Multi-level marketing, or MLM, companies have long been controversial. Supporters argue they provide opportunities for entrepreneurs and side incomes.
Critics counter that the vast majority of participants lose money and the real winners are those at the top of the pyramid scheme. One MLM company and its CEO, Jeanette Aw, have come under increased scrutiny in recent years amid accusations of deceptive business practices and unrealistic income promises.
In this article, we’ll look at the facts surrounding Jeanette Aw and her company to help you make an informed decision. Let’s get started.
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What is Jeanette Aw’s Company?
Jeanette Aw is the CEO and founder of JEAN-iUS, a Singapore-based multi-level marketing company that sells skincare, makeup, and wellness products.
Looking at it, JEAN-iUS markets itself as providing a flexible business opportunity for women to be their own boss and build an independent income through direct sales and recruiting others into the business opportunity.
However, digging deeper raises some troubling questions about whether JEAN-iUS is truly offering a legitimate business model or functioning more like an illegal pyramid scheme.
The company’s compensation plan heavily emphasizes recruiting new distributors or “Brand Partners” over actual product sales. It also promises aspirational lifestyle rewards like luxury cars, exotic travel, and lavish homes that experts say are unrealistic for the vast majority of participants.
Jeanette Aw Scam Allegations
Accusations of a Pyramid Scheme
One of the biggest criticisms leveled against JEAN-iUS is that its pay structure and business model more closely resemble an illegal pyramid scheme rather than a true direct selling company.
According to the U.S. Federal Trade Commission, the hallmarks of an illegal pyramid scheme include: Participants receive compensation based primarily on recruiting new participants rather than actual product sales.
There is little emphasis on or incentive to sell products to actual customers outside the scheme. The promise of huge incomes is unrealistic for most, benefiting those at the top of the pyramid the most.
Many people argue that JEAN-iUS checks all of these boxes through its overly complex multi-tiered compensation plan and glamorized income claims. Let’s examine each accusation:
Recruitment Focused Compensation
The lion’s share of possible earnings from JEAN-iUS come not from retail sales commissions but from bonuses tied to recruiting new distributors into one’s “downline” organization. These bonuses can far exceed any money made selling products.
For example, a top “Director” bonus requires personally recruiting at least 50 people along with having 1,000 combined people in one’s wider organization. Other bonuses and perks are also tied to recruitment targets rather than product sales metrics. This emphasis on recruitment over retail is considered a hallmark of a pyramid scheme.
Little Emphasis on Product Sales
While Jeanette Aw publicly claims product sales are important, insiders report there is far more focus placed on networking events, recruitment training sessions, and motivational talks about climbing the JEAN-iUS ranks.
Actual product sales and understanding the skincare industry seem secondary priorities. This dynamic is problematic, as multi-level marketing is only permitted when product sales, not recruitment of others, are the primary transaction and source of compensation.
Unrealistic Income Promises
Jeanette Aw and high-level JEAN-iUS distributors regularly flaunt lavish lifestyles implying most participants can achieve similar success. However, independent research has found:
On average, over 90% of MLM participants lose money when startup and monthly costs are subtracted from any earnings. Less than 1% of MLM participants globally ever achieve “Director” status or above.
Given JEAN-iUS’ complex compensation structure and requirements, the odds of actually attaining a six-figure or higher income are minuscule. Yet, these unrealistic dreams of easy wealth are sold to lure more recruits.
So in summary, JEAN-iUS’ unusual business model and compensation structure aligns with the typical red flags of an illegal recruiting or pyramid scheme according to industry experts and regulators. Let’s explore further evidence supporting this conclusion.
The Product-Push Resistance
In pyramid schemes, the myth of easy money through recruitment normally supersedes the actual business of product sales. Reportedly, this dynamic has caused tension within JEAN-iUS as well.
Sources indicate that previously, some JEAN-iUS distributors attempted to shift more emphasis to selling cosmetics by holding in-person skincare classes and workshops. However, these initiatives were actively discouraged by Jeanette Aw and other top leaders who wanted recruitment activities prioritized instead.
This resistance to actual product selling demonstrates how recruitment lies at the heart of JEAN-iUS rather than retail transactions – a defining trait of a pyramid scheme. Regardless of the company’s claims, the reality appears to make participation financially risky.
Lack of Transparency
Adding to concerns, JEAN-iUS refuses to disclose basic information like the number of active distributors, average incomes, or sales figures. Jeanette Aw also does not hold formal interviews or allow independent reviews of the company’s operations.
This lack of transparency is unusual for a legitimate direct selling opportunity and prevents any third-party analysis of whether recruitment or product sales are the true priority. The unwillingness to open their books strengthens critics’ assertions JEAN-iUS may be disguising an illegal scheme.
Regulatory Crackdowns
Based on complaints and the evidence presented, some countries have opted to take action against JEAN-iUS. Most notably:
In 2020, Malaysian authorities banned JEAN-iUS, calling it an illegal pyramid scheme that preyed on vulnerable citizens during the pandemic’s economic downturn.
That same year, authorities in Thailand issued a stern warning to JEAN-iUS for operating without proper direct selling licenses and warned citizens not to join due to the high risk of financial losses.
The Philippines similarly warned its residents against JEAN-iUS, noting most participants end up spending more money than they earn.
While not conclusive proof of wrongdoing, these regulatory crackdowns from multiple governments certainly raise red flags about JEAN-iUS’ legitimacy and treatment of participants. Legitimate direct selling is legal, but pyramid schemes are not.
Putting Participants First
Ultimately, while MLMs argue they empower people, experts counter they mainly benefit those at the top of the pyramid and exploit recruits. Responsible companies prioritize customers and make typical earnings transparent so recruits know the realistic costs and chances of success before signing up.
JEAN-iUS does not appear to practice these principles of ethical multi-level marketing. Between its emphasis on recruitment goals over products sales, unrealistic income promises, lack of transparency, and regulatory issues internationally – there is a concerning pattern that warrants caution about joining this opportunity.
Is Jeanette Aw Scam or Legit?
After carefully reviewing JEAN-iUS, CEO Jeanette Aw’s background, and related controversies – there are reasonable arguments this company functions more like an illegal pyramid scheme than a legitimate direct selling opportunity:
Compensation overwhelmingly comes from recruitment rather than retail transactions. Little institutional focus is placed on actual product sales or teaching a viable skincare business model. The promise of exotic luxury lifestyles through participation is unrealistic for most and preys on aspirational dreams.
Transparency around typical earnings, number of distributors and other key metrics is suspiciously lacking. Regulatory crackdowns internationally suggest criminal operations exploiting citizens during difficult economic times. Participants report pressure to prioritize recruiting over sensible product-based sales.
Of course, these analyses should not be taken as conclusive fact. Only law enforcement investigations could determine JEAN-iUS’ true nature. However, as potential recruits, it is advisable to be wary of opportunities posing substantial financial risks or legal issues regardless of any claims of empowerment.
When evaluating multi-level marketing firms, focus on those transparently centered around viable product sales, realistic average earnings, prioritizing customers over recruitment goals, and avoiding predatory promises. Participant protections should take precedence over pyramid-like recruiting structures benefiting those at the very top.
In the troubling case of Jeanette Aw and JEAN-iUS, available information points more towards illegal pyramid scheme than legitimate direct sales business. Prospective Brand Partners would be best avoiding this opportunity until regulators fully clear the air. Your money is likely better spent or invested elsewhere with clearer paths to reasonable returns.
