Frequently
asked questions
Is this a Pyramid Scheme?
This is the most frequently
asked question in South Africa. The answer is: NO, this is NOT a pyramid scheme.
The mother company, StratCorp Ltd operates within the framework of company law
and is also listed on the JSE. You cannot list on the JSE if you are running
an illegal scheme or business.
Furthermore, StratEquity is registered with the Direct Selling Association (DSA)
which ensures that any company carrying the DSA mark is not an illegal Pyramid
scheme.
The difference between Pyramid schemes and Multi Level or Referral or Network
Marketing lies in the following:
Pyramid schemes are illegal scams in which large numbers of people at
the bottom of the pyramid pay money to a few people at the top.
Each new
participant pays for the chance to advance to the top and profit from payments
of others who might join later. Pyramid promoters are masters of group psychology.
At recruiting meetings they create a frenzied, enthusiastic atmosphere where
group pressure and promises of easy money play upon people’s greed and
fear of missing a good deal. Multi-Level marketing, also referred to as Network
Marketing, is a lawful and legitimate business method that effectively uses
a network of independent contractors to sell consumer products.
Warning: there are some pyramid promoters who try to make their
schemes look like multi-level marketing methods by taking on a line of products
and claiming to be in the business of selling them to consumers, although little
or no effort is actually made to market the products. There is also little,
if any, value to the products. Pyramid schemes seek to make money from you (and
quickly!). Multi-Level /Network Marketing companies seek to make money WITH
YOU, as you build your business, and theirs, selling consumer products.
For more in-depth information on pyramid selling and a free copy of the DSA
leaflet: “Pyramid Schemes: Not What They Seem”, write to the DSA
Secretariat at:
Private Bag 34,
Auckland Park, 2006
Or follow the express
web-site link to the World Federation of Direct Selling Associations
(WFDSA): http://www.wfdsa.org/consumers_direct/schemes3.asp
Multilevel, Referral or Network Marketing is one of the fastest growing industries
in the world and generates sales in excess of US$ 80 billion per annum worldwide.
Where else will a person with no formal qualifications and one year of Multi
Level Marketing training be able the match the salary of a heart surgeon in
only three years time? At Chicago University they teach Multi Level Marketing
as a one year graduate course. But, I know it is hard to tell most people who
immediately thinks it is a pyramid other wise. So why not call the Direct Selling
Association yourself and find out.
DSA – 011 726-5300 (Remember, StratEquity is the member of the DSA –
ICI is a division of StratEquity)
What guarantee do we give that a client's contributions are safe with
StratEquity?
To date StratEquity has funded companies with more than R50 million. As part
of a listed group, its Financial Statements are audited annually by Fisher Hoffman
PKF and is published in the public domain. StratEquity has proven its credibility
over more than a four year period, and is a wholly owned subsidiary of a listed
group of companies, which is at all times open to public scrutiny.
Can contributions be deducted from the post bank?
No, only debitable banking accounts.
Can a Minor take part in this business?
This business is so easy anybody can do it. In regards to minors a legal guardian
just need to sign the application form.
Who decides where I invest?
You are the sole decision maker in this regard. However, StratEquity qualifies
companies for you as investment opportunities it offers you, and supply you
with the relevant information regarding these investment opportunities. As a
client you will receive an Offer Document on a new company, whose shares* are
being placed by StratEquity at that time, if you have R300 or more accumulated
in your investment account in the Trust account of StratEquity. If you do not
want your money to be invested in that particular company, you simply inform
us of your decision and your money will remain in the trust account until the
next project becomes available. However, we suggest that our clients invest
in every project we offer, to ensure an adequate spread of investments. REMEMBER
no one knows which of the companies will be the outright WINNERS! The final
choice remains yours.
How much do I have
to invest?
The minimum amount for debit order subscription is R225 per month, which includes
an administration fee and VAT. You are free to choose any investment amount
from the above minimum upwards. Remember, when your accumulated funds are invested,
the investment is made directly into the shares* of the company presented. Other
than the monthly administration fee, there are no other costs involved and StratEquity
does not share in the profit you earn on your investment at all.
The shares that I buy - will it be issued in my own name or in the name of StratEquity?
When you buy shares, it is a transaction between yourself and the company you
buy the shares from. The share certificate will be issued in your own name.
Can I transfer my shares* to my spouse or children?
Yes. Each Public Company has a Share Transfer Secretary. Should you wish to
transfer your shares* without selling them, simply contact the company concerned
who will give you the particulars of their Transfer Secretary. Large corporations
usually do these transfers and competent personnel will assist you.
Is the monthly subscription subject to increase at any time?
On your registration form at ‘STEP 1A’ is a space where you can
choose, if you would like, to increase the monthly subscription portion by 0%,
10% or 15% annually (or any other percentage).
Can I buy additional shares* or increase my debit Order?
You may increase your debit order amount at any time by giving us such instruction
in writing. You may also apply for extra shares* at any time prior to the closing
of the Offer Document of a project, by simply filling out the application form
in the Offer Document or call the StratEquity call centre to arrange for assistance.
Where can I see
the value of my shares*?
Daily, all share* prices of listed companies are published in all the main newspapers.
Half yearly a client profile and statement is posted to you, of your share*
purchases through StratEquity. When companies offered by StratEquity are listed
on a Stock Exchange, the most recent closing prices are shown on your client
profile, as well as the last offer price of any unlisted shares* that you purchased
through us. Share* prices are also regularly updated on our website at: www.stratequity.co.za
When and where can
I sell my shares*?
As soon as the companies in which you own shares* are listed on a Stock Exchange,
you can sell your shares* through any registered Stock Broker on the open market.
Before listing, OTC (Over the Counter) trading can take place, when a private
buyer needs to be found. It is strongly recommended that you always consult
the StratEquity call centre before you accept any offers to sell your shares*.
When I want to sell
my listed shares* - where do I find a stock broker and what process is involved?
You can contact StratEquity who will supply you with a list of Stock Brokers
in your area. The selected Stock Broking Firm will fax or mail you all the necessary
documentation to be completed, to open a trading account with them. When you
wish to sell your shares*, they will assist you in ensuring that your shares*
are in a tradable format. Costs are deducted from the proceeds of the sale.
Proceeds from shares* sold on the stock market are usually deposited within
5 working days into your bank account. If you wish to purchase other listed
shares*, you will first have to deposit adequate funds into your trading account.
What are the risks
involved in shares?
There is an old saying that nothing in life is without risk – It is how
you manage the risk that is important. If, for instance, you deposit your money
into a savings account on a monthly basis, there is a very low risk of losing
your money. Furthermore, the return you will get in most cases is probably between
2% and 6% per annum. In other cases more interest will be paid on larger amounts
on deposits that are invested for longer periods. By investing in shares*, the
risk is obviously higher, but so are the returns. It is highly unlikely that
if you apply the Wealth Creator Subscription Plan principle of investing in
a number of companies, that you would lose your investment. Remember that some
companies will be huge successes, others will do moderately well and a few will
fail. Your average return, by investing in all the opportunities StratEquity
offers you, should still be better than any other investment instrument on the
market.
If StratEquity were to cease operations, what happens to Members’ money
held in the Trust Account and Shares?
The money:
The accumulated investment funds remain the property of the clients. Should
StratEquity cease operations, the balance of these funds will be paid out to
each client.
The Shares: Share Certificates are registered in your name and will be in your
possession. You do not hold shares in StratEquity, but in the different companies
which StratEquity offered. There is no link between StratEquity and these companies
other than already explained.
What happens to my 5th level’s down-line and their recruits etc? Who gets
the proceeds and benefits from their efforts?
Your 1st to 5th level recruits will benefit from the 6th level. You only benefit
up to your 5th level – and so does everybody else.
If my business can only go to five levels, how does it grow further?
Although you can only benefit from 5 levels ‘down’, each one of
your levels (one to four) continues to grow and you continue to benefit from
them. You only need to keep recruiting more people into your first level.
Does StratEquity have a web site?
Yes : StratEquity’s is - www.stratequity.co.za
StratCorp’s is - www.stratcorp.co.za
ICI’s is - www.ici.co.za
What is StratEquity’s Company Registration Number?
StratEquity’s No is: 1996/011877/07
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