Friday, March 31, 2006

What others say..

Ok, first of all, I want to apologize for my previous harsh remarks. It's really an outburst of anger. I wish to say again, it's uncalled for. For those young LB members, it's better you guys find a better job than LB. Your uplines are more slick than you are.

There are some contributions from others regarding D.C.H.L. that I got. So, I will put this below. This one is interesting, as I have planned to write regarding Direct Selling Association of Malaysia article on the comparison between Direct Selling and Pyramid Plan.

http://www.dsam.org.my/pyramid.html

------------------------------------------------------------------------------------
From Calvin:

Hi there,

I started to get interested in finding the nature of the business call Multi-Level Marketing when my friends were getting seriously involved in several MLM company.

Basically under the definition of DASM (www.dsam.org.my/selling.html) MLM is under the roof of Direct Sales.

Types of Direct Sales:

  1. Door-to-door / Simple Commission Plan
  2. The Hostess / Party Plan
  3. Multi-Level Marketing / Distributor Network Plan
  4. Pyramid Plan

Since a lot of people mostly (pro-MLM person), would like to emphasis on MLM is the business structure of the cutting edge stuff, yet the truth is always bitter, according to my research, it turns out to be false. The earliest form of MLM were started by the Amway around 70s~80s. So, anyone pitching about how “Cutting Edge” MLM are, please don’t use that phrase again.

“Door-to-door” & “The Hostess” are earliest form of MLM before combining the franchising idea. Whereas MLM is a business model that combines direct marketing with franchising. At the early development of MLM, these company found themselves facing the problem that they overproduce product (in financial terms a.k.a. poor market dynamic), hence more money have to spend on inventory storage, which ultimately resulting in greater cost. So, how do they solve this crisis? So, they introduced motivational system (Brainwashing) into MLM, resulting a group of total depended users. So, some clever guy might pointed out that in Lampe Berger it won’t happen such thing because it sounded more like an daily consume product (e.g. soap, detergent… etc.), right? But the truth that I brought up this is try to imagine, motivational materials are needed even for selling daily usable product, how about a product such as Lampe Berger, which is known for it’s pricy collectors’ lamp? Try to imagine Lampe Berger without the motivating classes/seminars?

For those who don’t understand this paragraph, please refer yourself to (http://www.vandruff.com/mlm.html) this webpage explains the fundamental flaws in MLM. I am merely comparing Lampe Berger to Amway, which is often using as a bench mark to justify other MLM. Looking only in the types of product that they offer it would be very easy to spot that, there is a serious problem in these lamp’s Market.

Some might pull out the triumph card, where something similar often being said “If it doesn’t work, why does it exist?”. It is not questionable that MLM works, since so many companies adopted the structure, and success. Comparing to the conventional business it would be very obvious that MLM is just like an infant, a lot of work needed to be done in legal issue and a great deal of time is needed to patch up some major loop holes. And to do that, people need to understand the full-picture. So, please don’t stereotype those that opposing your view as a Negative person. In fact what you did it information control (a way of mind control). Some might even came across some roguish comment claming we don’t understand the nature of the business, discrediting other people without any proof, some even ended with some ridiculous speech, such as “Why don’t go to report to police?” Oh! Please, these kinds of cases are to report to “Kementerian Perdagangan”. And I don’t think that is the best way to approach this issue, as one says the Wiseman solve problem before they arises, vise versa. So stop ranting nonsense when you were asked to defend your business, rather I would prefer proof.

One of the things that concerns me the most is by definition Lampe Berger is very close to the pyramid thingy: (Quoted from: http://www.dsam.org.my/pyramid.html)

QUALIFICATION FOR BEING A PYRAMID SCHEME:

(Wow! Are you one of them? Let’s check)

  1. “Pyramid schemes often disguise high entry fees as part of the price charged for required purchases of training, product inventory etc. Pyramid schemes make virtually all their profits from recruiting.” – True, Lampe Berger requires a big lump of money to join.

  1. “Pyramid schemes are frequently disguised to appear as legitimate direct selling companies. Such schemes are not interested in marketing these products which are of dubious value. Instead, money is made in typical pyramid fashion, from recruiting, with new distributors being pushed to purchase high cost/large inventory when they sign up.” – True! Once upon a time, Lampe Berger’s distributor might still ethical by solely introducing the product (Occasionally introduce the system), but now since the crowd is so big, that they no longer keep good track on how they how perform. People now tend to sale the opportunity than the product. And lamps are merely use as a disguise to fool government officer. (Look! We Sells Lamps!)

  1. “Pyramid schemes will not buy back unsold inventory. Such schemes will collapse very quickly if there is this condition for re-purchase of goods.” – True! Black and White they did stress out that they will buy back, but in reality there is a lot of deception upon refund issue.

  1. “Pyramid schemes are get-rich quick schemes. The nature of the pyramids, in which large numbers of people at the bottom of the pyramid pay money to a few people at the top, clearly explains why the scheme cannot sustain itself for long.” – Okay, let’s be fair, some says it is and some say it isn’t, I think I will let reader justify themselves on this. But showing off fancy cars, shiny jewelries, and claming one could being “Financial Independent” within few years ~ what do you all think?

  1. “Position could be purchased.” – Let’s see, with RM 30,000 a person can bought what? Hmmm… I guess, position really can be sold at Lampe Berger! This makes it another True!

  1. “Pyramid schemes are not concerned with repeat sales to users of the products. Profits are made on volume sales to new recruits who buy the products not because they are useful or attractively priced, but because they must buy them to participate in the scheme. As a result, new participants are stuck with products that are way below the market value in relation to the high entry fees paid by them. Should the pyramid scheme collapse, there is no way for the participants to recover their "investments".” – High entry fees?!! RM 2345 is it highest among MLM companies? Who knows? Maybe some position buying MLM with the price tag RM 30,000 are the highest (wait a minute, isn’t both of them from the same company?). Hmmm… products below market value… I think a search on ebay will give a clearer description on this issue. So, I guess another True!

  1. “Promoters of a pyramid scheme are engaging in fraud, knowingly deceiving participants in the schemes.” – True! By not telling the risk a person undertaken prior to introducing them into the business, and exaggerating the power of aromatherapy, in not only ill moral, they are deceptive. (D


o “Participants in a pyramid scheme have no choice but indulge in inventory loading/high fees to participate.”

o “Participation is essentially based on recruiting, not necessarily on the sale of products or services.”

– Both are similar to above, so, I guess will have concluded as True.

  1. “Pyramid schemes have been outlawed throughout the United States and many countries many countries around the world.” – Uncertain, because I don’t have proof! (this is were where is really dislike a lot of MLM distributor, they so easily claming stuff that they just heard without showing any proof )

Yes, you all do sell “Lamps”, yet, why do they prefer recruiting people than selling these magnificent lamps? I don’t even recall once I met a Lamper Berger distributor approach me talking solely on Lamps, most of the time these Lamps are merely pawns to lure people interest. Okay, let’s says some of the INEXPERINCED distributor abusing the flaws in this business, but why even among high level (Marquis) also emphasised on the system part rather than the product? Well at least they are being HONEST in what their intention. Strangely, I have to admit that I do adore the Marquis perverted honesty.

Lastly no matter how hard you argue, it is still a money game, allow me to explain:

Using the 8 ball/passenger network, let says in a 4 level of binary expanding network tree, the blue circle represent a person who earn himself a higher ranking (e.g. count). The blue circle required to sustain the network in order to maintain position. Now please look at the a macro situation where we assume no loss in numbers of member in first pyramid diagram, and we assume the lowest 8 person get their own 4 level of people, where they now are promoted to be one of the blue circle. So, looking at the picture we can see, the numbers in red circle increased exponentially where as the ones in blue increase much slower. With an 88.1% of loser/supporting person in the system, then percentage will only grow higher as the pyramid grow bigger. If in a world where people will just pop up and increase with the speed of the pyramid expanding, it would be an ideal structure to operate, but in reality, populations are constrains be limited resources, strategic locations, degrees of education… etc. People won’t be able to breading like pigs. That’s why market saturation factor kick in. Looking at the RM 30K position buying mechanism, it is terribly wrong, because it is like adding petrol on madly burning fire – why do I say so? In order to maintain one’s position he/she must maintain the structure of network/pyramid, but smart DCHL – operating under the product name of Lampe Berger created a short cut, where people at the bottom base supporting the structure suddenly come up with the money to skip a level, the structure will definitely crumble. So, why haven’t it crumble? This is the main reason that they are targeting fresh graduates or even undergraduates to join into the system so that they can manage to remedy the instability caused by the short cut they have created.

Fig1


Fig 2
Fig 3

So, let’s change a different perspective looking at this matter, Mental issue! Yes, I’m not saying people get crazy (but close enough). When we were brought into some meeting/seminars they will always says starting the “BUSINESS” it’s like a piece of cake, but when people really did try and fail, they claim that they:

  1. You where not part of a wining team
  2. You didn’t submit yourself into the system
  3. LAZYNESS
  4. NO heart
  5. Easily influenced by negative
  6. NOT willing to commit
  7. Did not apply the 3 powers!
  8. You gave up

Hmmm… I guess it isn’t really as easy as what they said, isn’t that unethical? Claming one thing at first and then blaming then when they quit? I’m not saying those joined and didn’t do anything, what I’m saying is those that really gave up a lot of time participating it and found themselves facing a lot of problem. This will certainly put people into confusion because the only thing they know is blaming themselves, since they were told so many times that people fails because the reason stated above. There is a free book on talking how a former distributor experienced when he is trying to get out from MLM (http://www.merchantsofdeception.com/), the higher the distributor position is when he decided to get out, the more harsh it would be in his mind to accept the reality and moving one with his life.

Finally, I do hope people have come to their senses before joining MLM Company, especially Lampe Berger operating under DCHL (MLM + Motivating Material). And by the way, please don’t lose your temper, don’t use vulgar words. The one thing that separates us from them is that we are able to tell what is right. Where as those that totally plug into the corrupted system, are ignorant and most of the time denying reality by using improper words. So, the point is that you are not them, please don’t get yourself down and dirty. Wishing you all the best! And this is only one mans perception!

Cheers,

Calvin

Resources:

http://www.merchantsofdeception.com/

http://www.quixtarinsideout.com/

http://www.vandruff.com/mlm.html

http://www.quackwatch.org/01QuackeryRelatedTopics/mlm.html

http://links.jstor.org/sici?sici=0022-2429(199507)59%3A3%3C63%3AMOATLO%3E2.0.CO%3B2-N

http://www.dsam.org.my/

http://en.wikipedia.org/wiki/Pyramid_scheme

http://en.wikipedia.org/wiki/Ponzi_scheme

http://www.pyramidschemealert.org/

Wednesday, March 29, 2006

FUCK Lampe Berger

Yes, I really feel like that now. If you have read my earlier blog, you know I have a brother who has joined in as Franchisee, and has been asking my dad 30k.

And yes, he got that 30k after much persuasian. I went with my another bro, and screw him upside down, with some vulgar language you can imagine right at the center of the LB office counter. He said "you don't believe I can do it ?". I was like, fuck, 30k.

Then we went outside, and discuss more stuff with his marquie, and he mentioned 90% of stuff can be refunded within 6 months (exception on some items).

Some of the members try to explain to us how this game works. We really didn't want to listen. Fuck.

Good thing is, probably me and my second brother made quite a scene at the office. No, we didnt throw chairs. We did restrain ourselves a bit. But my second brother is much more pissed off than me.

If you are any LB members who read this and you were there, you will know who am I. I don't give a shit. I will blog until DCHL falls down. That is if you know how to read english (most of the LB members are quite poor in english). That's why I got the translation right up there.

Yes, fuck Lampe Berger.

Monday, March 27, 2006

Cheap Lamps

Try to search for some lampe berger lamps. It's not as expensive as you think. For example, we got this:

Lampe Berger Odine Green: (Cheapest lamp I can find)


Online Store: USD 35.20 (RM 133.76)

DCHL retail price: RM 222.00




And one of the signature lamps (expensive range)

Online Store: USD 698 (RM 2652.40)

DCHL Retail price: RM 7040.00




Online prices are from http://www.mywood-n-treasures.com

Now, the point is, why would I buy from DCHL, when I could get it from online far more cheaper? Most have already questioned why the dual pricing exist. Isn't it a bit funny when you ask people to sell lamps, and you ask them to sell at ridiculously expensive price?

But probably LB members should be more afraid on this issue. First of all, lampe berger products are a bit new to the market. Asians probably think, why should I need one. Secondly, the expensive pricing is not going to attract lots of buyers.

Furthermore, the refill is a bit expensive. Refill is going to make up most of the recurring business. If you have too expensive refill, people are just going to stop using it.

If you really need a lampe berger lamp, try buying online. You can save a couple of bucks.

Friday, March 24, 2006

Your job sucks

Yes, your job really sucks...they will tell you. You don't earn enough, you get stuck in traffic jams, you work nine to six...

Yes, in fact the traffic jams make it worse.

Yes, your job may suck, but lets look at why you got a job in the first place.

Bosses, capitalist by nature, give out jobs not because the really feel like doing some charity, or they think giving jobs is their social responsibility. Nah...not all of that corporate vision you see at your office is true. Profitability is priority number one.

Giving a job to you means that they want you to add value to the company. Whether all the skills and knowledge you have can help the company grow, and in time, you can grow too. Bosses really appreciate a person who can do things well, help run the company, and adds in to the profit margin. And to show his appreciation, he would give you bonus, or increments.

Now, there's always a bit of conflict on what you should get for your pay, and what the boss thinks he can pay you. I can't comment this on all bosses, some of them too calculative, and some are ok. But the smarter bosses knows how to pay well.

Just some advice to young grads, or studying in college, take whatever pay you can, for the job you think you can grow. Where you learn to do stuff, and eventually you could learn more on the tricks of the trades. This stuff, they never teach you in college. Money should be secondary. If company B offers more stuff to learn and grow, but less pay than A (company A is a dull big enterprise), then you should choose B.

Company C is lampe berger. Please...don't choose this one. You do learn some stuff, and get rich fast (if you succeed), but it's not as roses as you think. It's not a real job:

1. You pay to get a job??? (RM 2345)

2. Your income is not fixed. Now this is a problem, I don't know how rich LB members buy cars, but I got a friend (working in a local bank) who told me, MLM members have problems in loans approvals from banks to buy cars or house. Why? because their pay slip is not fixed. Getting 10k this month doesn't mean you get it every month.

3. You can bribe to go up the ladder (RM 30k)

4. There's no fixed working hours. In fact, you work every hour of your life, 24/7/365 thinking of getting in prospects. The thoughts of this makes me shudder.

5. You are in a business where your college education are misused. After all the hard work, and you sell lamps?

Oh, and everyone does get stuck in traffic jams.

Thursday, March 23, 2006

Steven Yeam SYN charities...

Wow,

I googled for Steven Yeam SYN, and look what I found.

Well, such a kind person.

MCA Pix alt
Yeam (right) receiving a memento from Montfort project representative Brother Rajamanikam Anthony and Lee (centre)
http://www.mca.org.my/story.asp?file=/articles/community/2006/50581.html&sec=Community+Highlights

At least we have something nice to talk about LB members. All of you Lampe Berger members should follow his footsteps, once you are high top on the pyramid, please please remember to sow more charities ya.

Afaik, this guy is earning millions, so such numbers (RM 100,000) should be peanuts.

Anyway, the cute thing about his network is, marquies get to wear glittering SYN badges.

Anyway, I have my own network too, Steven Yip Network SYN, whose members are anyone else opposing DCHL.

No fees involved. No RM 2345 franchisee level. No Count..no cost whatsoever. Just use the icons we have on this page and use it own your own blogspot, avatars, forum posting.

That's it. Internet is free.

Merci.

Who's your customers?

Every business needs to know who are their customers. Not everyone buys from you. The society has it's own strata, age groups, preferences, and you need to be smart to play with these factors. It also depends on what you are selling.

This is called market segmentation. Basically, this is how you should view your potential customers. Which group do they belong? What are their needs? What are their problems? And what your product can help to solve or supply them.

Now, we have a problem here. Lampe Berger has nice lamps, and their market are college kids? or graduates who just started out to work? I would like to think that Lampe Berger market belongs to higher class of the society. Only rich folks can throw money on these items. This is why it's so hard for youngsters who joined, to sell the lamps. By looking at the product, we can already judge which group of market it belongs.

Well, want to know why market segmentation is important? Since you know that a certain group of people buys your stuff, the chances of recurring revenue goes up. They will keep on buying your stuff, if you serve them well.

But then again, what I said above, only applies to normal companies, MLM companies such as DCHL uses a lousy pyramid plan, and inflates the demand of products from all segments of the society.

If you are young person reading this and plan to join Lampe Berger, don't only think of the money you will be earning (this is illegal anyway), think of whose your customers. Is the guy struggling hard in studies in college going to care on a lamp? Well, perhaps, if he needs it in case the electricity goes out.

But I seriously doubt it.

Wednesday, March 22, 2006

Branding Gone Haywire

You walk past MacDonalds, and you think to yourself, "I could have something fast and reasonably price over here for lunch".

You hold a Nike baskeball shoe and think "michael jordan"

There's always something that we associate a certain brand with.

Proton "cheap, low quality national car...but everyone drives it"

And brand building does not come cheap. It takes time, advertising, and strategy to tell the public what your brand stands for. And people tend to be very attached to their brand, even there's an equivalent product, with the same quality to get from.

Now lets see what we can think of Lampe Berger so far. Well, this depends on who you are asking.

LB members: "More than 100 years old, very good, and plus you can make money from it"

Non LB members who hasn't know the plan yet: "A lamp ????"

Non LB members who knows the plan, but decided not to join: "Cheats people money, too expensive, pyramid scheme...con people"

Now the problem for Lampe Berger branding doesn't comes from the quality and design of the product. It's quite nice but too pricey, imho. The problem arises when a bunch of networkers are sellling the lamp, using the MLM plan. The pyramid plan causes lots of failures, which people will think it's cheating..thus tarnishing the century year old name of lampe berger.

Does Lampe Berger really wants this? I doubt so.

If DCHL keeps on this MLM plan, with loopholes in it, it's a certainty more and more people will associate lampe berger with cheating, pyramid, con, and get rich quick schemes.

By the way, Lampe Berger is a nice name, it means "Shepherd Lamp".

Tuesday, March 21, 2006

Get Big Fast....



When Jeff Bezos launched Amazon, he wanted it to grow fast..very fast...

He picked up the smartest people, get them to work, spend a lot of money on advertising, and created a e-commerce success. When internet was still in its infancy, he has thought on the idea of selling online. Books was the first category sold, then it branch out into other products.

Now, why does Jeff wants this so badly? It's like this, when the market is still fresh, you have to do lots of land grabbing, staking your piece of claim before some one else does that. It takes a visionary to see things in the future, but the guy who thinks and does it first, relentlessly, have a higher chance of success.

The other dot coms....most went buzz...but if you have read the stories on dot com bust...it mainly got to do with "Get Big Fast" mentality. Amazon was a survivor.

The problem with geting big fast is, it can become unmanageable. Suddenly you got to worry on so many things running a company. Accounts, deliverables, datelines...inventory,...it just piles up. And if you couldn't clear the mess...you will be overloaded. When you can't think, and stuck with day to day work, the initial goal of where you are headed becomes hazy...ever noticed why so many big companies, mentioned streamlining, cut cost, refocus on their main agenda? It's just another way of saying "lets refocus on our core business". All others are secondary.

Now that's normal companies.

MLM companies have a better strategy to grow fast. Networks, and networks of people, that does the selling, pitching, advertising, transporting the goods for you. Well, which company doesn't want to grow? Soon you will find products that are not needed in the market suddenly receiving demand.

But you see, recruiting more people into the business is actually mathematically challenging. Take for e.g. DCHL. 1 recruit 5 person.

1
5
25
125
625
3,125
15,625
78,125
390,625
1,953,125
9,765,625
48,828,125 (opss...more than the whole Malaysia is under Lampe Berger, don't worry, we shall go to China)

Other MLM companies are sensible enough to understand this threat, so they have binary system.

1
2
4
8
(still long way to go...)

By the way, maintaining so many people under you, would be a nightmare...And it's not easy. You got to meet people after people who might buy or not buy into your plan. Some might accept it, some might not...How many people can you talk to a day? What's the success rate like? The countless nites spending time doing this is luxury? oh wow...

This is the main reason why so many quit...after finding a hard time prospecting.

Growing big only means one thing, the company profits go sky rocket high, just like what the bosses expected. The network? Fed on a bunch of dreams....








Monday, March 20, 2006

RM 30,000 to invest

I have went to the LB office at the HLB building before, just want to check out and meet a fellow LB member for appointment over there.

First thing is, you will notice it's a spanky, well designed office, with their products (lamps of course, and essential oil) behind individual glass cells on the wall. It seems like the whole place is a bit crowded, some purchases being made at the counter, a grand picture on the wall, which paints the lampe berger history, some ladies on the counter maning some Estebell products.

Then on the announcement wall, you could see a list of person who have made it to marquie, count...

Then on the ground floor itself, there's an appoitment room, enough to fit 100 persons, filled with round tables and chairs for each. First thing you will notice, is mostly guys and ladies over there (LB members) dress in black suits. Apparently it's quit a smart dressing. Not bad, I am impressed.

There's another bigger room/hall on the second floor, to accomodate more tables and chairs. A lot of them.

Seems like on each table, LB members are trying to sell the "marketing plan", once in awhile showing the product, but mostly explaining the intricacies of the marketing plan.

So, I get to meet a Marquie, who let me browse the catalog for awhile, but apparently, he can't really converse in English, so I was introduced to his downline, another lady. Business is business, she just jump right into the marketing plan, drawing a circle, and underneath below it 5 more circles (it's the marketing plan..stupid).

The she went on and on rattling on the benefits of the "marketing plan", how much money you can make from it. I don't really bother at that period, because I have already know that marketing plan is what they are trying to sell you. Not the lamp.

There's quite a lot of activities on the second floor, young people (I think most of them either still in college or just starting their careers) all around.

It bothers me, other MLM plan doesn't really bothers me. What bothers me, is how they influence you to fork up RM 30k to become Count. My brother (who joined), has an upline who is the same age, still in college, and had borrowed RM 30k from relatives, parents...., just to become Count at such a young age. Imagine a college guy investing RM30k into such a business. That answers the question why most uplines can afford luxuries.

Eventually my brother demanded the 30k from my father. I tried to talk him through, but apparently it seems like their programmes of brain washing do work well. I told him to start from the bottom (franchisee), but he is adamant to get the 30k.

Be carefull of joining in at Franchisee level RM 2345. It's just a lure before they urged you to upgrade to Count.

No, don't join. Go do some other real work. Not a bunch of people selling marketing plan and thinking the best life is shaking leg doing nothing, and can get tons of cash. Yes, you do, all because it's just a pyramid scheme, sucking all the cash in. Bottoms are the lossers.

Probably a Ferrari at their Prestigious DCHL Gala Dinner answers this phenomena.

http://www.dchl.com.my/English%20Version/NewsEvent_LBNews_Jan-Feb06.asp

I want a ***** for Christmas.

Here are some stuff you can choose to buy around 2k. As a teenager in
college, or a young hip person, which one would you choose?







K
750i


Ipod
Nano


A
Lamp



Yes, which item would you want? Do you want a Sonny Ericsson k750i, an Ipod Nano, or a lamp? Choose one. Come on, if you are young, even with not much cash in hand, you would want the first two, but the third? It sounds very weird if you really want a lamp, which just burns and fragrance the air around you.

Yes, the question is who wants it? Ask any sensible person, they will think
that having a cool gadget would be better to spend than dumping it on a lamp.
It's not even a gadget. There's no kewl stuff, like 3G, wifi, 6 Mega Pixels,
video....

A product has its own market, probably in France, where they
really adore fashion, and have high taste for a beautifully crafted products, it
would sell.

But to many asians in the middle income society, a highly
priced lamp is not something in their shopping basket.

Market demand will eventually determine whether the product can be sold in a localized market. If it can't sell, too bad. Go back to the drawing board and figure why asians won't
buy a lamp. Cut the price, do more marketing, adex, and see if you can sell it,
solely on market driven demand. Open an exclusive booth in KLCC like the rest of
the expensive brands. Surely some high class Malaysians would buy it.

But not some young teenagers. Nope, that is weird.

Sunday, March 19, 2006

DCHL - product based pyramid schemes

This morning I received an email from Mr Jon M. Taylor, who I have corresponded on the issue of DCHL. This is what he wrote:

Thank you for linking our site to your blog. Good move.

And thank you for sending the compensation plan for DCHL. Based on our "5 Red Flags" analysis, I have added DCHL to the list of “recruiting MLM’s”, or product-based pyramid schemes. Where we have been able to get the data, we have found that in such schemes with all “5 Red Flags” in their compensation plans – at least 99% of participants lose money!

Keep up the good work. These schemes need to be exposed.

- Jon M. Taylor, Ph.D., President, Consumer Awareness Institute

and Advisor, Pyramid Scheme Alert

E-mail: jonmtaylor@juno.com

Web site for MLM research and guides – www.mlm-thetruth.com


Here is what he meant by red flags (steps to determine if the mlm is a product based pyramid schemes:

Red Flag #1: Participants are recruited in an endless chain of participants.

Red Flag #2: Advancement in the scheme is by recruitment, rather than by appointment.

Red Flag #3: Participants are expected to buy (or subscribe to) products or services in order to qualify for commissions or bonuses or to advance in the scheme.

Red Flag #4: The company pays commissions and bonuses on more than four levels of participants. (LB has 6 generations...)

Red Flag #5: Company payout per sale for the total of all upline participants exceeds that for the person actually selling the product.


Do LB Members read this?









Just digged out their contract form before signing up. Seems like the company acknowledges problems happenning in the network like bad pr in the press, unscrupulous distributors.

However, I want to highlight this point again and again.

If you provide loopholes in the advancement rank, like "cut count",

"challenge marquie", "slaughter(it's still 'challenge', I just like the word slaughter) duke", it's still going to cause trouble.

People are motivated to work towards the most rewarding. Cutting ranks is the MOST rewarding.

So, please cut off this nonsense rank cutting, that just benefits the company DCHL.

Just look at how good DHCL covers itself. If you are LB member or soon to be, please read the fine print. Understand the Direct Sales Act 1993.

Tak Nak Lampe Berger Campaign

Hi all,

This is an easy way to show on your MSN or Yahoo messenger to LB members who bugged you into the marketing plan. We have a few avatars for you below, nicely design by a member in Lowyat forum:

user posted image user posted image user posted image

Just right click and "save as.." on your pc.

Try one to fit your avatar today...Say Tak Nak to Lampe Berger.

Anti Lampe Berger.

Saturday, March 18, 2006

SYN - Steven Yeam Network

S.Y.N

I stumble upon this site. If you haven't heard of him, he's called Steven Yeam, in charge of the largest LB network in Msia.

Well, I found his site http://www.synbiz.net/

Registered myself, and found out this.

What!!! Have to pay? 50 USD...Yes, if not you cannot browse the other sections...damn. How could this possibly promote team building? It's supposed to be free. You got a bunch of Dukes, Marquies, Counts, Barons (very few, most of them are Counts), and Franchisees running the show for you.

At least give us for free...

Try it out.

And do promote

Steven Yip Network SYN too...





"Don't regret if I drive a BMW..."

Wow,

My brother said that..., I can't really imagine a 18 year old could think of having a BMW, let alone drive one. Let me see...

In Malaysia, BMW Group sales rose 24.8% with 3,213 units over the last year's (2,574). BMW brand sales surged 25.1% with sales of 3,016 units, its highest figure ever (previous year: 2,410). BMW cars rank as leaders in the middle
(3 Series) and upper (X5) segments. The 5 Series, in particular, saw an 82.4% growth after an already strong increase of 47% a year before. The flagship 7 Series now commands 42% of the market share for its segment. MINI cars contributed again to record sales, increasing 20% to 197 units.
http://www.bmwasia.com/html/08032006.html

No wonder sales went up...I still remember that BMW sales went up last year. Heck, I even remember the number 3,213 (a good 4D number).

There's a few items before you go get an expensive car. These are the basics:

1. Car loan per month.
Think. Can you sustain it every month? Are you able to be content with personally scraping for changes, if you miss a payment? If you have family, this is harder to decide. Oh ya, now they can go up to 9 years.

2. Road tax
It's due annually. You gotta pay, coz the government needs taxed.

3. Petrol
Oh ya, why don't get a smaller car. Cheaper, less fuel consumption... it's 1.93 RM, and still under subsidy.

4. Tolls
Yes, we need to hand it to Malaysian Road Builders....nice highways, but you gotta pay.

5. Car Insurance.
Another thriving auto industry.

6. Car maintenance.
Get proton first, even though it sucks. Even tough you hate national cars. But at least look at the positive side. If there's sth wrong with parts, just go to kereta potong, and get some spare parts cheap. If not, you will be stuck with expensive parts to replace.
I was once at a work shop for repairs, and the mechanice mentioned that the merz changing disc brakes cost 1k plus.

Don't be fooled by others driving nice cars. If they have the means, no worries. But if an LB member, who just have initial pay for a few thousands, and already dreaming the next BMW, Merz, Ferraris...it's suicide.

Even though you do get that paycheck, can it guarantee for the next 9 years?

Let's hope so.

Steven Yip Network SYN

Here is your corporate Ladder..

Well guys,

Before you go to LB office to meet up with some LB members, why not just search the web, and get the info directly from their web site:

This is from
http://www.dchl.com.my/English%20Version/BizOpp_MarketingPlan_Spore.asp

You could already smell the $....


Franchisee

Has personally used the product and achieved an initial personal sales of 18,750PV or RM2,345.

• Rewards- retailing profit-20%.
• Can purchase the products directly from the company and develop own downline group.
This is where you start your journey...hope you enjoy it...yes it is easy to fork up that kinda money. One month salary gone...you have just freed yourself from the serfs. Time to get up the feudal system.



Baron

Either
1. Has developed and direct sponsored 5 Franchisee within his/her downline group.
2. Has accumulated a personal sales of 90,000PV (RM11,250), but excluding the initial personal sales of 18,750PV or RM2,345 or

• Rewards-retailing profit-29%.
• Group bonus: 9%.

Everything seems fine, all hard work to reach baron....

Count

Either
1. Has developed and direct sponsored 3 direct-sponsored Barons within his/her group or
Wow...seems like you also help your fellow peasants to become barons...hmmm

2. Has accumulated a personal sales of 360,000PV or RM45,000 (excluding the initial personal sales of 18,750PV or RM2,345) or
3. Has achieved a one-time Personal Sales of 300,000PV or RM37,500 (Promotion).
This is where all the mystery is on RM 30,000. If you have a son, daughter, friend asking to borrow 30k. Now you know why...and they call this promotion? Look at how they put it... or RM 37,500 to be exact.

4. Promotion to Count will only take effect the following month after qualification.



• Rewards -retailing profit-38%.
• Group Bonus: 9% to 18%.
• Count Generation Bonus for a maximum of 6 generation:5%, 3%,2%,1.5%,1%,1% i.e. giving a total of 13.5%.

Well, now you are count, so what? happy? no....it's a long way to go.



Marquis


1. Has developed 5 direct-sponsored Counts, and has lodged a Challenge for Marquis with the Company. The challenge takes effect the following month.
2. Has accumulated a total group sales of 3,750,000PV or RM468,750 in 3 months and
Now, this is tres interesting, a DEADLINE for challenging Marquis position. In 3 months? to get a group sales of RM 468,750? It's just like the same thing like middle management ask their subordinates to work harder...

3. Promotion to Marquis will only take effect the following month after qualification.

• Rewards-retailing profit-41%.
• Group Bonus:3% to 21%.
• Count Generation Bonus for a maximum of 6 generations: 5%, 3%, 2%, 1.5%,1%,1% i.e.giving a total of 13.5%.
• Marquis Personal Group Bonus of 2% on all groups' sales generated by downline Counts.
• Marquis Generation Bonus of a total 6% (based on total group points generated by downline Marquis for a maximum of 6 generations).
• Marquis Asia Profit Sharing of a total 1.5% (based on total group points generated by downline Marquis for a maximum of 6 generations, and paid half yearly).
• Will be awarded a Marquis Pin.
• If a distributor becomes a Marquis within 4 months after having been appointed a Franchisee, will qualify for a company-sponsored trip to France.

Yay, we can go to France. Think it's cheaper you go there via some normal holiday packages....That is if you hit your target. Get to wear some funky Marquis pin...



Duke


1. Has developed five 1st generation sponsored Marquis, and has lodged a Challenge for Duke with the company. The Challenge takes effect the following month.
2. Has accumulated a total group sales of 40,000,000PV or RM5,000,000 in 3 consecutive months and
Dun play play, it's not easy reaching Duke position....and notice another DEADLINE

3.

Promotion to Duke will only take effects the following month after qualification.

• Rewards-Retailing Profit-42%.
• Group Bonus:1% to 22%.
• Count Generation Bonus for maximum of 6 generations:5%,3%,2%,1.5%,1%,1% i.e. giving a total of of 13.5%.
• Marquis Personal Group Bonus of 2% on all groups' sales generated by downline Counts.
• Marquis Generation Bonus of a total 6% (based on total group points generated by downline Marquis for a maximum of 6 generations).
• Duke Generation Bonus of a total 2% (based on total group points generated by downline Dukes for a maximum 6 generations).
• Marquis Asia Profit Sharing of a total 1.5% (Based on total group points generated by downline Marquis for a maximum of 6 generations,and paid half yearly).
• Duke Asia profit Sharing of a total 1% (based on total group points generated by downline Duke for a maximum of 6 generations, and paid half yearly).
• Will be awarded a Duke Pin.



Arch Duke



1. Has developed five 1st generation sponsored Dukes, and has lodged a Challenge for Arch Duke with the company. The Challenge takes effect the following month
2. Has accumulated a total group sales of 400,000,000PV or RM50,000,000 in 3 consecutive months and

I really wonder...where in the world, can you get this kind of sales. 50 million RM in 3 months....it's a quarter of a year. Only big enterprise can do this....or if you have started early in LB, and made it.

3. Promotion to Arch Duke will only take effect the following month after qualification.

• Rewards-retailing profit-42%.
• Count Generation Bonus for a maximum of 6 generations:5%, 3%, 2%, 1.5%,1%,1% i.e. giving a total of 13.5%.
• Marquis Personal Group Bonus of 2% on all groups' sales generated by downline Counts.
• Marquis Generation Bonus of a total 6% (based on total group points generated by downline Marquis for a maximum of 6 generations).
• Duke Generation Bonus of a total 2% (base on total group points generated by donwline Dukes for a maximum 6 generations).
• Marquis Asia Profit Sharing of a total 1.5% (based on total group points generated by downline Marquis for a maximum of 6 generations, and paid half yearly).
• Duke Asia Profit Sharing of a total 1% (based on total group points generated by downline Duke for a maximum of 6 generations,and paid half yearly).
• Arch Duke Asia Profit Sharing of a total 1% (based on total group points generated by downline Arch Duke for a maximum of 6 generations, and paid half-yearly).
• Will be awarded a Arch Duke Pin.

That's it. This position is supposed to be very rewarding. I didn't bother to look at of the incentive...Arch Duke Pin sounds like Ayah Pin. ....hmm...God.

Franchise, Baron, Count, Marquie, Duke, Arch Duke

Fetishes with France.

Seems like we asians still have high regard of westerners. In fact, why not become one. By joining LB, you can have all those. Better still, why not "cut count", "challenge Marquie", and I wonder if they have "slaughter duke". If you are wondering how to do so, it's easy.

Just go join LB at franchise level RM 2345. Yes, it's not much money. Come on, this is just franchise, the skies the limit, probably you will reach count by a year.

Well, let me see, after that you gotta get 5 more people in. So then you become baron. Oh wow, now that you are baron, you just need to get 3 of your downline (5 of them remember?) to get another 5 (which means you got 3 barons under you). Then, it seems harder. Coz, we all know the math 3 x 5 = 15, then plus the direct 5 under you = 20.
(Edited: I apologize for the earlier math error, I must have think in haste)

Yes, that is right. A lot of people rite?

There's where "cut count" comes in. Why not, find your friends, aunties, uncles, father, mother, sister, brother, whoever that is except tai yi long (yea...everyday we wonder why they keep sending us spam), and get that 30,000 to pay your way up.

Yes, it's easy Rm 30,000k only. It's damn cheap compared to Datuks that were once sold. If I can remember it's more than 100k.

So there you have it folks, become a Count. And you can wear those cute SYN badges, decorated with diamonds, glittering with all the hard work and sweat you have pour in. Or is it the $$$ you have poured in?

Anti Lampe Berger

Nice LB cartoon - Anti Haze



Haze is coming...there's other alternatives, as shown in this cartoon. It took awhile to understand what the author is trying to say... Just look at the piece of paper. Apparently you don't need such an expensive luxurious product to fight the haze.

Friday, March 17, 2006

Exposure on The Star

We have a new exposure by The Star.. on Monday March 13, 2006

Troubled by greedy daughter

A GET-RICH-QUICK scheme that lured a 20-year-old girl to invest an initial RM2,000 has got her mother worried, China Press reported.

Known only as Tan, the woman told the daily that her daughter, a college student in Kuala Lumpur, paid the money to join a direct sales company as a member.

She said her daughter was then told by company agents that if she invested another RM30,000, she could easily get RM60,000 in six months.

“My daughter asked me for RM15,000 and said her boyfriend would help raise the other RM15,000,” she told the daily.

She refused to give the money and her nightmare began when her daughter vowed to borrow it from friends.

Her daughter, added Tan, had slackened in her studies after listening to “success stories” of direct sales agents earning large sums.

Nanyang Siang Pau quoted Deputy Tourism Minister Datuk Donald Lim Siang Chai as saying that any tourism-related issues and problems faced by states should be discussed internally before being taken to the press.

He was responding to a statement by Penang Tourism and Environment Committee chairman Teng Chang Yeow who claimed that his committee had been receiving the least annual allocation from the Tourism Department.

Lim said his ministry was responsible for co-ordination work and the respective state governments should fund the maintenance of tourist spots.

“If the allocation is insufficient, they can apply to the Finance Ministry or Works Ministry,” he added.

Exposure on Lampe Berger con





Welcome....welcome

Hi all,

This blog is for all rants, complaints against Lampe Berger products distribute via MLM by DCHL.

Period.

Soon I will add some more information this company.