Articles under ‘theory’:

SEC’s Ceresney: Legitimate MLM involves retail sales

Despite a lack of retail a key focal point in several MLM-related enforcement actions over the past few years, there are still those who argue the legitimacy of chain-recruitment autoship schemes. Typically in this business model, retail is either insignificant or absent altogether. Instead, products are sold exclusively to affiliates, with participants in such schemes arguing [Continue reading…]

Affiliates self-funding commission qualification = pyramid?

The single-biggest takeaway from the Vemma preliminary injunction order was the correlation of affiliates self-funding commission qualification. This wasn’t just a Vemma issue, it’s patently widespread throughout the entire MLM industry.  Following the Vemma preliminary injunction, what could follow is the biggest MLM compensation plan shakeup we’ve seen in years. Or not.

Does limiting levels legalize a pyramid scheme?

The reasons participants in pyramid schemes come up with to justify their participation in one are just as numerous as the schemes themselves. Here on BehindMLM we regularly bear witness to all sorts of logic-fails, ranging from the tired “everything is a pyramid scheme” to “why hasn’t X company been shutdown if it’s a pyramid [Continue reading…]

Why aren’t MLM companies compliant BEFORE launch?

Two of the big buzzwords currently being tossed around the MLM industry are ‘compaliance‘ and ‘being compliant’. Or in other words, attempting to ensure that a company is legal and won’t be shut down for being a thinly veiled Ponzi or pyramid scheme. Typically compliance issues are related to US-based MLM businesses (or offshore businesses [Continue reading…]

The scourge of advertising network based MLM scams

If you were to single out noticeable change in the last 9 months or so within the MLM industry, it’d be hard to go past the meteoric rise of the internal advertising network MLM. Formerly the crown given to the ‘useless e-book and digital downloads’ MLM companies, the advertising network I believe has well and [Continue reading…]

Does low MLM startup cost = low risk opportunity?

One of the biggest turnoffs of a MLM business opportunity can be an extraordinarily high initial investment cost to new prospects. Despite still being lower than the initial investment cost of a traditional ‘brick and mortar’ business, due to the nature of MLM many potential leads still find it hard to get around. Realising this, [Continue reading…]

Is success in MLM simply a matter of time?

When it comes to success in MLM on the part of the distributor, associate, marketer or whatever you want to call yourself, there seems to be two schools of thought. On one side we have those that believe you either have it or you don’t. That’s not to say that if you don’t have it [Continue reading…]

How to approach duplication and retention in MLM

One of the more persistant and common marketing techniques utilised by the MLM industry today is the idea of ‘duplication and retention’. ‘Hi, I’m so and so and today I’m going to share with you how I achieved MASSIVE success in my company. By putting together a team of four or five people and showing [Continue reading…]

Why combining MLM and collectibles will never work

Collectible (noun) – things considered to be worth collecting. Collectibles can often be a subject of discussion that lends itself to confusion. With virtually anything able to be defined as a collectible these days, value, as mentioned above, is largely subjective. Value can be measured in the form of personal attachment, scarcity of the collected [Continue reading…]

First impressions of the MLM industry from the outside

As you become familiar with anything in life it’s all too easy to begin to forget that not everyone you encounter might have as an indepth a knowledge level as you. Time and time again in life you’re going to find yourself having to explain something, be it a concept, mechanic or an entire overview [Continue reading…]