How do you keep track of who is in your downline? All networkers, when they join a network, are given a personalised number. This number identifies them as belonging to a particular network. You may ask: ‘But how can I keep track of all the people in my downline?’ The answer is that you don’t need to. In network marketing each individual works three levels deep. You are directly responsible for the distributors you recruit (level one), the people they recruit (level two) and the people they, in turn, recruit (level three). That’s not too much to manage. ..more
Archive for March 10th, 2008
Network Marketing and the Law continue…
Posted by: eric on Monday, 10th Mar, 2008
You must be clear on the differences between illegal pyramid scams and network marketing. Here are the factors that make for a genuine network marketing company:
- The company must be a bona fide retail organisation which markets legitimate products or services to the consumer.
- The company should offer quality products or services for which there is a genuine demand.
- The price of the goods sold must be fair and competitive.
- There must be no up-front investment requirements other than a low-cost starter sales kit.
- There should be no minimum purchase requirements to join the network other than those essential to do some trade. ..more
Network Marketing and the Law
Posted by: eric on Monday, 10th Mar, 2008
Network marketing is a completely legitimate business. It has nothing to do with ‘pyramid selling‘ or chain-letter-type scams which have made newspaper headlines. Indeed, the worst excesses of pyramid operations have been largely stopped through legislation and consumer education.
For example, in the United Kingdom, legislation was passed in 1973 which detailed:
- what could be said in advertisements
- which promises could be made
- which information could be included in documents issued by promoters
- what the rights of distributors were
- undesirable practices such as charging for training.
- that network marketing companies were also required to buy back certain stock from their distributors on termination of any contract.
These regulations have been extremely effective in ridding the system of abuse. ..more