If you are unsure whether a company is a legitimate direct selling business or a case of pyramiding, ask yourself these questions:
- Is there a product?
- Are commissions paid on sale of products and not on registration/entry fees?
- Is the intent to sell a product not a position?
- Is there no direct correlation between the number of recruits and compensation?
- If recruitment were to be stopped today, will the participants still make money?
- Is there a reasonable product return policy?
- Do products have fair market value?
- Is a compelling reason to buy?
If the answer to all the questions is YES, then the company being evaluated is a legitimate company. But if the most answers are NO, then there is a high probability that it is a pyramid scam.
No comments:
Post a Comment