Best World

[Value Explorer81]

hi Value Explorer 81,
You have mentioned that "BWI is a Direct Selling & MLM company which can be operated legally in Mainland China"

But earlier, you have also replied to Boon saying "And yes you are right that B is also illegal in China IF....."  - "B" is been referred to as MLM by Boon.

You have qualified the statement with "the 30% rule" but after Boon's clarification and i have read that documentation again - the 30% rule is in the context of the payout from the DS company to the DS sales person and calculated based on the percentage of computed sales that the DS person sells to the end user, and this 30% commissions is inclusive of all gifts/bonuses/prizes etc...So it sounds like this 30% is in the context of direct sales, not MLM as you thought? If that is the case below, then only one of your statement can be right?

- So is BWI a DS and MLM company as you mentioned?
- Is it operating legally in Mainland China?
- Or do you think BWI operates a MLM that does not pay out 30% of commission to the sales person? If that is the case, how is this commission for a typical BW sales person calculated? (Is it only through direct sales to the end user? Or does it also include sales from their own "trainees" as well since you mentioned it is a MLM?

Hi weijian,

allow me to clarify. 

1) BWI is a DS and MLM company. Their compensation plan has DS and MLM compensations built into it. Distributor (A) get a direct commission <30% when they do a successful sale. Subsequently, when their customer decides to become a distributor (B), Distributor (A) is compensated by BWI through different tabulations of compensation such as country bonus, group bonus <30%.

2) Having obtained a license in Mainland China, they are now able to operate legally in China provided they work closely with the Chinese authorities and not get into trouble.

[Value Explorer81]

Thank you boon for additional information.

I read this from the link you posted: 

The salespeople said they would also earn a bonus on the sales of each person they brought into the organization. If the salesperson made 8,000 yuan (about $1,300) in net sales and enlisted four people, who each also made 8,000 yuan in sales, he would get a 3,360 yuan ($550) bonus (18 percent of the total 40,000 yuan in revenue minus the 12 percent, or 960 yuan, that would go to each of his four recruits).

It’s not correct to say a salesperson would get a bonus for sales made by recruits, Amway’s Balfour says. The online document isn’t an Amway document and isn’t accurate, he says. The company has two categories of distributors in China: representatives, who earn commissions solely on their own sales, and authorized agents, individuals who register with the government as businesses.
“Sales representatives are true direct sellers in that they’re going out and selling the product to family and friends,” Balfour says. “Authorized agents actually have a fixed location.”
The sales from agents’ shops are counted as personal volume, he says. Under Chinese law, Balfour adds, “networks and groups are not allowed,” so Amway structures its business differently than in the rest of the world.
China’s regulations stipulate that “the remuneration paid by the direct-selling enterprise to its direct salesman shall be calculated only based on the income of the products sold to the consumers.” - https://www.washingtonpost.com/business/...8dc8ff92b7ditio

If Amway China can do it, why cant BWI?

Unleashing the sales force: In recent years, Best World has been getting the ground ready to unleash a surge in direct-selling of its products in China. 


It has been reaching out to owners of, for example, nail spas, beauty salons, lady spas and hair salons. It has introduced and sold them Best World skin-care products, which they have in turn promoted and sold to their own customers.

This accounts for the $22.4 million revenue (up 165% y-o-y) in 1H2016 attributable to the China market.

Now that Best World has secured a direct-selling licence, these business owners are poised to become distributors whose customers can in turn also become direct sellers of Best World skin care products.

In direct-selling parlance, the business owners are the "upline" while their customers are the "downline". "There's now a huge difference. Instead of being the owner of one store selling to, say, 200 customers, now a hair salon owner, for example, has 200 downlines which effectively is like having 200 stores! These Chinese are quick to recognise this as they are very business savvy, and they have signed on with us," said Mr Huang. - https://www.nextinsight.net/story-archiv...ales-surge

All the best to BWI shareholders and BWI management. Hope that Q3 result will speak for itself. =)

[Value Explorer81]

How does Amway conduct their business in China after many years of negotiating with Chinese authorities? 

Amway: The company has two categories of distributors in China: representatives, who earn commissions solely on their own sales, and authorized agents, individuals who register with the government as businesses.

(A) Representatives - Direct Sales personnel
(B) Authorized agents - Individuals who register with the government as businesses

BWI: It has been reaching out to owners of, for example, nail spas, beauty salons, lady spas and hair salons. It has introduced and sold them Best World skin-care products, which they have in turn promoted and sold to their own customers.

These nail spas, beauty salons, lady spas and hair salons who signed up with BWI are (B) Authorized agents who register with the government as businsses. 

The customers who buy from these nail spas, beauty salons, lady spas and hair salons will become the autorized agent's (A) Representatives - Direct Sales Personnel

I would say that BWI management must have been preparing China market for quite sometime now and they obviously studied how Amway does their business in China as they are penetrating China the same way Amway is doing it. 

[Boon]

hi Value Explorer 81,
You have mentioned that "BWI is a Direct Selling & MLM company which can be operated legally in Mainland China"

But earlier, you have also replied to Boon saying "And yes you are right that B is also illegal in China IF....."  - "B" is been referred to as MLM by Boon.

You have qualified the statement with "the 30% rule" but after Boon's clarification and i have read that documentation again - the 30% rule is in the context of the payout from the DS company to the DS sales person and calculated based on the percentage of computed sales that the DS person sells to the end user, and this 30% commissions is inclusive of all gifts/bonuses/prizes etc...So it sounds like this 30% is in the context of direct sales, not MLM as you thought? If that is the case below, then only one of your statement can be right?

- So is BWI a DS and MLM company as you mentioned?
- Is it operating legally in Mainland China?
- Or do you think BWI operates a MLM that does not pay out 30% of commission to the sales person? If that is the case, how is this commission for a typical BW sales person calculated? (Is it only through direct sales to the end user? Or does it also include sales from their own "trainees" as well since you mentioned it is a MLM?

Hi weijian,

allow me to clarify. 

1) BWI is a DS and MLM company. Their compensation plan has DS and MLM compensations built into it. Distributor (A) get a direct commission <30% when they do a successful sale. Subsequently, when their customer decides to become a distributor (B), Distributor (A) is compensated by BWI through different tabulations of compensation such as country bonus, group bonus <30%.

2) Having obtained a license in Mainland China, they are now able to operate legally in China provided they work closely with the Chinese authorities and not get into trouble.

@ Value Explorer81,

I assumed we all are still talking about China & Drs Secret Products, aren't we? 

With respect to DS license for DRs Secret products, BWI is still the unlicensed one. We do not know which option (A or B) the management would adopt, once a license is granted.
 
Option A : (Single-level-commission, <30%) , which is legal, and
Option B : (Multi-level-commission), which is illegal.
 
Are you exploring at what BWI could do to comply with Option A, once they have a DS permit to sell Drs Secret products?
 

[Boon]

How does Amway conduct their business in China after many years of negotiating with Chinese authorities? 

Amway: The company has two categories of distributors in China: representatives, who earn commissions solely on their own sales, and authorized agents, individuals who register with the government as businesses.

(A) Representatives - Direct Sales personnel
(B) Authorized agents - Individuals who register with the government as businesses

BWI: It has been reaching out to owners of, for example, nail spas, beauty salons, lady spas and hair salons. It has introduced and sold them Best World skin-care products, which they have in turn promoted and sold to their own customers.

These nail spas, beauty salons, lady spas and hair salons who signed up with BWI are (B) Authorized agents who register with the government as businsses. 

The customers who buy from these nail spas, beauty salons, lady spas and hair salons will become the autorized agent's (A) Representatives - Direct Sales Personnel

I would say that BWI management must have been preparing China market for quite sometime now and they obviously studied how Amway does their business in China as they are penetrating China the same way Amway is doing it. 

Sales Representative = Individual DS salesperson without shops, who earn commissions solely on their own sales – these are true direct sellers in that they’re going out and selling the product to family and friends.
  
Authorized Agent = Individual DS salesperson with shops, who also register with the government as businesses. This agent earn commission based on his personal sales volume, which include sales from his shops + sales made by him outside of his shops.
 
No upline/downline is allowed
Network or group is not allowed.

PD Yang Min, sold away 2 of her beauty/hair salon shops and kept one to be operated by her husband, to join BWL full time. WHY ?

PASSIVE income !

[Boon]

Download before it disappears

BWL 2016 Convention in Macau (Awards based on FY2015 achievements)
 
Key points from CEO’ speech:
 
Promoted 516 SD, 79 GD and 17 PD.
30 MDA,
28 MDA breakers
68 MDA walk of fame.
1 Leader of the year
Total awards =739 awards
 
China
-      FY2015 growth = 123%
-      2/3 of attendees of the convention were from China.
-      “Two to three years ago when Country Manager Jansen Tang took over the management of BWL China (中国全美) and hit double digit growth for the first time he bragged that BWL China will become No.1. We stared at him with an open eyes and think that he must be a day dreamer. But when BWL China consecutively achieved double growth 3 rounds, the impossible look like possible.”
-      “Beginning of this year, China Management and I together with Network Leaders set a mission. We want to create a miracle in BWL China! We want to achieve 10 years of double digit growth.”
-      All attendees are Best Worlders.
-      China Best Worlders won most awards.
 
Convention theme – System Drive Success.
Newly developed 663 system had been launched in all regions, including China.
DS success and sustainability is driven by system.
Started BOM (Business Opportunity Meeting) in Malaysia and China.
 
SDA (Ranking advancement criteria):
1)  must be a PD
2)  must successfully developed 5 different PD lines
 
SDA yearly reward qualification criteria:
Each of the 5 PD lines must be MDA
SDA must be 10MDA record breaker
His yearly annual group volume in each country where he has a network must achieve that country’s minimum basic volume – this group volume cannot be computed across region.
Yearly reward payout is from profit of subsidiary in each individual country.
 
Country’s minimum yearly basic volume
China/HK => AGPV= 50,000,000
ENP  => AGBV=10,000,000
R4 => AGRU = 2,000,000
 
SDA yearly reward:
China/HK = 0.8% of sales
ENP  = 0.8% of sales
R4 = 0.4% of sale
 
Example of SDA yearly award based on Eros Xu’s FY2015 Group Network Sales achievement:
Taiwan sales = SGD 27 m;
=> Reward derived from Taiwan sales = SGD 27 m  x 0.8% = SGD 216,000 = TWD 5 m
China sales = RMB 50 m
=> Reward derived from China sales = RMB 50 m x .8% = RMB400,000
 
Comments:
1)  Conceptually, what is “BWL China (中国全美)” as referred to by the CEO? . It is not a legal entity.
2)  Looking through the video from the perspective of ASSUMING that BWI has the right to sell DRs Secret in China based on multi-level-commission DS model, then every thing make sense – couldn’t find a fault.
3)  Take away that assumption and replace it with “Export Model”, then every thing related to China activities doesn’t make sense.
4)  Ranking advancement criteria including SDA, which is still based on ability to develop network of downlines doesn’t make sense under the Export Model.
5)  The implementation of the newly developed 663 system which are meant for MLM doesn’t make sense under the “Export Model”.
6)  The fact that Eros Hsu has achieved a network group sales of RMB 50 million or roughly SGD 10 million in China for FY2015, doesn’t make sense under the “Export Model”, considering FY2015 China export sales ~ SGD 13 million.
7) "Export Model" = "BWL China" led and run by Jansen Tang + Network Group Leaders => does it make sense?
8)  The list could go on…………………….

[Boon]

Some documents which may enhance understanding of some videos.
 
http://sg.bwlgroup.com/common/exs/pdf/Global_R4+_SG.pdf
 
http://tw.bwlgroup.com/Updates/pdf/TW_DI...201509.pdf
 
http://tw.bwlgroup.com/pdf/TW_DISTRIBUTO...201702.pdf
 
http://www.dorahoan.com/pdf/Vision/Direc...020711.pdf

https://tw.bwlgroup.com/pdf/TW_ENP_WEB-201603b.pdf

[Boon]

Would all these make sense if it were an "Export Model"? Ha-ha !
________________________________________________________________________________________________
http://www.ibwlgroup.com/china-taiwan-opp/zh-cn/

[全美世界皙之密] 中国与台湾之奖⾦模式与制
度差别！必读！⽆私分享，成就更多人。
Posted on 2017-04-01 (http://www.ibwlgroup.com/china-taiwan-opp/zh-cn/)
by 华华 (http://www.ibwlgroup.com/author/sean/zh-cn/)

全美世界中国大陆与台湾制度，一定要看懂。看懂了，才知道如何
运作。伙伴们，加油！

对于刚开始⼊⻔门的伙伴：
中国：无 BA，只有 VIP 与 BM 的差别。
台湾：分成 VIP、BA、BM 等初级⼊入⻔门。
瑞思⼼心法：了解之中的差别，才能有效运作。

积分算法：
中国：一律已净值 PV 著称。
台湾：汇率前的 BV 著称，奖⾦需要乘以22.5。
瑞思⼼法：中国计算方式更直接。

代数算法：
中国与台湾压缩⽅方式不同，将于瑞思课堂中释疑。
瑞思心法：压缩方法不同，对于深入经营的领导，一定要了解。

报单模式：
台湾：北、中、南三间直营厅办理入会与购买产品等手续，也可透
过⺴⽹网络购买。
中国：微信、QQ 报单，⽣活馆发货。
瑞思心法：了解中间的模式不同，才能营运无往不利！

想要在经营中国市场的伙伴，MIT YES 瑞思团队，将会是您独⼀无
二的选择。我们将给予您最专业的建议，最专业的操作，与最优质
的心法。全美世界在台湾的爆发，大家有目共睹。相信在未来的三
年，中国市场也将乘势⽽而起。经营，不再是吹牛、拉人。你们需要
的，是系统性的操作与学习，让组织有效成长，并让⼤大家获得良好
的发展。目前，已经越来越多台湾区的伙伴，前往内地发展。

欢迎中国各省的伙伴，积极询问与参与全美世界的商机。
如何有效建构您在中国的组织呢？跨区域如何有效经营？如何让使
用者转经营者？面对微商、市场模式的更送迭起，如何因应？全美
世界到底是投资？抑或经营？放心吧，加入我们，您将获得完美的
解答。

代理商、生活馆建置，欢迎跨界合作咨询，最专业的建议，唯有在
瑞思
坚持做好组织深度的瑞思团队！创业家的完美选择
Grace【华华】 LINE：grace0315
Wechat：gracekao0315

[Boon]

Download before it disappears

BWL 2016 Convention in Macau (Awards based on FY2015 achievements)
 
Key points from CEO’ speech:
 
Promoted 516 SD, 79 GD and 17 PD.
30 MDA,
28 MDA breakers
68 MDA walk of fame.
1 Leader of the year
Total awards =739 awards
 
China
-      FY2015 growth = 123%
-      2/3 of attendees of the convention were from China.
-      “Two to three years ago when Country Manager Jansen Tang took over the management of BWL China (中国全美) and hit double digit growth for the first time he bragged that BWL China will become No.1. We stared at him with an open eyes and think that he must be a day dreamer. But when BWL China consecutively achieved double growth 3 rounds, the impossible look like possible.”
-      “Beginning of this year, China Management and I together with Network Leaders set a mission. We want to create a miracle in BWL China! We want to achieve 10 years of double digit growth.”
-      All attendees are Best Worlders.
-      China Best Worlders won most awards.
 
Convention theme – System Drive Success.
Newly developed 663 system had been launched in all regions, including China.
DS success and sustainability is driven by system.
Started BOM (Business Opportunity Meeting) in Malaysia and China.
 
SDA (Ranking advancement criteria):
1)  must be a PD
2)  must successfully developed 5 different PD lines
 
SDA yearly reward qualification criteria:
Each of the 5 PD lines must be MDA
SDA must be 10MDA record breaker
His yearly annual group volume in each country where he has a network must achieve that country’s minimum basic volume – this group volume cannot be computed across region.
Yearly reward payout is from profit of subsidiary in each individual country.
 
Country’s minimum yearly basic volume
China/HK => AGPV= 50,000,000
ENP  => AGBV=10,000,000
R4 => AGRU = 2,000,000
 
SDA yearly reward:
China/HK = 0.8% of sales
ENP  = 0.8% of sales
R4 = 0.4% of sale
 
Example of SDA yearly award based on Eros Xu’s FY2015 Group Network Sales achievement:
Taiwan sales = SGD 27 m;
=> Reward derived from Taiwan sales = SGD 27 m  x 0.8% = SGD 216,000 = TWD 5 m
China sales = RMB 50 m
=> Reward derived from China sales = RMB 50 m x .8% = RMB400,000
 
Comments:
1)  Conceptually, what is “BWL China (中国全美)” as referred to by the CEO? . It is not a legal entity.
2)  Looking through the video from the perspective of ASSUMING that BWI has the right to sell DRs Secret in China based on multi-level-commission DS model, then every thing make sense – couldn’t find a fault.
3)  Take away that assumption and replace it with “Export Model”, then every thing related to China activities doesn’t make sense.
4)  Ranking advancement criteria including SDA, which is still based on ability to develop network of downlines doesn’t make sense under the Export Model.
5)  The implementation of the newly developed 663 system which are meant for MLM doesn’t make sense under the “Export Model”.
6)  The fact that Eros Hsu has achieved a network group sales of RMB 50 million or roughly SGD 10 million in China for FY2015, doesn’t make sense under the “Export Model”, considering FY2015 China export sales ~ SGD 13 million.
7) "Export Model" = "BWL China" led and run by Jansen Tang + Network Group Leaders => does it make sense?
8)  The list could go on…………………….

FY2015: (From financial report)
Taiwan DS revenue ~ SGD 56 million
China Export revenue ~ SGD 13 million
 
From CEO speech => FY2015: Sales achievement of Eros Hsu (徐瑞韩):
Taiwan market ~ SGD 27 m
China market ~ SGD 10 m (~RMB 50 m)
 
Under the DS model in Taiwan:
Eros Hsu is a legitimate IBO of BWL Taiwan.
The SGD 27 m represents DS sales/revenue achieved by his network teams.
This is legitimate and make sense.
 
Under the China “Export Model”: {BWI => Export Agent (Wholesaler) => Outlets Owner (Retailer) => End Consumer}
1) What exactly is this sale figure (of ~ SGD 10 m) represents?
Export revenue?
Wholesale revenue?
Retail revenue?
DS revenue?
 
2) In what capacity did he manage to achieve such sales?
Exporter?              
Wholesaler (Export Agent)?
Retailer (Outlet Owners)?
Consumer?
China DS distributor/IBO?
Taiwan DS distributor/IBO?

3) How did Eros Hsu being compensated for his sales achievement for FY2015?
Compensation from Taiwan sales of SGD 27m must be paid out from FY2015 DS revenue of BWL Taiwan of ~ SGD 56 m.
Was he entitled to any compensation/commission from his China sales of ~SGD 10 m?
If NO, why not ?
IF YES, was it being paid out from the China Export revenue of SGD ~13m? 
If not from the ~SGD 13 m, where from?

4) Would his Taiwanese Membership/Distributorship Agreement with BWL Taiwan entitled him to represent BWL and work freely in China?

(Note that the China Chao Yue Network team including CGL/DMJ are all led by Eros Hsu)

[VIChris]

Dear Boon,
my humble suggestion. Why not you write in to BWI to enquire or write in to the relevant authority to check and blow the whistle if you do have solid evidences.

No point keep harping on this thread. What are you trying to prove?
Sorry to say this, to me, you have demonstrated the eagerness to win on this topic.
I have been a value investor for many years and learnt that there is always 2 sides to a coin, the real risk is, you do not know what you don't know.

I will stop here.

Cheers