DSA Efforts In DC To Legitimize MLMs With Few Customers
Business Talk with Jim Campbell
Business Talk with Jim Campbell on 9/17/2017 focused on the topic of the Direct Selling Association (DSA) efforts in DC to legitimize MLMs with few customers. Prof. Bill Keep and Bonnie Patten executive director of TINA.org take on the DSA in an interesting interview that brings together many of the people that are involved in these efforts.
You can listen to the entire radio show below:
There is a lot of talk about the buy back programs that MLMs offer by the DSA. The way MLM companies get around buying back the products is they use a rule called the 70% rule. This rule makes it so that 70% of the product has to be consumed or sold each month or you can’t return the products.
Here is an example of this rule in action:
In order to qualify for commission and overrides, each distributor must certify with the purchase of product that he/she has sold to retail customers and/or has consumed seventy percent (70%) of all products previously purchased. This is known in the industry as the “Seventy Percent Rule”.
This rule makes it so that you can only return at most 30% of the product you have purchased. You also do not receive a refund on any shipping costs.
The primary purpose of the efforts of the DSA and their minions with these laws is to make it so that personal consumption by distributors is considered retail sales even though these sales are not retail sales. These are sales used to extract money from distributors to qualify for commissions. Each distributor who profits, therefore, does so primarily from the payments of others who are themselves making payments in order to obtain their own profit.