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Multilevel marketing and sales

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You work at a successful multilevel direct selling company. Recently, critics have accused your firm of being a pyramid scheme. While you award recruiting independent distributors with commissions on the sales of their recruits, an actual product of value is being sold. Some are calling for your company to eliminate its multilevel marketing compensation scheme. You must come up with an answer defending your compensation model and explaining why it is not a pyramid scheme.

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How to defend an MLM against pyramid scheme comments.

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Multilevel direct selling and pyramid schemes may look the same to some, but they have some marked differences. As an employee of a direct selling company, the emphasis is on selling a product. Our Company offers training to sell products, not to recruit others. Though I earn income from my downline sales, I also earn a commission on what I sell and this is a major difference. I do not earn money to recruit ...

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