Comments on: Need Help Evaluating Network Marketing? http://mlmblog.net/2005/03/need_help_evalu.html MLM News - MLM Reviews - Network Marketing News - Network Marketing Reviews Sat, 20 Mar 2010 14:20:54 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: lawDawg http://mlmblog.net/2005/03/need_help_evalu.html/comment-page-1#comment-3215 lawDawg Tue, 29 Mar 2005 00:15:59 +0000 http://localhost/mlmblog/?p=1866#comment-3215 <p>That letter than Clements touts as an "advisory opinion" from the FTC does not appear to be genuine. It's supposedly a letter from James Kohm to Neil Offen of the DSA dated January 14, 2004. However, the FTC's website includes all official and staff advisory opinions and you can search until you are blue in the face - you'll not find it there. </p> <p>Moreover, the letter claims that the FTC isn't concerned about multilevel marketing plans where the majority of the products are sold to distributors and specifically approves "buyers' clubs." Yet, in an actual, offical statement from the FTC, Kohm is quoted as saying:</p> <p>"In pyramids, the emphasis is on recruitment," says FTC attorney James Kohm, "and most, if not all, of the sales are to distributors." </p> <p>"The problem with pyramids," says Kohm, "is that the vast majority of participants must lose money to pay for the rewards of a lucky few. Most people end up with nothing to show for their investments except the expensive products or other marketing materials they're pressured to buy." </p> <p>http://www.ftc.gov/bcp/conline/features/mlm.htm<br /> </p> That letter than Clements touts as an "advisory opinion" from the FTC does not appear to be genuine. It's supposedly a letter from James Kohm to Neil Offen of the DSA dated January 14, 2004. However, the FTC's website includes all official and staff advisory opinions and you can search until you are blue in the face – you'll not find it there.

Moreover, the letter claims that the FTC isn't concerned about multilevel marketing plans where the majority of the products are sold to distributors and specifically approves "buyers' clubs." Yet, in an actual, offical statement from the FTC, Kohm is quoted as saying:

"In pyramids, the emphasis is on recruitment," says FTC attorney James Kohm, "and most, if not all, of the sales are to distributors."

"The problem with pyramids," says Kohm, "is that the vast majority of participants must lose money to pay for the rewards of a lucky few. Most people end up with nothing to show for their investments except the expensive products or other marketing materials they're pressured to buy."

http://www.ftc.gov/bcp/conline/features/mlm.htm

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]]> By: Shannon http://mlmblog.net/2005/03/need_help_evalu.html/comment-page-1#comment-3214 Shannon Thu, 24 Mar 2005 06:33:42 +0000 http://localhost/mlmblog/?p=1866#comment-3214 <p>According to a letter from the FTC to Len Clements, the FTC only goes after companies when someone files a formal complaint against them. He says if the FTC shut down every company that violated the customer rule or the 70% rule, there would be no MLMs in existence.<br /> Passport nor the FTC will ever knock on my door to confirm my compliance with these rules which proves that they are looking only for violations of a blatantly deceptive nature. If this isn't the case, how can Amway/Quixtar still be in business? It appears that having the customer rule and 70% rule in the company policy goes a long way in keeping the FTC off the company's back.<br /> Passport is truly a rare company that doesn't fit the profile of a vast majority of companies in this industry. It's one of the safest companies I've ever seen.</p> According to a letter from the FTC to Len Clements, the FTC only goes after companies when someone files a formal complaint against them. He says if the FTC shut down every company that violated the customer rule or the 70% rule, there would be no MLMs in existence.
Passport nor the FTC will ever knock on my door to confirm my compliance with these rules which proves that they are looking only for violations of a blatantly deceptive nature. If this isn't the case, how can Amway/Quixtar still be in business? It appears that having the customer rule and 70% rule in the company policy goes a long way in keeping the FTC off the company's back.
Passport is truly a rare company that doesn't fit the profile of a vast majority of companies in this industry. It's one of the safest companies I've ever seen.

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]]> By: Business Opportunities Weblog http://mlmblog.net/2005/03/need_help_evalu.html/comment-page-1#comment-3216 Business Opportunities Weblog Wed, 23 Mar 2005 21:54:34 +0000 http://localhost/mlmblog/?p=1866#comment-3216 <strong>6 Questions for Evaluating an MLM</strong> bMLM Blog: Do you understand the compensation plan or is it confusing? Would you buy the products for the retail price or are they too expensive? Are the start up fees reasonable and is their value added to the start... 6 Questions for Evaluating an MLM

bMLM Blog: Do you understand the compensation plan or is it confusing? Would you buy the products for the retail price or are they too expensive? Are the start up fees reasonable and is their value added to the start…

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