When we do any kind of investment, bear in mind that the money that you part with can bring you more money or can make you poorer. This is investment. If you can't afford to lose your money, don't do any kind of investment.
Special attention is to people who are above 40 years old, particularly for those who can't seem to get a good pay job or who feel that the later part of of their life is impossible to find a job, or to start a business.
For my past 20+ years, I have been invited to listen to 'successful' testimonies from direct sales, 'opportunity not to be missed' investments, at least twice per year.
I don't mind spending some time to listen to them because I don't want to be rude to my friends and relatives. After all, every time when I give them a chance to share, I am giving them a chance to practice their presentations, and to answer my questions to think about what they are sharing. However, I don't criticize them because I know when some one already in the 'investment', they must have put some money into what they think is bringing them hope.
About 3 years ago, a friend in her 40s joined a direct sales selling some kind of supplements magic to eye sight. She has never asked me to listen to her presentation as she knew that I would search the internet for information if in doubt of anything. I also prevailed in my biology class in high school. Since she is an active church member, her prospects are church members of those 40+ and less educated. These people would have developed problems of eye sight at these age. A friend said after drinking the 'potion', he could see clearly. However, it is not a cure. You need to drink daily to 'maintain' your eye sight. As usual, products from direct sales are never cheap. She was quite good at recruiting members and within 2 months, her commission was more than RM10,000 in a month. She showed her statement to my husband.
Anyway, because of the high 'maintenance' cost, most would only buy 1 time to entertain the agent. I don't know how she is now but her husband said that she is now selling Hong Leong insurance. Guess direct sales business did not maintain, in fact, direct selling never lasts long.
I was invited to listen to seaweed investment in Tawau. I was shown pictures of the seaweed farm and photos of both local and oversea investors visiting the farm. The agent told me how I can invest in terms of 'units', contracts will be given, and commission will be distributed, things like that. I personally feel that any firm wants to raise capital to expand their business, it should not be raised this way. I just asked him how much they want to raise. He said no limit. What kind of business when you want to raise money and there is no limit to it? I read in the paper last year that there was such company under investigation. However, I was also told by my husband that his sister was invited to join in such investment last month. I am disappointed that the authority is never strict enough and persistent to stop such activities to let many ignorant to lose their hard-earned money.
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