Speak Asia Online projects 10 million members by 2012
When I first reviewed the Speak Asia Online business opportunity back in March, it was hard to escape the fact that, without recruiting, Speak Asia members were only able to make a maximum of $20 a week signing up as a Premium Panelist.
With a joining fee of $220 and interview + test fee of $60, this means that you’re looking at 14 weeks (over 3 months) just to recoup your initial investment in the company.
If we factor in recruitment however, Speak Asia not only pays a recurring weekly commission tied into how many new members you bring in, but also handsomely rewards members for the daily amount of new members recruited.
Recently, at in-house Speak Asia conference ‘GenX Bazaar 2011’, Speak Asia made a public projection on their membership numbers and expected growth. Speak Asia Chief Marketing Officer Vivek Gautam stated that ‘by December, we wants (sic) to take have 10 million panelists on board‘.
Currently Speak Asia claim to have 1.5 million members and as of May 10th, has been in business for one year. With December 2011 just seven months away, Speak Asia have now set themselves up for the monumental task of expanding their current membership by over 650%.
Hard enough to do with a traditional business model, but what about Speak Asia’s massively recruitment dependent compensation plan?
Well for starters, those current 1.5 million members would have to directly recruit an additional 8.5 million members. In turn if these new members wanted to generate a high enough residual commission to live off, they too need to go out and recruit.
At $1 a week per standard panelist and $3 for a premium panelist, this means at 10 million members, even with India’s large population things are going to come undone somewhere. Note that this residual commission is only paid on active members and nobody is going to remain active if they can’t find people to sign up under them.
With daily recruitment quotas required to participate in Speak Asia’s team bonuses (where the real money is) at 2 people for Team Bonus 1 (which would pay out $20 USD) and for Team Bonus 2 at least 8 Standard Panelists or 4 Premium Panelists per organisation, which is you and anyone in your downline), it’s easy to see how the numbers just don’t add up.
At 10 million members, participation in Speak Asia’s first team bonus alone would see membership numbers double. And even if only half of their members participated that’s still an extra 5 million people per day feeding the Speak Asia machine.
For Team Bonus 2 it gets even more ridiculous as doubling the current membership number daily is just the benchmark minimum. With four Premium panelists required to earn any money off the bonus, somewhere in the company binary organisation a minimum of four new members are going to be recruited daily.
Great if you’re sitting at the top of the binary plan but if you’re new, you’ve got no option but to get out there and recruit. With ten million panelists in the company, that’s one hell of a deep and wide binary organisation.
Given the numbers, I find it highly suspect that Speak Asia is going to be able to increase their membership by 650% over the next seven months. I mean longterm it’s just not sustainable. Even with the entire 1.15 billion population of India working for Speak Asia, what next?
By my calculations if everyone remained active within the company it’d then only take less than five days for them to exhaust the entire population of Earth.
No doubt that won’t stop them trying though.
The problem here is the so-called business model makes no sense for the participants. There is no product other than themselves (and their opinions). They are PAYING to sell themselves, which makes no sense.
By American FTC regulations, this is a pyramid scheme, because MOST of the income for the participants is derived from recruiting. The same should also hold true for European Union laws. In fact, one wonders if this can be legal under Singaporean law as well.
But individual nations are slow to move against pyramid schemes. Charles Ponzi’s scheme started in 1918 and MAY have been legitimate in the beginning. When it unraveled in 1920 it was a scam. In a similar fashion, Business in Motion, a Canadian scheme, had criminal fraud charges brought against them by the RCMP for Ponzi/Pyramid fraud (incidentally, they are very much like TVI Express), despite a TV Expose done on them in 2009.
If SpeakAsia mainly recruits in India and NOT inside its native country of Singapore, it makes lawsuits difficult (much like TVI Express incorporation in UK, then in Cyprus, and finally, India) by people on other continents and countries. And why would Singaporean police worry about victims in other countries?
The modern generation of Ponzi schemes and pyramid schemes cross national borders to defy law enforcement efforts due to lack of coordination, until the news force police to act, and by then thousands, perhaps tens of thousands of victims have lost their money.
You can even calculate the number of victims. TVI Express recently claim to have over 100 “presidential” associates. To become presidential, you need to cycle through the express board at least 10 times. How many people do you think that takes? Hmmm?
SpeakAsia apologizes to members for misleading them about prestigious clients, according to newspaper in India, via CorporateFraudsWatch blog
Apparently authorities raided SpeakAsia offices for tax fraud (news via CorporateFraudsWatch blog)
Slight correction… TVI Express now claims 600, not 100 Presidential associates.
Seems to have been a bit of a flurry over Speak Asia in the last 48 hours following that ‘Headlines Today’ media report. Thanks for bringing it to my attention.
DOES ALL NEWS CHANNEL TAKES YOU ALL TO THE RIGHT WAY, SEE SPEAK ASIA IS LAUNCHING ITS TV CHANNEL IN AUGUST 2011 AND COMING IN INSURANCE SECTOR, TELECOMMUNICATION, HOUSING SOCIETY SOON. WE ALL PROUD TO BE SPEAKASIANS
Right, and TVI Express is buying an airline, and a resort, and a hotel… and open an office in China and Hong Kong…
What is a “market research” company going to do with a TV channel any way? Show infomercials all day and ask you members to rate the infomercial? Mua-ha-ha-ha-ha.
You should change your name to pundit, pundir.
I’m going to leave the above quote as amusing proof that the claim was made come August.
The idea that a MLM company can just launch their own tv channel (assuming umesh is not just talking about a Youtube channel or some such) is hilarious.
why do you care whether speakasia recruits one member or a billion.who cares whether you believe speakasia can achieve its targets or not .Are you a panelist[secretly].
Whether I invest money with Rupert Murdoch’s companies or whether I choose speakasia is entirely my business.out of twenty lac panelists you got hold of two guys put them up as complainants and on the basis of their complaints you want to pull down a whole company. I am sure there are many companies in india who have cases of fraud filed against them by a few disgruntled consumers .what are you doing to shut those companies down.
i think people are getting spooked by the idea of a community of at least 5 million [hopefully in one year] which will purchase together and probably vote together.if speakasia can provide LED Tv’s for half the cost who’s going to buy the other brands. Of course I’m not talking about you highly educated full of yourselves guys I’m talking of a middle class indian[know him?]
If you can throw the rule book at speakasia do it. if not get out of the way because theres a stampede of 2 million feet heading your way. If there is a particular part of speakasias business model which is giving your delicate selves sleepless nights then the enforce ment directorate or whoever can ask the company to remodel that particular aspect.but to want to dismantle a brilliant idea of having a humunguos united consumer base which can do some very tough negotiating whether it comes to buying TV’s or insurance products or vehicles or travel packages is an act of complete stupidity.
even stupider than the illiterates who have joined speakasia.Who has done this before in india?anna hazare gets 5000 people to attend a meeting and the govt gets tied up in knots.
are you aware that the meetings of speakasia in delhi and mumbai attracted between 7000 -8000 people each?Hey lets be friends give this a chance dont try to poison our baby before it’s even out of the womb.promise, we’ll let you play too.
@anju — what’s the population of India again? Let’s see… 1.15 BILLION or so. 2 million members is what? 2%? That doesn’t even qualify you as a political party. What it *does* qualify you folks as… a CULT (of money).
You Indians can’t even spot a “money circulation” scheme when one hits you in the forehead. You just keep getting sucked in by promises. First it’s survey company, then it’s panel company, then it’s e-zine publication company. Now it’s “consumer company” selling TV’s and whatnot. It is as if you folks ENJOY being lied to time and time again. Are you guys that desperate?
There is a saying:
“Fool me once, shame on you. Fool me twice, shame on me !”
You guys are at the third or fourth time. You guys are proof positive that pyramid schemes needs to be killed ASAP before it turns into a cult that will destabilize governments.
Because if they recruit a billion, each of those billion need to go out and recruit at least one person to earn an income. 1 billion becomes 2 billion overnight… see where this going?
This is ultimately why pyramid schemes such as Speak Asia’s business model are illegal.
Not if Speak Asia are operating with a pyramid scheme business model (which they are).
Incorrect. An investigation was launched as a result of complaints (you’ll find there’s a lot of them to be found in pyramid schemes) and subsequently arrests were made. The arrests were made directly as a result of investigations into Speak Asia’s business model, and indirectly (not directly as you claim) by complaints made against the company.
If you’ve got any other MLM companies clearly operating on a pyramid scheme model I’m all years. I’ve already had a go at AdMatrix for operating on a recruitment driven business model too. Next move is up to your government to shut them down too.
No, I’m pretty sure nobody cares about that. It’s the gaping obvious illegalities in Speak Asia’s business model that are at the root of their problems.
I’m pretty sure that’s what’s happening at the moment. Where have you been?
Considering the business model in question is the primary source of income for Speak Asia’s panelists and is at the heart of the compensation plan, that would mean essentially shutting down Speak Asia in it’s current form.
How many of those two million members would stick with Speak Asia without a large return promise for recruiting others to the business?
Pyramid schemes? I’m sure somebody’s done it before in India… and I’m also sure that sadly Speak Asia won’t be the last.
Not a chance. The sooner the Speak Asia pyramid scheme is aborted, the better.
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