What is next on MLM?

Many entrepreneurs and businessmen are comtemplating MLM as a distribution channel.  In Indonesia, basic groceries such as rice, sugar, dressed chicken are sold via MLM. A few businessmen have approached me to sell their products via MLM. I am quite wary of those schemes with any element of money game or scam. 

One proposal involved live bird, fish, processed meat and ready-to-cook food.

Today, the Chinese burial plots are being sold via MLM. Restaurant franchise, gold bullion, unit trust, holiday resort, time sharing resort, land investment and your own future funeral package are also being sold via MLM.  What is next to join the queue?  Probably, the China woman will be available through MLM.

Imagine buying your own funeral package for future use. And, this is transferable to any other buyers. 

And, the word  MLM really stinks. A new term is therefore coined. They called it NETWORK MARKETING.  A new term does not change the substance. There are many scams involving the network marketing activities.

The most recent scam involving an established food outlet was reported in the cyber media.

Investors cry foul over KL cafe chain

Police are investigating a restaurant franchise chain after 10 investors, including a Singaporean, lodged a report claiming one of its directors had absconded with more than RM9 million.
The investors are part of a group of more than 3,000 people, mostly Malaysians, who bought shares in the franchise known as Island Red Cafe. About 200 Singaporeans are said to have invested in the company, which claimed a monthly turnover of about RM2 million.
Each lot of shares was sold for about RM6,000.
The first Island Red Cafe opened in Kuala Lumpur in 2007. The cafe is known for its range of local and Western food and has 15 outlets throughout Malaysia.
The 10 investors lodged their police report at the Nusa Bestari police station in Johor Baru on Sunday.
The MCA Youth’s consumer affairs bureau, which promotes and enforces consumer rights, is working with the police to deal with complaints.
The Singaporean who lodged the report, Ng Ee Siong, 50, said he was lured into investing in the business by its concept.
Ng, who works in a multi-level marketing business in Singapore, said that in return for a lot of shares that he bought some time last year, he was given a voucher worth RM100 to spend at any Island Red Cafe and RM300 in cash on a monthly basis.
He said: “I could easily have made back my principal sum in two years that way and earned a profit too.”
He said he bought a second lot of shares late last year and also introduced five Singaporean friends as investors.
But Ng claimed that he stopped receiving the vouchers and cash payouts earlier this year, adding that he had not been able to contact any of the company’s four directors — including the one who is said to have absconded. (article extracted from Malaysia Insider)


MLM, Networking Marketing or the newest IBO ( Independent Business Owner) are the same old stuff by the same old gang of people.  My next write up will be on IBO.