I have found several other companies that work the same, such as amway, mlm, legacy. are this legal?
2007-02-28 12:13:42 · 3 answers · asked by keith k 1 in Business & Finance ➔ Investing
basically they offer u a product, through them, and u get additional people to sign up under neath u and thats where the profit lies. so im sure its a pyramid scheme, but is it legal?
2007-02-28 12:18:20 · update #1
I recommend you do a little research with the Business Opportunity Search Engine. Being community driven it’s a cross between a search engine and a Wikipedia. You can add, delete and improve the results for much more focused answers than a general search engine can provide. http://www.BusinessOpportunitySearchEngine.com
2007-03-04 09:31:57 · answer #1 · answered by Smart 2 · 0⤊ 0⤋
Be careful and do due diligance on the subject. Research the laws and legal precedents OF THE REGION YOU LIVE IN. This is one of those legal issues where the rules can change from one country to another very fast. If you're in China, forget it entirely, MLM is a capital offense there. If you're in Canada, read the Competition Act with a fine-toothed comb. In the USA, the Amway Rule applies from a classic court case back in the 1970s; look it up and compare the judge's ruling with this "opportunity" to be sure it complies.
2007-03-03 08:05:07 · answer #2 · answered by Wolfman 4 · 0⤊ 0⤋
1. MLM or network marketing if given the amway test are perfectly LEGAL, however, you should check out any company.
2. In any network marketing business, you should look at their product offering and ask yourself could you sell this same product 10 years from now. Vinyl record sales, for example, would be a bad business to be in, but 10 years ago, cd's were just taking them out of business.
3. Fortune 500 companies use MLM or network marketing to move products and services, it is a $120 billion business.
4. Email me if you have other MLM questions.
2007-03-01 00:53:05 · answer #3 · answered by flip that house 1 · 0⤊ 0⤋