# Archive > Open content archive > MLM Industry Forum >  Network marketing an insurance product

## colinvan

Hi, i am Colin van Rensburg, a full-time network marketer and would like to chat to like minded individuals.

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## Dave A

Welcome to TFSA, Colin  :Wave:

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## Citizen X

Hi Collin,

Welcome to TFSA :Big Grin:

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## thinusmj

Welcome to TFSA

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## Mike C

Hi Colin - welcome to the forum.

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## colinvan

Thanks for the welcome & advice. How do i load my ugly avatar?

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## Mike C

> Thanks for the welcome & advice. How do i load my ugly avatar?


Goto Settings (top right) then edit Avatar under "My settings" on left.

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## chris_kzn

Welcome Colin, what does a "full-time network marketer" entail and for which company do you work?

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## colinvan

Hi Chris,

I do not hold a normal "JOB" (Journey Of the Broke). I exclusively do network marketing (MLM in the old terminology) which is better termed referral marketing.

Having been involved with NWM, Golden Products, Quattro, Balltron, Herbalife, Amway etc. i have settled for the much "easier" IFA (Independent Field Advertiser) business opportunity from Clientele. No buying, selling or distribution of stock or products. No selling of insurance or giving of financial advice. As you will know, network marketing is basically introducing potential new people to a companies marketing / distribution system.

Your primary function is prospecting (identifying potential new network marketers) Inviting them to a presentation of the business opportunity and compensation plan. When someone joins, you adopt the role of mentor, teacher, coach. No matter which business you are involved with, you will only achieve success if you assist your key appointments in achieving financial gain.

Donald Trump, Warren Buffet, Bill Gates and Robert Kiyosaki, amongst others, recommend network marketing. It is primarily using 1% of 100 peoples effort instead of 100% of your own effort freeing up more time for building your business.

Check out the following site for more info. www.ifa.co.za

Hope i have answered your question.

Best regards, Colin

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## Dave A

> Your primary function is prospecting (identifying potential new network marketers) Inviting them to a presentation of the business opportunity and compensation plan. ...you will only achieve success if you assist your key appointments in achieving financial gain.


 :Hmmm: 

Bearing in mind this discussion on Herbalife - I'm starting to think this is where the "pyramid scheme" accusation problems actually start for MLM plans. The primary function *surely* has to be to move product (in this case insurance through Clientelle).

And if you can't achieve some level of success on that alone, but *have* to put other people into the same non-viable position to actually be a viable business proposition yourself... then the accusation of "pyramid scheme" becomes disturbingly valid.

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Nickolai Naydenov (13-Apr-13)

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## vieome

Welcome to the forum. 




> Donald Trump, Warren Buffet, Bill Gates and Robert Kiyosaki, amongst others, recommend network marketing.


For the life of google, I cant find any information that says that is a statement of fact, the only sites that say they endorse it seem to be MLM sites

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Blurock (13-Apr-13)

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## colinvan

The product is marketed by the business plan and not by the introducer. After deciding to give the business a go, a prospect decides which Clientele product suits them best. The applicants starter manual contains the respective product application form. This is how the product is obtained.

An IFA (independent field advertiser) is prohibited from marketing the product or giving financial advice as he is not trained to do so.

To do the business, you must purchase a product from Clientele. Thus there is an excellent product distributed to the consumer. If this was not the case, then the pyramid comment is very valid.

The point i was trying to convey is that the network marketer does not handle or sell physical stock like in other network opportunities. Sorry for any misunderstanding.

Best regards,
Colin

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## Dave A

> An IFA (independent field advertiser) is prohibited from marketing the product or giving financial advice as he is not trained to do so.
> 
> To do the business, you must purchase a product from Clientele.


Precisely. Now stack that up against my point:




> The primary function *surely* has to be to move product (in this case insurance through Clientelle).
> 
> And if you can't achieve some level of success on that alone, but *have* to put other people into the same non-viable position to actually be a viable business proposition yourself... then the accusation of "pyramid scheme" becomes disturbingly valid.


The combination seems to indicate it can't be a genuine MLM plan unless each member is obliged to become an accredited financial advisor.

Apart from the one referred to earlier, there are two other threads on TFSA that you should probably read to get a handle on the dilemma:
Referrals for a commission - illegal?
CPA and MLMs

Pull it all together and it seems insurance is a very poor product for an MLM in South Africa.
(And this thread is rapidly becoming too important to languish in the meet&greet section).

Maybe it's time for a new business model and name to be coined for this sort of venture - something like CCP (Cascading Commission Plan).

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## colinvan

i see your point. In this case, the new member orders the product of his choice directly from the supplier. A case of a satisfied client reffering a new client.

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## Blurock

The problem with buying insurance products on line, is that the buyer or client may buy something that is inappropriate to his/her needs or something they do not understand. The client also has obligations to fulfill (honesty, disclosure, monthly premiums etc) and not knowing how to claim can lead to a claim not being  paid at all. Do your homework and get all the pro's and cons.

Every person is unique with with their own needs and requirements. Surely if you buy a car, you first find out which cars are best, dealer service, price etc. Then, when you have narrowed it down, you take one or two for a test drive before you make your final choice. 

Insurance, whether life or short term, is much more complex, but people will be conned into buying any shirty product just because they saw a good add or spoke to a fast talking salesman... :Slap:

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## colinvan

The same consumer can purchase the same products after viewing a tv ad - and nobody hoots & toots about it. However, bring the word mlm and / or network marketing into the equation and all are up in arms making assumptions based on a small bit of info.

Should they not also do a bit of research as they expect consumers to do?

The cpa and direct marketing companies in SA ensure a comsumer is not stuck with a "worthless" product.

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## Blurock

People save for a lifetime and then decide on a whim to invest in some scheme, hoping to get rich quick. No research done, not asking for advice, not looking at the performance of the portfolio or the background of the portfolio managers. How many people have been caught by pyramid schemes and useless insurance products because they did not do their homework? 

Will you hand over your life savings to people you do not know from a bar of soap, just because someone said that it is possible to "get a good return"?  You do not buy a house or a car without looking at it, asking around and satisfying yourself that it is indeed a good buy. So why do we "invest" or insure with our eyes closed? :Confused:

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## colinvan

NWM in this contex is most assuredly not a scheme or scam. Network marketing coy's must comply to all legislation that governs "traditional" businesses.

Yes, granted, there have been unscrupulous individuals who have utilised nwm marketing systems for illegal gain, as have traditional businesses also been fraudulently used.

The best way to prevent being "done in" is to do your homework. 
1. Is the company registered with dsa?
2. Has the company been in existence for more than 5 years?
3. Does the company comply to all relevant legislation?
4. Is the product of good / outstanding quality?
5. Is the product affordable and sensibly priced
6. Has the company got a good reputation

If yes to all the above, then only should one consider joining such a business.

As pointed out in my previous post, a company cannot be registered with dsa if they have inferior products.

The company in question is very well know to the majority of our population. 

Isn't a bit unfair to liken investing with them as not knowing them from a bar of soap? If you were refferring to the client's network introducer, it shoul be blatently clear where & by whome the client's money is being invested.

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## Blurock

> The company in question is very well know to the majority of our population. 
> 
> Isn't a bit unfair to liken investing with them as not knowing them from a bar of soap? If you were refferring to the client's network introducer, it shoul be blatently clear where & by whome the client's money is being invested.


No names mentioned. I was generalising and referring to how easily people part with hard earned cash, without doing any research or homework.

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## Netbiz

Hi guys. Unbelievable how it works. Poor "job"less guy asks for like mided people to talk to and 
runs into a battering of negaholics putting in quotes (footers) to the contrary. Who can we believe?

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## Dave A

As a full time network marketer, I'd expect Colin to be up to the task  :Wink:

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## colinvan

welcome back guys. Had some internet problems. Yes, i am up to the task although my intention was not to discuss a specific coy or product per se. There are mainly 3 schools on nwm:
1) it is a pyramid scam
2) it is legal, but the product is too expensive
3) this business is the best!

Guess what numer i am and you win an inflatable dart board (lol)

1) as stated in previous posts, there are illegal businesses and schemes out there.

Do not get stung:
a) research - how long has the company and the network system been operating?
b) is it a registered business and registered with the DSA and other required bodies?

2) Product appears expensive but is usually concentrated and of very good quality. (in instance of household or health products.
3) the network opportunity is win, win if startup fee is low, the product is equal to or of superior value to products or services obtainable through "normal" distribtion channels.

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Dave A (18-Apr-13)

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