In his book, According to Kotler, Paul Kotler defined this subject as follows: "Multilevel marketing (also called network marketing), describes systems in which companies contract with individuals to sell a set of products door to door or office to office. It is called multilevel because a contractor can also invite others to work and earn money on their performance." The sales representative thus has incentives to enlarge the sales force and to earn added commissions on the sales of his or her recruits.
An example of a high-profile multi-level marketing company defending its practices is Herbalife Ltd., a manufacturer and distributor of weight-loss and nutritional products with more than 500,000 distributors. Although the FTC had been investigating Herbalife, it was activist investor William Ackman who shed a national spotlight on the company by shorting $1 billion of the company’s stock in 2013. Ackman accused the company of operating a pyramid scheme and backed his allegations with a bet the company’s stock price would fall under the weight of the scam.
Multi-level market (MLM) or network marketing is an American institution. Companies like Amway, Tupperware, Herbalife, Avon, Mary Kay and The Pampered Chef support huge networks of distributors and recruits who sell every type of product from dietary supplements to kitchenware to beauty products. Salespeople are called independent business owners (IBO) and generally work from their homes.
Because of the nature of recruitment and the dream of living the life of riches, it is no stretch to the imagination that sometimes, the real picture gets blurred between the lines. Also, MLM is notoriously known for getting you on the bad books of friends and family. This is of course a general stereotype against the industry and not a concrete consequence.
Although hemp and marijuana are essentially different cultivars of the same plant – Cannabis sativa L – marijuana has been cultivated to concentrate high levels of THC (frequently as much as 18%), in the plant’s flowering tops, whereas hemp, which is primarily grown in Europe to make clothing, paper, biofuels, bioplastics, nutritional supplements, cosmetics, and foods, contains less than 0.3% THC.
One of the main issue with people who are against Network Marketing is that there is a potential for abuse by unscrupulous businesses that take advantage of them, pocketing their money and returning very little in the way of dividends to the investor. One of the key areas of abuse with Network Marketing is what is known as the ‘Pyramid Schemes,’ so it would be right at the outset to explain what Network Marketing is and the difference between legitimate Network Marketing companies and Pyramid Schemes.
In de Verenigde Staten kwam de discussie over vermeende illegaliteit van MLM-bedrijven al eerder op gang. In 1979 leidde dit onder andere tot de uitspraak van de Federal Trade Commission (FTC) dat de werkwijze van Amway geen piramidekarakter had. Het belangrijkste argument hiervoor was het accepteren van zekere regels om te voorkomen dat het een piramidespel zou worden, met name dat 70% van het inventaris doorverkocht moest zijn voordat een nieuwe order kon worden geplaatst, en dat deelnemers elke maand minstens tien klanten (buiten Amway dus) moesten hebben, en verder dat Amway een terugkoopplicht had voor deelnemers die eruit wilden. De pretentie was dat het grootste deel van de inkomsten ontstond door daadwerkelijke verkoop van producten, en zo werd de illegaliteit van het piramidespel althans voorwaardelijk omzeild. In de praktijk werden dergelijke voorwaarden allen in naam gehonoreerd, en deelnemers verklaarden dat zij die regels volgden. Illegale prijsbeïnvloeding en misleiding wat betreft de mogelijke inkomsten werden wel bewezen. Deze en andere ervaringen waren later ook basis voor de regelgeving in Europa.
Another way to think about the difference between the two plants is by comparing them to roses. There are so many different varieties of roses. They come in various shapes, sizes, and colors. Even though they differ in a great many ways, they are still roses and their genealogy can be traced back to the original rose plant. Much like yellow roses and white roses are to the original red rose, the hemp plant is a relative (a cousin) of the Cannabis sativa plant.
“The majority of [retailers] earn income from only selling LuLaRoe clothing and not through participation in the Leadership Bonus Plan,” says a LuLaRoe spokesperson of their recruitment-based bonus structure. “LuLaRoe’s success is based on [retailers] selling the comfortable and stylish clothing to consumers, not ordering more inventory.” LuLaRoe says that in 2016, 72.63% of their consultants earned their income through selling clothing alone.
Although both oils are generally safe for use, the main difference between hemp oil and marijuana oil comes down to the THC content, which contributes to their different side effects. Marijuana’s THC content naturally contributes to more potential side effects related to memory, learning, and general cognition, which invariably means you shouldn’t be doing anything important, operating heavy machinery, or driving after taking marijuana oil. By comparison, hemp oil has far fewer side effects. Most side effects are related to hemp oil’s high polyunsaturated fat content, which may contribute to heart disease and digestive problems, but only if you are ignoring serving recommendations.