By: Seeking Alpha
On November 12 the FTC approved Vemma’s New Compensation Plan.
- The plan states participants may not “qualify” with their own purchases therefore removing any motive to inventory load (regardless of self-consumption).
- Herbalife’s supervisor level is consistently proven to be motivated by self-qualifying and self-consumption.
- If the FTC set the tone with Vemma, other “MLMs” may face a drastic slowdown in sales.
- Affiliates can no longer qualify for commissions through their own purchases
- A new “51% rule” prohibits the payment of ANY commissions if 51% or more of commissions are earned from affiliates (downline)
You can read more the original article here:
<img src=”https://mlmnewsblog.com/2015/11/did-the-ftc-just-shape-the-future-of-multi-level-marketing/”1″ width=”1″ alt=””>
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