It's ironic that people still mistakenly all MLM's accusations of being pyramid scams "when it was actually the first reputable MLM companies that petitioned government authorities to have pyramid scams outlawed your own.
For a full story of the history of network marketing you can visit the MLM The Game website, it is important to know a story.
Educational Game
There are several organizations with foundations of integrity and ethical practices that put endless effort everyday ensuring that the Network Marketing industry keeps the honest business practices it was originally founded on. We suggest you take some time to look into, and possibly become a member of one or more of the following organizations:
The Directs Selling Association The Multi.Level.Marketing International AssociationMLM watchdog Jefferey Babener & Associates (M.L.M. Legal) The Distributor Rights Association
These organizations are made up of people with years of expertise and success in this industry, and their websites are full of useful and interesting information.
Take some time to read some of the articles on these sites to learn about what these organizations mean to you as a distributor. You owe it to these organizations, all the distributors before you and after you, and the founders of all legitimate network marketing companies to maintain integrity and ethical business practices. After all, if it was not for organizations like the ones mentioned above, the FTC (Federal Trade Commission) would have cracked down and banished this great industry attogether.
In the early days of network marketing, and even to this day, there are still hundreds possibly even thousands of distributors misleading people into their opportunities. This does nothing more than give this industry a bad name. So please do not do it! Misleading to prospect is not only unethical it's also ineffective, and illegal. If your goal is to sign up a new distributor, and get them qualified with a few customers just so you can get a bonus check, then you are in this industry for all the wrong reasons and you will eventually fail.
Your goal ought to be to help as many people succeed as possible so you and your entire team can develop a long-term residual income fueled by thousands and thousands of loyal and happy consumers. If you are in the question about whatis and what is not ethical, here are a few common things for you to consider:
1. Do not make false income claims. You cannot guarantee ANY amount of earnings to anyone. Success in this industry is solely based on applied efforts and results. Be honest.
2. Do not be afraid to say this is network marketing. If someone asks you "Is this M.L.M.?" or "Is this network marketing?" Say YES! If they are misinformed about the difference between a pyramid and a legitimate M.L.M. business, you may educate them, but do not try to mislead them. Let them make up their own minds.
3. Do not lie about the benefits of your products. If your products are as good as you say then there will be plenty of credible third party documentation backing up those claims. You do not need to exaggeratethe benefits. This practice is fueled by greed, and will only hurt you and your company in the long term.
Following these 3 rules will keep you out of trouble, and will contribute to the integrity of the entire industry. Failure to do so will tarnish the name of network marketing and will further the efforts of the FTC to create unreasonable legislation affecting all companies and distributors.
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