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THE BEST IS YET TO BE
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Superkilat
Elite |
26-Apr-2019 20:50
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The 7 level sales incentive scheme shown in bonitas report shows BWL direct clients practising MLM. Concrete evidence isn't it? | ||||
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Sen9999
Member |
26-Apr-2019 20:38
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http://txjy.syggs.mofcom.gov.cn/manager/prosecute.do?method=add&id=6652565
Can copy the link and see
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Sin_Cos_Tan
Veteran |
26-Apr-2019 20:37
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see page 21 - 23 of Bonitas Research Report on _ A China Member Rep sent the following graphic to describe pricing and sales incentive structure for Member Reps in Mainland China.  . 28 pages Bonitas Research Report http://s3-ap-southeast-1.amazonaws.com/tesuploads/878/BonitasResearch-Short-Best_World-SGX_CGN-BBerg_BEST-Fraud-24April2019.pdf  
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michaeltan
Master |
26-Apr-2019 20:26
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Are an expert of sales model that franchise business is illegal?
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Wind22i
Supreme |
26-Apr-2019 20:23
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This can become like midas if the fraudulant stuff is real | ||||
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Superkilat
Elite |
26-Apr-2019 20:21
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If franchise model is legal, why so many companies still fight for direct sale licenses? Direct sale license only restrict sales in the stipulated area by the license. If franchise model can any how applied to all over regions in China, must well operare franchise model. The only possible answer is franchise model is ilegal. | ||||
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destinykraze
Elite |
26-Apr-2019 20:17
Yells: "Reality is only a matter of perception" |
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Are you trolling or just here to ask stupid questions so you could detract from the main topic? How is this a relevant question?
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Sen9999
Member |
26-Apr-2019 20:05
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Yes can anyone enlighten me if the explanation of the franchise model is correct? If it's so, then why is it illegal to use such model in China.
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Sen9999
Member |
26-Apr-2019 19:49
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😂 👍
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michaeltan
Master |
26-Apr-2019 19:45
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I agreed with you that BW has never had the intention to do MLM at all.  The Group has developed four distinct distribution channels that it believes best serves the markets where the Group&rsquo s products (&ldquo Products&rdquo ) are distributed.  These are legitimate sales models conducted by BW. 1.Franchise Model 2.Direct Selling Model 3.Export Model 4.Manufacturing/Wholesale  The Group does not directly conduct any sales transactions in China through online stores or social media, including Taobao. The Products are primarily distributed in China by Franchisees directly to consumers through BWL Lifestyle Centers in China.  The term &ldquo Franchise Model&rdquo was adopted by the Company to refer to the Group&rsquo s distribution model for premium skincare Products in China for the purpose of reporting, and should not be interpreted narrowly. The term was used in replacement of the term &ldquo China Wholesale&rdquo 6 due to its similarity to the Manufacturing/Wholesale Model used for &ldquo Aurigen&rdquo (全 金 ) Products. The Franchise Model developed by the Group incorporates elements of authorised distributorship and franchise arrangements, where the Group sells the Products to the Franchisees, and the Franchisees on-sell these Products to consumers. The term &ldquo Franchise Model&rdquo was adopted as it describes the franchise elements of the arrangements, under which the Franchisees may only sell the Products (to the exclusion of other brands) and are permitted to use the Group&rsquo s trademarks in operating BWL Lifestyle Centers, as well as comply with the Group&rsquo s brand standards and operating manuals. The Group recognises revenue upon delivery or completion of the sale to the Group&rsquo s direct customers. These direct customers under the Franchise Model are the Franchisees, who are generally required to pay in cash before delivery and are subject to a no returns policy (except for defective goods). Accordingly, under the Franchise Model in China, the Group records its sales at the time the Products are sold to the Franchisees, which is when control of the inventory is passed to the Franchisees with cash payments received. This revenue recognition is in line with SFRS(I), the accounting standard of the Group.     https://skyjuiceiswater.blogspot.com/2019/02/direct-selling-in-china.html
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bwavep
Senior |
26-Apr-2019 19:22
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oh really?  how nice for SJ....this is actually a healthy exercise for SJ forum.  we can assume the new accounts are either vested parties or market participents that feel compelled to comment. SJ should be happy with increased chatter and new accounts. and the forum participants can glean more points of views and share together....ideally it should be a positive thing (one positive takeaway from BW saga)
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Sen9999
Member |
26-Apr-2019 18:30
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I think they never had the intention at all to do the MLM. They mentioned they never use the direct selling license at all. So I believe all the centres are suppose to follow the framework and guideline strictly. I read times and again then I realized this is what BW is trying to say 😂
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Sen9999
Member |
26-Apr-2019 18:25
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No bro, it's not MLM, it's franchise selling, everyone in their system earns a commission depending on your level. Eg I am the boss, I hire freelance to work for me to sell my eggs. Then my freelance hire students to sell eggs door to door for them, then all earn commission from there. If such system is not approved in China, then most companies can't sell there😂 . Unless there is a clear definition what constitutes a direct selling model
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Superkilat
Elite |
26-Apr-2019 18:22
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If BWL is aware direct clients doing MLM, why foster it? When clients got caught, BWL lose all the franchasees | ||||
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Sen9999
Member |
26-Apr-2019 18:20
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Actually most system, traditional models are all tiered models, sales director earn comm when their manager sell, manager earn comm when their rep sells. But MLM usually main focus is to sell their earning system. So they recruit more and more into their system then hardsell the new potential members. I think this is also why in the BR report there is no marketing material at the centres, no hardselling of walk in customers, no selling to non members. It's all to comply to franchise model and not the MLM model. So they don't get themselves into trouble?
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michaeltan
Master |
26-Apr-2019 18:20
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If i sell the product to you legitimately franchise model based on our contracture binding. You as franchisee doing MLM. who is at fault? They have clarified that they don' t have every control of you doing the business. The most I will stop the contract with you.   
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Superkilat
Elite |
26-Apr-2019 18:14
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Even she can get herself cleared, when authority bans their durect clients from doung MLM, you think BWL profit not significantly affected? | ||||
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Superkilat
Elite |
26-Apr-2019 18:07
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BWL direct customers are doing MLM. Can BWL get herself cleared with its band is used by its direct clients? | ||||
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michaeltan
Master |
26-Apr-2019 18:05
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I think you can read it from the clarification announcement in relation to the business times article to SGX.
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Sen9999
Member |
26-Apr-2019 17:57
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Anyone here to explain franchise model again?
In another words BW is not doing MLM in China, not direct selling(so no need for the license that is obtained in 2016 in Changsha, which they clarify) I suppose franchise model is the principal pays the fellow sales rep commission upon sales? Then the sales rep become manager, he will earn from the sales rep below him. Then manager become assistant director, he earns from manager. This is the traditional sales model isn't it? |
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