For Australian Residents:
The Australian Competition and Consumer Commission (ACCC) is an Australian Federal Government agency.
From the home page:
The ACCC promotes competition and fair trade in markets to benefit consumers, businesses, and the community. We also regulate national infrastructure services. Our primary responsibility is to ensure that individuals and businesses comply with Australian competition, fair trading, and consumer protection laws - in particular the Competition and Consumer Act 2010.
From the ACCC Web Site:
False or Misleading Claims:
"A company misrepresents the possible profits of a work-at-home scheme, or other business opportunity."
Misleading business conduct is a criminal offence under the Competition and Consumer Act 2010 Legislation.
Anyone contemplating starting a business, researches business potential including competition, bank loans and profit and loss. There are also specialised business classes conducted by Australian Federal Government funded colleges.
Multi-Level Marketing is a legal business model. You are self employed with no income until you make a sale. Therefore; you are legally entitled to ask for documented business potential and profit and loss statements.
The ACCC have researched business ethical conduct throughly. I would advice any Non-Australian Resident to read through the ACCC web site. The information contained in the Competition and Consumer Act 2010 Legislation may not be applicable where you reside. The legislation however contains very good common sense advice.
Australian Business Operating Costs:
The Trades and Servicing Industry charges $150 per hour.
One third of the cost is allocated to the infrastructure required to operate the business. ie renting commercial premises, secretarial, book keeping, accountants, utilities cost.
One third of the cost is allocated to the serviceman's wages.
One third of the cost is allocated to the serviceman's time to order and pick up the materials required to carry out the job.
A person working from home could reduce their charge out rate to $100 per hour. They would also be carrying out two jobs. Servicing equipment and after hours secretarial and book keeping.
When business overheads and hours worked are factored in, the majority of self employed Trades and Servicing personnel are working for similar wages they would earn if working for an employer.
The corporate MLM environment is managed like a normal business. Management, secretarial and stores staff are paid wages for their services.
People working in an MLM environment do not factor in business overheads into their MLM activities, ie, clothing expenses, travel time, ordering time, fuel and vehicle wear and servicing costs, secretarial, book keeping, utilities cost, etc.
The reality is that MLM's save two thirds of a normal business operating costs because people are prepared to pay for the business sales operating costs. That two thirds operating costs represents business profit and makes the product competitive.
Dream; but live in the real world. Ask the hard financial questions before investing your time and money into a MLM business model.