Best World

[Boon]

Taiwan Market:
 
Legal Entity:
BWI owns Best World Lifestyle (Taiwan) Co., Ltd in Taiwan –(a.k.a BWL Taiwan), the one and only one legal entity it has in Taiwan as at end of 2016.
 
FY2016 revenue :
~ SGD 123 million.
 
Business Model:
Export/DS with multi-level-compensation structure.
 
Export Model: From Singapore to Taiwan
BWI exports to BWL Taiwan
 
DS Model (with multi-level-compensation structure) in Taiwan
BWL Taiwan  > IBOs  > End consumers/members.
 
Distributorship agreement (DA):
ðSigned between IBOs and BWL Taiwan,
ðIncludes policies and procedures governing what the distributors can or cannot do etc.
ðIncludes ranking and ranking advancement criteria.
ðIncludes compensation plan (detail commission earn at each ranking, passive income from downlines, bonuses)
ðEtc.
 
Tracking and monitoring systems
ðEssentially, BWL Taiwan must have a ROBUST system to track (a) the ranking and advancement of its IBOs (b) to track every sale made © to track and compute all commissions derived from each sale and correctly allocate them to the right IBOs that are entitled to earn them, etc….
 
Payments /source of income / sustainability of passive income scheme:
ðIBOs get paid by BWL Taiwan - from sales generated by themselves and their downlines (passive income), as per the compensation plan.
ðPayments of commissions to the 6 Global top earners and all IBOs in FY2016 are paid out from the FY2016 revenue of SGD 123 million generated.
ðPassive income scheme works and made sense.
 
 
China Market for DRs Secret products:
 
Legal Entities
BWI owns BWL (Best World Lifestyle Pte. Ltd), in Singapore.
BWL owns BWZ (Best World (Zhejiang) Pharmaceutical Co., Ltd.) in China.
BWZ owns BWL/Shanghai (Best World Lifestyle (Shanghai) Co., Ltd, ) in China.
BWL/Shanghai and BWZ being the only two legal entities BWI has in China.
BWL/Shanghai has not commenced commercial operations).
 
BWZ distributes Aurigen lines of products (health dietary supplementary), it manufactured in its GMP certified China plant, through a distribution network comprising of 236 agents and drugstores throughout 31 provinces in the the PRC.
 
In 2016, a DS license has been awarded to BWZ to sell 6 Aurigen line of products in Hangzhou.

BWI/BWL/BWZ has no DS permit to sell DRs Secret in China yet.
Drs Secret product is not being distributed via BWZ's distribution network.
 
FY2016 Export revenue :
~ SGD 53 million.
Export revenue is recognized once goods are shipped.

Business Model:
Export/Retail
 
Export Model: From Singapore to China
BWI exports to Export Agent
 
Retail Model in China:
Export Agents  > Outlets Owners  > End consumers/members.
Wholesaler       >  Retailers              > End consumers
The retail supply chain consists of manufacturers, wholesalers, retailers and the end consumer.
The retail transaction is at the end of the chain.
 
Contractual Agreement (CA):
ðSigned between BWI and Export Agent
ðTerms and condition => ???????????
ðNo contractual relationships between BWI and outlets owners.
 
Tracking and monitoring systems
ð?????????
ðtheoretically should only be able to track how much it has sold to the Export Agent and not further down the distribution channel
 
Achievements under the Export / Retail Model:
1)  CGL, a China distributor who had worked with BWL China for 8 years before he passed away, is entitled to passive income from his downlines built-up over the years.
2)  CGL is one of the Global Top 10 Earners (4 from China) with an FY2016 income of at least RMB 2. 0 million (~SGD 500,000)
3)  New SDA – DMJ – also one of the Top 10 earners.
4)  Many new PD, GD, SD, etc being "created"
5)  CEO made representation that China distributors are entitled to passive incomes.
 
Questions:
1)  Where is the source of income for CGL/DMJ for FY2016? From the FY2016 China Export revenue of SGD 53 million? Or from other sources?
2)  How is their incomes being tracked and calculated?
3)  Do they have a contractual relationship with BWI? If so, with which ENTITY?
4) What is the basis for awarding them such entitlements if they do not have a contractual relationship with BWI?
5) Does the passive income scheme work or make sense?
6) The list could go on...........................
 
Passive income scheme doesn't make sense.

[chialc88]

Good morning Boon,
Wish you a happy NDP ahead.

Really appreciate your posts and especially questions (fruits) for thoughts.

Need to be more patient and see what Dora/Doreen/HBC do to address these issues.

I doubt that these can be solve in one go but I do hope that they recognised the challenges and work hard to tackle them head-on.

When there is a mistake, let there be TRUTH.

Meanwhile, just seat back and relax:


Bestworld 宝贝 加油! 用心生活.

[Boon]

Interesting ! Why call a line that doesn't cross your downlines as "Your Cross line" ?
____________________________________________________________________________________________________________________________________


Line of Sponsorship – Upline, Downline, Crossline and Sponsor

By  Vijay | January 26, 2016

In Network Marketing or MLM business, we often hear about  Line of Sponsorship or LOS. In this post, we are going to see about what it is and its elements like upline, downline, crossline and sponsor.
Sponsor
To start a MLM business as a distributor with any IDSA member network marketing company, one has to be sponsored by some existing distributor. Like, when opening a bank account, we have to be introduced by some existing account holders.
In banking, there won’t be any relationship between the account holder and the introducer any further unless there is any wrong doing on the introduced person’s side.
But in network marketing, the SPONSOR who introduces us to the business will stay with us till the end. He is our immediate UPLINE in the Line of Sponsorship.
Upline
The Sponsor is the immediate link between you and the company. There may be many distributors present in between your sponsor and the company. All of them together are called UPLINES.





Though every upline has business interest in you, the most important person to help you is the person who introduced you to the business, the Sponsor upline.
Since the MLM business mainly deals with people, the level of relationship between you and your sponsor upline may go down due to any reason. That time you will not be left alone. Your sponsor’s sponsor or his sponsor or some of your uplines will always be there to help you.
Even though there are many people in your Line of sponsorship is there to help you to build your business, it is YOU who has to do it. You have to take ownership and act independently as early as possible.
Downlines
The important element in Line of sponsorship is downlines. These are the people who started the business through you. You have sponsored them. Or they are sponsored by those who are sponsored by you and so on.
There can me many number of downlines either directly or indirectly sponsored by you.
The business generated by these downlines reflect in your income. So they are your own team and you are responsible with your uplines for the growth of them.
They are like your children and grand children. Guide them accordingly.
Crosslines
These guys are sponsored by your sponsors or your uplines.
You and these crosslines constitute your sponsors team. You are like brothers and sisters. Even though you belong to same parent or upline, you share no business interest.
You often meet these crosslines in team meetings and other functions. You are expected not to have business related discussions with them to protect your business.
In this post I have given a snapshot on Line of sponsorship. Hope this helps. If you like it, please share.
 
https://www.informative.in/line-of-spons...e-sponsor/

[Boon]

The “BWL Convention 2017 Dora Speech 01” video is REAL.
 
Dora literally says she is telling a REAL story on CGL.
 
The passive income received by CGL in FY2016 is REAL.
 
“Passive income scheme” could not be supported and conceived under the “Export/Retail Model” – it could only be supported and conceived under the DS model with multi-level compensation structure.
 
It means “Export/Retail model” is NOT REAL – the outlets are physically REAL – but were set up to disguise or conceal the actual DS activities hidden behind them.
 
If it is not a REAL “Export/Retail Model”:
 
How meaningful would the term “Export Revenue” be?
 
How meaningful would the number (SGD 53 million) be?
 
How “fictitious” could this number be ?
 
SGD 53 m is “fictitious” if CGL’s income is derived from it.
 
If CGL’s income is NOT derived from it, where is the source of his income?
 
Is there a hidden set of account or book somewhere?

[moneyspinner]

The “BWL Convention 2017 Dora Speech 01” video is REAL.
 
Dora literally says she is telling a REAL story on CGL.
 
The passive income received by CGL in FY2016 is REAL.
 
“Passive income scheme” could not be supported and conceived under the “Export/Retail Model” – it could only be supported and conceived under the DS model with multi-level compensation structure.
 
It means “Export/Retail model” is NOT REAL – the outlets are physically REAL – but were set up to disguise or conceal the actual DS activities hidden behind them.
 
If it is not a REAL “Export/Retail Model”:
 
How meaningful would the term “Export Revenue” be?
 
How meaningful would the number (SGD 53 million) be?
 
How “fictitious” could this number be ?
 
SGD 53 m is “fictitious” if CGL’s income is derived from it.
 
If CGL’s income is NOT derived from it, where is the source of his income?
 
Is there a hidden set of account or book somewhere?

I am curious. How does so many DS companies manage to thrive in China having to comply with this  Single Level Commssion Rule?  Some made tonnes of money doing direct sales.  How do they do it?  Don't tell all of them are MLM sales and so are operating 'illegally' in China for so many years and yet  China hasn't stop them?  Why?  If so, why have the Single Commssion Rule and yet not enforcing it strictly?  Again, with MLM practices being so widely practised in China, is this now considered an accepted market practice despite having this rule?  Enforcement may only be done on a case by case basis when there are complaints or malpractices.

[moneyspinner]

The “BWL Convention 2017 Dora Speech 01” video is REAL.
 
Dora literally says she is telling a REAL story on CGL.
 
The passive income received by CGL in FY2016 is REAL.
 
“Passive income scheme” could not be supported and conceived under the “Export/Retail Model” – it could only be supported and conceived under the DS model with multi-level compensation structure.
 
It means “Export/Retail model” is NOT REAL – the outlets are physically REAL – but were set up to disguise or conceal the actual DS activities hidden behind them.
 
If it is not a REAL “Export/Retail Model”:
 
How meaningful would the term “Export Revenue” be?
 
How meaningful would the number (SGD 53 million) be?
 
How “fictitious” could this number be ?
 
SGD 53 m is “fictitious” if CGL’s income is derived from it.
 
If CGL’s income is NOT derived from it, where is the source of his income?
 
Is there a hidden set of account or book somewhere?

I am curious. How does so many DS companies manage to thrive in China having to comply with this  Single Level Commssion Rule?  Some made tonnes of money doing direct sales.  How do they do it?  Don't tell all of them are MLM sales and so are operating 'illegally' in China for so many years and yet  China hasn't stop them?  Why?  If so, why have the Single Commssion Rule and yet not enforcing it strictly?  Again, with MLM practices being so widely practised in China, is this now considered an accepted market practice despite having this rule?  Enforcement may only be done on a case by case basis when there are complaints or malpractices.

All in all, I have a feeling that operating in China is a big black box.  You can do anything so long so long as you don't get caught!

[Boon]

The “BWL Convention 2017 Dora Speech 01” video is REAL.
 
Dora literally says she is telling a REAL story on CGL.
 
The passive income received by CGL in FY2016 is REAL.
 
“Passive income scheme” could not be supported and conceived under the “Export/Retail Model” – it could only be supported and conceived under the DS model with multi-level compensation structure.
 
It means “Export/Retail model” is NOT REAL – the outlets are physically REAL – but were set up to disguise or conceal the actual DS activities hidden behind them.
 
If it is not a REAL “Export/Retail Model”:
 
How meaningful would the term “Export Revenue” be?
 
How meaningful would the number (SGD 53 million) be?
 
How “fictitious” could this number be ?
 
SGD 53 m is “fictitious” if CGL’s income is derived from it.
 
If CGL’s income is NOT derived from it, where is the source of his income?
 
Is there a hidden set of account or book somewhere?

I am curious. How does so many DS companies manage to thrive in China having to comply with this  Single Level Commssion Rule?  Some made tonnes of money doing direct sales.  How do they do it?  Don't tell all of them are MLM sales and so are operating 'illegally' in China for so many years and yet  China hasn't stop them?  Why?  If so, why have the Single Commssion Rule and yet not enforcing it strictly?  Again, with MLM practices being so widely practised in China, is this now considered an accepted market practice despite having this rule?  Enforcement may only be done on a case by case basis when there are complaints or malpractices.

All in all, I have a feeling that operating in China is a big black box.  You can do anything so long so long as you don't get caught!

Try google/baidu “非法传销"。

Being investigated or reported as being investigated could sometimes be very damaging to share price and reputation which could in turn lead to lawsuits etc

[moneyspinner]

The “BWL Convention 2017 Dora Speech 01” video is REAL.
 
Dora literally says she is telling a REAL story on CGL.
 
The passive income received by CGL in FY2016 is REAL.
 
“Passive income scheme” could not be supported and conceived under the “Export/Retail Model” – it could only be supported and conceived under the DS model with multi-level compensation structure.
 
It means “Export/Retail model” is NOT REAL – the outlets are physically REAL – but were set up to disguise or conceal the actual DS activities hidden behind them.
 
If it is not a REAL “Export/Retail Model”:
 
How meaningful would the term “Export Revenue” be?
 
How meaningful would the number (SGD 53 million) be?
 
How “fictitious” could this number be ?
 
SGD 53 m is “fictitious” if CGL’s income is derived from it.
 
If CGL’s income is NOT derived from it, where is the source of his income?
 
Is there a hidden set of account or book somewhere?

I am curious. How does so many DS companies manage to thrive in China having to comply with this  Single Level Commssion Rule?  Some made tonnes of money doing direct sales.  How do they do it?  Don't tell all of them are MLM sales and so are operating 'illegally' in China for so many years and yet  China hasn't stop them?  Why?  If so, why have the Single Commssion Rule and yet not enforcing it strictly?  Again, with MLM practices being so widely practised in China, is this now considered an accepted market practice despite having this rule?  Enforcement may only be done on a case by case basis when there are complaints or malpractices.

All in all, I have a feeling that operating in China is a big black box.  You can do anything so long so long as you don't get caught!

Try google/baidu “非法传销"。

Being investigated or reported as being investigated could sometimes be very damaging to share price and reputation which could in turn lead to lawsuits etc

As investors of BWI or for that matter any other DS company operating in China this is a risk which one has to recognise as otherwise the company just can't compete with their peers doing similar businesses in China. Regulatory risk is always the greatest risk facing DS companies operating anywhere in the world!

[VIChris]

The “BWL Convention 2017 Dora Speech 01” video is REAL.
 
Dora literally says she is telling a REAL story on CGL.
 
The passive income received by CGL in FY2016 is REAL.
 
“Passive income scheme” could not be supported and conceived under the “Export/Retail Model” – it could only be supported and conceived under the DS model with multi-level compensation structure.
 
It means “Export/Retail model” is NOT REAL – the outlets are physically REAL – but were set up to disguise or conceal the actual DS activities hidden behind them.
 
If it is not a REAL “Export/Retail Model”:
 
How meaningful would the term “Export Revenue” be?
 
How meaningful would the number (SGD 53 million) be?
 
How “fictitious” could this number be ?
 
SGD 53 m is “fictitious” if CGL’s income is derived from it.
 
If CGL’s income is NOT derived from it, where is the source of his income?
 
Is there a hidden set of account or book somewhere?

I am curious. How does so many DS companies manage to thrive in China having to comply with this  Single Level Commssion Rule?  Some made tonnes of money doing direct sales.  How do they do it?  Don't tell all of them are MLM sales and so are operating 'illegally' in China for so many years and yet  China hasn't stop them?  Why?  If so, why have the Single Commssion Rule and yet not enforcing it strictly?  Again, with MLM practices being so widely practised in China, is this now considered an accepted market practice despite having this rule?  Enforcement may only be done on a case by case basis when there are complaints or malpractices.

All in all, I have a feeling that operating in China is a big black box.  You can do anything so long so long as you don't get caught!

Try google/baidu “非法传销"。

Being investigated or reported as being investigated could sometimes be very damaging to share price and reputation which could in turn lead to lawsuits etc

Are you still vested, Boon?
From the initial excitement of sharing of the company past performance to now, questioning the BWI's business model in China.
You have a 360 degrees change of view on this company.
Why not state your position whether you are still vested, at least we know your position.

Applause to chialc88, at least he state his position.

Cheers!

[Boon]

The “BWL Convention 2017 Dora Speech 01” video is REAL.
 
Dora literally says she is telling a REAL story on CGL.
 
The passive income received by CGL in FY2016 is REAL.
 
“Passive income scheme” could not be supported and conceived under the “Export/Retail Model” – it could only be supported and conceived under the DS model with multi-level compensation structure.
 
It means “Export/Retail model” is NOT REAL – the outlets are physically REAL – but were set up to disguise or conceal the actual DS activities hidden behind them.
 
If it is not a REAL “Export/Retail Model”:
 
How meaningful would the term “Export Revenue” be?
 
How meaningful would the number (SGD 53 million) be?
 
How “fictitious” could this number be ?
 
SGD 53 m is “fictitious” if CGL’s income is derived from it.
 
If CGL’s income is NOT derived from it, where is the source of his income?
 
Is there a hidden set of account or book somewhere?

I am curious. How does so many DS companies manage to thrive in China having to comply with this  Single Level Commssion Rule?  Some made tonnes of money doing direct sales.  How do they do it?  Don't tell all of them are MLM sales and so are operating 'illegally' in China for so many years and yet  China hasn't stop them?  Why?  If so, why have the Single Commssion Rule and yet not enforcing it strictly?  Again, with MLM practices being so widely practised in China, is this now considered an accepted market practice despite having this rule?  Enforcement may only be done on a case by case basis when there are complaints or malpractices.

All in all, I have a feeling that operating in China is a big black box.  You can do anything so long so long as you don't get caught!

Try google/baidu “非法传销"。

Being investigated or reported as being investigated could sometimes be very damaging to share price and reputation which could in turn lead to lawsuits etc

As investors of BWI or for that matter any other DS company operating in China this is a risk which one has to recognise as otherwise the company just can't compete with their peers doing similar businesses in China. Regulatory risk is always the greatest risk facing DS companies operating anywhere in the world!

Definition: Regulatory risk is the risk of a change in regulations and law that might affect an industry or a business. Such changes in regulations can make significant changes in the framework of an industry, changes in cost-structure, etc

http://economictimes.indiatimes.com/defi...atory-risk
 
Rules across different country could be different (multi-level-compensation is legal in Taiwan but not in China).
 
Rules within a country is the same.
 
The regulatory rules in China are the same for ALL DS players in China.
 
If there is a change of rules in one country, it affects all players in that country – It is an even playing field.
 
Rules are set or change by regulators over which businesses have no control.
 
Gaining an unfair advantage by intentionally breaking the rules is called cheating………………
 
Some businesses resort to “cheating” in order to “survive”.
Some do it in order to make decent profit.
Some do it in order to make “LARGER profit”.
Some do it in order to make “ABNORMAL profit”
 
Where do you think BWI fits?
 
Does BWI have to do it?
 
Does BWI have a choice?
 
Your unfair advantage. (Or, cheating legally.)
by Kristin Swartzlander | Jul 10, 2014 | 
http://www.dirtymouthcommunications.com/...g-legally/
____________________________________________________________________________________________
 
Gaining an unfair advantage by intentionally breaking the rules is called cheating………………
 
“Concealing” or “disguising” such “illegal activities from investors/shareholders is called “misleading” – another form of “cheating”  - the Company is subject itself to being sued by its shareholders.

Is it worth doing it?