There are several travel MLM companies out there just now. TVI Express is one that is under serious investigation. According to Rod Cook of MLM Watchdog.com, it is a seriously flawed business model which is nothing short of an illegal pyramid. OK so it’s not fair to tar all similar companies with the same brush, but let’s take a look at what makes for a legal MLM set-up.
Front end commission is fine. This is the cash you earn from sponsoring a new team member. Many companies pay this. But the crucial thing is that it must not be the main source of income. If it is and there is little or no product sale, then you have a pyramid. In other words the money you earn is being generated from the sign up fee paid by new team members. The thrust of the business is to keep sponsoring. When that stops there is no cash in the pot to pay you. You don’t have true residual income.
PYXISM makes great play of the fact that they have no monthly autoship requirement for distributors, just a one-off payment of 349 $US to join. [click to continue…]
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