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Direct Selling Association of the Philippines

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Networking: Building or Ban the Binaries?

Note: The author is a former chairman of the Direct Selling Association of the Philippines and is the first professorial lecturer on network marketing in the Philippines and in Asia. He is recipient of The Outstanding Young Men (TOYM) award in 2001 for business education.

* Introduction
* What is a Binary Plan?
* Why is the Binary Plan Attractive?
* What are Limitations of the Binary Plan?
* What is the Problem with Binary Plans?
* What are Remedies to Defective Binary Plans?
* Conclusion


Since the entry of several multinational network or multilevel marketing companies in the Philippines starting the mid 1990s, many local companies have also taken advantage of the popularity of network marketing schemes by adopting it as their preferred distribution method of their products or services. Unfortunately, many have also abused the relative newness of the concept by introducing schemes that not only deviates from the original intent of network marketing, i.e. legal distribution of products and services that are priced fairly, but also dangerously borders on illegal pyramiding schemes. Already, government agencies have filed cases against highly publicized companies promoting internet-based services charging exhorbitant fees.


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The World Federation of Direct Selling Association is non-governmental voluntary organization globally representing the Direct Selling industry as a Federation of National Direct Selling Association

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