subject: The Legality of MLM-For You MLM Opportunity Seeker [print this page] I feel it's important to get the facts on the table so you, mlm opportunity seeker, will be equipped to answer the questions about this topic quickly and easily |Ok? Ok! Let's get started!
HERE'S THE QUESTION MLM OPPORTUNITY SEEKER
Is it legal? Is this a pyramid scheme (i.e.Is it legal?)?
|You won't get too far into this business before you get these questions pop up.
It's going to come up over and over again... |Doing this right could make or break converting a prospect!
First, a definition of multi-level marketing: |"A business model designed to create a marketing and sales force by compensating promoters of company products not only for sales they personally generate, but also for the sales of other promoters they introduce to the company, creating a downline of distributors and a hierarchy of multiple levels of compensation. The products and company are usually marketed directly to consumers and potential business partners by means of relationship referrals and word of mouth marketing"Hats off to you Wikipedia!
Now, a truism for all of us, especially you, mlm opportunity seeker
Blood sucking parasites always show up when anything good develops. They come as wolves dressed in sheep's clothing looking to devour the unwary
Enter the "Pyramid" into the mlm world
Wikipedia has another good definition here: |"A non-sustainable business model that involves promising participants payment primarily for enrolling other people into the scheme, rather than from any real investment of sale of products or services to the public""Wiki" you're the best!
Now, for a little history, mlm opportunity seeker
Amway, the pioneer of modern network marketing, began in the mid 1950's. It made a way for people to build businesses through a network while distributing Amway's products...
The model, while not original, was not in use to any extent in the business world. Amway's plan was the precursor to the present day mlm industry
As Amway's business success grew over the years and other legitimate companies entered the industry, the dark underside also grew |Schemes were hatched to defraud consumers of their money by promises of huge returns on their investment|Theses schemes, or "Pyramids," so named because the model looks like one, with the idea that the one or few at the top get and keep virtually all the money and the poor investor or new guy have no hope of making any money...
These, too, are not new, mlm opportunity seeker. Fraud is as old as the human race itself.
The Federal Trade Commission came in when the illegal pyramid scams began to grow... |The FTC began to file complaints and cease and desist orders against the crooks... |Unfortunately, the FTC also took aim at the entire industry with Amway as one of the primary targets
Amway beat the FTC in 1979 in a key case when it was determined the business model was not an illegal pyramid schemeThe Federal Government grudgingly approved multi-level marketing.
Why does the "legality" question keep coming up if it's been a done deal for over 30 years?... |Because the crooks are still out there spinning and hatching hundreds of new schemes every year to steal people's money, that's why!
"Ok," you say. "I hear you. But, what's it all mean for me?" So glad you asked!
If you are evaluating mlm, are an mlm opportunity seeker, or have just begun in mlm,
Understanding and being able to put to bed this concern that many prospects have is basic to your success!... |If you leave doubt in a prospect's mind about the legality of your mlm company, forget about signing up that one...
This is mlm 101basicget it down coldmake it a nonissue because that's what it is!
The Legality of MLM-For You MLM Opportunity Seeker
