Posted on 3 August, 2013
Now, besides me just telling you the quick answer, let me expand upon this question. Of course the answer is yes it is legal. The reason people will give you that it is illegal, is that they will generalize and say it is a pyramid and all pyramids are illegal. Now, yes pyramids are illegal and I would not have anything to do with them. What is a pyramid? It is where someone starts up something and gets you to pay some money do to get involved. So you tell someone about all the money that you will make and you want to share it with them. Now this goes on and on and of course the person that starts it will always make money. Now, as you get into this "scheme", which is illegal, you are putting money in and you get a position to make money. There are no products. The sole and only reason why you get involved is to make money. Now, this is why people call network marketing a pyramid, is that sure you put in money to start a business, but legitimate companies, you make money on customer purchase of the product and not because you got started in the business. Now, lottery clubs and gifting programs are a form of this, because no one is actually a customer and there is no real products that generate the incomes. So let me talk about facts anyone can learn about network marketing companies. The government her and in many companies regulate network marketing companies and they are part of the direct sellers association. You do not make money by someone signing up, you make it off of customer products. Yes, there are companies pretending to be network marketing companies, but fail to comply to the rules the governments set out. Some countries rules are stricter that others, in fact, China is probably one of the most strict to let people start a network marketing company with in their borders. In order for someone to become a network marketing company, they must pay hefty fees to be part of the Direct Sellers Association. You can go to the direct seller association website if you want to find out if a company is what it says it is. Now as a company starts up, in the United States, each state regulates the industry through the attorney generals office. They make sure it complies to all laws. People will think they are illegal when the start with the company, if they are not making the income that they feel they should, and often will tell everyone it is not, because they did not make the millions in 30 days. In network marketing, if they tell you that you will get rich quick and you do not need to do anything, then I will tell you that they are unethically promoting the business. Make sure you are educated on the business before you get started, then invest in yourself and one and only employee. Your education is a key and if you know the tricks that the leaders use, you will be highly successful. I talk to hundreds of people a day and yes you can be successful, but not with out proper training. There is not one company that provides you the training to be successful. |
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