good, but the ratio of people who are financially independent to those who are making little or no money DOES NOT CHANGE. There will always 99.6% working for minimum wage or losing money in an MLM. Do you really want to be part of a scheme that only permits 1 in 250 of its members to achieve the financial goals that everyone who has been recruited is expecting to attain?

What usually happens in these organizations is that the majority of people who are unable to meet their financial goals eventually get disillusioned and drop out and so everyone spends their time recruiting replacements. Few ever manage to rise very far, because the top people are already in place and the bottom members are getting replaced on a continual basis.”


Your turn, @tnesh.

Sent from my Black Nokia 3310
tnesh
#20 Posted : Monday, July 16, 2012 9:12:08 AM
Rank: New-farer


Joined: 7/9/2012
Posts: 17
@Ash ock

Finally some positive debate. Thank you Ash Ock for representing the elite wazua. Your counter is definitely with a lot of research into the MLM matrix; more than I have done myself, I should say.

The matrix you presented above is definitely very realistic though I take issue with why you decided to judge the whole system when its half full, In the 5th level you decided that the team was still growing having 95 instead of 625 and that’s ok but why not look at it with the full team. Substitute 5 people in each level with 10 and you get a 10% success rate (full team), have 20 in each stage and get 20%... and so on. The success rate depends on the work rate of an individual.

The fact that most people in the structure are not yet there just proves the natural. This is the capitalist system, 'not fair' but just. You have to have influence on many to achieve success in business. I would suggest employment for those not tough enough to swallow this. Big successful companies have thousands of casual laborers who sustain it. The lion depends on thousands of prey in its lifetime to feed its one mouth. In biz you choose your niche, predator or prey, will you sell or be sold to – harsh but true.

Even the BIG government also depends on many, rich and poor, to run.

In MLM you all get in at the bottom and have to work to get to the top just like in anything.

Defeatism is not a trait of the successful, If the successful are 5% in Kenya, be part of it. Just choose the means best suited for you to get there, be it; farming, transport industry, insurance, banking, real estate, brokerage, whatever, do it full force and don’t bother about percentages and don’t mind side shows or minor let downs. This is the trait of the winning man. {I dedicate to y’all agiginyani(the persistent ones). Sad its in kiuk}.

And finally what is a scam? It is a trick or a fraud. MLM companies may use fraud or tricks to get people into the business, but the system isn’t a scam. Lets get that straight. Don’t hate the game, hate the player. MLM’s are passed by government and must be screened thoroughly coz scams are detrimental to the economy. Young Kenya learnt that the hard way.

For more details on GDI watch the video at workonline.ws
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