Best World

MONDAY, OCTOBER 20, 2014
USANA May Have Made Half a Billion Dollars In Sales From Conducting Illegal Multi-Level Marketing In Mainland China
USANA May Have Received at Least $440 million From Illegal Sales in Mainland China Since 2007
http://usanawatchdog.blogspot.my/2014/10...llion.html
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The bigger eye opener is that out of the 531 Full-Time distributors that have left, 378 of them are from Hong Kong alone! 12 Diamond, 7 Emerald, 59 Ruby, and 300 Gold Directors have been removed from Hong Kong and possibly transferred to Babycare. If these members were making the kind of commissions their USANA rank suggests, and they were kicked out of USANA and turned into Babycare Distributors, what incentive would keep them as Babycare distributors if they are all of the sudden going to be collecting no commission at all? Remember, Babycare distributors cannot make a commission from other participants purchases because they cannot have a downline. Yet, Babycare sales and associates have been skyrocketing along with the fact the percent of distributor incentives to net sales did not dramatically change from the loss of all these high ranking USANA distributors that USANA would no longer supposedly be paying commissions to
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AnonymousOctober 22, 2014 at 1:18 AM

Quote: 
1)  How relevant is this article to BWI’s “export model” in China?
2)  What are the risks to investors/shareholders?

Thou the articles does not refers to bwl but one could make the inference easily.

I wonder why Dora wanted to do this.

There is absolutely no need to rush to achieve quick wins.

What could be the reason?



雨都停了 这片天灰什么呢
我还记得 你说我们要快乐

There is a flaw assumption that, direct-selling companies have direct control on their members. In a direct-selling model, company and members are not employer-employee relationship, but partnership. It is lesser control as partners, than employed staffs.

I did not read into the detail, but it is not uncommon to "loss-control" on members, especially during high growth period, for other global direct-selling companies.

(not vested)

Natural Health Trends (NHT) is another interesting case to look at:
 
Natural Health Trends: How To Profit From This Aggressive Grower
Published: Jul 06, 2017
http://mlminsider.com/current-news/show/...ive-grower
 
Is Natural Health Trends Lying About A Chinese Regulatory Investigation?
Jan. 12, 2016
https://seekingalpha.com/article/3805376...estigation
 
Update in Lawsuit for Investors in shares of Natural Health Trends Corp. (NASDAQ:NHTC) announced by Shareholders Foundation
Dec 13, 2016
https://globenewswire.com/news-release/2...ation.html
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BWL’s first Star Diamond Ambassador:
TMJ incredibly accomplished 4 PD lines in the last 6 months of 2016.
Becoming the fastest growing record in BWL history.
Takinng over the reign of chairman Chao Ji Group in the middle of last year, she steered the 663 system operation and together with PD Eros Hsu led the network to reach the top group in China.
Her own network group groomed
16 PD
80 GD
434 SD in total, breaking the record in all regional market of BWL.
By end of 2016, she has made the impossible possible in becoming the first Star Diamond Ambassador.........

Question:
Would the impossible be made possible without multi-level commissions being paid ? Without downlines, would this be possible ?
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(10-07-2017, 01:49 PM)Boon Wrote:

BWL’s first Star Diamond Ambassador:
TMJ incredibly accomplished 4 PD lines in the last 6 months of 2016.
Becoming the fastest growing record in BWL history.
Takinng over the reign of chairman Chao Ji Group in the middle of last year, she steered the 663 system operation and together with PD Eros Hsu led the network to reach the top group in China.
Her own network group groomed
16 PD
80 GD
434 SD in total, breaking the record in all regional market of BWL.
By end of 2016, she has made the impossible possible in becoming the first Star Diamond Ambassador.........

Question:
Would the impossible be made possible without multi-level commissions being paid ? Without downlines, would this be possible ?
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After watching the video, looks like BWL has a very good chance to succeed in China if they can recruit more of such distributors like TMJ provided of course that BWL can avoid all the legal landmines facing direct selling companies operating in China as mentioned in prior postings.  Not sure though whether BWL management has cleared through all the legal issues mentioned. Believe quite unlikely that they are not aware of the issues involved.

I am very curious about one operational metric. Has anyone computed the trend of Best World revenue per registered distributor or member? Is Best World business revenue generation based on membership recruitment or genuine demand of its products?

Sent from my SM-G930F using Tapatalk

I am wondering the distributing system in China can be structured in the way that higher ranking distributors get deeper discounts and the lower ranking distributor can only order from his/her direct manager.

If PD 30-35% discount, GD 20-25% discount, SD 10-15% discount, each still get the MLM shares, but the structure is more like traditional sales where bigger distributors get deeper discount.

I think the rules are very clear => single layer commission only. It would be too naive to assume that DS companies like BWI is not aware of the rules.........................
 
禁止传销条例 ("prohibition of chuanxiao”)
http://www.gov.cn/zwgk/2005-09/03/content_28808.htm
 
第七条　下列行为，属于传销行为：
　　（一）组织者或者经营者通过发展人员，要求被发展人员发展其他人员加入，对发展的人员以其直接或者间接滚动发展的人员数量为依据计算和给付报酬（包括物质奖励和其他经济利益，下同），牟取非法利益的；
　　（二）组织者或者经营者通过发展人员，要求被发展人员交纳费用或者以认购商品等方式变相交纳费用，取得加入或者发展其他人员加入的资格，牟取非法利益的；
　　（三）组织者或者经营者通过发展人员，要求被发展人员发展其他人员加入，形成上下线关系，并以下线的销售业绩为依据计算和给付上线报酬，牟取非法利益的
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China

Multi-level marketing (simplified Chinese: 传销; traditional Chinese: 傳銷; pinyin: chuán xiāo) was first introduced to China by American, Taiwanese, and Japanese companies following the Chinese economic reform of 1978. This rise in multi-level marketing's popularity coincided with economic uncertainty and a new shift towards individual consumerism. Multi-level marketing was banned on the mainland by the government in 1998, citing social, economic, and taxation issues.[60] Further regulation "Prohibition of Chuanxiao" (where MLM is a type of Chuanxiao, Chinese name of the regulation is 《禁止传销条例》 ), was enacted in 2005, clause 3 of Chapter 2 of the regulation states having downlines is illegal (original text from the regulation '组织者或者经营者通过发展人员，要求被发展人员发展其他人员加入，形成上下线关系，并以下线的销售业绩为依据计算和给付上线报酬，牟取非法利益的。').[14] O'Regan wrote 'With this regulation China makes clear that while Direct Sales is permitted in the mainland, Multi-Level Marketing is not'.[13]

MLM companies have been trying to find ways around China's prohibitions, or have been developing other methods, such as direct sales, to take their products to China through retail operations. The Direct Sales Regulations limit direct selling to cosmetics, health food, sanitary products, bodybuilding equipment and kitchen utensils. And the Regulations require Chinese or foreign companies ("FIEs") who intend to engage into direct sale business in mainland China to apply for and obtain direct selling license from the Ministry of Commerce ("MOFCOM").[61] In 2016, there are 73 companies, including domestic and foreign companies, have obtained the direct selling license.[62] Some multi-level marketing sellers have circumvented this ban by establishing addresses and bank accounts in Hong Kong, where the practice is legal, while selling and recruiting on the mainland.[13][63]

It was not until August 23, 2005 that the State Council promulgated rules that dealt specifically with direct sale operation- Administration of Direct Sales (entered into effect on 1 December 2005) and the Regulations for the Prohibition of chuanxiao (entered into effect on 1 November 2005). When direct selling is allowed, it will only be permitted under the most stringent requirements, in order to ensure the operations are not pyramid schemes, MLM, or fly-by-night operations.

https://en.wikipedia.org/wiki/Multi-level_marketing
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Look into my eyes – you will see
What you mean to me.
Search your heart, search your soul
And when you find me there you'll search no more.

Don't tell me it's not worth tryin' for.
You can't tell me it's not worth dyin' for.
You know it's true:
Everything I do, I do it for you.

Look into your heart – you will find
There's nothin' there to hide.
Take me as I am, take my life.
I would give it all, I would sacrifice.

Don't tell me it's not worth fightin' for
I can't help it, there's nothin' I want more
You know it's true:
Everything I do, I do it for you, oh, yeah.

There's no love like your love
And no other could give more love.
There's nowhere unless you're there
All the time, all the way, yeah.

Look into your heart, baby...

Oh, you can't tell me it's not worth tryin' for.
I can't help it, there's nothin' I want more.

Yeah, I would fight for you, I'd lie for you,
Walk the wire for you, yeah, I'd die for you.




Dearest B,
Really appreciate your tips. Thank you.
Don't asked me but this is my reading:
1. BWL depends so much on China success.
2. China success is building on sand.
3. China "Export" model is the one that's attributed to the revenue increase (not DS).
4. There is only one company registered/responsible for China "export" business.
5. DS and "export" model seems to be exactly opposite end of the spectrum.
6. Close one eye, one might blur-blur and see that "export" can be a form of DS or 
    twist around and see "DS" could be a form of "export" model.
7. At this moment, from the few articles and court cases, #6 is a smoke screen.
8. Guilty unless proven otherwise.

---

*FRAME ON*
what is so amazing to me is value buddies is asking for numbers...
checking numbers for potential fraud...

what's happening?
don't they understand the different between "export" and DS model?

its so easy to understand bwl businesses operating in China.
so much info already written in the AR and analyst reports.

the number is trivial.
the operation risk of bwl had escalated to a stage that
owning bwl is like owning a time bomb.

what's happening, Dora?
why the rush to do things?

宝贝  一切，都是为你而做.
we are counting on you to do the right things.

"When there is mistake, let there be truth." - CHIALC88

*FRAME OFF*