Their annual reports also state the average rep historically issues fewer than 2 1/2 policies a year (before any cancellations/terminations), and would include any policy they may have purchased for themselves. That would indicate the average comp figure is highly skewed by a rare few top earners.
A hmmmmmm question on MLM
- Thread starter Cornelius
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The above are only required if a rep has to pay to join the company -or- uses income examples in their marketing -or- has an entry cost greater than $500.
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Consumers / Buyers outside the comp plan.
Mary Kay and Advocare are two fine examples. 75% of their sales are too consumers that are not reps.
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Thankful that ONE Life doesn't charge our Agents and / or Guests to attend our Annual Conference.
Yeah, I don't think that article is right either. However, I do think that Art had a lot to do with the massive increase in UL policies being sold.
Check this out: https://www.soa.org/globalassets/as...elopment-section/1999/january/m-as99-3-06.pdf
The FTC website is accessible online.
Yes, because reps who joined the opportunity, yet failed to earn any commissions though purchasing products are simply reclassified as preferred customers. Regulators do not require that an MLM provided audited lists of who joins as a distributor and who joins as a customer. MLMs are therefore free to reclassify people however they see fit. In fact, MLMs are not required to provide the FTC with any info.....unless under direct investigation. That is why they warn the public to make their own determination.
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You can also Google the "Koscot test".
They may not be presently, because of the huge churn rate, but a great number began purchasing the products when first recruited. Some continue to use the products for awhile after leaving. The common denominator is that they became clients after joining the opportunity, which is internal consumption in spirit at the very least.
