Discussion on the issues surrounding the multi-level/network marketing strategies of some companies.
Republic of the Philippines House of Representatives 16th Congress, Second Regular Session posted on the official website http://www.congress.gov.ph the schedule of the “Discussion on the issues surrounding the multi-level/network marketing strategies of some companies” by METRO MANILA DEVELOPMENT Committee last June 8, 2015.
The Securities Exchange Commission of the Philippines (SEC) requires every MLM company to abide by the Anti-Pyramiding Law (RA 5601) that requires at least 73% of the amount invested must be given to the investor in the form of product and service.
I wish that I was an audience of the discussion so that I can let you know or give any update. The only thing I can share here for now is my opinion how it would affect the network marketing industry. I’m glad that they are now giving some time to study and focus on Anti-Pyramiding Law.
To begin with! this law is already existing and even if people know this, they often fall as victim of this scheme. Because of the opportunity to change life, they are risking their money to trust and believe without checking if the company they will get engage with is a real scam.
Now its good that our government committee is taking action to review and and discuss how they can guide people to rise awareness. We hope that there will be a good policy and regulation to the company operating this kind of business that will benefits the company and the people engage in. Aside from the anti-pyramiding law they might talk about how company will operate in this kind of business. The normal company registration does not require to submit how the member is getting their compensation. Once the company is registered they can instantly operate any marketing scheme that they want. The problem on this is people are already invest their time and effort before they know that their is something wrong with the compensation plan and the people behind the company. I think it is good to screen a company registering as Multi Level Marketing Company before they got approved.
I hope that people really understand how the company is operating and what happen when they invest their money and time to the business. You must understand the company manual and make everything clear. Its not good to blame others when you don’t know what you are doing at all. Hyping the opportunity is normal, it is a part of the presentation and you must do your part to investigate and learn why people are talking to you like that.
We are looking for a good result from METRO MANILA DEVELOPMENT Committee on their Discussion on the issues surrounding the multi-level/network marketing strategies of some companies. I hope this is a good start for the sake of the people and for making a standard operating procedure of network marketing industry in the Philippines.