Buzz about a new network marketing business is going around lately and consequently, a handful of my readers are already asking me if this MLM business has potential or just another scam.
That’s why I took some time to study the program and do a review.
Below now is an explanation of how all these works. I’ve also included some personal thoughts and an unbiased opinion of the program.
I hope this article will help clarify some of your questions regarding this new network marketing business.
To start, the business is called, “Load Mo Sarili Mo” or simply LMSM. The company office is based in Quezon City and they are working in partnership with Smart Communications and Muenchen Inc., a Smart Key Account. Visit the official Load Mo Sarili Mo website here.
Note: This business is NOT a product of Smart Communications, that’s why you won’t see information about it on their website (from the last time I checked). They are merely the product provider – a partner.
How does the Load Mo Sarili Mo work?
Everything starts from becoming a member of the network. There are five different types of membership packages (Regular, Bronze, Silver, Gold, OFW) with it’s own free items and commission rates.
Assuming you bought the Regular package (cost: P199) – your commission rate will be 0.5% per level. This means that if one of your down lines buy a Load Fund of P250, then you will earn P1.25 (P250 x 0.005). This income will go to your personal Load Fund.
What is a Load Fund?
If you’re a Smart eLoad Retailer, this is similar to the Load Wallet. It’s like a virtual savings bank account where your money is stored or kept. It’s important to remember that the money here has no expiration.
Furthermore, the Load Fund can be converted to Smart airtime load (the regular cellphone load which expires) OR it can be converted to cash (via Smart Money, bank deposits by the LMSM company and several other methods).
So far so good?
Okay, aside from the commission earnings, you also earn from recruiting members to your network. There are different schemes for this; also depending on the type of membership you were able to sell.
For example, if you were able to recruit someone to become a Bronze member (cost: P499), then you will earn P200. Again, that income will go directly to your Load Fund.
At this point, I am assuming that you’ve understood everything so far. If not, then please read what I’ve written above again.
So you’re now a member, what’s next? Well, you basically have two tasks:
- Recruit members to your down line. This is a unilevel marketing system, which means all your recruits are in your front line. And you can earn commissions up until the fifth level.
- Remember to buy Load Fund monthly. Yes, you have a recurring monthly cost. For Regular members, you are required to put P250 monthly to your Load Fund or else you won’t get your commissions for the month.
It’s important to know that the Load Fund you will receive from recruiting new members will already count towards your monthly Load Fund quota. This means you have to either buy a Load Fund, or recruit new members – if you want to get your commissions.
So why is this called Load Mo Sarili Mo?
Because now, instead of buying eLoad from retail stores, you can now convert your personal Load Fund to Smart airtime load on your own Smart Prepaid SIM.
And that’s basically how the LMSM network marketing business works. Below is a Powerpoint Presentation of the Business Orientation Seminar. Thanks to Ka Edong for uploading this on Slideshare.
NOW HERE’S WHAT I THINK ABOUT THIS BUSINESS
I’ve been doing the Math and it seems that this is a sustainable business model. A Smart eLoad Retailer earns around 13% from selling prepaid credits, the rest goes to Smart Communications as their gross profit.
Under LMSM, only a maximum of 9% goes to the commission of the members. Working under the 13% retailer’s profit margin of Smart – then, it’s safe to assume that the other 4% goes to the LMSM company as gross income. This amount is what will help them sustain their business.
Possible problems for the members with respect to the company:
First, the stability of the LMSM database in handling the volume of members and their commissions. There are around 40M Smart subscribers, even if only 1% of that population joins this business, can their servers handle transactions from 400,000 people?
Second, there might be problems with converting the Load Fund into cash – on a technical level (software and network problems) and administrative level (company personnel is slow in processing payments).
And third, the company could ultimately decide to close down – for whatever reason. It may not be in the near future, but still, you can never really tell.
Should you join Load Mo Sarili Mo?
I will not answer this question for you. However, I will point you to an article of mine which hopefully, will guide you to the right answer:
Lastly, I’d like to call those who have signed up as members of Load Mo Sarili Mo to please share their experiences with the business below so that others can learn more about LMSM.
Also, if you see any incorrect information or data from my article, then please leave a comment so that I may correct it.
However, please be reminded that the comments section will be moderated and I will not tolerate any comments whose sole purpose is to recruit my readers to become their down line. I hope this is clear. Thank you.
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