Not too long ago, I read a comment on a forum asking whether the Aulora Pants is a pyramid scheme.
Firstly, I don’t think the person asking the question formatted the question properly.
Instead of asking whether the Aulora Pants is a pyramid scheme, I think he or she wanted to know whether the business opportunity offered by the Aulora Pants brand owner, which is BE International is a pyramid scheme.
As a disclaimer, I am one of BE International’s Independent Business Owner (IBO). My IBO number with the company is MY43660295. If you want to check, you can call up the company HQ and ask them about me. I’m very transparent 🙂
Is BE International a pyramid scheme?
To be honest, when I was first introduced to the BE International business opportunity, one of my main concern was, is it a pyramid scheme?
Again to be honest, I am not really sure what a pyramind scheme looks like. All I know is, it is bad and people loose money when they get into it.
I wasn’t going to be sucked into such an illegal scheme.
I wanted to be sure therefore I did some background research on the company.
The first thing I wanted to know is whether BE International has a license to operate a business in Malaysia.
Does the company has a license?
Does BE International has a license to operate a direct selling business in Malaysia?
I set out to find the answer.
How do you find the company’s Malaysia direct selling license number?
The direct selling license number is published on the company’s website if you know where to look.
In fact, it was listed on BE International corporate website Contact Us page.
Above is a screen capture of the Contact Us page.
BE International direct selling number was listed next to the company’s registration number.
It’s direct selling license number is AJL932172.
Next, I checked the validity of the company’s direct selling license with the Ministry of Domestic Trade and Consumer Affairs or Kementerian Perdagangan Dalam Negeri dan Hal Ehwal Pengguna Malaysia (KPDNHEP).
KPDNHEP has a web page for you to check the license validity of all direct selling companies in Malaysia.
I did a search on the direct selling license number and lo and behold, the company holding the license is BE International Marketing Sdn. Bhd.
The license was issued on 8/7/2019 and is still valid up to date.
My online research above has verified that BE International is not a pyramid scheme, rather it is a legitimate company with a valid direct selling license from the Ministry of Domestic Trade and Consumer Affairs of Malaysia.
Trying the Aulora Pants
When I was first introduced to BE International, I didn’t care much for the business opportunity.
All I wanted was something to help relieve my back pain and leg cramps.
The person that introduced the Aulora Pants to me said the compression pants could help.
I was naïve enough to trust a stranger I got to know from Facebook and everything turn out just fine.
The pants did help to relieve my back pain and leg cramps after 2 weeks of wearing it.
Fast forward 3 months after I was introduced to the Aulora Pants, again I was naïve enough to try to build the BE International business using the Aulora Pants as the core product for my small home business.
All I wanted was to make a few hundred ringgit monthly for myself. I wasn’t working back then because I was a full time housewife and I wanted an income source for myself.
When I was shown the BE International marketing and commission plan, I was told I could make upwards of RM10K to RM20K per month from the business.
How absurd! Am I really that stupid to believe them?
I truly believed they were overselling the opportunity to me.
There is no way anyone could be making a 5 figure income from selling women’s legging.
To be more realistic, my expectation was to make around RM1,000 commission per month and I will be very happy.
Do you want to know what happened from then on?
Yes, I was stupid for not believing I could be making 5 figure income per month from the business.
After about 9 months working my butt off, I did not make RM1,000 per month from the business, I was actually making 5 figure per month from it.
As per the strict BE IBO rules and regulation, I am not allow to disclose my business income to the public. If you want prove, we can chat privately 🙂
In the following section, I will share with you 10 points highlighting the characteristic of a pyramid scheme.
I will also be adding my experience building the BE business as per the individual characteristic in point form.
Characteristics of a pyramid scheme
Firstly, the list below was not created by me. I found the list from an authoritative web site which is the Direct Selling Association of Malaysia (DSAM). You can check out DSAM article here.
1) Pyramid schemes often disguise high entry fees as part of the price charged for required purchases of training, product inventory etc.
- To get started with the BE business, all you have to do is pay a RM60 member registration fee.
2) Pyramid schemes are frequently disguised to appear as legitimate direct selling companies.
- BE International was issued an official direct sales license by the Malaysia Ministry Of Domestic Trade And Consumer Affairs.
3) Pyramid schemes will not buy back unsold inventory.
- BE has a written buy back policy published in the IBO booklet below.
4) Pyramid schemes are get-rich quick schemes.
- I wish I can get rich quick from the BE business. But the time frame I set for myself is 3 – 5 years.
5) Position could be purchased.
- There is no way I can pay money to promote myself to a higher ranking in BE business. I wish I could 🙂
6) Pyramid schemes are not concerned with repeat sales to users of the products.
- Customer service and repeat sales are my main priority in the business.
7) Promoters of a pyramid scheme are engaging in fraud, knowingly deceiving participants in the schemes.
- Sorry, none of the IBO with BE practice this.
8) Participants in a pyramid scheme have no choice but indulge in inventory loading / high fees to participate.
- I don’t keep many stock for my BE business. I kept a small inventory as rolling stock purposes because some of my customers do not want to wait a few days for the courier service to deliver their order. I let them have my rolling stock immediately.
- The only time I stocked up is when the company ran out of stock for the Aulora Pants and had to wait 60 days for new order delivery!
9) Participation is essentially based on recruiting, not necessarily on the sale of products or services.
- If you don’t sell any product in BE business, you don’t make any money at all. Product sales is very important.
10) Pyramid schemes have been outlawed throughout the United States and many countries many countries around the world.
- It is also outlawed in Malaysia. That’s why BE International is a licensed direct selling company.
Why focus on the Aulora Pants?
The content in this section is meant for those who are keen to start a network marketing / multi level marketing (MLM) business using the Aulora Pants as their core product.
Why so much focus on the Aulora Pants with Kodenshi?
Please allow me to explain.
If you are planning to start a network marketing business, one of your biggest challenge is to figure out what is the ideal product to sell.
Choosing the right product is the cornerstone to your MLM business success.
When you chose the right product, it will lead you making sale and recruit new distributors into your network.
When your product selection is wrong, it is unlikely you will make any sale or enroll anyone into your business.
If you have never build a MLM business before, can you see how product selection is such a big challenge?
How do you to choose the right product?
In this section, I will share with you a concept call The Blue Ocean Strategy.
The Blue Ocean Strategy is a popular business and marketing book written by Renée Mauborgne and W. Chan Kim.
I will explain the ideas in the book in the form of a story.
There were 2 good friends name Michael and Jeffry.
Both Michael and Jeffry went to the same primary school, secondary school and college together.
When Michael and Jeffrey graduated from college with their diploma at hand, they have the aspiration to start their own business.
Both have some saving in their bank account because they worked part time when they were studying in college.
Michael took out all his saving and started to look for product to sell for his business.
He wanted to sell smartphone accessories because everyone has at least one such device at hand therefore the market is huge.
He decided to to buy the smartphone accessories in bulk from China and sell it locally with a profit.
What Michael has done trying to sell smartphone accessories is equivalent to trying to fish in a Red Ocean.
The characteristics of a red ocean are:
- Compete in an existing market space
- Beat the competition
- Exploit existing demand
- Make the value-cost trade-off
- Align the whole system of a firm’s activities with its strategic choice of differentiation or low cost
The fact is, it is unlikely Michael will succeed in his business due to the nature of red ocean where the competition is very stiff and the only way for him to differentiate with his competitor is to reduce his product selling price.
By being cheaper than his competitor, he will slowly but surely bleed his business until he cannot sustain it anymore.
The blood of every business in the water is turning it red…thus the name Red Ocean.
Is there a better approach to choosing product for a business?
That was what Jeffry thought to himself after seeing the bad experience Michael had with his business.
A better approach to selecting a product is using The Blue Ocean Strategy.
What are the characteristic of a blue ocean?
The characteristics are:
- Create uncontested market space
- Make the competition irrelevant
- Create and capture new demand
- Break the value-cost trade-off
- Align the whole system of a firm’s activities in pursuit of differentiation and low cost
For a better understanding of The Blue Ocean Strategy, check out the 2 minutes video below by Harvard Business Review.
In the video above, it highlighted a case study on Cirque du Soleil using The Blue Ocean Strategy to grow and excel in an industry with limited growth potential.
A compelling aspect of Cirque du Soleil’s success is that it did not win by taking customers from the already shrinking circus industry, which historically catered to children. Instead it created uncontested market space that made the competition irrelevant.Blueoceanstrategy.com
Jeffry realised that to be successful in his business, he has to avoid the red ocean at all cost.
Instead, he has to find a product which is in the blue oceans of uncontested market space and make the competition irrelevant.
How do you find a Blue Ocean product?
The good news is, BE International already has a blue ocean product which is the Aulora Pants with Kodenshi.
The blue ocean product
Before BE International launched the Aulora Pants in Malaysia back in August 2017, there were no far infrared ray (FIR) emitting health and wellness compression pants brand in the market.
BE International created a new FIR emitting pants product category making competition irrelevant.
When you partnered with BE International to build a network marketing business, you automatically have a business platform with a hot selling blue ocean product line.
As an added benefit, your market is not limited to Malaysia, Singapore, Brunei, Hong Kong and Indonesia, rather you can sell the Aulora Pants to the whole world.
There you have it, I’ve tried my best explaining why the BE International business opportunity is not a pyramid scheme or a scam.
If you’ve already made up your mind and insist it is a pyramid scheme, by all means, go ahead with your conviction. You are entitled to have your point of view.
Do you know why smart people are silly enough to build a multi level marketing (MLM) business by leveraging on the Aulora Pants?
The reason they do it is because their current profession is not helping them to achieve the dream life that they always wanted.
They saw something in BE International business opportunity…a glimmer of hope for something better.
Thank you for reading this article and I hope it was helpful for you.
If you want to know how to build a network marketing business locally and internationally by using the Aulora Pants as your core product, send me a WhatsApp message for more info.
I will show you how to use internet marketing and social media to generate leads and close sales on a daily basis.