An MLM`s compliance program should ensure that MLM accurately represents the business opportunity it offers, both through its own marketing materials and messages, and through the representations its participants make to current or potential participants. In addition, an MLM`s compliance program should ensure that the remuneration paid by the MLM is based on actual sales to actual customers and not on bulk purchases or other payments made by its participants. As in many other areas, the FTC meets regularly with consumer groups, industry representatives and other stakeholders to learn more about evolving practices and concerns. In addition, the FTC has published and updated educational materials for consumers and businesses. In addition, the FTC`s Bureau of Economics has devoted and continues to devote its research expertise to issues of direct selling and multi-level marketing. These various efforts can provide valuable information to inform the FTC`s MLM investigations, which include a factual and comprehensive analysis of multiple factors. Los negocios de Network Marketing muy a menudo suelen confundirse con facilidad con las terminadas Pirámides. El Network Marketing es una actividad totalmente legal, que nada tiene que ver con Pirámides, tal y como se estipula en la Ley de Comercio en muchos países del mundo. The real problem with MLM is not the MLM itself, but some of the people it attracts. Network marketing is just a business model and really comes down to «micro-franchising».
Its advantage is that it has very low entry costs, with the potential for exceptional income, and there are those who succeed. En una empresa de network marketing estas rodeado de gente que piensa igual que tu, están ahí por algo, todos tienen hambre por algo adicional. They want freedom, they want happiness, they want to live the lifestyle of their dreams, and they know they have to work hard to achieve it. Being in such an environment can be something very motivating that makes you want to give more of yourself and, above all, not feel alone. A team with whom you can share your successes, overcome your fears and grow together. Something you often see in this industry and not much in a normal business. Excellent explanation. Personally, I felt great satisfaction in network marketing, even if it wasn`t the case at first. If you «don`t understand» and therefore don`t do what it takes to generate the business, then you can be frustrated, but if it`s like in my case that I started studying and preparing, then everything changed and it was great. It`s about loving and achieving what you do, and that goes for everything. Best wishes! Victor H.
However, in many circles, you might as well call yourself leper instead of admitting to being into network marketing. Products purchased and consumed by participants to meet their own actual demand for products – as opposed to all products purchased by participants that are not resold – are not in themselves indicative of a problematic MLM compensation structure. For example, the final purchase order placed in FTC c. Herbalife allows payment of compensation based on personal consumption, subject to specific restrictions and verification requirements. However, the experience of FTC law enforcement agencies has shown that MLM participants can purchase products – and recruit or pressure other participants to buy products – for reasons other than their own demand or the actual demand of other consumers, such as to advance the marketing agenda. Yes. Personal or internal consumption, that is, product participants who buy and consume to meet their own actual demand for products, does not determine whether the FTC considers an MLM`s compensation structure to be illegal. As noted in response to question 5, when assessing the issue of participants` internal consumption, FTC staff will likely consider, among other things: (i) whether the characteristics of the MLM compensation structure induce or encourage participants to purchase products for reasons other than satisfying actual demand; and (ii) information on whether purchases were actually made to meet personal demand for consumption of the product. When evaluating MLMs, the FTC focuses on how the structure as a whole works in practice, taking into account factors such as marketing presentations, participant experiences, compensation plan, and incentives created by the compensation structure. This strategy of prosecuting MLM companies has been repeated in various countries, sometimes seen as an attempt at delegitimization, although judges have always judged these companies positively, which has led to the introduction of various laws that distinguish and distinguish between network marketing schemes and illegal pyramid schemes.
When you enter a network marketing business, managing your personal finances is paramount, and that`s why many of the trainings and books they offer have to do with this topic. If you rely solely on commissions, you can`t live in constant waste because you wouldn`t keep anything in business. There`s no fixed salary at the end of the month you can count on, let alone at the beginning of the business, so they teach you how to save and reinvest your money so that the industry`s big dream can be realized: financial freedom. The term marketing (MLM) refers to a strategy used by some direct selling companies to sell products and services. MLM encourages existing members to promote and sell their offerings to others and attract new employees to the company. Distributors receive a percentage of their recruits` revenues. New hires become the distributor`s network or downline, and in turn are encouraged to make sales to make money. Many MLM schemes are legal, but there are illegal operations that work like Ponzi schemes.
When you join a Ponzi scheme disguised as a multi-level marketing program, your decision affects not only you, but everyone you bring into the program. Many people spend a lot of time marketing these worthless businesses. Ultimately, if a multi-level marketing opportunity sounds too good to be true, it probably is. En network marketing no hay un salario fijo, es un sistema basado solo en comisiones. You need to purchase a certain number of products each month to stay active on your system. So you have a mandatory monthly expense and you need to make sure that you sell more than you spend to make it profitable. It`s a perfect workout for business! The difference is that the cost in a marketing network is much lower than in a traditional business, so if things don`t work out, you don`t lose as much and there is less risk. This amount of products they give you month after month to keep you activated is too much for you to consume yourself, and giving the waste to your friends and family is not a business, you have to sell them. Thus, in order not to lose money month after month, the networker must learn to sell quickly.
The good thing is that you have a great team of people who support you and teach you how to do it, a good networker is so good at sales and knows his product so well that he doesn`t seem to sell anymore, he does it in such a natural way that he seems to talk or recommend something in a simple way. It`s an art! What better than these cracks to teach you how to sell elegantly and with the best mood in the world, where the goal is set by yourself and the sky is the limit. Although legal, multi-level marketing is often controversial. One of the problems is Ponzi schemes, which use money from new hires to pay people at the top, rather than those doing the work. These systems (and the people behind them) exploit others by pretending to do legitimate multi-level or network marketing. You can tell this by Ponzi schemes by the fact that they focus more on recruiting than selling products. This is not how network marketing works in best practices. It is true that those at the top (uplines) earn thanks to the effort of those at the bottom (downlines), but in an honest and fair way to ensure that the new affiliate also earns in his first month without having to spend more. In a marketing network, you`re usually invited by someone you trust, from your network of friends or family, and that`s the person who should take you by the hand to work together. Be very careful with job postings that turn into a marketing network pitch or people you don`t know and want to join their team out of nowhere, as they are usually in most of these cases where they can catch naïve people who quickly fall into a bad distributor scam.