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MLM defends industry (News Feature)

Posted on August 3, 2015

By Kris M. Crismundo

MANILA, Aug 3 (PNA) — With the recent news on networking scams, a multi-level marketing (MLM) company defends the industry.

Forever Rich Philippines, Inc., Chief Executive Officer Susan Barlin said networking is a legit business model.

Barlin, however, said scammers which use the business model have stained the image of networking in the Philippines.

“What we want to emphasize in the Philippines is there are only few legitimate networking companies. There are more scammers than legit ones,” she said.

She mentioned that networking business has a direct effect in alleviating poverty than other business models like franchising.

She explained that unlike franchising which requires big investments for an independent entrepreneur, MLM firms’ requires low capital; others, less than Php3,000.

“It’s not actually a capital because you bought a product and you’re an instant member for a lifetime. What you need to do is to share your experience with that product,” Barlin added.

•Reallocation of cost

She explained that MLM firms are paying for people or members to endorse and distribute their own products instead of paying for advertisements and logistics.

“It’s reallocation of cost,” she said.

Barlin cited that in Forever Rich, one can be a member for buying one box of food supplement for as low as Php2,698. The member will endorse the product to another person, Once the latter bought the product, the former can get some US$ 10 if the latter bought the same Php2,698-pacakge. And for every product that the latter has purchased, the former instantly earns 2.0 percent of the value of the purchased products.

“It’s not a get-rich-quick business. You still have to work hard,” she said adding that about three to seven years are needed to build a good network and have good earnings.

•Health and wealth advocates

Barlin mentioned that networking companies are now instruments for health products to promote good and healthy living.

Most of products being sold by MLM firms are food supplements and beauty products.

“We promote health and wealth. Networking can address poverty by having a healthy life and have financial independence,” Barlin said. (PNA)

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