By: Seeking Alpha
On November 12 the FTC approved Vemma’s New Compensation Plan.
- The plan states participants may not “qualify” with their own purchases therefore removing any motive to inventory load (regardless of self-consumption).
- Herbalife’s supervisor level is consistently proven to be motivated by self-qualifying and self-consumption.
- If the FTC set the tone with Vemma, other “MLMs” may face a drastic slowdown in sales.
- Affiliates can no longer qualify for commissions through their own purchases
- A new “51% rule” prohibits the payment of ANY commissions if 51% or more of commissions are earned from affiliates (downline)