Question
Do I have to recruit people in an MLM?
What to do next:
- Ask for written evidence of net income earned without recruiting.
- Check how many retail customers those participants had.
- Decide whether the realistic, recruit-free income is worth the cost.
Why this matters
A compensation plan may allow retail sales while higher payments, bonuses, or rank advancement depend on team activity.
The useful question is what comparable participants earn after expenses without recruiting anyone.
Questions to ask before joining
- What percentage of participants earned money without recruiting?
- What did they keep after expenses?
- How many retail customers did they have outside the participant network?
Related recruiting phrases
Helpful next pages
- Someone pitched me an MLM. What should I do?
- Before You Join an MLM
- Before You Pay
- Documents to request before joining an MLM
- MLM expense worksheet
- Scripts you can use
Sources
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Regulator guidance
Multi-level Marketing Businesses and Pyramid Schemes
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Regulator guidance
Business Guidance Concerning Multi-Level Marketing