Question
What is inventory loading?
What to do next:
- Ask what inventory is typical for new participants.
- Get return deadlines and refund percentages before buying.
- Find out what share of volume is sold to non-participant customers.
Why this matters
The risk is highest when product purchases are tied to compensation, rank, or pressure to appear active.
A refund policy is important, but it may not make a participant whole after time, shipping, fees, or missed deadlines.
Questions to ask before joining
- How much inventory is typical for new participants?
- What product can be returned and by what deadline?
- What percentage of participant volume is sold to non-participant customers?
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
-
Regulator guidance
Multi-level Marketing Businesses and Pyramid Schemes
-
Regulator guidance
Business Guidance Concerning Multi-Level Marketing