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This is very long but a must read. See how pyramid schemes distributors will start with small investments and then eventually lead you to loose your money. Note how this schemer starts with 7980PHP TO 39,900PHP TO 319,200PHP TO 2,234,400PHP. Done some editing for easier reading. *PHP stands for Philippine pesos*

MARLYN: Mam aim global din po kayo ha
EDWARD CHAI: Do not understand Tagalog
MARLYN: Ok mam are you already member of the aim global company
MARLYN: Ok, are u fund of establishing business?

EDWARD CHAI: What do u mean. Do not understand
MARLYN: I am distributor of US Natures ways. Are u familiar?
MARLYN: Oh nice, I want to share my business to you,

MARLYN: I share the video to you. Can you watch it?
EDWARD CHAI: No need. Just tell me how it works. How many heads.
MARLYN: Ok it’s a multilevel network marketing wherein it only requires small capital, yet big income in returns
EDWARD CHAI: I know MLM. Have already been in 3 companies. So no need to tell me the basis. What is the capital required. By the way I do have some spare money. How much should I invest?

MARLYN: That’s great, for you to be able to get into the business one head is equivalent to 7980 in Philippine peso, but you can register as many as you want for international like you, it is most prefer to join in multiple heads max of 7 heads
EDWARD CHAI: Why International only 7? Only 39,900 pesos? I have millions.

MARLYN: Oh really my friend, ok the best thing that I can offer to is that join first in multiple heads, that’s 7 heads for you, another 7 heads for your wife if you have and another 7 heads for those relatives of yours you want to join the business. After that you may now have your own office there in Taiwan, because the requirements is that you need to have 40 downlines first before having it. Hello pal, are you still there

EDWARD CHAI: You mean I can buy to have office in Taiwan
MARLYN: Yes, precisely.
EDWARD CHAI: And after the office, where do I get the products. After 40 heads and an office, what then? How much will I make from my 40 heads? You better be good because I know too many bad people in MLM.

MARLYN: Of course pal. I’m honestly dealing with. I’m not like those other networker who wants to just earn but instead to help also.
EDWARD CHAI: You have not answered how much I will make when I buy 40 heads. Now tell me precisely what help you will give me.

MARLYN: Here is the procedure my friend, first you need to sent money to me the one that you use for the registration of 40 heads then I will sent you back the product package help in terms of sharing how much the products are effective for our health. Ok my friend its 319,200 in Philippine peso for 40 heads

EDWARD CHAI: That’s all! I have been using health foods for 30 years and do know many products and product knowledge is easy for me to learn and understand. I teach people on this subject. So I do not need your help in this area. By the way you are coming to Taiwan to teach me
MARLYN: Of course. Not for the products only but also in sharing this business to you.

EDWARD CHAI: I asked you how much I would make from my investment. Of course I have already calculated that 40 heads will cost me 319,200PHP.
MARLYN: Ok our business goes like this. We have several ways to earn. 1. Retail sales profit 25% discount when you sell products referral bonus earn 500php for every person joined which is directed to you 3.sales matching bonus additional 1500PHP for every person joined in your left and right side 4. Stair step or the overriding commission 5. Royalty income
MARLYN: Selling would be optional

EDWARD CHAI: So what is my total profit for my 319200 investments? Take your time to calculate if you want. I can wait for your answer.
MARLYN: ok I will calculate it first. Wait for a minute ok thanks
MARLYN: Just wait pal. I’m still computing thanks
MARLYN: I got it my friend that investment will bring you back 112,500php instantly and 240000 worth of products*my. Hello pal are you still there? If you have queries don’t hesitate to ask. I’m very much willing to answer it

EDWARD CHAI: You are not telling me everything yet because I do understand binary plan. How much do I have to buy for every head to get my bonus so as to get back 112,500 PHP? In most companies, if I buy 319,200PHP of products, I will get 319,200PHP more or less of products. Why only 240,000PHP worth of products from Aim?

MARLYN: if I were to tag you picture of a products package would you mind to browse it
EDWARD CHAI: No need. I have seen hundreds of MLM products and package

MARLYN: Binary plan is hybrid, because were not earning just because we have person in your left and right, yet we also earn through people to product and product to product because we are point system meaning if you have 1200 group points in your left and 1200 group points in your right it will match and 1500 will be given to you by the company that’s why in this business your not earning because of recruiting but also if you are using products

EDWARD CHAI: You have not answered this question yet. You are not telling me everything yet because I do understand binary plan. How much do I have to buy for every head to get my bonus so as to get back 112,500PHP?

MARLYN: For every head you need to invest 55860PHP that’s equivalent to 7 accounts
EDWARD CHAI: How many heads per account? 7 heads right?
MARLYN: 7 head per account, but if you would like to complete the requirements to put up office you need 40 account, thus 1 person have a maximum of 7 heads or account

EDWARD CHAI: Wait a minute. 7 heads per account x 40 accounts equals 280 heads. Am I correct? 280 heads x 7980php equals 2,234,400PHP right?
MARLYN: it can be but you will be using different name because the requirement is maximum of 7 heads per name or person. Exactly.

EDWARD CHAI: Clear and direct answer. Right or Wrong. 280 heads x 7980PHP equals 2,234,400PHP right or wrong?
MARLYN: Right.

EDWARD CHAI: Ok. So this is what you guys do in Aim. Now go and ask the owners of Aim and see if they know me. Please stop your nonsense. People like you will destroy the good name of our industry. You are not in MLM or Network Marketing. You are just playing the money game.

MARLYN: if the owners require you to visit our office and discuss all about the business would you mind to go here for a meeting? no my friend. I’m a official member of aim global company, you can check it on our website at our board of directors are Doc Eduardo Cabantog, Engr Francis Miguel and Mr. John Aspirin. I’m not playing the money game my dear friend. As I have said i am honestly dealing with you and I’m looking forward for a fruitful business relationship with you

EDWARD CHAI: Ask Francis Miguel and John Aspirin who is Eddy Chai so that you know me better. Not playing the money game? Please read what you wrote me and how you teach me to buy heads. Everything is in black and white. You are not looking for a fruitful business relationship with me. You are just look at me with the eyes of a wolf and see how I can loose my money so that you can make money. Stop your nonsense.

MARLYN: No my dear friend its just a matter of misunderstanding.
EDWARD CHAI: No misunderstanding here. Our conversation will be published to educate others. Sorry to lead you along.

  Story Archive
  Q.56 Sponsoring Wide or Deep?
  Q51. The United States Of America is a country that is made up of 51 States (50 States and one Federal district) I have therefore reserved Q51 for this very important topic. The United States of America is a country where pyramid schemes originated and remains the main export today. How come the US FTC is not doing anything?
  Q52. How to write a new anti-pyramid law to effectively close down pyramid scheme companies. (Coming soon.)
  Q53. Your computer. Tool or toy?
  Q49. We are not the biggest company but we are the best.
  Q50. I really do not have any idea how to communicate my ideas or talk to my upline. I find that the way he talks sometimes so straightforward and hurtful.
  Q48. My opinion on people who lost money in pyramid schemes and claim they are innocent victims.
  Q47. What is the greatest obstacle or challenge Networkers faced?
  *Q40. Our teams have gone to using the term Team Marketing, rather than Network or Multi-Level. This is also quite a common term around Europe and feels a bit more 'current' - what do you think?
  *Q1 Isn't MLM all just pyramid schemes?
  *Q10 I have no interest.
  *Q2 Do I have to sell?
  *Q3 Isn't the market already saturated?
  *Q4 MLM is a business that benefits only people who join first.
  *Q5 I have no time.
  *Q6 I am not a good speaker.
  *Q7 I have no friends.
  *Q8 Can you teach me how to be a Diamond?
  *Q9 The products are too expensive.
  *Q11 How to protect downlines from other companies.
  *Q12 Binary marketing plans.
  *Q13 I stumbled across an online program that teaches MLM. The courses are very good but I found out that it is also a MLM company. Will I damage my downlines if I also ask them to sign up for the course?
  *Q14 I was shown a MLM business that sells essential oils. I don't 100% understand their plan, but their concept is ask people to buy the franchise (RM30K- Malaysian Ringgit. About US$10,000) so they have more overriding. Secondly, they don't ask customers to buy the products, that means every person is a investor and no need to sell products and maintain monthly sales. The Top line also promise they will throw people down under me to help me build the 5 line system up to 7 deep.
  *Q15 What is your view on Binary (2 lines system) Triple Matrix (3 lines) Quintuple (5 lines system) type of MLM marketing plans?
  *Q16 I was invited to a MLM company business opportunity meeting and the speaker told us that the are going to go into the China market next year.
  *Q17 A friend doing a tuition center became a millionaire at the age of 30. He said he is successful because he has a mentor behind him to teach him how to invest and manage the business. So he recommend I should also look for a MLM mentor to be my teacher too.
  *Q18 I understand that meetings/training are very important in MLM but there are no meetings/training held for our group these 5 months (maybe we don't have a large group yet) We only attend company event once a month. I feel we are out of MLM system already.
  *Q19 My friend seems to have no motivation towards everything he does. He is lazy. He has the potential to be a good leader but doesn't have the drive to push anything further than his current limit. As a friend, what can i do to help him? His life seems to be disorganised and mundane and he know himself.
  *Q20 I'm a distributor in England and my wife is from Japan. She has moved back to Japan and I am moving out there in around 4 weeks and going to build my business out there. I have some friends in Thailand that I would like to sponsor too. Can give me some suggestion.
  *Q21 My upline is a so called leader. He bought 2 to qualify for his pin and profit sharing bonus and received US$205,000. At least US$120,000 is mine because he played games. Easy money comes, easy go. He is now bankrupt and his group has collapse.
  *Q22 What is your stand on short term promotion?
  *Q23 I joined a MLM company about 4 months ago. I can still remember how excited I was but my growth is very slow. I am not doing well and I feel down but I won't give up, I promise.
  *Q24 I have a leader who is very much committed with the business but very hard headed. He doesn't communicate and he doesn't want me to coordinate with his downlines. He is my former boss. He doesn't even reply on my SMS. Please advise me what to do with this kind of manager?
  *Q25 When you develop a certain area more than 100 kms away from your residence, what is your frequency to develop or visit the area. Also if you have new recruit what did you give and assistance? Thanks and more power
  *Q26 What are some mistakes you're not allowed to make?
  *Q27 Business in my country is booming and the leaders are beginning to fight amongst one another. There is a lot of jealousy and disunity.
  *Q28 I am distributor living in Indonesia and have been in the business for 12 years.I have attended many training/meetings such as OPP, NDO, MAM, Product Training, Home meeting, Business Workshop, Advance Training, etc. How do I develop a business school to teach MLM in Indonesia for my company?
  *Q29 I wrote a book on Network Marketing which is very good that will help many new distributors in my company but my company refuse to promote and sell my book. They sell personal improvement books written by people and even sell T shirts, hats, pens and other promotion materials. What do you think of this company policy.
  *Q30 The General Manager/Country Manager/Managing Director of our company does not listen to distributors.
  *Q31 My friends avoid me like a plague.
  *Q32 I need this business because I am in debt.
  *Q33 I am full time in this business. How many non-leadership lines should I have?
  *Q34 Save some money before buying the toys,
  *Q35 Can you teach me how to be a successful in this business?
  *Q36 How do you calculate the potential of a new market.
  *Q37 Why the company does not provide free literatures like brochures, flyers, leaflets and etc.
  *Q38 A small flaw may cost you tons.
  *Q41. SUBJECT: Speaking Fee. I would like to invite you to my country to do training for my group. I want the best to come and visit us and I know you are the best. I will take care of everything and your expenses and then we split the profit 50-50. You should be able to earn about 20,000 euro for you effort as I expect about 1,000 people.
  *Q42. Your dogs are really cute and nice. They appear to have been well taken cared of and trained. One thing I like with dogs is that they are known to be loyal and do not bite the hand that feeds them. How I wish some of our former downlines who have gone astray and joined other companies and are now hurling inappropriate words against us learn and inculcate the faithful qualities of dogs.
  *Q43. Is sponsoring more important then retailing? I find the business very hard.
  *Q44. Advise. When you send emails to your friends and if you send to more then one always send under Bcc ( not under To or Cc) so that other people cannot get the addresses of your friends in your mailing list. This will reduce the spam mails many of us are getting everyday.
  *Q45. Some of my favorite books.
  *Q46. What is the most important thing you learnt in network marketing?
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