Hey,
I ran across a website the other day that claims they are not an MLM. However, part of their "comp" plan as well as their program structure uses an mlm structure.
Here is how it works:
1. Affiliates only get paid commissions for their actual sales.
2. They do build a downline but they don't earn "commissions" off of the sales of those under them.
3. However, whenever, a member requests payment, the company charges 15% of the money they are withdrawing as a withdraw fee.
4. That 15% is divided up amongst the members' upline as "bonuses." They claim since this money is not comming from the actual sale but rather is comming from the company (after it takes it from the members earnings) that it does not make them an MLM. They say it is just a "bonus" payment to the users account within the program. Basically, they claim that the money is theirs once they take it out of the member's account and they can use it as bonus money or keep it or do whatever they want with it.

So, the question is, do MLM laws and regulations apply only to the actual sale of the product and the commission generated thereby or does it apply to all funds paid to an affiliate no matter what the reason?
Let me know what you think?
I am sorry, I can't find the site right now. I willl post it later if I can find it again... Darn computers.. LOL!
Thanks
DW

I believe the laws/regulations apply only to the actual sale of the product and the commission generated. But not sure if same applies to the funds paid to an affiliate.

Yeah, thats were it gets sticky. LOL!
IF anyone else knows for sure please let us know!
Dw

我叫荣宝全，来自上海市嘉定区娄塘镇，参加好尔初乳科技不到两个月的时间。在一次偶然的机会， 我在家接到好尔初乳公司健康代表的电话邀请我参加在上海浦东鹭发举行的健康联谊会，在会上通过专家以及健康代表的介绍购买了一 套产品，在未参加联谊会之前，我的身体一直不好，高血压，高血脂，高血糖，动脉粥样硬化。最重要的是心脏不 好，心脏脉搏跳动不规律，到上海专家医院要求我装起博器。 我很担心很害怕，通过好尔初乳的联谊会，通过专家的介绍心动了，虽然有点担心还是购买了，一套，刚开始服用一个星期感觉心脏更疼痛，我很 担心是不是好尔初乳产品对我身体有副作用，于是我咨询了专家以及我的健康代表，他们说这是正常的免疫反应，是好现象。这时我才 放心继续坚持服用，两个星期后我的心脏不疼了，腿脚走路也轻松多了。我老婆和我一起走都追不上我的，以前动 脉血管缺血，缺氧导致我的嘴唇很黑，很紫。吃了好尔初乳产品以后两个星期，情况有所改善，嘴唇有些红润。我 家老婆很开心，如今我服用好尔产品快一个月了，效果很明显，我更加坚信了对好尔初乳产品的信心 。 今年11月份，我有幸加入了好尔初乳养生理事会，在好尔初乳养生理事会我真正体会到了老有所乐老有所学老有所用，我服用了产品之后有很好的效果 ，也在努力介绍其他的朋友，认识全民爱心健康工程，我也愿意做爱心传递的工作，将好尔初乳科技高科技的产品 带给我们娄塘每一位需要健康的老年朋友们都健康起来，虽然前面是路很难走，但我坚信通过我们的努力一定会很 好，最后祝愿在坐的各位老年朋友身体健康，合家欢乐。