IS THIS LEGAL?
State Sales Referral Laws.
In the aftermath of the door-to-door aluminum siding cases, almost every state adopted a sales referral law which prohibits in the course of a consumer transaction the promise to a consumer of some type of reward in exchange for recommending another consumer, and where the reward is contingent upon the second consumer purchasing product. Although almost all states have sales referral laws, few states have attempted to apply sales referral laws to multilevel marketing programs. In one such case, the State of Iowa attempted to apply its sales referral law to a company called American Professional Marketing, and the court rejected the prosecution. As a general matter, such laws would appear to be inapplicable to multilevel marketing programs because distributors receive their compensation in their capacity as "independent contractor distributors" and not in their capacity as consumers referring other consumers. The typical language of these statutes is as follows:
"Referral selling prohibited. No seller or lessor may give or offer a rebate, discount, or anything of value to a buyer or lessee as an inducement for a sale or lease in consideration of his giving to the seller or lessor the names of prospective purchasers or lessees, or otherwise aiding the seller or lessor in making a sale to another person, if the earning of the rebate, discount, or other thing of value is contingent upon the occurrence of an event subsequent to the time the buyer or lessee agrees to the sale or lease."
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In the leading COURT decisions in this subject area, a variety of abuses have been targeted as potential elements of illegal marketing plans:
1. Products which have "no real world" marketplace.
2. Products which are sold at inflated prices.
3. Mandatory purchases of company product.
4. Plans which result in inventory loading distributors.
5. Substantial cash investment requirements.
6. Mandatory purchases of peripheral or accessory products or services.
7. Plans in which company products are totally or substantially consumed only by distributors.
8. Plans in which distributors are left with substantial unsold inventory upon cancellation of participation.
9. Plans in which distributors purchase products in order to further the marketing plan rather than out of genuine desire and need for the product.
10. Plans which would fail without purchases by participants.
11. Plans which make no effort to emphasize retail sales to the ultimate nonparticipant consumer.
12. Plans which require no meaningful participation by distributors after becoming a distributor.
13. Plans in which fees are paid to distributors for headhunting.
14. Plans in which commissions are not based on actual retail product sales.
15. Plans in which emphasis is on recruitment rather than sale of product.
16. Plans which contain elements of a lottery rewarding participants based on chance rather than on bona fide sales efforts.
17. Earnings misrepresentations or inflated earnings representations.
Credit for the above article goes to : www.mlm-law.com/
We have heard about a lot of illegal sales activities;
Such as:
Ponzi Marketing, Illegal Pyramid
Chain Letters; ETC.
No , we don’t do Ponzi schemes, Illegal
Pyramid or Chain letters.
We do not involved ourselves in any illegal activities
What we are doing with this is, we combined two marketing
systems called (1) Direct Marketing
& (2) Multi Level Marketing (MLM) / Network
Marketing.
(a) A MLM is illegal if all they do is sign -up people but
there is /are no PRODUCT / S.
(b) An MLM Marketing will be illegal if you
must first buy membership/product before you can
work and bring in members/buyers
(c) An MLM is an illegal pyramid if
every commission is taken from all the
downline/people at the bottom of the chart
and all the CASH is given ONLY to the person
at the TOP, then the person next to the Top
dog moves to the Top , collects all the Cash too
and exit, then the 3rd in command moves to the
Top spot, collects all the cash as well and exist.
In other words, if you have 1,000 people in the network,
only 1 person at the top collects all the
money, No one gets MONEY until they make it
to the Top of the chart.
THAT KIND OF MLM / PYRAMID IS ILLEGAL
OUR MARKETING
SYSTEM IS 100% LEGAL
* We have products that are REAL and we are
highly competitive.
* When you directly market our advertising
spaces for our internet or for our magazines, we
pay you a no nonsense commission your commission.
*We encourage you to make a “word-of-mouth”
advertising or other form of advertising for us
and to recruit only about 5 sales people who
will become sales reps like you and we’ll pay you
an override commission on thesales
generated by the people directly recruited by
you. ...and when those people follow your foot
steps and do the same, we’ll simply promote you
from a supervisor of 5 to a manager of 25 or
more and we’ll give you another money called
residual commission on each new sales
under.
So that your effort for training 5 people was not wasted or
limited,
we keep all the 5 sales reps under you and their 5
ALL UNDER ONE TEAM UNBRELLA but everyone gets paid individually.
In order words, you don't contribute your commission and give
it to
only one person in the team but your team contributes ideas and help each
other make
more better sales today than that of your performance yesterday.
ERYONE THAT WORK GETS PAID, Nobody’s
money is stalled and given to the TOP dog.
There is no inflated price or earning and we made it clear that
the
performance of your TEAM will determine and guarantee your income
OUR MARKETING SYSTEMS ARE 100% LEGAL.
As I have said:
we combined two marketing
systems (1) Direct Marketing
& (2) Multi Level Marketing (MLM) / Network
Marketing.
You can sell direct or you can sell by mlm or do both
OVER 17 MILLION ADVERTISERS NEED YOUR SERVICE. WORK NOW. -CLICK
Start work now
Top Rank Business Associates Group
(of Companies),Inc.
775-333-1125
Dr. Israel Fagbemi --
Your humble CEO