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• These plans, often called "multilevel marketing plans," sometimes promise commissions or rewards that never materialize. ...
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• What's the company's track record? What products does it sell? How does it back up claims it makes about its product? Is the product competitively priced? Is it likely to appeal to a large customer base? What up-front investment do you have to make to join the plan? Are you committed to making a minimum level of sales each month? Will you be required to recruit new distributors to be successful in the plan? .
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• Among the statements commonly seen in marketing literature for disreputable investment schemes are the following: 1. ... When a marketing program goes out of its way to say it is legal, it usually isn't. ... "This is not multi-level marketing. " Multi-level marketing ("MLM") is a marketing plan which compensates participants not only for their own sales, but for the sales of their recruits as well. Not every multi-level marketing promotion scheme is illegal. ... BUT, every illegal pyramid scheme is multi-level marketing. The Attorney General's office has seen the statement "we are not a multi-level marketing operation," in many marketing pieces. ... Each of the underlined statements referenced above was taken from marketing literature for programs that have faced enforcement actions in the State of Michigan. ...

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• As a practical implementation of marketing, it often forms a separate grouping in a corporate structure, employing separate specialist operatives known as salesmen (singular: salesman or salesperson). ...
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• Whether a program is a legitimate multilevel marketing plan or an illegal pyramid depends principally on: (1) the method by which the products or services are sold; and (2) the manner in which participants are compensated. Essentially, if a marketing plan compensates participants for sales by their ""enrollees," "recruits," and/or their downline enrollees and recruits, that plan is multilevel. ...
• As a practical matter, it is impossible for legislators to anticipate the infinite creativity of individuals who devise, implement, and promote legal and illegal marketing programs. ...
• The analysis used by regulators to evaluate multilevel marketing programs is essentially two-fold. ...
• Multilevel marketing companies must guard against being classified as a pyramid on both the state and federal levels. ...
• As regards pyramids and multilevel marketing plans, state statutes have taken two distinct approaches. A sophisticated minority(1) of state laws specifically define and regulate multilevel marketing plans. Georgia's statute provides a typical definition of a multilevel marketing company: .
• The definitions of a multilevel company or multilevel marketing plan in the other states that specifically define multilevel marketing are identical or very similar to Georgia's. ...
• Broken into individual components, the elements that must be met to establish a multilevel company or multilevel marketing plan include: Elements of a Multilevel Compensation Plan Does Your Program Meet These Elements?.
• (4) Nevertheless, decisions of the Federal Trade Commission and the Federal Courts, more so than legislation from any individual state, have largely supplied the legal framework upon which multilevel marketing companies have developed their programs. ...
• The above discussion and tables are representative of the pyramiding issues facing the multilevel marketing industry. Companies should be careful when developing their marketing plans to stay within the parameters of these laws. ... If a program uses all of the right buzz words in its marketing literature, but fails to enforce its policies which guard against pyramiding dangers, the program faces the same risks as a program which does not incorporate appropriate safeguards into its plan. ...

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• You can start your Network Marketing business on a part-time basis without giving up your current source of income until your Network Marketing business is generating the income you require. ... What would you do if you were financially independent and most of your time was free to do with as you pleased? This is why so many people are flocking to Network Marketing. And that's why we say that Network Marketing puts the freedom back in free enterprise!.
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• Multilevel marketing plans, also known as "network" or "matrix" marketing, are a way of selling goods or services through distributors. ...
• Multilevel marketing plans usually promise to pay commissions through two or more levels of recruits, known as your "downline. ...
•   Most laws against pyramiding say that a multilevel marketing plan should only pay commissions for retail sales of goods or services, not for recruiting new distributors. ...
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• • You make money in two ways in a multilevel marketing organization: you buy products from the company and resell them to customers, and you recruit people into the organization and earn a commission off their sales. ...
• • Don't join a multilevel marketing organization unless you have sales ability, you believe in the product, and the product is priced fairly. ...
• • If you're an outstanding salesperson who would do well at multilevel marketing, you would probably do better by selling through a traditional sales channel, where you don't have to split your commissions. ...
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• The thing to do is to learn all you can about this method of selling how it works, and why it works--and then to get going with a multi-level marketing program that can accumulate a fortune for you. Make no mistake about it, multi-level marketing has made a lot of people very rich already, and will make a lot more people even richer in the coming years.
• Multi-level marketing is based upon the idea of each person involved selling only to his or her friends, with each of these people in turn, introducing their friends into the program. ...
• Multi-level marketing, in principle, works the same way, with the only difference being in the product offered for sale.
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• The basic fallacy of multi-level marketing is in the number of people each individual participant can easily enlist into the program. ...
• You're going to make the really big money in multi-level marketing by selling "business start-up kits," and not really from spending time inspiring or motivating the people you've already brought into the program. ... To be successful in selling--and this is the secret to multi-level riches--you must present your program to as many people as possible. ...
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