TIP: Click on subject to list as thread! ANSI
echo: aust_ads
to: Peter Nicolas
from: Rod Speed
date: 1995-04-25 15:45:00
subject: Pyramid

RS> I say again, pyramid selling is explicitly illegal Rod.
RS> Your scheme is an absolutely classic pyramid selling
RS> scheme. That means you are breaking the law Rod.

PN> ALL MLM plans are based on a pyramid structure,

Yes, so the test on whats legal then becomes a test of how much
of the income comes from the pyramid structure, and how much from
actual sales to actual customers that you earn income on. If the
bulk of the income is coming from the pyramid structure on commissions,
its a pyramid marketing scheme, whatever you choose to call it.

PN> this structure is NOT what makes a plan illegal,

Yes.

PN> it is HOW it is marketed and the way commissions are
PN> earnt, and the type of "product" which is relevant.

Nope, the primary consideration where the bulk of your income
is coming from. In this scheme the bulk is coming from the
pyramid structure, not from your sales you make yourself to
a customer. THATs why its an illegal pyramid marketing scheme.

PN> The First Netcom plan is MLM and IS legal.

Nope, its a pyramid marketing scheme, explicitly illegal.
Whatever they like to claim or choose to call it.

--- PQWK202
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