mlm legal

The direct selling industry has long been plagued with more than a fair share of miscreants who have attempted to make the most out of its myriad business models to line their own pockets with money from innocent investors who have been fooled to part with their hard earned savings by the lure of immediate and adequate compensation usually in terms of money and often in the guise of a better, richer and posh lifestyle. For an industry so often maligned even with the right procedures and laws firmly in place to follow, it seems a little surprising that more often than not companies by themselves just cannot get the ideal governance right. This is where there is a need for an authority on the subject. A consultancy that will help you conceptualize, execute and even grow your business model under the ambit of all the possible legalities that are set to govern the direct selling industry. Strategy India will help you identify the best model suited to your business, help you establi

Participant profits and losses The overwhelming majority of MLM participants (most sources estimated to be over 99.25% of all MLM distributors) participate at either an insignificant or nil net profit. Indeed, the largest proportion of participants must operate at a net loss (after expenses are deducted) so that the few individuals in the uppermost level of the MLM pyramid can derive their significant earnings. Said earnings are then emphasized by the MLM company to all other participants to encourage their continued participation at a continuing financial loss. Participant financial loss, company financial gain The end result of the MLM business model is, therefore, one of a company (the MLM company) selling its products and services through a non-salaried workforce ("partners") working for the MLM company on a commission-only basis while the partners simultaneously constitute the overwhelming majority of the very consumers of the MLM company's products and services

Multi-level marketing (MLM), also called pyramid selling, network marketing, and referral marketing, is a marketing strategy for the sale of products or services where the revenue of the MLM company is derived from a non-salaried workforce selling the company's products/services, while the earnings of the participants are derived from a pyramid-shaped or binary compensation commission system. Although each MLM company dictates its own specific financial compensation plan for the payout of any earnings to their respective participants, the common feature that is found across all MLMs is that the compensation plans theoretically pay out to participants only from two potential revenue streams. The first is paid out from commissions of sales made by the participants directly to their own retail customers. The second is paid out from commissions based upon the wholesale purchases made by other distributors below the participant who have recruited those other participants into the MLM