# Archive > Open content archive > MLM Industry Forum >  Future Communications Today

## KobusH

Good day.

My name is Kobus Hughes and I recently joined this forum. I am very excited to be apart of a South African forum where I can talk about online marketing. I got here through google search to a post about network marketing. I am also in network marketing and I am heading up the South African leg of a global expansion of the fastest growing MLM on the internet today. No it is not a pyramid scheme as pyramid schemes do not have a product. We have 8 great products that will revolutionize the way marketing communications are done. 

Should you feel the need to further inquire about network marketing please do ask your question here. Will be happy to answer them as best I can. 

Just a thought as well....people write any mlm of as being a pyramid scheme but they dont realize that the only thing making a normal brick and mortar business not a pyramid scheme is the fact that they have a product. The structure is still the same. you have the boss, under him two or three managers, under them they have their teams....see where the structure is going. 

Looking forward to interacting with you all.

Kobus

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## Dave A

Welcome to TFSA, Kobus  :Wave:

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## AmithS

Welcome to the forum  :Smile:

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## Blurock

> Just a thought as well....people write any mlm of as being a pyramid scheme but they dont realize that the only thing making a normal brick and mortar business not a pyramid scheme is the fact that they have a product. The structure is still the same. you have the boss, under him two or three managers, under them they have their teams....see where the structure is going.


Welcome to the Forum Kobus. I am sure you will find it stimulating.

I can unfortunately not agree with you on the product issue. We still remember the milk culture saga. They also had a product. A lot of people made a lot of money, but there were more losers than winners. :Detective:

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## KobusH

Maybe I should clarify...lol...If the company is legit like the one I am in that is BBA rated and a member of DSA, and has a product then it is not a pyramid. I don't know about the milk culture saga you are talking about but I agree. Their are companies out there on the net with products that are not legit. It is because of companies like those that the legit ones have a much tougher time in reaching the top online. Pyramid schemes and how to spot one has been an issue for a long time but with proper research it is easy. 

All i am saying is not to just shake a company that works online off as a pyramid scheme because of multi-level structures. It may just be that it is legit and on the brink of exploding worldwide and could have been a great freedom creating opportunity.

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## Just Gone

Can you tell us more KobusH...

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## KobusH

Hallo Kevinb. What would you like to know more about? Just need some clarificationso that I don't ramble on and on and then it was not what you wanted to know more about.

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## BuyNoEvil

KobusH vs Kubus

Am I merely imagining things here. Clearly recall Mr Nieuwoudt's "vrot melk" initiative.

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## BuyNoEvil

Section 43 of the Consumer Protection Act specifically states:

Pyramid and related schemes
43. (1) In this section—
(a) ‘‘consideration’’ has the meaning set out in section 1, except that it does not include—
(i) the purchase of any goods at cost to be used in making sales, or not for resale;
(ii) the purchase of any goods in exchange for which the seller of those goods offers to repurchase the participant’s products under reasonable commercial terms; or
(iii) the participant’s time and effort in pursuit of sales or recruiting activities; and
(b) ‘‘participant’’ means a person who is admitted to a scheme for consideration.
(2) A person must not directly or indirectly promote, or knowingly join, enter or participate in—
(a) a multiplication scheme, as described in subsection (3);
(b) a pyramid scheme, as described in subsection (4);
(c) a chain letter scheme, as described in subsection (5); or
(d) any other scheme declared by the Minister in terms of subsection (6),
or cause any other person to do so.
(3) A multiplication scheme exists when a person offers, promises or guarantees to any consumer, investor or participant an effective annual interest rate, as calculated in the prescribed manner, that is at least 20 per cent above the REPO Rate determined by the South African Reserve Bank as at the date of investment or commencement of participation, irrespective of whether the consumer, investor or participant becomes a member of the lending party.
(4) An arrangement, agreement, practice or scheme is a pyramid scheme if—
(a) participants in the scheme receive compensation derived primarily from their respective recruitment of other persons as participants, rather than from the sale of any goods or services; or
(b) the emphasis in the promotion of the scheme indicates an arrangement or practice contemplated in paragraph (a).
(5) An arrangement, agreement, practice or scheme is a chain letter scheme if—
(a) it has various levels of participation;
(b) existing participants canvass and recruit new participants; or
(c) each successive newly recruited participant—
(i) upon joining—
(aa) is required to pay certain consideration, which is distributed to one, some or all of the previously existing participants, irrespective of
whether the new participant receives any goods or services in exchange for that consideration; and
(bb) is assigned to the lowest level of participation in the scheme; and
(ii) upon recruiting further new participants, or upon those new participants recruiting further new participants, and so on in continual succession—
(aa) may participate in the distribution of the consideration paid by any such new recruit; and
(bb) moves to a higher level within the scheme, until being removed from the scheme after reaching the highest level.
(6) The Minister, by regulation made in accordance with section 120, may declare any arrangement, agreement, practice or scheme to be a scheme contemplated in subsection (2)(d), if it is similar in purpose or effect to a scheme contemplated in that subsection.

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tec0 (24-Oct-11)

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## KobusH

Thanks for sharing this section on the consumer act. So just to make sure I understand, you are saying that any company that sells something but give people the opportunity to make a living from through multi level or network marketing where they recruit others is a pyramid scheme and thus illegal?

I disagree. If that was the case then why are their so many out(like the company i am in) there that are recognised by the USA today, Fox news, Forbes and the BBA? Our consumer act forces people to call anything close network or multi-level marketing a pyramid and these companies are marked as illegal because our authorities do not make money from them. 

Also, if the above section of the act was truly implemented then why do companies like herbalife and amway still operate in South Africa? They are multi-level marketing companies. You join, you get others to join, you make money? But wait a minute, there are products involved. You join, you get your product, you get others to join under you, you make money from there sales or subscription(residual income) but now it is legal. Doesnt make sense. 

All I am saying is do not just slam a company, any company as a pyramid just because of their structure. I make money from my business I am in and it is a network marketing company or multy-level marketing company but they are legit. They are a member of the direct selling association, BBA rated, 4 year old company based in Florida that has been featured in USA Today, Fow News 13 and Forbes with products that are the future of online communications and marketing. 

Oh and I really cant remember the milk thing. I don't live in the past but look to the future. My future is clear and full of success. I have been looking for an online opportunity for 2 years and have been scammed many times but found the one legit company and I am enjoying life. Maybe I misunderstood the section above from the consumer act and if i did then I am sorry.

Just remember, don't judge a book by its cover, might be the one that turns your life around.

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## Just Gone

> Hallo Kevinb. What would you like to know more about? Just need some clarificationso that I don't ramble on and on and then it was not what you wanted to know more about.


Well can you tell us the basics ........ if a person was interested to know more ........ at this point I have no idea what you are talking about, selling or marketing.

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## IanF

Kobush, 
This approach you are using reminds me of when I was approached for a Network 21 opportunity. This annoyed me as the smoke and mirrors to get me to go to the meeting then finding out it was a sophisticated Amway marketing setup.
So I declined as the smoke and mirrors approach left a bitter taste in my mouth.
I see in your reply you won't say what exactly the "opportunity" is, and keep on with platitudes like  


> don't judge a book by its cover, might be the one that turns your life around.


Please prove me wrong!

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tec0 (24-Oct-11)

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## BuyNoEvil

Read again, more carefully this time.

(4) An arrangement, agreement, practice or scheme is a pyramid scheme if
(a) *participants in the scheme receive compensation derived primarily from their respective recruitment of other persons as participants, rather than from the sale of any goods or services*; or
(b) the emphasis in the promotion of the scheme indicates an arrangement or practice contemplated in paragraph (a).

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## KobusH

> Well can you tell us the basics ........ if a person was interested to know more ........ at this point I have no idea what you are talking about, selling or marketing.


Well Kevinb, I am in a business that has eight amazing products. Video email, video conferencing, video share, e-subscription form, video social, video conference, video blog and one other I can't remember of the top of my head. Now these products can be used by individuals and companies. Individiuals will mainly use it to market their opportunities or just to be able to share a special moment through video instead of boring old email. Companies will be using it to market their products or a CEO that gives an update to sales staff for instance. To give you an example. If a property company was to use our products then they could do as follows: Instead of spending money on a phone call to organise a viewing with a client at a possible home for the client they can now send him a virtual tour of the house through video on his email. The client gets to see the home and the agent does not waste a phone call or ten and petrol costs to take him to the house. Once the clients has seen the virtual tour and still decides to see the house in real life then the agent knows that the lient is very interested. Get where this is going?

So that was the products in a nutshell. Now, as an associate you build a team of people on multilevels that basially becomes your workforce. You earn comms from their sales just like a sales manager gets an incentive for sales from his team in a normal brick and mortar business. Yes, you do get comms for their purchase once they join but that is because it is a sale you made of the product, you client just joined as an associate and not a customer. Their are three entry points at different prices. I have a powerpoint presentation which I can send you to have a look. Just inbox me your email address and I will forward it. Hope this answeres you question.

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## KobusH

> Kobush, 
> This approach you are using reminds me of when I was approached for a Network 21 opportunity. This annoyed me as the smoke and mirrors to get me to go to the meeting then finding out it was a sophisticated Amway marketing setup.
> So I declined as the smoke and mirrors approach left a bitter taste in my mouth.
> I see in your reply you won't say what exactly the "opportunity" is, and keep on with platitudes like  
> 
> Please prove me wrong!


Hallo IanF

This is no way related to amway. What we do is totally revolutionary in communcations. I do not mention the company name because I have done it in the past and then people go direct and not through the avenues they are supposed to which means theyget all the info from me and then bypass me which means I did all the work for nothing. The opportunity I am in is legit. Like I said earlier, it is a DSA(Diret Selling Assoiation) member, has an A grade for the BBA. Companies like Norwegian Cruise Liners, Applebees, Make a Wish foundation and a whole lot more are currently using our products. If you have got interest in this I will be happy to share the url with you to be able to take a tour of the site. Just inbox me or invite me on skype at kobus.hughes. No smoke and mirrors here, just protecting my interests.

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## Just Gone

So it sounds similar to sending a video clip via blackberry or talking live via skype then ?

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## KobusH

You could say that. Just with more features and better capabilities. Soon there will be an app for smartphones as well to be able to use the video email from your smartphone. They are adding video newsletters as well in the near future for use in subsriptions like blogs that has an opt-in form for a newsletter for example. Would you like to look at the website to take a tour kevinb?

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## Dave A

On the issue of MLM and the CPA, section 38 was raised as a possible issue here.

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## KobusH

> On the issue of MLM and the CPA, section 38 was raised as a possible issue here.


Thanks Dave. Just want to say that the section you are referring to talks of consumers. 

The CPA, Chapter 2 Part E – Referral selling:
 38. 
(1) A person must not promote, offer, supply, agree to supply or induce a consumer to accept any goods or services on the representation that the consumer will receive a rebate, commission or other benefit if-
 (a) the consumer subsequently-
(i) gives the supplier the names of customers; or
 (ii) otherwise assists the supplier to supply goods or services to other consumers; and
 (b) that rebate, commission or other benefit is contingent upon an event occurring after the consumer agrees to the transaction.

In my opinion when someone joins a MLM they are not a consumer anymore but they are now an associate which means they work for that particular business. Thus they are not going against what is said in this section. They are not a consumer receiving a rebate but a "salesman" getting his comms on a sale. Also they are not giving the company names of customers but are in fact bringing in customers who choose to join the comapny as associates.  So how are we MLM'ers breaking the rules here or the company we are with breaking the rule? This is my opinion and I might have it wrong. I have also struggled with all these things and I am just trying to figure out why ALL multilevel companies are put under the same umbrella when they are not.

Looking forward to your opinion.

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## Dave A

My opinion is people are going to interpret this to suit their point of view  :Wink:

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## Blurock

Should this thread not be moved to the MLM industry forum? :Batman:

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## Just Gone

> Would you like to look at the website to take a tour kevinb?


Thanks Kobus, but no - I currently use skype for family all over the world - works like a dream for me and the bonus is that it is free.  Dont really have a need to change to something else if that is working and it is free.  BB also is great for sending clips and also free.

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## Dave A

> Should this thread not be moved to the MLM industry forum?


If the OP would like that, I'm willing to oblige.

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## BuyNoEvil

Ditto!

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## BuyNoEvil

Still think Kubus and KobusH looks very similar.

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## KobusH

> Still think Kubus and KobusH looks very similar.


What is your Story? Who is this kubus you are talking about? Do not compare me to something or someone if you know nothing about me. I am 28 years old and live in Richards Bay. Been in this network marketing industry for the past 2 years. So if you are trying to compare me or connect me to some scam then I would suggest you not go that route. Defamation is a serious thing my friend. The KobusH is my name....Kobus Hughes. So think carefully before you continue on your "Kubus and KobusH" thing. Anyway, how is someone supposed to take you seriously if you write without even giving your real name.

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## KobusH

> If the OP would like that, I'm willing to oblige.


This thread an be moved to the MLM section. I just posted it more like an introduction for myself as I did not now where to post. If the first message is read, I got here through finding a link on google to a mlm thread but after joining I couldnt find it again and just posted.

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## Dave A

> This thread an be moved to the MLM section. I just posted it more like an introduction for myself as I did not now where to post.


You did great, Kobus. I think the suggestion to move is out of recognition that this has become a lot more than just an introduction thread.

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## tec0

Good day Mister Hughes;

Please forgive my lack of knowledge of your products. Am I right to assume that your product includes sending and receiving of audio and video? If so, the question must be asked how is the quality vs bandwidth? 

As you may know South Africa is renowned to be horribly expensive when it comes to internet products and for the most part even YouTube can become really expensive to view "depending on quality and size" So do your product offer some kind of compression application?

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## KobusH

> Good day Mister Hughes;
> 
> Please forgive my lack of knowledge of your products. Am I right to assume that your product includes sending and receiving of audio and video? If so, the question must be asked how is the quality vs bandwidth? 
> 
> As you may know South Africa is renowned to be horribly expensive when it comes to internet products and for the most part even YouTube can become really expensive to view "depending on quality and size" So do your product offer some kind of compression application?


That is a great question whih I have no answer to but will find out for you. I am running telkom 4gig ADSL line with a 9 gig cap and we have no problems. Also, with mweb's uncapped adsl option which I know many have their should be no problem in viewing the video. As I said though I will find out about the compression feature for you.

Ok, it is now about and hour sice posting the above stating I will find out for you. Well here it is, straight from my sponsor:

This is one of the fastest video stream there is...no need to cpmpress this is done as we up load...we have have no problems around the world....this should in no way effect you expenses for internet.

Hope this helped.

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