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.


13 Comments:

Anonymous Anonymous said...

Good move, indeed. Yesterday, I was thinking about contacting the president of PSA to look into DCHL, and today I discovered you to be one-step faster.

So, what do we do next?

Shall we plan something like the Regional Seminar on Combating Pyramid Schemes in Sri Lanka (http://www.falseprofits.com/SriLankaReport.pdf)?

In addition, I think the public need to know where to file their complaints:
http://e-aduan.kpdnhep.gov.my/

Also, if you haven't heard about this, Direct Selling Convention & Exhibition 2006, organized by Ministry of Domestic Trade & Consumer Affairs, is going to be held in PWTC from 23 to 26 this month. Notice that none of the speakers of the convention will be from DCHL. It arouses my curiosity.
http://www.kpdnhep.gov.my/pub/kpdn/bpdn/index.html

11:36 AM  
Blogger Steven Yip said...

Hi Anonymous,

I did tried the
http://e-aduan.kpdnhep.gov.my/. Got a complaint number..but not yet any response. Is it any good?

3:06 PM  
Anonymous Anonymous said...

I'm still waiting but not expecting any major action to be taken so soon. They need to see the evidence that many people suffer losses before they can do something about it. The only way is through victims' complaints. Up to now, I believe, the percentage of victims who have complained is still very small.

5:16 PM  
Anonymous Anonymous said...

for ur question of 3 item,

if u reli think of ur family, u stick wiv ur own hp, wasting money of those r stupid, mayb u dunno how ur parents work so hard, u go waste all thier money,

2k in kl u can barely survive
here is not village, dun use village price to say,

get real, u put ur family at where?
go get a fine work and work hard for them, wasting time on discussing how to get rip of others is not wat ur parents want u do do,

funny now adays teenage juz so simple or should say stupid.

9:22 PM  
Anonymous Anonymous said...

Wah ..is Pyramid scheme ah ? Steven Yip u damn blur man.. !! are u working with your boss ? if yes.. u are also the victim of pyramid scheme already... u work u got salary only but the profit all goes up to your boss .. so is
CEO-> MANAGER -> YOU .. u damn blur ah..if u have a own Busines now .. wah..u bloody lamer u are the bastard of pyramid scheme already.. because your worker work for you what... haiz... think it back la.. no want to side LB or what.. is u don understand a lot of think... Be MATURE oki...

1:34 PM  
Anonymous andrew said...

Do i have to pay rm2k to my boss to employ me?

Do i have to pay rm30k to my boss to promote me to higher positions?

well, unless that company is a sham, a GLC and ur boss is corrupt. or it's DCHL-LB.

Buddy, the actual blur is you lah...

11:37 AM  
Anonymous Anonymous said...

lol, if pyramid schemes is bullshit...then u live in this country also is pyramid schemes...so how u think about tat? leave the country? u r living in the pyramid schemes noob!!!!

7:09 PM  
Blogger melv said...

This comment has been removed by a blog administrator.

7:23 PM  
Anonymous Anonymous said...

lol, if pyramid schemes is bullshit...then u live in this country also is pyramid schemes...so how u think about tat? leave the country? u r living in the pyramid schemes noob!!!!

7:23 PM  
Anonymous andrew said...

haha... there's no need to call me noob to show whos the actual noob. how restricted ur views are...

anyway i'd suggest u check out the comments section in some of the most recent posts... someone else already broke ur argument about our country being a pyramid scheme. there's no need for me to repeat everything here.

by the way for the uinitiated, noob is the slang for newbie, commonly used by youngsters such as primary schoolkid up till 20-something, online-game-playing students whose brains is not fully developed yet.

go figure.

12:30 AM  
Anonymous CMW said...

Been to their marketing plan talk as well, did not join... really not my cup of tea. However, to be fair, would like to comment a bit on Red Flag #5.

If you are a Count, and you sold a lamp, erm... say, costing 1k, you will make a profit of 38% (that's $380), and your upline will only make a profit of 5% (that's $50).

5:52 PM  
Blogger Scott A. Edwards said...

The fact is that the INTERNET is making people RICH! Shouldn't YOU be one of them? Click here: FIND OUT NOW!

12:23 AM  
Anonymous RJesh said...

write a complaint to Warkah Untuk PM. I got positive responses from KPDNHEP.

write email to this address: arunan@kpdnhep.gov.my (Arunan Kumaran
Ketua Penolong Pengarah Bahagian Perdagangan Dalam Negeri KPDNHEP Malaysia); and

talal@kpdnhep.gov.my (Unit Jualan Langsung KPDNHEP)contact no. 03-88825969

12:28 AM  

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