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Legality of certain MLM tactics

by Pludoh
7 replies
Well, I've been having a bit of success with MLM and I wanted to know the legality (frowned upon or just straight up illegal?) of certain tactics I'm planning on using for (Moderated: please do not name your companies)

A) I'm making a website for my "team", I want to offer cash bonuses as incentives for getting signups. The first to 20 signups gets a $50 bonus for example.
B) I want to write an eBook to give out for free to everyone who signs up under me, I'm assuming this is not illegal in and of itself, but can I use the names of the companies in my writing? Would need to get permission?
C) I've heard of people getting in trouble for cross-promoting within their teams. Is it illegal to defame the name of one company over another for pure profit? Is ALL cross promotion even if you don't mention the other companies illegal? This is what I've heard but I can't imagine it being true, right?
D) Can I use the MCA/Empower Network logos? Names/acronyms of the companies in my domain?

Thanks for your time!
#legality #mlm #tactics
  • Profile picture of the author Jeff Lenney
    Forgive me for asking the obvious, but have you considered consulting with a lawyer on this?

    While there are 1 or 2 lawyers on this site that i'm aware of, you may or may NOT hear from them.

    Legal counsel really WOULD be your best approach here...
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    Too lazy to write something clever here, so check out my marketing blog and learn from a REAL Super Affiliate at JeffLenney.com

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  • Profile picture of the author Pludoh
    Lack of money to invest in a lawyer, that's why I said a BIT of success
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    • Profile picture of the author Jeff Lenney
      Originally Posted by Pludoh View Post

      Well, I've been having a bit of success with MLM and I wanted to know the legality (frowned upon or just straight up illegal?) of certain tactics I'm planning on using for
      Moderated

      A) I'm making a website for my "team", I want to offer cash bonuses as incentives for getting signups. The first to 20 signups gets a $50 bonus for example.
      B) I want to write an eBook to give out for free to everyone who signs up under me, I'm assuming this is not illegal in and of itself, but can I use the names of the companies in my writing? Would need to get permission?
      C) I've heard of people getting in trouble for cross-promoting within their teams. Is it illegal to defame the name of one company over another for pure profit? Is ALL cross promotion even if you don't mention the other companies illegal? This is what I've heard but I can't imagine it being true, right?
      D) Can I use the MCA/Empower Network logos? Names/acronyms of the companies in my domain?

      Thanks for your time!
      Originally Posted by Pludoh View Post

      Lack of money to invest in a lawyer, that's why I said a BIT of success
      Fair enough - I can GUESS, but don't take my reply as Legal Counsel Please

      A) Should be fine - but $50 for 20 signups is a bit cheap - Try offering $500 and they'll REALLY bust their butts
      B) Should be fine
      C) If you're being HONEST and not MAKING UP slander/lies in order to defame them - that SHOULD be fine. Negative reviews are perfectly legal and covered under free speech laws.
      D) I would not recommend it
      Signature

      Too lazy to write something clever here, so check out my marketing blog and learn from a REAL Super Affiliate at JeffLenney.com

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  • Profile picture of the author Pludoh
    Thanks mate, if anyone else has any input it would be much appreciated!
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  • Profile picture of the author Pludoh
    Oh, I know, but in my social group there is a lot of people who do illegal things for money. I have had success, and I know they have the hustle in them so they can succeed with it too (while turning a profit for yours truly). I've never had much success with other forms of affiliate marketing so I'm open to suggestions. I'm a freelance writer most of the time but want to keep building up that residual income.

    Also I heard Empower Network is considered a pyramid scheme in America and is illegal, which is why it is operated out of Costa Rica. Any truth to this? Is it illegal to promote in America as well?
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  • Profile picture of the author Tsnyder
    Originally Posted by Pludoh View Post

    Well, I've been having a bit of success with MLM and I wanted to know the legality (frowned upon or just straight up illegal?) of certain tactics I'm planning on using for
    A) I'm making a website for my "team", I want to offer cash bonuses as incentives for getting signups. The first to 20 signups gets a $50 bonus for example.
    B) I want to write an eBook to give out for free to everyone who signs up under me, I'm assuming this is not illegal in and of itself, but can I use the names of the companies in my writing? Would need to get permission?
    C) I've heard of people getting in trouble for cross-promoting within their teams. Is it illegal to defame the name of one company over another for pure profit? Is ALL cross promotion even if you don't mention the other companies illegal? This is what I've heard but I can't imagine it being true, right?
    D) Can I use the MCA/Empower Network logos? Names/acronyms of the companies in my domain?

    Thanks for your time!
    The first thing you might consider is getting involved with a real business.

    That said, have you bothered to read the policiy documents of
    the companies you do business with? You'll likely find the answers
    to all your questions there.

    I'm not a lawyer but the answers to some of your questions are obvious.

    It's never legal to use someone else's trademarks or logos
    without their permission.

    It's never legal to defame anyone or any company for personal gain.

    Every company I know about (and I've been in the MLM profession
    for more than 30 years) will terminate you for cross promoting to their
    reps... even those in your downline... as they should.

    Your bonus ideas are dicey, at best, but check with the policies of the
    companies to find out what they permit. I doubt the cash bonus is legal.

    Is there a reason you feel the need to reinvent the wheel? If you must
    promote this garbage why not follow the proven path of those who have
    been successful before you?
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    If you knew what I know you'd be doing what I do...
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  • Profile picture of the author Brent Stangel
    The first thing you might consider is getting involved with a real business.
    This, right here. Enough said!
    Signature
    Get Off The Warrior Forum Now & Don't Come Back If You Want To Succeed!
    All The Real Marketers Are Gone. There's Nothing Left But Weak, Sniveling Wanna-Bees!
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