http://www.dsap.ph/directory ---> Herbalife is DSAP member
Definition of Direct Selling and MLM versus Pyramiding
"Direct Selling necessitates the employment of a considerable number of people to effectively carry out the marketing and production activities of these companies. Consequently, not only will additional sales personnel be hired but factory workers as welll. As a result, the direct selling sector has the potential to bring additional revenues to the government"
Former Trade Unersecretary Ernesto M. Ordonez in a letter to Vicente A. Galang, Former Presidential Staff Director, quoted in DSAP supplement, Philippine Daily Inquirer, August 28, 1995
"The growing popularity of direct selling manifests the Filipino spirit of enterprise and self-reliance and the willingness as well to succeed and participate in the development of the country"
Former President Fidel V. Ramos, Sunday Inquirer Magazine, August 31, 1997
"The best protection of consumers against these get-rich-quick schemes is information. With this (anti-pyramiding) campaign, DSAP will teach their members how to spot pyramiding scams. These members will, in turn, share such know-how during their training of prospective direct sellers"
Undersecretary Adrian Cristobal, BusinessWorld, p.2, March 24, 2004
How to differentiate a legitimate direct selling company from pyramiding using the 8-point Test
1. Is there a product?
2. Are commissions paid on sale of products and not on registration/entry fees?
3. Is the intent to sell a product not a position?
4. Is there no direct correlation between the number of recruits and compensation?
5. If recruitment were to be stopped today, will the participants still make money?
6. Is there a reasonable product return policy?
7. Do products have fair market value?
8. Is there a compelling reason to buy?
If the answer to all the questions is YES, then the company being evaluated is a legitimate company. But if the answer is NO, then there is a high probability that it is a pyramid scam.
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