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:
- Avoid any plan that includes commissions for recruiting additional distributors. It may be an illegal pyramid.
- Beware of plans that ask new distributors to purchase expensive products and marketing materials. These plans may be pyramids in disguise.
- Be cautious of plans that claim you will make money through continued growth of your downline, that is, the number of distributors you recruit.
- Beware of plans that claim to sell miracle products or promise enormous earnings. Ask the promoter to substantiate claims.
- Beware of shills - 'decoy' references paid by a plan's promoter to lie about their earnings through the plan.
- 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.
- 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.
- 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.