NBO Global NRZ, Inc., as its name implies, is a registered corporation. So, as an entity it is legit.
But is it doing business the legitimate way?
The answer is no.
There is more than one way to determine if a networking company is legitimate or not. I have pointed some here – and we can use those yardsticks or we can also use the guidelines issued by the Direct Selling Association of the Philippines (DSAP).
The DSAP issued an 8-Point Test which can be used by consumers like us in determining whether or not a direct selling company is legitimate or not (pyramiding scam). This 8-point test is more relevant in the case of NBO Global because it claims to be a direct selling company.
So let’s analyze NBO Global’s business using DSAP’s 8-Point Test. Remember, a “No” answer to even just one of the 8-Point Test is already enough to warrant a conclusion that a company is a scam.
1. Is there a product?
It would seem at first that the answer to this questions is “Yes”. In fact, NBO’s website has provided some of their products, which are: NBO Moringa Leaves Extract, NBO Guyabano Extract, NBO Sambong Extract, and NBO Turmeric Extract, and some other products not displayed on their website but are displayed on their FB pages.
The problem with these products is that they’re not even proven to be safe for consumption. In order to have a legitimate product, NBO should legitimize their products. If you take a look at the images of their products below, it even looks like the labeling was just photoshopped:
Further, what are these Gold Mountain products? Are these products manufactured by NBO? Does NBO manufacture its own products? Or are they just resellers or wholesalers of these products? If so, do they have the right to re-label? It would even seem that they are just repacking these products they claim to be theirs. If you notice, any legit product out there would indicate on their label the place where they were manufactured as well as the address of the manufacturer. In the case of NBO, no such information can be found on their product labels – a clear indication that they are just magically getting these products from somewhere and then re-label them as NBO products.
At any rate, no matter what rights NBO has over these products, these products should be approved by the BFAD (Bureau of Food and Drugs) before they can be marketed. How can these NBO products compete with other BFAD approved products? How can people trust these products? How can NBO members market these products if these products are not quality tested by the appropriate government agencies? Without any legitimizing measures being undertaken by NBO Global, it would seem that they have no legitimate products at all and the products listed on their website is just a front or a smokescreen to hide their real business focus, which is recruitment of members.
Recently also, NBO is claiming itself to be a “paluwagan”. So now they are claiming you do not need to recruit or sell anything to earn. See image below:
The issue here is that, they registered as a corporation and not as a cooperative. So how in the world can they claim to be a paluwagan? And if you ask them how their business works, they will tell you to send them a private message so that they can explain it to you. There’s no transparency at all. But to tell you frankly, any “business” out there which tells you to PM them first before they can tell you the details is downright dubious – so don’t join them!
Anyway, if they are a paluwagan, how will you earn? We all know how a paluwagan works. NBO labeling itself as a paluwagan is just a poor attempt to detach itself from the fact that it is fastly being recognized as a pyramid scam.
2. Are commissions paid on sale of products and not on registration/entry fees?
No. Although it does say on their website that you can earn commissions by direct selling:
…this is just a mere smokescreen because NBO’s real business focus is on recruitment. As discussed above, they have no legitimate product. The products they have are not proven to be safe for consumption. That being, they have no market – because who will be brave enough to consume products that are not BFAD approved. Recruitment is the real business of NBO and they earn primarily from the entry fees paid by recruits. Just look at how they promote their compensation plan below:
From the above, it shows that you earn every time there’s a new recruit. (But note that you do not get that earnings immediately, as you have to accumulate P4,500.00 first – and, of course you do not get that entire amount because NBO will get its cut. After NBO get its cut, your take home commission is P3,200.00). In sum, the system of earning is dependent upon the number of recruits and not upon the sales of goods.
3. Is there intent to sell a product not a position?
No. There is no intent to sell a product at all. Again, what they are selling is a position or a membership into NBO.
Why is there no intention to sell products?
There is no intention to sell products because in the first place, NBO did not legitimize their product. They have no BFAD accreditation. Their products are not marketable and are not competitive. They are not building on their product brand. On the contrary, they focus on recruitment.
4. Is there no direct correlation between the number of recruits and compensation?
No. There is a direct correlation. This simply means, the more recruits, the more earnings. As can be seen from their graphics above, ideally, you earn P7.50 for every recruit who joins the company. But the sad thing is that, you do not even earn that much for every recruit. Due to the high number of members, every time a new member is recruited, the entry fee paid by that member (after the company gets its cut – allegedly for NBO’s safety net) is divided among those who were recruited earlier. So right now, NBO members are earning below P7.50 per new recruit. They can only provide that P7.50 earnings if members will be aggressive in their recruitment. In short, the number of new recruits must outnumber the current number of active members. Such a business model is very dangerous and unsustainable because it is empirically proven that when it comes to pyramiding, there will always be a finite number of people that you can recruit.
5. If recruitment were to be stopped today, will the participants still make money?
No. Since earning is dependent on recruitment, once recruitment is stopped, earnings will also stop. NBO has no legitimate product so do not expect that unpaid members can recover their losses by selling NBO products.
6. Is there a reasonable product return policy?
No. Such policy does not exist. It is nowhere to be found on their website, nor can it be found on their official FB pages.
7. Do products have fair market value?
No. In fact, most of their products do not have a price tag. But no matter what, these products cannot compete with other brands. Look, as a consumer, people will always have to be conscious of what they are buying specially when it comes to supplements. No one wants to risk his or health by buying products that are not BFAD approved. Besides, as far as supplements are concerned, we always have affordable generic brands sold by reputable outlets. So why would we want these NBO products the safety of which is not even guaranteed?
8. Is there a compelling reason to buy?
No. We’ve been answering this question all along. Again, NBO products are not BFAD approved. Who will buy such products? There are alternative brands out there which are already proven and tested.
Aside from the 8-Point Test above, let’s also take a look at the other dubious aspects of NBO Global.
On the issue of what NBO Global really is
Is it a direct selling company? Is it a paluwagan? Is it an investment company? What business is it supposed to engage in?
Well, we do not exactly know because it has not posted its articles of incorporation. What we do know is that it poses to be a direct selling company and at the same time a paluwagan. A rather odd combination. As a direct selling company, NBO Global is not DSAP accredited, so that makes it even more dubious. As a paluwagan, it is not a legitimate one. Only NBO is labeling itself as a paluwagan but the truth is, it is merely a pyramid scam. Members earn through recruitment and again it is clear from the 8-Point Test above that earning from recruitment is not allowed under the law. For more on this, watch the video below:
On the issue that a lot of politicians and police officers have already joined NBO, so why should we not join? (Hindi naman daw tanga ang mga politicians at mga pulis na ito.)
This is quite similar to the arguments posed by SWA members when I made an article exposing SWA as a scam. But consider this, most of these politicians did not actually invest. They were invited pro bono. They were only invited to join for free so that NBO will have what we may call “star power”. But of course some of these people also invested but only because they know they can earn because they can use their influence in recruiting people. The point is, he who can recruit is the one who earns more. So if I am an influential person, say a cop or a politician, I know that I can earn easily with this type of business because I can use my influence to force other people to invest and be on my downline.
Let’s also not forget that there are a lot of politicians who invested in scams in the past. Just look at First Quadrant. Remember Mike Defensor? Aman Futures and that disgraced ex-mayor of Pagadian. Not all politicians who join a certain company is right. Not all policemen know the law when it comes to pyramiding (watch this). They could be wrong, knowingly or unknowingly – for now let’s give them the benefit of the doubt.
On the issue that NBO produced millionaires or that it is giving out cars
Remember that the structure of businesses like NBO is a pyramid. The higher you are on the pyramid, the more you earn. In fact, for every entry fee paid, NBO gets a significant cut. And who gets to pocket this cut? The founders of course – the person on top of the pyramid. That is why they are the millionaires. That is why they can afford to give out cars or any other promos (which are by the way not DTI registered, did you know that promos need to be DTI registered?). But who gets to win the cars that NBO gives out? Not someone who does not recruit of course! It has to be the most aggressive, most successful recruiter. The car is a reward for bringing in recruits! So if you are someone who is shy on recruiting, don’t expect to be a millionaire. Again, the point is: Recruitment is the main business of NBO (just like that of SWA and UPWARM). And again, earning solely or primarily on recruitment is pyramiding which is absolutely prohibited by Article 53 of the Consumer Act.
On the issue that NBO Global’s compensation plan is defective
You must note that in NBO’s compensation plan, there is no outright or immediate earning. To recapitulate, your account needs to earn P4,500.00 first in order for you to withdraw your cut of P3,200.00. So how does your account earn? Well, first you need to recruit at least two people (Binary) and then you will be eligible for their FasTrack Plan where you will earn P7.50 for every recruit. So for your account to earn P4,500.00, there must at least be 600 new recruits who will join after you. Imagine that? 600 recruits! Note that from the entry fee that is paid, NBO already gets its cut so the remainder is distributed among active members – so what’s happening in reality is that members earn less than P7.50 per new recruit. That means you will need to recruit more in order to earn. Worse, once the P4,500.00 is accumulated on your account, NBO gets another cut and that leaves you with just P3,200.00. After that, you need to pay another entry fee to earn and then go through the same process. So from that P3,200.00, if you wish to re-cycle, deduct another entry fee and what’s left will be your real earning. In the end, the real earnings are gained by the founders of NBO or those on top of the pyramid. Watch this video below which explains other loopholes in the compensation plan of NBO:
There is an ongoing issue with the compensation plan of NBO. It is bound to fail. In fact, if you would look at NBO’s FB pages here and here, you can read the mounting complaints of unpaid members. So if you are thinking of joining NBO, or any other illegal networking out there (like SWA or UPWARM), better think again.
If you are a member of NBO who wants to file a complain, read this.
Again, h’wag magpagoyo sa mga illegal na networking businesses. Tignan po natin ang website ng DSAP para sa mga lehitimong MLM companies. Kung wala sa listahan ng DSAP ang MLM na nagrerecruit sa’yo, malamang scam lang ‘yan. Hindi po masama ang maghanap ng extra income. In fact, recommended po ‘yan. Pero ang sa akin lang, idaan natin sa legal na paraan. Kasi kung sumali ka sa illegal na business, hindi mo namamalayan pero nagiging kasabwat ka sa panloloko. Tandaan, sa pyramiding, ang mga yumayaman lang ay ang mga nauna sa’yo, sila ang mga taong nasa tuktok ng pyramid. Sila ang tunay na kumikita at hindi ikaw! Ang payong ito ay hindi dahil sa negatibo ako o “negatron”. Ako po ay nagmamalasakit lamang.