18.4.07

MLM 102

"Questionable Financial Opportunity'

"Distributors can buy products 'wholesale', sell, the 'retail', and recruit other distributors to do the same. When enough distributors have been enrolled, the recruiter is eligible to collect a percentage of their sales,

Companies suggest that this process provides a great money making opportunity. However, it is likely that people who don't join during the first few months of operation to become one of the early distributors in their community can build enough of a sales pyramid to do well.

And many who stock up on products to meet sales goals get stuck with unsold products that cost thousands of $.

This strategy referred to as 'front end loading' is promoted with claims that it will push the new distributor to higher bonus and/or leadership levels quickly."