Archive for May, 2010

Pyramid Scams: Two Things To Watch Out For (Part 1)

It appears network marketing or multilevel marketing (MLM) is gaining some traction again among Filipinos in search of a way to earn some money. In the past two weeks alone I have received at least four invitations to so called business opportunity meetings.

I used to be involved in MLM. In fact I once took a one year break from my day job to concentrate on network marketing. I never really earned that much from it though. Nevertheless I found the whole experience quite enjoyable and educational.

So what did I learn? Quite a lot actually. But the most important is the idea that MLM is a legitimate business model that presents a very real opportunity for people to achieve financial freedom or to earn some extra cash.

I know that sounded a little too chirpy and somewhat corny like an overused motherhood statement. But seriously, as a business system, MLM shouldn’t be dismissed as easily as its evil twin, the pyramid scam.

To the newbie or casual observer it would appear that the two are one and the same. As a former networker who had the fortunate/unfortunate experience of attending more than enough business presentations by various companies including dubious ones, I am quite familiar with the inner workings of both systems and I can attest to the fact that MLM is a legitimate and ethical system while pyramiding is simply bad.

It’s really quite easy to make the mistake of assuming that they’re the same system. For one thing, networks formed under both systems take on the form of a triangle or pyramid with the one who enrolled first positioned on top and followed by a number of other people referred to us downlines who are also followed by other downlines below them.

I’d like to point out that this pyramid or triangle structure is not the dead giveaway of “scamminess” as many well-meaning but uninformed pundits think. There is nothing inherently wrong with the form. It is not even unique to MLM or pyramiding schemes.

The fact is the pyramid form is found in every imaginable organization. It’s how corporate organizations look like. Even the government follows this structure with the Head of State at the very top followed by other top level officials who are then followed by lower-ranked officials and so on and so forth. It can’t be stressed enough that there is nothing inherently wrong with the pyramid organizational structure.

What’s wrong with pyramid schemes anyway? The standard complaint is that, like the Ponzi scheme, pyramiding involves an unfair movement of money that puts members at the very bottom at a disadvantage. Moreso when there are no real products involved as this would leave those at the bottom with nothing to show for their investment. To illustrate, member A receives money from member B who then receives money from member C who is then left holding the empty bag unless someone else gets in to continue the cycle.

Unfortunately, in legitimate MLM, money moves in a similar fashion. The only difference is that there are products involved.

But then again most present-day pyramid scams also feature products.

(More to come in part two.)

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Sticky Fingers For Noynoy

A rabid Noynoyista recently ribbed me for not updating this blog. His/her comment would have been innocent enough had it not been for his/her amateur attempt at black propaganda. This commenter basically wanted to tell the other readers of this blog who happen to support other candidates to just accept what he/she thinks is the inevitable victory of Senator Noynoy Aquino.

I don’t know about everyone else, but as far as I’m concerned it ain’t over till it’s over. And, no Mr./Ms. Commenter, Noynoy’s victory is not yet a certainty. It is just one of many possibilities.

Speaking of the Aquino campaign, I’m really wondering what his supporters expect from him in case he does bcome our President. As far those people in his inner circle, well, that should be obvious. They’re in it for the juicy government portfolios and other perks. How about the ordinary folks who profess to love him like he was some kind of messiah? It seems to me they’re in it for the fantasy. A better Philippines under an Aquino administration? That makes the Lord of the Rings more real to me.

incidentally, I was at one of the BIR offices last week and I got to talk to one of the examiners there. Out of the blue he mentioned that he and most of his co-workers are for Aquino. I asked why. He gave me a cryptic response.

“Basta,” he said.

I wondered about that piece of information. I tried to imagine what possible reason a BIR examiner could possibly have to support Noynoy who has been playing the role of an anti-corruption crusader. Hmmm. BIR personnel supporting a candidate who claims he will put a stop to government corruption… it just doesn’t match up. Is the end of the world upon us?

I reflected on his cryptic response. After about 10 seconds of deep thought, it came to me. I realized what should have been obvious to me from the very start.

Those BIR personnel aren’t supporting Noynoy because of what he claim he can and will do to ensure corruption-free governance. They’re going for Noynoy because they know he will not be able to do anything to stop the shenanigans going on at this esteemed government agency. In short, they’re putting their faith on Noynoy’s incompetence.

I don’t know about you but I think this is a sign of things to come should the greater number of Filipino voters think it wise to put Noynoy at the helm of our already troubled nation.

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Partylist Group Bats For Humane Environment; Vandalises Newly Painted Footbridge

A few hours ago, I left a comment on the website of one of the aspiring partylist groups. It’s still under moderation and I doubt if it will get approved. In any case, here’s what I wrote:

I just want to call your attention to the fact that some of your campaigners have resorted to vandalizing public property. While the campaigners of other groups make use of streamers and posters, yours have resorted to using paint. What’s up with that? I just saw your slogan “No to tuition fee hike! Iboto ang Kabataang Partylist” painted on the post of one of the newly painted footbridges along Quezon Avenue and again on one of the center islands in the area.

While this violation is nothing compared to the bigger problems besetting our country, it is a violation nonetheless. Why must you allow your people to vandalize? if you’re gonna fight the evils of this world you should at least be better in your deeds. Being a vandal is not being better.

Call it nitpicking or whatever, but I think a group that wants to get into Congress presumably to create laws shouldn’t be breaking any. In fairness to Kabataan Partylist, they’re not the only ones among our candidates who are guilty of vandalism. Just look around and you’ll see how messed up our surroundings are right now because of all the campaign materials posted all over the place. What puts Kabataan Partylist on a different level though is the fact that its campaign material will require a fresh coat of paint to remove.

If I weren’t a believer of the “broken window” theory I probably wouldn’t make a big deal out of this. There’s also too much irony here that I can’t help but point it out. Check out the following gem from the Kabataan Partylist website:

Our Common Vision
KABATAAN Party-list believes that the youth should devote its intellect, energy and courage to building a new society devoid of corruption, inequality and social injustice.

And here’s another one under its so called Program of Action:

3. Assert the youth’s right to decent living, equal opportunities and humane living conditions.

Humane living conditions? I think this bunch of youth activists should aim for more modest goals. I would suggest something like ensuring our communities are free from graffiti.

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