I just returned from a 3 day seminar in which it was announced that Qixtar and Usana are on the verge of being prosecuted by the Gov't. Reason is that they are not selling products to customers, but rather signing people up to buy products and teaching those people to sign others up to buy products. It is illegal to "sign up" people and not have verifiable customers other than distributors. It appears, if the government is successful true MLM companies will fall by the wayside. Although they (Quixtar and Usana) say they sell to outside customers, there has never been a quantified program put in place to track or prove those customers; ie, no requirement to show sales reciepts to qualify for (paltry) earnings. In order to be in compliance with the law, there must be a mechanism in place to prove sales to the outside. The 70/30 Rule is said to have been followed by distributors signing a document stating they do sell 70% and use 30%, but, alas, not documentation for
proof.
Interesting to see results. I have not as yet searched net for this, but was reported to have come from the DSA, I believe. I bet not many ordinary people in Quixtar and Usana are aware of this....yet.
Francie
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