Members throughout AdlandPro that are getting into 'fast paying matrixes' look out.

From the Federal Trade Commission website.

http://www.ftc.gov/bcp/conline/pubs/invest/mlm.shtm

FTC Consumer Alert

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Multilevel Marketing Plans

Produced in cooperation with the North American Securities Administrators Association

Multilevel marketing plans, also known as "network" or "matrix" marketing, are a way of selling goods or services through distributors. These plans typically promise that if you sign up as a distributor, you will receive commissions -- for both your sales of the plan's goods or services and those of other people you recruit to join the distributors. Multilevel marketing plans usually promise to pay commissions through two or more levels of recruits, known as the distributor's "downline."

If a plan offers to pay commissions for recruiting new distributors, watch out! Most states outlaw this practice, which is known as "pyramiding." State laws against pyramiding say that a multilevel marketing plan should only pay commissions for retail sales of goods or services, not for recruiting new distributors.

Why is pyramiding prohibited? Because plans that pay commissions for recruiting new distributors inevitably collapse when no new distributors can be recruited. And when a plan collapses, most people -- except perhaps those at the very top of the pyramid -- lose their money.

The Federal Trade Commission cannot tell you whether a particular multilevel marketing plan is legal. Nor can it give you advice about whether to join such a plan. You must make that decision yourself. However, the FTC suggests that you use common sense, and consider these seven tips when you make your decision:

1. Avoid any plan that includes commissions for recruiting additional distributors. It may be an illegal pyramid.
   
2. Beware of plans that ask new distributors to purchase expensive inventory. These plans can collapse quickly -- and also may be thinly-disguised pyramids.
   
3. 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.
   
4. Beware of plans that claim to sell miracle products or promise enormous earnings. 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.
   
5. Beware of shills -- "decoy" references paid by a plan's promoter to describe their fictional success in earning money through the plan.
   
6. Don't pay or sign any contracts in an "opportunity meeting" or any other high-pressure situation. Insist on taking your time to think over a decision to join. Talk it over with your spouse, a knowledgeable friend, an accountant or lawyer.
   
7. Do your homework! Check with your local Better Business Bureau and state Attorney General about any plan you're considering -- especially when the claims about the product or your potential earnings seem too good to be true.

Now, if the company says they are not MLM look at the structure you are in. Are you being paid in multiple levels? If yes then you in MLM. And if you are being paid by the recruits you bring in and not from product sales, again, read above.

Friendly service reminder to do your due diligence.

Kenneth R Sword Jr

Hi Ken,

I applaud you in the terrific job you are doing of keeping us so well informed in these matters.  You are a great protector!

Thanks

Judy

Great info Ken, thanks

Ken, Forgive me if I bring up more than one issue here. You can start another thread if this is too broad. Point # 1 commissions for recruits. Why wouldn't a person want to be paid for recruiting into a business? Why are XXXXXX, XXXXXXX and all the fancy XXXXX companies still in business? These are big names and one even appears on the stock market exchange The company has no interest in what you sell, its what you buy for your own consumption and people under you. Company XX is promoting apples, oranges, banans. The site owner asks that you order 10 bls. every month. You will be paid **% on the purchases on recruites who also are required to purchased 10 lb. each month. You just have to buy, and eat oranges, apples, bananas til you are sick of them. Then your downline gets sick of eating o,a, & b. Now it collapses. How much hand lotion, juice, photo film etc. are you willing to store. Eventually the pyamid collapes, yet these companies continue. Please explain!! Miracle products have to do with government regulations. Where is the government when you want them? Don'tthey also do the stock product til you and your downline stop. Yet there are many herb companies. I think there are some companies that do have a contract and one has to stay in til time is out. As far as the better business bureau when doing internet business, site owners change names, business name, re-group unanother name, and hide behind willing participants who promote for them.

Ken, because this is a different type of business I am posting seperatly. In the last two weeks I have seen Surfing site "RR" advertised by members of Adlandpro. "RR" has the person buy shares in increaments of perhaps $10 a share with a limit of 500 shares. Then the purchaser is paid back with interest. Now that in a ponzi right? It takes about 10 new recruits to make sure a person is paid for investing their money the promoter gets his pay....no new investors, can't pay the bill. Eventually bottom people pull out and all collapse. Pay Pal will not do business with these types of sites because they call them a ponzi. If these surf, buy share and get paid unreal percentages are illigal why are they still here. I am concerned to see our Adlandpro members getting into this and promoting it here. The 12 daily scandel hurt us as a community badly when the disabled, eldery, unemployed lost all at the time of the collapse. If I am wrong about unnamed site "RR" I apologize but I am so sure it is a ponzi, pyramid.