My name is Loh Chia Lin. My online brand is Mommy Lynn. I have been building my multi-level marketing (MLM) business by partnering with a Malaysia based direct selling company call BE International since December 2017.
Above is a picture of me and my husband when we visited the Forbidden City at Beijing, China in May 2026.
Our trip to Beijing, China was fully sponsored by BE International through the BE Lifestyle Travel (BELT) campaign.
Free oversea travel twice a year is one of the many benefits of partnering with BE International.
My husband and I have some experience building a multi-level marketing (MLM) business in Malaysia.
This is what we noticed when we shared the BE International business opportunity, many people will group MLM business into the category of pyramid scheme.
In this article, I will share the 10 tell tale signs of a pyramid scheme in Malaysia you should look out for.
1) High entry fee
Pyramid schemes often disguise high entry fees as part of the price charged for required purchases of training, product inventory etc.
Pyramid schemes make virtually all their profits from recruiting.
In order to get into the scheme, you are required to invest a large amount of money.
The person asking you to invest will say the investment is meant as the initial product stock up for the business.
2) Disguise as a legitimate business
Most pyramid schemes are frequently disguised to appear as legitimate direct selling companies.
Pyramid scheme companies do not have a legitimate license to operate a direct selling business in Malaysia.
If a company claims to have a direct selling license, check the license number with the Malaysia Ministry Of Domestic Trade And Consumer Affairs.
3) No inventory buy back
When you’ve bought products from a pyramid schemes, you will not be able to get your money back if you change your mind.
The company will not buy back unsold inventory.
Such schemes will collapse very quickly if there is the condition for re-purchase of goods.
4) Get rich quick
The nature of the pyramids, in which large numbers of people at the bottom of the pyramid pay money to a few people at the top, clearly explains why the scheme cannot sustain itself for long.
5) Position could be purchased
For a pyramid scheme, you can buy yourself into a certain position or ranking in the business.
6) No repeat sale required
Pyramid schemes are not concerned with repeat sales from the users of the products.
Profits are made on volume sales to new recruits who buy the products not because they are useful or attractively priced, but because they must buy them to participate in the scheme.
As a result, new participants are stuck with products that they bought when they got into the business in the first place.
The product are way below the market value in relation to the high entry fees paid by them.
Should the pyramid scheme collapse, there is no way for the participants to recover their “investments”.
7) Knowingly deceiving people
Promoters of a pyramid scheme are engaging in fraud, knowingly deceiving participants in the schemes.
Some promoter of pyramid scheme will also tell you upfront that it is a business plan for short term only.
8) Have to buy lots of stock
Participants in a pyramid scheme have no choice but indulge in inventory loading in the beginning.
This is the high fees to participate in the scheme.
You may also be required to buy stock every week or every month.
9) Business is based on recruiting only
Participation is essentially based on recruiting, not necessarily on the sale of products or services.
10) Outlawed in many countries
Pyramid schemes have been outlawed throughout the United States and many countries around the world.
It is the same here in Malaysia.
If you are looking for a legit network marketing business in Malaysia, you are welcome to join the Mommy Lynn Team.
Visit my website at www.MommyLynn.com and lets have a chat.
No comments:
Post a Comment