The topic of direct selling is hot right now, especially after the Security and Exchange Commission (SEC) released an advisory of the investment corporations that are not registered under the Commission. While the list are not proven to be scams, the Commission has warned the public to be wary of the alleged financial scams.
To help the public discern whether a direct selling company is legitimate or not, Sen. Bam Aquino shared an “8 Point Test” that tells you if it’s a scam or not. According to the list:
1. Is there a product?
2. Do you get your commission based on the profit and not through recruitment?
3. Is position the purpose of selling the product?
4. Is there no direct contact between the number of recruits and income earned?
5. If recruitment stops now, do the members still earn?
6. Is there a just product return policy?
7. Is the product worth anything in the market?
8. Can the product be considered a need?
Do you agree? Share your thoughts below!