Pyramids, Ponzis, and MLM. What’s legal?

What’s an illegal pyramid scheme, what’s a Ponzi and what is a real and legal Direct Selling or MLM company?

We know why the first two are illegal. There are no products or services and it’s simply money changing hands. With a direct selling or MLM company there are products and services and it’s always been considered an entrepreneurial business. At least until this year, thanks or no thanks to a ruling from the Federal Trade Commission in a case against one of the great companies — Herbalife.

The FTC wants to see real customers. Real product end users.

No longer just distributors who buy products for personal consumption and samples. Some companies have changed their compensation plans to the point where distributors will not receive 100% commission unless they show actual customer sales.

The solution is User Generated content. Short videos under about 40 seconds of your customers giving product testimonials.

Does it work?

According to the Nelson ratings company:

92% of consumers trust recommendations from peers or trusted authorities. Likewise, 72% of people rely on social media to inform their purchasing decisions. And guess what? That’s people just like you and me. You’ve taken a video of something on your phone before. We all have.

Now, imagine customer product videos about your very own Direct Selling business. You make the FTC happy, but it also helps you generate a better income. Online consumer reviews are the second most trusted source of brand information and messaging, with 70 percent of global consumers surveyed online indicating they trust messages on this platform, an increase of 15 percent in four years.

We have discovered a new company that can make it happen and its free. Its called The app to record a short video on your phone is free from the app store and the site where you post it is also free. You just sign up and create your own community. Best of all, these testimonials don’t get lost in the clutter of Face Book and it’s a great, legal prospecting tool for new distributors and those all important customers.

Posted in MLM, Uncategorised, User Generated ContentTagged consumer reviews are traused, free uklipz app and site, FTC and customers, pyraminds pozis and legal mlm’s,User Generated ContentEdit

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