Orange Kenya and DIPEK: Is this another Pyramid Scheme?
Sep 30, 2013
Orange Kenya is a telecommunications company in Kenya and has had great success in the provision of internet but not in the call/ mobile sector. They have been unable to cope up with the stiff competition from industry players such as Safaricom and Airtel Kenya. The number of sim card subscribers is at number three. But in their bid to stay ahead of the game they have come up with a new multilevel marketing scheme that is similar to GNLD and the like as a way of rewarding users and subscribers.
Working in conjunction with pillar Technologies they have found a way of rewarding subscribers who use Orange services as well as those who introduce others to using Orange. The initiative is known as DIPEK. This initiative requires that you invest in Kenya shillings two thousand seven hundred and fifty. Out of this initial investment, five hundred shillings is converted to airtime of that amount. If you get to introduce a new person, they invest the same amount; five hundred is converted to airtime while two hundred shillings is given to your orange money line. If they introduce a new person, you get to earn one hundred and fifty shillings while the other person gets to take two hundred shillings. This goes on until the twelfth generation with your cash rewards remaining at fifty from the fourth generation onwards.
Further, for every five hundred shillings of credit your down-lines use you get to earn 2.5 shillings. This means that if you manage to get one thousand people to your network, and they use one thousand shillings worth of air time and not five hundred shillings, you get to earn five thousand shillings worth of passive income. If your network grows to two hundred and fifty people, you are rewarded with ten thousand shillings to start a business of your own.
The hard part to all this is getting people to join your network and making your down-lines to become enthusiastic about getting others to join the team. Also once you have managed to grow a network of five thousand people, you get twenty five thousand shillings of passive income.
Although this initiative is good, the major challenge that Orange Kenya faces is its infrastructure. Orange network is not available in some parts of the country therefore taking this idea to others may seem a difficult. Because of the huge response it is getting, you find yourself having to try to call more than once. Calls cannot easily go through. Also, its internet connection is also poor in parts of Nairobi. In as much as this is a well thought out plan, Orange Kenya did not foresee a situation where their current infrastructure would be overloaded with subscribers.
It also begs the question, is this payment plan sustainable if new subscribers don’t come on board? Tell us is this DIPEK program a great Network Marketing program or just another pyramid scheme waiting to bust its bubble? Only time will tell us so.