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Re: Federal Trade Commission ALERT
9/3/2007 2:34:25 PM
Hi Mary,

Surely, people would like to get paid for the people they recruit and some businesses will pay you for those recruits. But, where is the money coming from? Is the recruit obliged to pay their way in? If so, then you have a possible Ponzi Scheme. If the company pays you without any funds from the recruit then the company is paying you for your efforts of labor.

If a company's primary goal is to move product and the product is exactly what the company claims and you join knowing all the details there is no fraud committed. You recieve a consumable product for your money. As a bonus for residual income you can recruit and recieve a percentage of sales from your recruit. Good companies will only go one or two levels so the product price is not over inflated to what the market is willing to pay. You have a fair priced product and makes for easier selling.

Using your apples, oranges and bananas product a person could become a regional distributor for the product and market through retail chains. I will refer to a major company that uses a similar practice. A company named Snyder's of Hanover. They make alot of pruducts but their distributor setup for their snacks and potato chips are through men and women that buy a delivery route. A person joins (by contract) to buying a delivery truck and inventory. They are offered any possible routes available and it's up to that person to accept or deny the deal. That person is also responsible for helping to expand his/her route. When you see all those snacks at your grocer they came to that store via independent distributors.

Do they have a minimun per month to buy as a vendor/ ind. distr.? Sure do. Otherwise the company doesn't see product moving and will look for another vendor. That minimum may be based on the number of stores and the sizes of their purchases the vendor services. Also, this vendor/distributor needs a business license and handles all of their own taxes.

So looking at the a, o and b business they are a viable product and you have the choice in how you distribute your product. You don't have to recruit to make sales but are offered the bonus of others working under you for a percentage of their efforts as well.

Overall, you need to see what the policy, terms of service and agreements are of the company before knowing if they are legit or not.

And for the BBB, it''s up to the consumer to not only request info on companies but for us to report companies as well, whether good report or bad.

Great questions. Thanks for posting.

Nick Sym

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Re: Federal Trade Commission ALERT
9/4/2007 2:10:33 AM

Breast Cancer Awareness On My Site! Free exposure that works
Jenny SJ

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Re: Federal Trade Commission ALERT
9/5/2007 9:08:33 PM
Hi Kenneth

Yet ANOTHER fascinating article to help us see the reality of the businesses that are promoted online.

Be cautious of plans that claim you will make money through continued growth of your "downline" -- the commissions on sales made by new distributors you recruit -- rather than through sales of products you make yourself.


Just because a promoter of a plan makes a claim doesn't mean it's true! Ask the promoter of the plan to substantiate claims with hard evidence.

These two comments alone, combined with the willingness (or not) of a promoter to answer questions about their business, are sufficient to help us see whether or not the  "opportunity" offered is orth looking into further, before we commit ourselves to many hours and months of work.

There are too many multilevel businesses without viable products being promoted here and in other communities as the solution to all our problems.  And they give a very bad name to the small number of viable and legitimate programmes that everyone is looking for.



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