Network Marketing Incentive Contracts, Is It Ethical?

Admin   |   01 October, 2014   |   550   |   3980

In recent events, Herbalife has come under fire due to their product/distributor ratio and the DSA has come under fire from Avon, due to their forward moving direction. Avon indirectly accused the DSA of protecting Herbalife. However, a very little known fact, hidden deep within the industry is network marketing incentive contracts,  a much bigger issue within the industry than a distributor vs customer ratio as Avon claims.

Incentive contracts are given to top income earners to sign up with a company to create headline news, creating a buzz inside the industry as many start to question why said person has signed up with said company. It is never revealed that the underlying reason is a contract, often in the form of financial incentives (monthly salaries that ranges between $5,000-$50,000 a month) to a percentage of all sales to exclusive tool sales to an already built team. The incentive is given because the leader will need an income in order to leave their current company and maintain their lifestyle. Otherwise, how would they?