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Thread: Network marketing an insurance product

  1. #11
    Email problem vieome's Avatar
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    Welcome to the forum.

    Quote Originally Posted by colinvan View Post
    Donald Trump, Warren Buffet, Bill Gates and Robert Kiyosaki, amongst others, recommend network marketing.
    For the life of google, I cant find any information that says that is a statement of fact, the only sites that say they endorse it seem to be MLM sites

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  3. #12
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    The product is marketed by the business plan and not by the introducer. After deciding to give the business a go, a prospect decides which Clientele product suits them best. The applicants starter manual contains the respective product application form. This is how the product is obtained.

    An IFA (independent field advertiser) is prohibited from marketing the product or giving financial advice as he is not trained to do so.

    To do the business, you must purchase a product from Clientele. Thus there is an excellent product distributed to the consumer. If this was not the case, then the pyramid comment is very valid.

    The point i was trying to convey is that the network marketer does not handle or sell physical stock like in other network opportunities. Sorry for any misunderstanding.

    Best regards,
    Colin

  4. #13
    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by colinvan View Post
    An IFA (independent field advertiser) is prohibited from marketing the product or giving financial advice as he is not trained to do so.

    To do the business, you must purchase a product from Clientele.
    Precisely. Now stack that up against my point:

    Quote Originally Posted by Dave A View Post
    The primary function surely has to be to move product (in this case insurance through Clientelle).

    And if you can't achieve some level of success on that alone, but have to put other people into the same non-viable position to actually be a viable business proposition yourself... then the accusation of "pyramid scheme" becomes disturbingly valid.
    The combination seems to indicate it can't be a genuine MLM plan unless each member is obliged to become an accredited financial advisor.

    Apart from the one referred to earlier, there are two other threads on TFSA that you should probably read to get a handle on the dilemma:
    Referrals for a commission - illegal?
    CPA and MLMs

    Pull it all together and it seems insurance is a very poor product for an MLM in South Africa.
    (And this thread is rapidly becoming too important to languish in the meet&greet section).

    Maybe it's time for a new business model and name to be coined for this sort of venture - something like CCP (Cascading Commission Plan).

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    i see your point. In this case, the new member orders the product of his choice directly from the supplier. A case of a satisfied client reffering a new client.

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    Diamond Member Blurock's Avatar
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    The problem with buying insurance products on line, is that the buyer or client may buy something that is inappropriate to his/her needs or something they do not understand. The client also has obligations to fulfill (honesty, disclosure, monthly premiums etc) and not knowing how to claim can lead to a claim not being paid at all. Do your homework and get all the pro's and cons.

    Every person is unique with with their own needs and requirements. Surely if you buy a car, you first find out which cars are best, dealer service, price etc. Then, when you have narrowed it down, you take one or two for a test drive before you make your final choice.

    Insurance, whether life or short term, is much more complex, but people will be conned into buying any shirty product just because they saw a good add or spoke to a fast talking salesman...
    Excellence is not a skill; its an attitude...

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    The same consumer can purchase the same products after viewing a tv ad - and nobody hoots & toots about it. However, bring the word mlm and / or network marketing into the equation and all are up in arms making assumptions based on a small bit of info.

    Should they not also do a bit of research as they expect consumers to do?

    The cpa and direct marketing companies in SA ensure a comsumer is not stuck with a "worthless" product.

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    Diamond Member Blurock's Avatar
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    People save for a lifetime and then decide on a whim to invest in some scheme, hoping to get rich quick. No research done, not asking for advice, not looking at the performance of the portfolio or the background of the portfolio managers. How many people have been caught by pyramid schemes and useless insurance products because they did not do their homework?

    Will you hand over your life savings to people you do not know from a bar of soap, just because someone said that it is possible to "get a good return"? You do not buy a house or a car without looking at it, asking around and satisfying yourself that it is indeed a good buy. So why do we "invest" or insure with our eyes closed?
    Excellence is not a skill; its an attitude...

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    NWM in this contex is most assuredly not a scheme or scam. Network marketing coy's must comply to all legislation that governs "traditional" businesses.

    Yes, granted, there have been unscrupulous individuals who have utilised nwm marketing systems for illegal gain, as have traditional businesses also been fraudulently used.

    The best way to prevent being "done in" is to do your homework.
    1. Is the company registered with dsa?
    2. Has the company been in existence for more than 5 years?
    3. Does the company comply to all relevant legislation?
    4. Is the product of good / outstanding quality?
    5. Is the product affordable and sensibly priced
    6. Has the company got a good reputation

    If yes to all the above, then only should one consider joining such a business.

    As pointed out in my previous post, a company cannot be registered with dsa if they have inferior products.

    The company in question is very well know to the majority of our population.

    Isn't a bit unfair to liken investing with them as not knowing them from a bar of soap? If you were refferring to the client's network introducer, it shoul be blatently clear where & by whome the client's money is being invested.

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    Diamond Member Blurock's Avatar
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    Quote Originally Posted by colinvan View Post

    The company in question is very well know to the majority of our population.

    Isn't a bit unfair to liken investing with them as not knowing them from a bar of soap? If you were refferring to the client's network introducer, it shoul be blatently clear where & by whome the client's money is being invested.
    No names mentioned. I was generalising and referring to how easily people part with hard earned cash, without doing any research or homework.
    Excellence is not a skill; its an attitude...

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    Hi guys. Unbelievable how it works. Poor "job"less guy asks for like mided people to talk to and
    runs into a battering of negaholics putting in quotes (footers) to the contrary. Who can we believe?

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