March 7, 2016 MLM & Affiliate Marketing News
The money behind Herbalife, Mary Kay and others While critics accuse multilevel marketing companies of being pyramid schemes, the Federal Trade Commission says that a company only qualifies as a pyramid scheme if its salespeople are paid primarily on the basis of recruitment, as opposed to the sale …
Lately, all eyes have been on Herbalife, a $4 billion weight loss and nutritional supplement company that hedge fund manager Bill Ackman has attacked as an alleged “pyramid scheme.”
Herbalife (HLF) contests those charges, saying its multilevel marketing strategy is above board. But the headlines have brought this huge industry into the spotlight.
From lipsticks sold by iconic “Avon ladies” to the popular P90X workout system, multilevel marketing companies represent nearly $30 billion in annual U.S. sales and enlist tens of millions of Americans as independent salespeople.Here’s a look at how the industry works. Read more on CNNMoney
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