Technically, in network marketing, we are NOT compensated to recruit people. We’re compensated for selling product volume. That’s theoretically the case, anyway. However, for many years, and still to this day, there are many network marketing companies where the majority of product volume is not being purchased by the general public, but by the distributors themselves, which presents some potential legal issues. In the opinion of the FTC… this is a 'thinly-veiled' pyramid scheme!
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