Kevin Thompson, The MLM Attorney stated:
In December of 2014, I wrote an article titled “MLM Special Deals: The Fraud Ends Now.” The article was about “Business Development Agreements” / confidential deals used by MLM companies to attract networkers. The more success in prior companies, the sweeter the terms. After reaching a deal, the networkers publicly announce, “After some serious due diligence and deep reflection, my heart has led me to join Company ABC….I find their products to be best in-class and their compensation plan to be the most rewarding I’ve ever seen.”
And since the private deals typically require aggressive volume goals, it naturally leads networkers to raid their prior organizations (or cut private deals of their own).
Two things: (1) It’s fraud. It’s a material fact that, if known, affects the