I called the Better Business Bureau to explain the difference between an illegal pyramid scheme and an MLM. Both are similar in structure – what makes one illegal?
They told me there two criteria that classify an illegal pyramid:
1) The registration fee is used to pay the sponsor. Illegal pyramids collapse because as the structure grows to infinity, the fees collected from new registrations are not enough to pay those along the line of sponsorship.
2) The distributers are mandated to purchase an excessive amount of products that just accumulates, and they cannot off load (ei. sell). They end up stock piling products and expected to buy more to meet a certain quota.
With bHip Global, profit is based on product movement. Up to 30% percent of the business volume is paid out in commissions. Product shipment is limited; distributers are discouraged from stock-piling and encouraged to finding customers who just want the product.
@TheDmb10 Hmmmm... let's start with what a pyramid scheme is. Pyramid = No product, or a shitty product with no goals, just to find people with money and get their credit card info etc. And a business is a business, and if you compared it to the pyramid system, that's "all" businesses. MLM is in every single business, from the start. Huuuuge difference between MLM and Pyramid scheme, they may look the same, but don't be fooled boyo :)
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bbestklub 4 months ago
(Cont'd)
I called the Better Business Bureau to explain the difference between an illegal pyramid scheme and an MLM. Both are similar in structure – what makes one illegal?
They told me there two criteria that classify an illegal pyramid:
1) The registration fee is used to pay the sponsor. Illegal pyramids collapse because as the structure grows to infinity, the fees collected from new registrations are not enough to pay those along the line of sponsorship.
lifecoachinc1 1 year ago
(Cont'd)
2) The distributers are mandated to purchase an excessive amount of products that just accumulates, and they cannot off load (ei. sell). They end up stock piling products and expected to buy more to meet a certain quota.
With bHip Global, profit is based on product movement. Up to 30% percent of the business volume is paid out in commissions. Product shipment is limited; distributers are discouraged from stock-piling and encouraged to finding customers who just want the product.
lifecoachinc1 1 year ago
(Cont'd)
The big question: is there a market for bHip Global’s line of products... apparently there is!
Do your due diligence. Call the Better Business Bureau for answers. Understand the opportunity before declining it!
lifecoachinc1 1 year ago
@TheDmb10 Hmmmm... let's start with what a pyramid scheme is. Pyramid = No product, or a shitty product with no goals, just to find people with money and get their credit card info etc. And a business is a business, and if you compared it to the pyramid system, that's "all" businesses. MLM is in every single business, from the start. Huuuuge difference between MLM and Pyramid scheme, they may look the same, but don't be fooled boyo :)
soukoden 1 year ago