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In addition, if you solicit new distributors, you are responsible for
claims you make about a distributor's earning potential. Be sure to represent
opportunity honestly and avoid making unrealistic promises. If those promises fall through, remember that you could be held liable.
The Federal Trade Commission (FTC) suggests that you use common sense when evaluating a multi-level marketing opportunity and consider
following tips before you make your decision:
1. Avoid any program that pays commissions for recruiting additional distributors. It may be an illegal pyramid.
2. Beware of programs that ask new distributors to purchase expensive inventory. These programs can collapse quickly--and also may be thinly-disguised pyramids.
3. Be cautious of programs that claim you will make money through continued growth of your "downline"-the commissions on sales made by new distributors you recruit--rather than through products you sell.
4. Beware of program that claim to sell miracle products or promise enormous earnings. Just because a promoter of a program makes a claim doesn't mean it's true! Ask
promoter of
program to substantiate any and all claims with cold, hard evidence.
5. Beware of shills--"decoy" references paid by a programs promoter to describe their fictional success in earning money through
program.
6. Don't EVER pay or sign any contracts in an "opportunity meeting" or any other high-pressure situation. Insist on taking your time to carefully think over your decision to join. Talk it over with your spouse or partner, a knowledgeable friend, and an accountant or lawyer.
7. Do your due diligence! Check with
Better Business Bureau and state Attorney General's office about any porgram you're considering--especially when
claims about
product or your potential earnings seem too good to be true.
The FTC works for
consumer to prevent fraudulent, deceptive and unfair business practices in
marketplace and to provide information to help consumers spot, stop and avoid them. To file a complaint or to get free information on consumer issues, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261.

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