Thursday, February 10, 2011

TVI Express cannot pass Filipino DSA Pyramid Test

Direct Selling Association of Philippines have a simple 8-point test on whether something is a pyramid or not. Let us try it on TVI Express.
How to differentiate a legitimate direct selling company from pyramiding using the 8-point Test 
1. Is there a product?
The company FAQ states very specifically, "You do not need to sell any products". Any products the various "distributors" claimed are therefore completely irrelevant. THERE IS NO PRODUCT.  Nobody can even agree on what is the product.
2. Are commissions paid on sale of products and not on registration/entry fees?
According to company FAQ #3, #5, and #10, you get paid solely by sponsoring people (who paid entry fees), filling up the pyramid (called "board" or "matrix") and get paid when it is filled.  YOU ARE ONLY PAID ON SPONSORING NEW PEOPLE. 
3. Is the intent to sell a product not a position?
The intent is always to sell a position. The statement "You do not need to sell any products" is very clear. NO PRODUCT!
4. Is there no direct correlation between the number of recruits and compensation?
There is EXACT correlation between number of recruits and compensation. If you fill up the "traveler board" you get $250 in eWallet and eVoucher code worth $250 (for enrollment which you can sell to another recruit or get another position) THE MORE YOU RECRUIT, THE MORE YOU EARN.
5. If recruitment were to be stopped today, will the participants still make money?
Not a penny will be made if participants stop recruiting, since YOU DO NOT NEED TO SEE ANY PRODUCTS. 
6. Is there a reasonable product return policy?
As there is no product, there is no product return. 
7. Do products have fair market value?
As there is no product, there is no fair market value. 
8. Is there a compelling reason to buy?
As there is no product, there is no reason to buy anything.
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.
As TVI Express rates NO on so many questions, it is virtually certain it is a pyramid scam.
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