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MLM fraudsters apply bonus based registration fees from members, the government should make the regulation...

Written By Hanny & Melissa on Thursday, June 20, 2019 | Thursday, June 20, 2019

The term evil comes from an evil word, which means it is not very good, very bad, or very ugly, which is aimed at the nature and behavior of people.

Evil means having an evil nature, or evil deeds. Crime can happen at any time, not only because of the intention of the culprit, but because of the opportunity.

There are many financial crimes, or fraudsters who can use the ignorance of the public to deceive or deceive their victims with various promises of making profits, which are instantaneous without having to work hard. Public money is taken and dredged by the invitation to join a business activity, under the guise of tiered direct selling (Multi Level Marketing).

In its implementation, the profits distributed in the form of passive income are derived from costs that are excavated, and collected from new people who join in later.

Those who are paid generally are people who recruit them together with the network above. People who recruit are termed by them as recipients of reference services (Notifiers). Be then a marketing scheme, which is called the marketing pyramid scheme, or the main game money core.

For example through a ratio of 1:10, then to pay a bonus (Passive income) of 1 person, 10 people are required to deposit and join as a member. Then to pay for these 10 people, 100 new people are needed to join, and so on.

Thus one day the money coming from a new person, is not enough to provide passive income that has been entered before. Usually, this is where the pyramid scheme problems will occur in this Multi Level Marketing business.

True direct selling with the system, is a bonus obtained from the products sold. This model is standard, even recognized by the Shari'a. Then, why is the prohibited pyramid system rife in various parts of the world ...?. To answer this problem, it requires confirmation from each country, especially countries that have experienced this.

It must be understood, the practice of prohibiting the use of the prohibited pyramid trading system, was known after complaints from victims. This indicates that fraud has occurred and there are victims so that it is difficult to overcome, let alone overcome.

That is why, there needs to be an affirmation or regulation that can cause a deterrent effect for the perpetrator, as well as a punishment that can stop the practice before the next victim falls. Unfortunately, this has experienced a slight delay in various parts of the world that have experienced it.
Practices commonly found in the field from this direct sales mask system also began to experience modifications. If it was only based on investment guise, but this time under the guise of product sales. So that the registration is used as a cover for withdrawing funds (Money).

Registration fees in large quantities are withdrawn along with product package shipments which may not be worth the value of the deposited value. Products here are usually only cover, to attract more funds through registration.

Of course, the direct victims are certainly the wider community, which in some results the research records are known to reach billions of dollars. This has included massive and our responsibility, so it is not enough just through media warfare. There must be a regulatory system at the state level, namely through the rule of law or legislation.

Indirectly, with the rise of money games through such illegal practices, those who carry out a system of direct and legitimate direct sales are actually victims. The marketing system it uses is hijacked to reap individual profits.

So that the image of the company that handles legitimate direct sales, automatically becomes worse in the eyes of its customers, due to the piracy. This means, at least regulations or marketing rules are needed in this matter. And the regulation includes :

- Regulations stating the need to protect products marketed with direct selling systems.

- The need for regulations that favor independent small business people in carrying out their business. Through direct selling.

Direct selling is basically, a direct sales practice with the intention of protecting small entrepreneurs independently from conventional retail entrepreneurs who sell in store systems, such as shops, supermarkets, and minimarkets.

The difference between direct selling and conventional retail entrepreneurs is in the conventional retail sales system, and these opened outlets are passive, waiting for buyers to come. Product introduction is done through mass communication strategies, for example through advertising and so on.

This does not happen to direct selling companies. They actively pick up the ball to the community, explain the benefits, how to use it, and the advantages of the product. If this product has received attention and acceptance from the public, then the product should continue to be marketed exclusively with this direct selling system.

The final effect, the efforts of marketing personnel who had been guerrilla for years were not harmed by these conventional outlets. Thus, strengthening and protection in the form of legal regulations. Included in the part of the regulation are those who can distinguish between the prohibited trading pyramid system and not prohibited.
In order to fulfill this element of regulation, it is better for some important notes below to be considered to fulfill the said regulatory element. The following notes that need to be considered in order to fulfill this regulatory element, namely :

- There must be an acknowledgment of the Law on the tiered direct selling marketing model. Surely this with definitive details in the form of direct sales, is a method of selling goods or services carried out directly to consumers, outside the location of retail sales.

- To be able to distinguish between legitimate direct sales and not, there is a need for recognition from regulatory machines, that what is meant by tiered direct selling is a method of selling goods or services, with a direct sales system through a tiered marketing network developed by business partners, who work on the basis of a commission or bonus, which is obtained based on the sale of goods or services to consumers. With this affirmation, at least it can minimize the possibility of the entry into force of Multi Level Marketing which applies fee based registration bonuses from members.

- Then, in order to avoid fraud in the emergence of Multi Level Marketing money games, it should be stated explicitly about the notion of distribution. Distribution of goods and or services that have exclusive distribution rights for trading with a direct or tiered sales system, can only be marketed with a direct sales system by sellers who are officially registered as members of direct and tiered sales companies.

Like that it would be necessary to have awareness from all parties including the government, that there are tiered direct sales in the nature of money games and not. In the future, it is necessary to protect the image of the company that applies this direct selling system, which has been dominated by MLM (Multi Level Marketing) companies.

Furthermore, regulation is generally needed, namely to protect the public from victims of fake Multi Level Marketing practices. If needed, this regulation also stipulates sanctions that can give a deterrent effect to the perpetrators who pollute the direct trading system in question. Thank you for reading it, and have a good rest...

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