A lot of networking companies in the country have come and go. Others have not sustained, shut down and left members shocked and broke. In spite of all these other companies have survived. They are still in active operation through out the country and TO MENTION, Amway, Forever Living, and Herbalife are one of those LEGITIMATE MLM companies no one can ever stop.
HOW CAN WE SAY YOUR MLM COMPANY IS LEGIT AND NOT PYRAMID?
HOW CAN WE SAY YOUR MLM COMPANY IS LEGIT AND NOT PYRAMID?
- Is there a product?
- Are commissions paid on sale of products and not on registration/entry fees?
- Is the intent to sell a product not a position?
- Is there no direct correlation between the number of recruits and compensation?
- If recruitment were to be stopped today, will the participants still make money?
- Is there a reasonable product return policy?
- Do products have fair market value?
- Is there a compelling reason to buy?
If all the answers is YES then that company is LEGITIMATE but if the answer is NO then it is a PYRAMID SCHEME.
According to DSAP "Companies paying its distributors based on the recruitment of other distributors rather than for legitimate sales to end consumers are guilty of pyramiding".
Another good test is to ask is "If recruitment were to be stopped today, will distributors still make money?" if the answer is no, isn't the principal source of commissions coming from recruiting and not from retail sales? hence, a pyramiding.
So if you are looking for business and you've encountered this MLM system know the COMPANY, how stable it is, how it has been CAPITALIZED, who are the people behind it and will they last for long years?
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