Indisputable Facts

Fact #1:

It’s legal.

In the United States,

Network Marketing — also called Multi-Level Marketing or MLM — has

been legally used for product distribution and compensating distributors

for more than 50 years.

During this time, Network Marketing has repeatedly been upheld by the

federal and state courts as a legal distribution and compensation method,

when the following legal guidelines are followed:

1. The main objective of the business is selling viable products or services

at a reasonable price.

2. Each independent distributor maintains a retail customer base, usually

of ten or more.

3. Potential incomes for recruiting others are not promised; or in some

states, even mentioned.

4. Distributors are not paid (head hunting fees) for the mere act of recruiting

others.

5. Distributors are not encouraged to buy more product than they can

reasonably resell within 30 days.

6. The company must refund unsold product and sales materials, including

enrollment fees, if the distributor chooses to resign.

Because Network Marketing is legal, there is a large upside potential for

Network Marketing corporations and distributors. The concept attracts

very dynamic promoters — some are ethical, some not. Many Network

Marketing companies have crossed the line legally and have been the

subject of negative media, as well as civil and criminal penalties.

Listen to how a Network Marketing company’s distributors present the

opportunity, and review the company’s business materials to discern if the

company is engaged in legal product distribution. Any business opportunity

promoted in a fashion similar to that of a lottery, chain letter or

investment opportunity will not pass established legal guidelines.

If you have questions about a company, the Direct Selling Association

(DSA) in Washington, D.C., is the professional association that represents

and sets high standards for the Network Marketing industry. The

DSA has been in existence for over 100 years. You may visit their website

at DSA.org.

Fact #2:

There are successful Network Marketing

companies … and there are others that fail.

There are more than 2,000 Network Marketing firms distributing over

$110 billion a year in goods and services. Many of these firms are publicly

traded companies listed on the NASDAQ, as well as the New York and

American Stock Exchanges. Amway, HerbaLife, Mary Kay Cosmetics, Nu

Skin and Primerica each boast over $1 billion annually in sales, and have

been in business and growing steadily for 30 to 50 years.

However, as is true for every kind of business, most Network Marketing

companies fold within a few years of launching.

Fact #3:

There are successful Network Marketing

distributors … and there are others who give up.

Some individual distributors have earned and enjoyed long-standing

Residual Royalty Income fortunes of $1 million or more per year, for many

years. Many more earn from $1,000 to $10,000 a month.

Most individuals who pursue building a Network Marketing business, however,

give up before they see the level of success for which they hoped. The

average Network Marketer never creates enough success to warrant doing

anything beyond buying product at wholesale.

The fact is, people with average ambition, commitment and effort usually

don’t do well in a business like Network Marketing.

Fact #4:

It’s a major player in the global economy.

The Network Marketing/Party Plan Direct Sales method of marketing as

an industry has grown 19 of the past 20 years, including over 90 percent

in just the past ten years. A staggering $110 billion worth of goods and

services are sold worldwide each year in this industry.

Fact #5:

It’s growing.

Each week, about 475,000 people worldwide become sales representatives

for one of these companies. That’s 175,000 each week in the United

States alone.

There are 15 million Americans and 67 million people worldwide who

participate at some level in this concept.

Fact #6:

It’s tried and true — and here to stay.

The concept of Network Marketing (paying multiple levels of commissions

on sales and allowing all levels to sponsor new levels) has been in

play since the 1950s. Although it has its share of bad examples, historically

it is a legal and ethical method of marketing. Today, it is held in

the highest regard by many of our country’s most prominent business and

success experts.