The structure of an MLM scheme is a pyramid.
The point is at the bottom and the structure grows larger as it progresses.
Each ‘layer’ of the pyramid recruits the next layer which is larger than the
one before it. Each layer is required to purchase inventory...this inventory is
purchased from the underlying layer. Commissions are filtered down through the
layers all the way to the bottom layer...or point. Eventually the pyramid
collapses under its own weight. The top layer has the longest fall and stands
to lose the most. Ø
Ponzi schemes
are illegal. Ø
Pyramid schemes
are illegal. Ø
Many MLM schemes are
illegal. The people who promote these schemes are
some of the sneaky snakes that live and unfortunately thrive on the Internet
but they aren’t the only variety. If you are out there doing business on the
Internet you are visible. You are visible to your suppliers. You are visible to
your customers. You are visible to your potential customers. You want to be
visible to these people. You MUST be visible to these people. Sadly, you are
also very visible to the sneaky snakes. We’ve talked before about the CAN-SPAM Act
and related rules and penalties but that doesn’t mean that there aren’t still
spammers out there. There are laws against robbing convenience stores, too, but
that still happens and so does SPAM. These sneaky snake Spammers turn their
spiders or robots loose to crawl through the Internet and harvest email
addresses. Email addresses can be used many ways...one of them is identity
theft. You must make yourself available to your
supplies, customers and potential customers but rather than post your email
address on your website for the world to see...and the Spam spiders to
find...it is better to embed your address in a graphic or to use contact
information that is web based and does not publish your email address.
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