Matrix legal or illegal

I attended one of the most informative approaches to what comprises a legal matrix I have seen presented in years.

What was cool was the presenter. They admitted they had to do some
deep research so that they were presenting up front truths to help her audience stay safe from matrix scams.

Her tips on avoiding matrix scams was succinct

1. Dependable service.
2 They had a real product or service
3. Was the company/matrix sustainable if there were no more new
members?

If you reached an ‘NO’ conclusion then run.

Is what she clearly expressed the legitimacy of a pure MLM
program rather than a matrix? Read on.

I did a little follow-up research out of interest and because of a
follow-up conversation I had with someone who really hates
cheaters and scam programs of any kind.

We got a tad heated a couple of times but managed to avoid
coming to blows or regretting our seemingly opposing arguments
that turned out, in combination to be closer to the truth than we both
knew.

His …
1. A separation of the customer from the program
(he meant free to purchase without force or intent to make them a
distributor or promoting affiliate.)

He quoted business like Avon. The way he voiced it did not compute
but after a little research, he was closer than we both knew.

Mine …
My experience with MLM companies was that you could buy/try
once but after that you were a part of the customer base and
expected to join if there was a membership.

I loved the customer, my bosses impressed upon me that I was
to find distributors.

My life in MLM was short as I was against that focus for a lot of
learned lessons.

My Research?

Did you know the ‘average Matrix of any kind only lasts 8-14
months and then they die.?’  Some so-called experts would have
you believe this is undisputable fact.

That may be the norm but not 100% I did work for the late
Doug Williams and fully understood what now I know were
legal matrice that lasted years.

FTC and Government Regulators

Regulators (the Law) now demand a matrix must include
buying Customers to prove you aren’t a pyramid scheme!
I have seen it quoted, that the customer base must be 50%
in order for the matrix association to be legal.

Back then, my experience was green as grass. I never under-
stood how my super customers were suddenly on the books
as my new distributors and that action earned me a bonus
and a director position.

Fast forward today and the scene changes radically. We
are faced with the question are matrice legal or illegal?

Attorney Generals and the FTC abhor matrice because
they have no way to get Customers that are end consumers
into a Matrix

I question who ‘they’ are and come up with company
owners who have set the pace for profits first and
customer need second. Thus my question got
answered fast. The matrix simply was not designed to
bring in any form of the customer base.

Thus the company simply wrote your repeat customers
up as inactive distributors then laid on you to get them
to bring in ‘customers’ of their own. To do that, they to
had to sign up as distributors.

Nasty Fact

The regulators (FTC, U.S. States, U.K., Canada and a
growing number of countries decry the matrix because
it is used in 67% of world -wide scams.

The reason, because most matrice are associated with
MLM gone bad. Real MLM are legitimate multilevel
marketing. MLM’s have a real product to sell. More
importantly, MLM’s actually sell their product to
members of the general public, without requiring
these consumers to pay anything extra or to join the
MLM system Commissions are paid for real retail sales,
not for new recruits.

Who Loves You The Most?

Law enforcement officers go after Mr. Ponzi with relish.

In the U.S., the Federal Trade Commission, Securities
and Exchange Commission, the U.S. Department of
Justice, in collaboration with investigative agencies
like the FBI and the U.S. Postal Inspection Service,
prosecutes pyramid schemes criminally for mail fraud,
securities fraud, tax fraud, and money laundering

In case you did not know, it is the FTC Act that allows
the Commission to file suit in federal court and seek a
variety of equitable remedies, including injunctive relief,
a freeze over of the defendants’ assets, a receivership over
the defendants’ business, and redress or restitution
for consumers.

The facts, the rules, the indictments, can all be found
doing a little reading on your own right here for starters.

I am sure, that for those that do check it out, more
reading will tell you a lot about PayPal, limited and
frozen sites.

Due Diligence.
Make sure you are not next on the FTC list.

* Matrix – noun – singular
** Matrices – plural form of matrix

© 2016, Fran Klasinski. All rights reserved. on republishing any parts of this post, you must supply a link to the original post