Wednesday 12 November 2008

An email regarding Success University


Many thanks for your email regarding Success University.

Despite what you suggest, everything we write IS researched carefully.  I DID look closely into Success University's business model and, to me, it satisfies the definition of a pyramid selling scheme very well.  It's not helpful to fall to the level of "ad hominem" attacks because my analysis doesn't match yours.

I don't agree at all with what you say about either SU or the Direct Selling Association.  Membership of an industry group, particularly when that group was set up specifically to protect the interests of it's members rather than their customers, doesn't persuade me.

Your statement "Because AMWAY,STRATEQUITY,QUIXTAR and even Success University are members then it means they are following good bussiness practice" is no more than "an argument from authority".  Membership of a group like the DSA proves nothing.  Did you know that SU have only been members of the DSA in the USA since June 2008?  Did you know that they aren't a member of the South African DSA?  Is this perhaps because the DSA in SA encourages people to avoid "Illegitimate Pyramid Schemes".

One of the best comments I've heard so far regarding SU is, in fact, your own.  You say "SU is not selling tangible products".  I agree entirely.  What SU, and other pyramid schemes, are selling is the illusory opportunity to make money, not from a product but from the opportunity to recruit others beneath you and to encourage them to recruit others beneath them.  THAT is a pyramid scheme.  

When we attended their presentation in Gaborone it was made clear to all attendees that this was how money could be made.  However, no mention was made of the mathematics of pyramid selling and the requirement for Malthusian, exponential "down-line" growth in order to make the impossible fortune.  

However, ignore my opinions and instead trust those of the Bank of Namibia who stated last month that:

"After carrying out its investigations, the Bank hereby declares the operations of Success University in Namibia to constitute a pyramid scheme and therefore it is illegal. The Bank of Namibia, therefore, warns all promoters of this scheme in Namibia to stop their activities immediately."

Anyway, thanks for at least expressing an opinion!  If only more people took the time to do so, even if we disagree.

Best regards


-----Original Message-----
Sent: Monday 10 November 2008 17:21
Subject: Information is power


I really love your great job of sensitising the nation on tricks that conmen usually use to rob people of their hard erned money.There is one advice i need to give you so that you dont mislead the nation in the name of consumer protection.Anything you dont understand i encourage you not to say anything about or atleast take time to research in that area so that an informative information is published.With MLM/Network marketing companies there are certain code of conducts/practice that they have to operate within.There is an international organisation called the Direct Selling Association(DSA).It is a regulatory body that that controls direct selling.It also doesnt allow pyramids.Because AMWAY,STRATEQUITY,QUIXTAR and even Success University are members then it means they are following good bussiness practice.The only problem is that SU is not selling tangible products.I suggest you enrol youself so dat you can get to know the well structured courses  inside as well as the compensation plan.Try and practice Investigative reporting.

Thank you in consumer protection

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