Direct Selling VS. Pyramiding

How to differentiate a legitimate direct selling company from pyramiding using the 8-point Test:

1. Is there a product?

2. Are commissions paid on sale of products and not on registration/entry fees?

3. Is the intent to sell a product not a position?

4. Is there no direct correlation between the number of recruits and compensation?

5. If recruitment were to be stopped today, will the participants still make money?

6. Is there a reasonable product return policy?

7. Do products have fair market value?

8. Is there a compelling reason to buy?

If the answer to all the questions is YES, then the company being evaluated is a legitimate company. But if the answer is NO, then there is a high probability that it is a pyramid scam.


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