First Vita Plus

Some people are pointing to the Consumer Act of the Philippines (RA 7394) and are asking if First Vita Plus is a pyramiding scam. Let’s have a look…

Here is Article 53 of RA 7394 (Under the TITLE III. – PROTECTION AGAINST DECEPTIVE, UNFAIR AND UNCONSCIONABLE SALES ACTS OR PRACTICES, CHAPTER I: DECEPTIVE, UNFAIR AND UNCONSCIONABLE SALES ACTS OR PRACTICES):

Article 53. Chain Distribution Plans or Pyramid Sales Schemes. – Chain distribution plans or pyramid sales schemes shall not be employed in the sale of consumer products.

Article 4 defines certain terms…

k) “Chain distribution plans” or “pyramid sales schemes” means sales devices whereby a person, upon condition that he makes an investment, is granted by the manufacturer of his representative a right to recruit for profit one or more additional persons who will also be granted such right to recruit upon condition of making similar investments: Provided, That the profits of the person employing such a plan are derived primarily from the recruitment of other persons into the plan rather than from the sale of consumer products, services and credit: Provided, further, That the limitation on the number of participants does not change the nature of the plan.

So, is First Vita Plus just one big pyramiding scam?

No, it is not.

When you successfully invite someone to become a dealer, that person will pay First Vita Plus around P7,700 for P9,240 worth of products.

For that, you will earn a commission of P500. Afterall, you helped the company make a P7,700 sale.

[Yes, the P6,999 price will go up to P7,699 starting March 2010]

If you invite two people, you will earn P1,000 (P500 x 2), and since they’re a pair, you also have the chance to earn another commission of P1,500 (depending on where you place those people in your team).

Again, you made sales, so you earn a commission.

And yes, you can end up earning more than the person who invited you to become an FVP dealer, because you have the power to outsell your sponsor.

Here’s the key point, though:

There are other ways to earn via First Vita Plus.

I know a First Vita Plus dealer who isn’t actively inviting people to sign up as dealers under her. What she does instead is she directly sells First Vita Plus products to people she knows.

As an FVP dealer, she buys FVP products at a 25% discount and sells those products at regular suggested retail prices.

While she has around 5 dealers under her, those dealers are not actively recruiting. In other words, her FVP monthly income comes purely from direct/retail sales.

The people who buy the First Vita Plus natural health drink products from her have no desire to become dealers. They do not wish to invite others to become dealers.

They simply want to buy and consume the products, not as FVP dealers or discount club members. They don’t want to enjoy the 25% discount.

They just want to be regular FVP customers.

In other words, there are people who want to buy the products even if there is no compensation plan whatsoever.

One person mentioned that according to the Direct Selling Association of the Philippines (DSAP), companies using a binary compensation model are illegal.

Please show us the DSAP article that says that.

We searched the DSAP website (http://www.dsap.ph) but did not find any article that states that MLM companies using the binary method are automatically illegal.

There are a some people who have a certain view of binary plans, network marketing, or MLM companies mainly because they lack the training on how to make it work.

Fortunately, thanks to the internet, there are free tutorials you can enroll in to learn the secrets of network marketing success. I highly encourage you to try some of these online guides today.