Multi-level marketing

Multi-level marketing or better known as MLM is a marketing strategy that makes use of two revenue streams from direct sales of the products they are selling and from the commission that is derived from the sales of recruited team members. This recruited team members is referred to as the participant's "downline", and can provide multiple levels of compensation. Most of the time to become a member the recruits would need to shell out huge about of money as membership fee and initial products to sell.

MLM is also referred as pyramid selling, network marketing, and referral marketing.

Pyramid scheme - is an illegal business model that recruits members who would need to pay a FEE to join with a promise of payments or services for enrolling others into the scheme, it does not offer any investments or sale of products or services. As recruiting multiplies, recruiting becomes saturated and it would be impossible to recruit more, and most members are unable to profit; as such, pyramid schemes are unsustainable and often illegal.

Pyramid scheme or pyramid scam is a quick rich scheme it cannot continue very long.

Multi-level marketing (MLM) is not a Pyramid scheme - if you are engage in MLM make sure that most of the money that you make is based on your sales to the public, if it is it may be a legitimate multilevel marketing plan. If the money you make is based on the number of people you recruit and your sales to them, it is not legitimate and it is a "pyramid scheme" (Pyramid SCAM). Pyramid schemes are illegal, and the vast majority of participants lose money.

Network marketing is a type of business opportunity that is very popular with people looking for part-time, flexible businesses. Some of the best-known companies in the US that engage in network marketing includes Avon, Mary Kay Cosmetics and Tupperware.

nuff

Thursday, October 12, 2017

SEC Issued warning Against Pluggle

Pluggle scam, Pluggle Pyramid scam



The Philippine Securities and Exchange Commission (SEC) on Thursday issued a warning to people who want to invest their money in Pluggle Inc., saying the company has no authority to solicit investments.

"The public is hereby informed hat Pluggle Inc., despite having been registered with the commission as a corporation, is not authorized to solicit investments from the public", according to SEC's advisory. 

This commission has received information that Pluggle's advertising website claims members can make "significant gains" from a P1,000 initial investment by simply logging on every day or by getting referrals.

"On its Facebook account, Pluggle promises a return of 30 percent to 100 percent in 12 days," the SEC said.

Pluggle members supposedly get P100 upon registration and P100 for each log on to the website, and for enticing other other people to join the investment scheme.

In an separate announcement, Pluggle cited the SEC advisory and emphasized that it "will never be" an investment company.

"The concept of Pluggle is clear and known to all. But, unfortunately, some people and sectors have misunderstood the way we do business, and maybe some members misrepresented Pluggle when talking to people," the company said.

Pluggle said that their management and their lawyers are looking into the matter and will take the necessary response and address the SEC advisory.

The SEC clarified that the company "has not secured the necessary license or permit from the commission as required under Sections 8 and 12 of the Securities Regulation Code (SRC)."

"Consequently, those who act as salesman, brokers, dealers or agents of Pluggle Inc. ... may likewise be prosecuted and held criminally liable," it added.

Those found guilty may face fines of up to P5 million, or a penalty of 21 years imprisonment, or both.

"Accordingly, those who invite or recruit other people to join or invest in this venture or offer contracts or securities to the public may be held liable or accordingly sanctioned or penalized," the SEC said.

"In view thereof, the public is hereby advised to exercise caution before investing in these kinds of activities and to take the necessary precaution in dealing with Pluggle Inc. or its representatives," it added.

Kawawa naman ang mga nabiktima! tsk tsk tsk!
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