Any companies let you skip your monthly purchase?

[Yogi]

I just joined a new company, and they have one (of many) outstanding feature to their membership. If you have five personally recruited people with active memberships at the end of any month, your next month is FREE. These could be either retail members or associates. No nonsense either, they just do not bill you the following month. And you sitll earn team commisisons on those memberships.

I love this feature, but have never seen it before. Any other companies out there that do this ?

[Amy Jacobs]

With my company if I sell a platinum membership I can waive mine so no monthly fee Pretty cool!

[LifeShare]

Are they charging you fees or giving you free product and allowing that product to qualify based on previous month's sales?

If they are "fees" then it is illegal. I'd assume that is product, but just make certain that you get that clarified.

By law, a company cannot force you to buy their product to be part of the company and at least earn retail commissions.

[Yuliya Mironova]

Originally Posted by LifeShare

By law, a company cannot force you to buy their product to be part of the company and at least earn retail commissions.

First, that "law" varies from country to country. MLM is an international business model, and has been for some decades now, and different countries' legislatures and regulatory bodies have - unsurprisingly - laid down different rules to be followed.

Secondly, in every country (as far as I know), it's perfectly legal for part or all of the payment of commissions to be dependent on a certain monthly minimum purchase made by the distributor (these companies do unsurprisingly tend to be the ones that can get into trouble in recessions, though, as history has repeatedly and reliably shown).

Thirdly, there are many companies that don't have any monthly purchasing requirement at all and know they can survive by making genuine retail sales to genuine retail customers without needing to make their distributors buy products each month just to "qualify to earn all their commissions". It's understandable that some people see this as "buying your paycheck" and it's undeniably one of the things that has given MLM a bad image in some quarters.

[LifeShare]

Originally Posted by Yuliya Mironova

First, that "law" varies from country to country. MLM is an international business model, and has been for some decades now, and different countries' legislatures and regulatory bodies have - unsurprisingly - laid down different rules to be followed.

Secondly, in every country (as far as I know), it's perfectly legal for part or all of the payment of commissions to be dependent on a certain monthly minimum purchase made by the distributor (these companies do unsurprisingly tend to be the ones that can get into trouble in recessions, though, as history has repeatedly and reliably shown).

Thirdly, there are many companies that don't have any monthly purchasing requirement at all and know they can survive by making genuine retail sales to genuine retail customers without needing to make their distributors buy products each month just to "qualify to earn all their commissions". It's understandable that some people see this as "buying your paycheck" and it's undeniably one of the things that has given MLM a bad image in some quarters.

You are correct, the laws carry from country to country. Here in the US, the FTC looks for some very specific practices that throws up red flags. From there Attorney Generals in states jump on the bandwagon and target companies charging for things other than product. The Montana AG is currently targeting coded bonuses from the old excel plan. You can see the USA Today article on this one.

I also agree with you on the product that can retain the retail sales for years to come. Our industry has had a number of companies and recruiting practices come in and give it a negative image. We, every person in direct sales have to continue to strive to make it better and show the world that our industry is legit and shows great promise for anyone who wants to participate.

[AllanJames]

Originally Posted by Yuliya Mironova

[snip]

Thirdly, there are many companies that don't have any monthly purchasing requirement at all and know they can survive by making genuine retail sales to genuine retail customers without needing to make their distributors buy products each month just to "qualify to earn all their commissions". It's understandable that some people see this as "buying your paycheck" and it's undeniably one of the things that has given MLM a bad image in some quarters.

Absolutely correct (as usual Yuliya <grin>) and then there's a raft of online MLM's (usually calling themselves Network Marketing companies - but the comp plan in MLM) selling digital products and/or services and not requiring any personal use/purchase to qualify for commissions.

For all of that, online or offline, I do strongly advocate using any product or service (where practical) so as to develop knowledge, belief and enthusiasm about it. It doesn't matter if it's in person, in writing, or online, B.S is still B.S. and people, happily, can spot it every time in a heart beat.

[DeborahDeGrande]

Originally Posted by Yuliya Mironova

Thirdly, there are many companies that don't have any monthly purchasing requirement at all and know they can survive by making genuine retail sales to genuine retail customers without needing to make their distributors buy products each month just to "qualify to earn all their commissions".

Exactly.

My company has a disappearing autoship; get three customers and yours will be free. Nice!

[DeborahDeGrande]

We have a "voluntary" autoship program, not mandatory.

[Mike McClurg]

Originally Posted by DeborahDeGrande

We have a "voluntary" autoship program, not mandatory.

We do as well,

I can't imagine not being on autoship, My wife would have a Cow
Plus I really love the product

Don't want to ever experience the Dog House effect again