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Lead Companies may Die MLM Law Changes March 1, 2012
Hot off the presses. Lead Generation Companies BEWARE!
The long awaited FTC Revised Business Opportunity Rule goes into effect March 2012!
Quick synopsis of risk. If you are a company that promises to provide leads, or lead generation, or recommend places where mlm leads can be purchased, you are at potential risk.
MLM Ad Co-Ops could be similarly at risk, but the article isn't as clear about them.
The $500 up front rule will be abolished and now no limits of initial investment possibly putting an MLM at risk.
There is not a specific Exclusion to these new Rules for MLM but there is a lot of ambiguity from what I read in this article.
While we here at INS actually have no issue whatsoever about the MLM Lead generation industry finally having regulation and possibly ENDING, as we think this would help to clean up the industry just perfectly, we do have concerns that corporately owned/controlled Ad Co-Ops could be affected.
While the article does suggest there could become risk to the Web Based lead generation and Sales Funnel type systems, it does not suggest it due to the systems so much as the Lead Generation or Ad Co Op aspect of them. A good warm market MLM auto prospecting system like the INS Omsys auto prospecting System, without the AD Co-Op attached may still be just fine.
Read it for yourself, it could have an impact to your method of building your MLM Company.
INS can certainly help to design an MLM Compensation plan should you need help with yours. We have a generous Share in the risk plan on MLM commission plan design available to all our MLM Software clients.
Contact us today to learn more about INS MLM Software or our other MLM related services or request pricing by Clicking Here.
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