The MLM Model for GlobalPinoyInvitesYouToJoin.com

Background

Like India, Pakistan, Indonesia and Bangladesh, the Philippines is a major exporter of contract workers. Current estimates put the total number of Filipino immigrants, expats, and overseas contract workers at 12 million worldwide. There is a widely-held opinion that employers favor Filipinos over other nationals in the international labor market for sea transport, service and hospitality (domestic help, caregiver, etc.) industries. Highly-skilled workers and professionals (engineers, nurses, IT, among others) are in great demand (especially in highly-developed countries).

About 10 percent of the Philippines’ gross domestic product (GDP), valued at around 12 to 16 billion dollars annually, comes from remittances sent from abroad by overseas workers. A large part of the remittances comes from North American, European and Middle East countries.

Opportunity

Due to the vital role they play in matching labor supply with foreign employers, recruitment agencies have grown financially and multiplied in number over the years.

GlobalPinoyInvitesYouToJoin.com can take the role of a recruitment agency using the digital platform. Like JVZoo and Clickbank, among many others, GlobalPinoyInvitesYouToJoin.com shall maintain a roster of buyers, sellers and affiliates. Buyers shall consist of employers (individuals or firms) and sellers (can be currently employed or applying for employment) shall consist of workers.

How It Works

The directory (roster) of buyers and sellers, which shall be accessible to all website users, can look similar to the amazon.com catalog, with descriptions, reviews and star ratings. Buyers can shop for sellers, and sellers can offer themselves to buyers, at the member’s area of the website.

Recruitment of members (buyers and sellers) shall approximate the multi-level marketing (MLM) approach. Members shall have an option to become a GlobalPinoyInvitesYouToJoin.com affiliate. But a non-member cannot be an affiliate. Affiliates can earn passive income from referral commissions and overrides from a global fund. The global fund shall likewise be the source of referral commissions.

The amount of commission for each referral shall be proportional to the amount being contributed to the global fund, and shall be computed based on what an average recruitment agency would charge both employer and contract worker for facilitating the consummation of the contract. It can be a portion of the salary, charged equally from the employer and contract worker.

The bonus overrides shall be based on the number of referrals an affiliate brings to GlobalPinoyInvitesYouToJoin.com.

The platform is expected to be more complicated than what most MLM softwares provide.

Aside from the payment gateways for the commissions and bonuses, there maybe a need to maintain a wallet: For employers, to pay salaries; for contract workers, to receive salaries; and for affiliates, to receive commissions. This may require APIs from at most two banks (one has extensive branches worldwide, for easy access by employers, the other has extensive branches in the Philippines, for easy access by contract workers and their families) that will be used to securely manage the wallets. (Offhand, ideal partners would be Citi and BPI.)

For payment of salaries, employers shall be charged the equivalent amount of two months salaries at any given time, to be credited to his/her/its wallet. The wallet shall release the milestoned amount when payment of salaries becomes due (Freelancer.com model). GlobalPinoyInvitesYouToJoin.com shall initiate this release even without prompting from either employer or worker.

For disputes on payments, GlobalPinoyInvitesYouToJoin.com shall maintain a Resolution Center (Paypal.com model).

GlobalPinoyInvitesYouToJoin.com shall ensure that each employment contract is binding to all parties, including the Philippine and host government’s regulatory agencies.

In addition, GlobalPinoyInvitesYouToJoin.com shall be responsible for documentation to ensure that every deployment shall be compliant with migration, labor, and tax regulations in the Philippines and host countries.

Expenditures and Revenues for website owner/administrator

GlobalPinoyInvitesYouToJoin.com shall incur costs in the same manner and in amounts similar to what recruitment agencies spend for their operations. In like manner, GlobalPinoyInvitesYouToJoin.com shall earn revenues the way an average recruitment agency earns from its regular operations.

However, there are differences with standard recruitment agencies that can impact on the cost-income structure of GlobalPinoyInvitesYouToJoin.com. Differences with conventional recruitment agencies insofar as operations are concerned would include–

  • Easy access to the registration process by prospective members (physical presence would not be needed);
  • Additional incentives for members to refer prospective members; financial program (through the MLM structure) that would enable contract workers to continue to earn monthlyincomes even if he/she has completed his/her contract or has retired (and that incomes should be in amounts that can substitute for his/her salaries, and significantly bigger than what he/she can get from insurance/social security system benefits; and
  • Partnership with financial institutions (eg banks) and government regulatory agencies.

What’s in it for users/members

As mentioned above, member-affiliates who refer other members to the website can earn commissions. The MLM structure shall enable members (particularly the contract workers) to earn incomes even if their contracts have ended or if they have retired because part of their commissions can be re-invested to pay for their monthly membership dues.

All members will continue to have incentives to recruit members as this will boost their commissions. A question can be asked: Can a contract worker be a member even if his/her employer is not a member? The answer is yes. He/she just needs to comply with the membership terms like anyone else, such as payment of membership fees. However, GlobalPinoyInvitesYouToJoin.com will not be responsible for payment of his/her salaries.

Additional benefits include ease of use (internet-based), security (both employers and contract workers have access to buffer allocations from the global fund for possible breach of contract), and global reach.

Compensation Plan

The initial plan is to peg the monthly membership fee at a fixed price, say 7 percent of the monthly salary of the lowest-paid contract worker. Assuming a domestic helper earns the equivalent of US$400/month, 7 percent of this amount (US$28) shall be deducted from his/her wallet every month. All members shall be charged their monthly membership dues through this process. Contract workers whose employer/s are not members shall be individually responsible for funding their wallets for this purpose.

GlobalPinoyInvitesYouToJoin.com envisions a 2×11 membership forced matrix. The website administrator shall have authority (to be provided for in the terms of service) to assign/re-assign spots of members in a matrix, and/or create a new matrix.

Website revenues shall be derived from commissions earned being at the top-most position in a matrix or matrices. These revenues shall constitute the program global fund which shall support at least 3 functions: operations, override bonuses, and buffer fund for damages/compensation/ contingent claims resulting from breach of contract or any unforeseen expenses.

What is left of the global fund after payment for operational costs, overrides, and contingent liabilities shall be considered as surplus or profit.

Organizational set up

GlobalPinoyInvitesYouToJoin.com can be operated as a sole proprietorship. For synergy, however, the owner/administrator can be better represented by a corporation, and its incorporators may tentatively include the following:

  1. Hermilando “Ingming” Aberia – Founder/Developer
  2. Cyril Ramos, CPA – Compliance Consultant (currently Deputy Ombudsman for the Military, Philippines)
  3. Vida Caparas, PhD – Personal Development Consultant (currently Professor at the University of Sto. Tomas, Philippines)
  4. Uriel Norman Garibay – Immigration Consultant (currently Philippine Ambassador to Kenya)
  5. Lutgardo “Lutz” Barbo – Legal Counsel/Board Secretary (currently Secretary of the Philippine Senate)
  6. Roy Lacsamana – International Finance Consultant
  7. Infinite Open Source Solutions LLP- IT Consultant
  8. Irene Jonson – Treasury Operations Consultant (currently Chief of DMAD, Philippine Bureau of the Treasury)
  9. Luis “Chavit” Singson – Business Development Consultant

Organizational set up for management and staff can be elaborated on later.

Replicability

This program has potential for replication in India, Pakistan, Indonesia and Bangladesh, among other countries.


This is a copyrighted material by Hermilando D. Aberia 2017

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