As we talk with companies we’re often asked, “Is there a level playing field for all types of compensation plans?” The answer is always, “The same legal principles apply no matter what your compensation plan is, and no matter what your product is,” regardless of whether they are binary, matrix or the Australian 2-Up, and regardless of whether your products are financial services, educational products, health products, or vitamins. The basic legal principal question always asked is, “What is it that people are paying?” and “Why are they paying it?” If you are selling a quality product at a fair price to the consumer, and the product “gets used”,  then you are probably on the legitimate side. If it’s a program in which you are merely moving money or you are selling overpriced products to distributors who are buying only to qualify, then you probably have a pyramid scheme.

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