“Ministry warns of Negri loan scam“
The Star 27 December 2006.

With articles like these in the papers and such companies resorting to such under-handed tactics, it’s no wonder people are wary of network marketing opportunities. One black sheep in ruins the market for everyone else.

According to the article, a direct-selling company had claimed that its members would be eligible for Finance Ministry loans as a ploy to get more people to join. The ministry declined any collaboration with any organisation to offer loans.

Since the Government came down on the “Ah Long” illegal moneylenders, this is believed to be the new tactics being used to make money. The “Ah Long” moneylenders are basically local loan sharks who go around to neighbourhoods dropping their cards. They prey on people who are unable to secure legal loans from financial institutions by offering an alternative avenue for obtaining a loan.

Choosing a network marketing company is not unlike selecting a real estate property or a particular stock to invest in. Do your research and know your facts and you have a good chance of doing well. Enter blindly and you could end up being burnt. So I guess the moral of the story is – do your homework.