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Greening up the downline: multi-level marketing comes of age.

Publication: E
Publication Date: 01-JUL-06
Format: Online
Delivery: Immediate Online Access

Article Excerpt
Since the 1950s, multi-level marketing (MLM) companies like Amway have sold billions of dollars worth of products to consumers through independent individual distributors, who take a cut on every sale they make as well as on the sales of other "downline" distributors they have recruited. a of...

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...These days, new crop green companies has adopted the MLM business model to sell various types of environmentally friendly merchandise.

But while the marriage of multi-level marketing and environmentalism seems like an obvious fit--because distributors want to believe in the products they are selling to friends and family--consumers should beware that just because a company looks green does not mean it acts responsibly. Just as in other sectors, MLM companies run the gamut from reputable to fraudulent, and would-be distributors owe it to themselves to investigate whether any such company they are considering working with meets some basic criteria of legitimacy.

According to the U.S. Federal Trade Commission, the key difference between legitimate MLM companies and so-called "pyramid" scams is on what basis...

NOTE: All illustrations and photos have been removed from this article.



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