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Your Distributor is
Melissa Ancelin
Remove
-
+
$ Retail Promo $ Monthly Promo
  Subtotal $ Retail $ Monthly
Orders are currently limited to 1 item per transaction to avoid potential customs delays.
Orders in your market are limited to $ per month. If you have questions, please refer to our Global Customer Program Terms & Conditions.

Your Cart Is Empty

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Compliance Corner – September 2019 Article

LifeVantage Business Policies: Pyramid vs. MLM

The Compliance Department has been generating educational training for distributors to help you understand why compliance is critical to LifeVantage’s and your success in building an independent LifeVantage business.

In this month’s article we explain the difference between an illegal pyramid scheme and a legal multi-level marketing plan.

MLM: In a legitimate Multilevel Marketing Plan, participants sell goods or services to end users in order to qualify for commissions.

Pyramid: A “Pyramid Scheme” is a plan where individuals pay money for the opportunity to receive compensation solely or substantially for recruiting other participants.

Avoid Using Statements That Might Imply You’re Operating an Illegal-Pyramid Scheme:

  • DON’T tell people all they need to do is “get in and buy a bunch of products and get your friends and family to do the same.”
  • DON’T tell new Distributors they are required to buy products. The only requirement to become a LifeVantage Distributor is to purchase a LifeVantage sales kit (where permitted by law).
  • DON’T oversell Subscription or “Auto Order” type programs. Certainly, don’t tell new Distributors that a subscription is mandatory or required or the only way to meet sales volume requirements.
  • DON’T emphasize recruiting over the importance of sales
  • DON’T present the MLM opportunity as a way to get rich quickly and don’t guarantee anyone’s success
  • DO tell people they can earn income by selling products to end consumers and leveraging the efforts of their sales team to do the same.
  • DON’T tell people they can earn, “lifetime,” “permanent,” “passive,” or “residual” income.
  • DON’T use misleading or deceptive “bait and switch” sales tactics, e.g., “Looking to fill part-time sales position”

Use Statements that Imply You’re Selling Real Product to Real Consumers:

  • DO explain that a subscription is a convenient way to make sure you don’t miss getting your favorite LifeVantage products on a regular basis.
  • DO tell people they can use the LifeVantage Compensation Plan to build a potentially successful independent direct selling business
  • DON’T use misleading income representations through words or images/pictures, such as expensive homes, luxury automobiles, exotic vacations, and don’t tell people they can earn “career-level income,” or “quit their jobs,” or “fire their bosses,” or become “stay-at-home parent(s)”
  • DO tell people they can earn a leveraged income by leveraging their personal sales efforts and the sales efforts of their team
  • DO use the Average Annual Earnings Chart (U.S. (“Statement of Typical Participant Earning” (CA)) as a reference to show how much money a Distributor can earn with the LifeVantage Compensation Plan. The Chart is available on the LifeVantage website.
  • DO share accurate and truthful earnings information with your prospects. Make sure they understand that actual earnings can vary significantly depending upon time committed to selling and building an independent LifeVantage distributorship, sales skills and other factors, and success as a LifeVantage Distributor is NEVER guaranteed.
  • DO explain that the LifeVantage opportunity is a legitimate direct selling opportunity

We hope that you find value in this brief overview of our company business policies on Pyramid vs. MLM. If at any time you should have questions concerning please contact the Compliance Department directly at compliance@lifevantage.com or the Legal Department at 801-432-9148.

 

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