If you look at a multi-level marketing company after two-and-a-half to three years, you will have almost 100 percent turnover," he says. "Who remains is a small cadre of recruiters, less than 10 percent of the total." View gallery . Tyra Beauty works on a multi-level plan, though the phrase is taboo at Fierce Up. The FTC defines multi-level marketing as a form of direct selling "in which a company distributes products through a network of distributors who earn income from their own retail sales of the product and from retail sales made by the distributors' direct and indirect recruits. Because they earn a commission from the sales their recruits make, each member in the MLM network has an incentive to continue recruiting additional sales representatives into their down lines.'" According to Tyra Beauty's Holmes, the company's model is not that. "We're absolutely not multi-level marketing," says Holmes. "That does have a stigma that is attached to it and that is a very different ขายตรงออนไลน์, business model where all you want to do is recruit, whereas we are very much rewarding selling the product. And yes, you get some rewards for building your team, but we are a product sales company, and that's what you earn money for." Yet by FTC definition, and by Holmes's own explanation, Tyra Beauty is indeed a typical multi-level marketing company; it is not, however, a pyramid scheme. The direct selling industry has been on high alert since the Herbalife settlement, and Tyra Beauty's top brass have discouraged the "cash and carry" model that could lead to deceptive recruiting practices.
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