Is Forever Living a Pyramid Scheme ?
Is Forever Living A Pyramid Scheme ?
The operation of pyramid schemes is entirely illegal in almost all countries and regions around the globe. The question ‘ is Forever Living a pyramid scheme ?’ on occasion is raised by misinformed persons not in possession of the true facts.
Direct Sellers Association Regulated
The Difference Between Legitimate & Scam
Legitimate Direct Selling Practices
The seller is made aware and has access to up to date and accurate information pertaining to the company, its products and services.
Low Fee Starter Kit
There is a median cost for the company starter kit, in the UK (Forever Living) this is £199.75 including delivery. The kit contains products, forms, product catalogues and a business guide book to assist the new business owner.
Recognised market place products or services that are competitive and are ultimately purchased by a user/customer.
No Inventory Required
The seller is not required to hold a large or even small inventory to operate their business. There is also a buyback policy for saleable items should the distributor decide to leave the business.
Sale of products base compensation
The primary source of income is from the distributor selling products or services to the consumer. Compensation can be generated from either personal sales or via the sales made from other recruited team members.
Fraudulent Company Operations
Promise high earnings with little effort
Unscrupulous activities including the promotion of a business opportunity by promising high earnings for very little effort. Be honest with yourself, would you expect to turn up to a job, sit on your backside all day (doing nothing) and get paid by your boss?
Income only from recruitment
Distributors who seek only to recruit new people, not investing time in learning the business and training others or selling any products to customers. They make promises to new recruits that income is made this way, the sale of products has to be paramount.
Product inventory loading
This is when business owners attempt to convince people into buying large amounts of inventory. The purchasers then struggle to sell to others and have no return option.
Large Joining Fees
Some of these nasty companies charge new distributors large upfront fees to be able to join either as a direct payment or obligatory payment for products. These promoters will make out that this opportunity is short term and pressure people into signing up immediately.
Recruiting Activity Compensation
The model of these types of businesses rely on high yield recruiting activity (head hunting fees). Participants are convinced to join with the receipt of headhunting fees when they recruit others.
Popular Culture And Pyramid Schemes
Unfortunately the actions of immoral persons operating in any business environment tarnish reputations for the innocent, fair minded, ethical people who work hard to be transparent and play by the rule book. The news media, film and TV industry have certainly been responsible for grouping honest companies with underhanded ones. To draw a comparison it might be like saying all people who practice religion are terrorists; this of course is pure fallacy. We hope this guide has highlighted the difference between pyramid scams and legitimate, ethical network marketing businesses.
Some critics of direct selling manipulate the facts to discredit legitimate companies, quite often don’t understand the differences as shown in this article and rely on the premise that many consumers aren’t familiar with these differences also. When asked ‘ is Forever Living a pyramid scheme ..’ the responses are often inaccurate through the perpetuation of misinformation.