Monday, August 27, 2012

Legit MLM vs. Pyramid Schemes and Scams


Legit MLM vs. Pyramid Schemes and Scams



I hear so many people saying that they are looking at MCA and seeing nothing but a pyramid scheme. Those people are not doing their homework.

In 1979, the United States Federal Trade Commission (FTC) handed down a landmark ruling. They found that one of the industry's founders, Amway was not a pyramid scheme. That ruling has paved the way for hundreds of MLMs to follow the FTC's ruling. Motor Club of America’s product marketing and business model is based well within the 1979 ruling based on the following below.

1. The Motorclub of America doesn't pay associates for simply recruiting new salespeople or associates. Selling and marketing the motor club membership is the only way an MCA distributor gets compensated for their efforts.

2. Making money through Motor Club of America is accomplished by selling memberships directly to consumers and by coaching your team of salespeople, also known as your downline.

3. Motor Club of America doesn't require its associates to purchase so called starter kits, or impose a minimum monthly quota of sales to stay a member of the company. The only requirement is that the associates be a product of the product which simply means that they not only sell the memberships but they are card holders as well and use the memberships in their daily lives.

4. Motor Club of America stresses that the main difference between a legitimate MLM business model and a pyramid scheme is that a legitimate MLM is focused on selling products, not recruiting more salespeople. In a legitimate MLM, it should be possible to make money by simply selling products directly to customers.

Be wary of anyone who tries to sell you on an MLM opportunity by flaunting their personal wealth. Realize that many of the people who claim to have made millions through the MLM industry have actually made their money selling books and videos on how to make millions through MLMs.

Bottom line: If it sounds too good to be true, then it probably is.

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