Monday, July 25, 2005

FTC says, don't join Quixtar

The Bottom Line About Multilevel Marketing Plans

Evaluating a Plan

The FTC suggests that you use common sense when evaluating a multilevel marketing opportunity and consider these tips as 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 products and marketing materials. These plans may be pyramids in disguise.
  3. Be cautious of plans that claim you will make money through continued growth of your downline, that is, the number of distributors you recruit.
  4. Beware of plans that claim to sell miracle products or promise enormous earnings. Ask the promoter to substantiate claims.
  5. Beware of shills - 'decoy' references paid by a plan's promoter to lie about their earnings through the plan.
  6. Don't pay or sign any contracts in an 'opportunity meeting' or any other pressure-filled situation. Insist on taking your time to think over your decision. Talk it over with a family member, friend, 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.
  8. Remember that no matter how good a product and how solid a multilevel marketing plan may be, you'll need to invest sweat equity as well as dollars for your investment to pay off.

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