Articles under ‘compensation plans’:

Latest FTC guidance to MLM industry emphasizes retail sales

One of the more frustrating aspects of covering MLM regulation and litigation is a tendency for people to ignore what’s currently happening, in favor of past legal opinions and decisions from the past. Some of these opinions and decisions are decades old but people still cling to them as gospel. One of the more common [Continue reading…]


FTC: MLM companies with little to no retail activity are illegal

Retail sales requirements within an MLM opportunity is perhaps the most decisive issue facing the industry today. Proponents of pyramid schemes argue that affiliate purchases of product should count as retail sales. I myself argue that to permit as much would open door for product-based pyramid schemes to operate freely. This stance is strongly rooted in [Continue reading…]


MLM Compensation Plans: The Matrix Model

Out of all MLM compensation plans, the matrix model (also known as the forced matrix) is probably the simplest to understand. Looking, dare I say it, somewhat like a pyramid you start off at the top of your matrix and as you grow your organisation fill in allocated spots below you. There are of course [Continue reading…]