What makes MLM illegal?

Question

It seems like you are suppose to make money out of recruiting representatives more than selling the products. I figure this is illegal, but MLM companies freely do this without any hesitation. A guy approached me to join "development" company few months ago. I actually went to "interview" but soon I found out that he was talking ****. He was praising "rich dad and poor dad" author. I just thought he was a crook. I asked him whether the company is MLM. He couldn't deny, but repeated about how it is a "development" company that mentors people to have financial freedom. I had another person who is in my class told me she is starting a marketing group and told me to come to one of the seminars. I checked her website and found out that it was a MLM company. I thought how could she actively and proudly try to deceive me? I guess that's what some(not all) MLM companies do to people.

Answer 1

For an MLM / Network Marketing opportunity to work you need Affordable Products That Sell Well And Marketing Systems That Work !!

1. You need products that sell like Chocolates at Easter-Time, Toys at Christmas, Turkeys on Thanksgiving or Cold Drinks during a summer heat-wave.

2. The products must be AFFORDABLE to most people, EVERYBODY must be able to afford to buy them and the products MUST be consumable, so they generate REPEAT BUSINESS (this is SO important!)

3. You can't be asking your prospects to pay anything up-front, like an associate joining or registration fee, or be made to buy some kind of “Business starter kit”. (That’s a No -No!)

4. The business system, support system and marketing plan must be SO SIMPLE and is MUST BE very EASY TO FOLLOW, so that even a complete novice should be able to generate healthy, on-going, weekly earnings within just a few short months

Here’s a great example: http://www.simplyseen.com

I recommend you also do a little research with the B.O.S.E. 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