The Collapse of NBO Global and the Networking Scams in the Philippines

NBO-global-scamNote from Admin:  This article has been submitted before but we did not publish it earlier because the mentioned program below (NBO Global) was still operating. NBO Global ran away millions of its clueless and greedy investors’ money.

By Jane Lapuz-Cruz – Makati City | It’s been eight long years since I left my last company as an employee working 8 to 12 hours daily. I never turned back and decided to go on my way working at home as an Internet Marketer while maintaining an offline business. I still have contacts with some of my old friends both on-line and offline.

Earlier last month (June 2014), one of our former managers sent me greetings through Facebook private message asking me how I am doing and where I am working. I politely responded telling her that I’ve been self employed since I left the company. She asked for my cell phone number and I thought she will offer me some position in her company – which for sure (in my mind) I would reject.

I received a call from her the following day asking me if I have time on the coming Sunday. I told her I am always available during weekend. She was so excited hearing that I’m free and she then invited me to attend in some kind of business meeting at her house. Hearing her sales pitch, I politely declined and broke her heart for a moment into pieces.

I consider her a former superior and a friend. The moment she contacted me through Facebook, I was delighted knowing that some people still remember me after those long years – but her motive was different. She was prospecting on-line and she failed miserably – at least to me.

As a former member of countless networking programs in Philippines a decade ago, I feel her pain. The feeling of rejection after thinking that you can convince someone is really frustrating. But what can I do? I know better than her and I lost respect for her after knowing that she became a branch manager of a new networking program (NBO Global). I lost respect because despite of having a good salary as a manager in her company, she still wanted to make more money but not in ethical way.

Networking in the Philippines

Every year, there are a dozen or more new networking companies in Philippines created mostly by the same people who closed dozens of networking programs before. Networking programs in Philippines is becoming like on-line HYIP (High Yield Investment Programs), that when a program closes, another one pops out of nowhere with basically a different name, different product name, but with the same owners. The same people who are ready to steal other people’s money. Same products are sold with different labels and packaging manufactured by the same bogus factories – mostly underground laboratories.

Registered Legally but Operating Unethically

Hardcore “power” members always argue that his networking program is legal and is registered with DTI (Department of Trade and Industry) with business license, so it is not a fake or scam business. Yes, it is true. There is no argument that the business is legal but how about its operation? Can you say that the business is operating under business ethics when its older members are cashing out their commissions though registration money paid by new members? Members are blinded by sweet sales pitch and unrealistic promises.

 How About the Products

In real world, any business designed for a long-term operation must consider supply and demand. Even a poultry farmer would not dare to raise 500 heads of chicken if he has no target market or possible buyers. Hardcore members will say that there are real products (mostly untested food supplements) so the business is not just recruiting. Are these products effective? Can a company survive by just promoting its untested, uncertified products to uninterested market? Procter and Gamble survived because it has signature products like Tide, Rejoice, Safeguard. Both, Mcdonalds and Jollibbee have signature burgers, Avon has range of patented products, Colgate-Palmolive has its own, and so many more.

How about this networking company? A bottle of food supplement and a left-over by previously closed networking program has its container and label changed by the same owner? An unknown product being introduced to people who are not looking for such product is destined to fail. Introduce any food product to someone who is hungry and I can promise you a profit. There are millions of Internet users in Philippines but I can’t tell you how many of these people are searching for the keyword “food supplement” on-line as Google can’t even provide the data.

Three Main Reasons Why Networking Companies Offers Nutritional Products Instead of Other Useful Products

Some products are left-over by a previously closed networking company. The same owner doesn’t want to throw away the unsold products and instead re-label and re-pack the products.

Food supplements, unlike other food products are easy to manufacture. Other food products like frozen foods, canned foods, and other packed foods need thorough evaluation by Bureau of Food and Drugs (BFAD) before mass production approval. This is the reason why all food supplements distributed by networking companies have “No Approved Therapeutic Claims” because BFAD does not authorize the manufacturer to provide therapeutic claims as the product is untested. It doesn’t mean the product won’t work. It means the manufacturer is limited to provide medical claims for such product. This is the reason why network marketing companies love to sell untested products as they can always get away from it when a legal problem occurs.

Most networking companies are owned by the same people so why would they waste money in investing new products when there are already available products and raw materials ready to use or sell? One product is designed to be used for multiple networking programs in many years to come.

 Why Network Marketers or Members of MLM Programs are so Aggressive in Recruiting Other People

This business where the seller talks a lot more than the buyer has been patterned and adapted through generations. Greed is not the main reason but motivation. A new member is highly influenced by his mentor and wanted to follow his mentor’s convincing ability.

Network marketing companies are extremely good in selling dreams; even their family is suffering hunger at home. I remember a friend who was a branch secretary of one of networking companies told me the following. “Kala mo kung sino silang magagaling magsalita sa mga newly recruits. Kala mo daan libo ang kinikita pero pag-alis nong mga newly recruits sa akin pa sila manghihingi ng kape”.

My friend was not a member of networking program per see but a company’s secretary.

Look for people who are extremely motivated and you’ll find them in networking companies. It’s just sad to hear that their drive and motivation could be wasted at any given time.

Promises were broken. Those people who were too aggressive defending the program are the same people who are now complaining because of their loses after the scam NBO Global disappeared.

Majority of NBO Global victims are in South Luzon particularly in CALABARZON area. Similar program is now circulating in Bicol Region and is suspected that the same people who operated NBO Global are behind this program.

There are other better ways and low-risk to make money. People are losing more because of ignorance and greed.

Emgoldex will be the next big thing…..

 

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