- Could You Be Poisoning Your Family and Not Know It?
Presentations:
- Profits Are Better Than Wages
Arbonne's Products and Business Opportunity
Mannatech's Products and Business Opportunty
Overview
In a typical multi-level marketing or network marketing arrangement, individuals associate with a parent company as an independent contractor or franchisee and are compensated based on their sales of products or service, as well as the sales achieved by those they bring into the business. This is like many franchise companies where royalties are paid from the sales of individual franchise operations to the franchisor as well as to an area or region manager.
In a legitimate network marketing company, commissions are earned only on sales of the company's products or services. No money may be earned from recruiting alone ("sign-up fees"). One must analyze the compensation plan to determine whether participants are paid from actual sales to customers and not from money received from new recruits. If participants are paid from money received from new recruits, then the company is an illegal pyramid or Ponzi scheme. An example of a legitimate network marketing company would be www.arbonne.com or www.mannatech.com
Multi-level marketing (MLM) has a recognized image problem due to the fact that unscrupulous people operated pyramid schemes under the guise of being an MLM.
Network marketing businesses operate legitimately in the United States in all 50 states and in more than 100 other countries, and new businesses may use terms like "affiliate marketing" or "home-based business franchising."
A resource available to assist in finding a legitimate network marketing business is the Direct Selling Association.
About DSA
The Direct Selling Association (DSA) is the national trade association of the leading firms that manufacture and distribute goods and services sold directly to consumers. More than 200 companies are members of the association, including many well-known brand names.
The Association's mission is "To protect, serve and promote the effectiveness of member companies and the independent business people they represent. To ensure that the marketing by member companies of products and/or the direct sales opportunity is conducted with the highest level of business ethics and service to consumers."
The cornerstone of the Association's commitment to ethical business practices and consumer service is its Code of Ethics. Every member company pledges to abide by the Code's standards and procedures as a condition of admission and continuing membership in the Association.