Legitimate MLM Company or an Illegal Pyramid Scheme

What is a Legit MLM .vs a Pyramid Scheme?

LegalPerspective

By:  Scott Warren, David Van Sambeek, Scott Wellman*

There has been a recent surge of enforcement actions by governmental agencies claiming that that certain network marketing companies are illegal pyramid schemes.  The most notorious of these recent actions is the action filed by the U.S. Federal Trade Commission (FTC) against Vemma.  But this is just one of the actions and investigations brought by both the FTC and the U.S. Securities and Exchange Commission in recent time.  In order for your MLM company to avoid the same fate and regulatory scrutiny, it is essential that you (1) gain an understanding of the crucial role retail sales play in the determination of what is a legitimate MLM company versus what will be considered to be an illegal pyramid scheme, and (2) implement any needed changes immediately.

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Troy Dooly is recognized internationally as an influencer in the areas of personal branding, leadership development, marketing campaigns, organizational expansion, and corporate launch strategies. Dooly is a speaker, results coach, and radio host. He is a founding member, show host (Beachside CEO) and News Director of the Home Business Radio Network. He is a founding member, and currently serves on the Board of the Association of Network Marketing Professionals