One Man’s Perceptions

DCHL,Amway,Cosway,and other MLM!

Saturday, April 08, 2006

Fact 1: Product Value

Value of the Product

(Need Confirmation, anyone care to correct my perception? The most likely mistakes would be the Summation of the listed of Percentage, because the Marketing plan were not illustrated clearly. What was available on the DCHL webpage just a few lines of descriptions, doesn’t give a clear explanation, which I though it look really bad for such a big company)

The intention of this post for any Lampe Berger Dealer to clear my doubt, the following comes from DCHL webpage.

Secondly, I guess the GREAT DCHL made a very basic grammar mistake. Suppose to be ~ “Will be awarded AN Arch Duke Pin”

Arch Duke

  1. Rewards-retailing profit - 42%.
  2. Count Generation Bonus for a maximum of 6 generations: 5%, 3%, 2%, 1.5%, 1%, 1% i.e. giving a total of 13.5%.
  3. Marquis Personal Group Bonus of 2% on all groups' sales generated by downline Counts.
  4. Marquis Generation Bonus of a total 6% (based on total group points generated by downline Marquis for a maximum of 6 generations).
  5. Duke Generation Bonus of a total 2% (base on total group points generated by donwline Dukes for a maximum 6 generations).
  6. Marquis Asia Profit Sharing of a total 1.5% (based on total group points generated by downline Marquis for a maximum of 6 generations, and paid half yearly).
  7. Duke Asia Profit Sharing of a total 1% (based on total group points generated by downline Duke for a maximum of 6 generations,and paid half yearly).
  8. Arch Duke Asia Profit Sharing of a total 1% (based on total group points generated by downline Arch Duke for a maximum of 6 generations, and paid half-yearly).
  9. Will be awarded a Arch Duke Pin.

So, base solely on the percentage. My understanding is every product sold, a certain amount of the sales will be rewarded to the distributor. The maximum award is when he/she achieves the level of Arch Duke, so ultimately the products have to bare the commission.

Adding up the percentage commission, hmmm…

42%+13.5%+2%+6%+2%+1.5%+1%+1% = 69% hmmm… lets say you purchase a product cost RM100, a total amount of RM69 were funnel in the system as an commission reward, leaving RM31 for other cost.

But wait, the RM31 dollar doesn’t mean DCHL doesn’t have to charge you transporting fees, storage fees, various type of tax, DCHL worker’s fees. Hmmm… I wonder how much the RM31 left solely for the product. Perhaps maybe worth RM 23.45 over a hundred dollar of sales?

So, my next point is, with the extremely poor performance in Produce Vs. Value ratio, I wonder with an average income of RM 1,425. How many people would really buy such Lamp? How can people have the wealth to purchase such product?

So the main question is how you will approach people when they can’t afford to buy. You ask them to join the party, making it a recruiting scheme. That’s why Lampe Bergers distributor approach is selling people an Opportunity!

(In fact when they start to madly recruiting people and ask other people to INVEST RM30k, this action is a sign that indicate that Malaysia’s aromatherapy market has already reaching its saturation point.)

From Malaysia’s GDP Per capita – Data from 2005
Malaysia USD 4,646 (Annual)

From Bank Negara Malaysia
Date USD
3/4/2006 3.6818

Which means average monthly income is USD 4,646 x 3.6818 / 12 month = RM 1,425 per month per person!

Looking at product substances, which is Isopropyl Alcohol. Try to look in the link, under the Safety Section,

Safety

Isopropyl alcohol is flammable. It should be kept away from heat and open flame.

Isopropyl alcohol is oxidized by the liver into acetone. Symptoms of isopropyl alcohol poisoning include flushing, headache, dizziness, CNS depression, nausea, vomiting, anesthesia, and coma. Use in well-ventilated areas and use protective gloves while using. Poisoning can occur from ingestion, inhalation, or absorption.

In fact my next post will be giving the public are more detail Technical document regarding Isopropyl Alcohol and give some comment on “Ozoalcool Isopropyl Alcohol (IPA)”.

This is One Man’s Perception.

“Well, I must be such an idiot to be able to look things this way rite?” (Sarcastic)

Calvin

4 Comments:

  • At 6:17 PM, Blogger Cho said…

    Wow, when you said more facts I didn't expect to have so much facts. now you sound like a chemist. In fact you must have score chemist.

    Calvin, what do you think the LB pyramid week point is?

    Product? System? Ethic? Approach? value?

    I might go for ethic for 1st pass as to get society's concern, system as 2nd to get authority's concern etcetc.

     
  • At 11:08 PM, Blogger One Man's Perception said…

    cho,
    Week point… Weak point... hmmm…
    This is a bit tricky...
    The approach is I will personally take a study with some report and journal. Then I do a "brief" report~
    (Hopefully can be short and sweet)

    It would be rude that kept you waiting like that… As an appetizer, I think it is the MLM structure inherits a disastrous error. As soon as the network grow huge, it will be very hard to maintain its ethics/product quality/pricing… etc

    MLM structure can be view as a dynamically equilibrium structure, where of all time it has to maintain a equilibrium by having more supporting downlines. However the endless recruiting phenomenon is a feedback system to maintain the balance of the structure, also the Glory/Wealth of the ones on the top.

    One Man’s Perceptions
    Calvin

     
  • At 11:19 AM, Anonymous Anonymous said…

    out of curiosity, are we say that all MLM's are bad. If that is true, why would Robert T Kiyosaki actually recommends network marketing in his book ?

     
  • At 7:30 PM, Blogger One Man's Perception said…

    dear anonymous the 3rd,
    I have reply your concerns in my latest post.
    Hope you can find it useful.

    One Man's Perceptions
    Calvin

    link
    Post

     

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