In today’s market, having a good product is not enough. Products are usually backed up with appropriate networking and marketing efforts to drive sales. One could perhaps safely assume that the need to back up products with extra marketing efforts signaled the birth of Multi-Level Marketing (MLM).
Today, the MLM space is being saturated with dodgy companies and pyramid/Ponzi schemes alike posing as real investment opportunities. Most of these scam schemes plot to rake in wealth for their owners at the expense of many investors.
The Norland Group stands out in the MLM space. It has an interesting history, and to many, it looks like a feasible investment option. Its offerings are well packaged too.
Norland Nigeria, an offshoot of The Norland Group, is an MLM company operating in the health-medicine niche market. It was officially launched in Nigeria in 2017. Norland Industrial Group, founded in 2008, is a ” large scale transnational industrial group which covers health, medical cosmetology, direct selling and e-commerce” and “has taken a lead in the health detoxification field.” It also claims to be spread ” over 48 countries and 4 continents, including Africa”
Heading up Norland is Dr Kelvin Zheng, and Mr Johnny Chen as Vice President. The corporate history of these men is unclear as there is no information about them on Norland’s website. The little information about these men could be gotten from the company Facebook page and other marketing materials on other platforms.
The first reason a prospective investor should have to doubt Norland is in the number of bonuses it gives to investors. Investors would enjoy fast start bonus( paid when members join an investor’s network tree), group performance bonus( paid based on an investors team performance), leadership bonus, and maintenance bonus. Investorgs also enjoy international trips, car incentives, house incentives, and medical scholarships. Apart from the fact that these incentives seem too good to be true, one smells foul play. Why would a company want to give this much to investors?
The investment world is characterised by fluctuations and volatility. That is not the case with Norland. The Returns on investment promised by is too guaranteed to be true. The nature of Norland’s returns does not reflect the volatile nature of true investment.
Notland Nigeria market a range of ” magical Chinese” health and beauty products it wants investors to help retail. Norland boasts that it products could cure a myriad of diseases, and that these products have been authorized by the appropriate bodies. However, Norland provides no proof of authorization on any platform it is marketing on.
Also, it is worrisome that in its 12 years of existence, Norland cannot show any scientific research that has been carried out on its products. There is absolutely no peer reviewed research that can authenticate the claims of Norland about its products.
The structure of Norland Nigeria gives it off as a pyramid scheme. Norland runs on a binary compensation plan that places an investor atop a binary team of investors down an infinite number of levels. With this structure, Norland shuffles funds amongst investors to create a semblance of earnings amongst investor. That is, it takes money from newly recruited investors and shuffles it amongst existing investors.
The implications is that when new recruitment stalls, Norland is likely to crumble. It is commonsensical to steer clear of businesses that depend on new investors to survive.
Also, Norland incentivizes sales and affiliate recruitment extremely. It is also grounded on the pay to play model. Its five entry packages( senior, bronze, silver, gold, diamond) gives it off. A member has to move up the package ranks to earn more. An investor also have to recruit a minimum of two people. The higher your entry package and the number of referrals you have, the higher your chances of earning more. This is typical of Ponzi schemes.
Norland might seem like a true investment opportunity but the red flags cannot be overlooked. Investors had better tread with caution.