Pyramid Business Plans
QUICK CHECK ANSWERS:
1.  a) Multilevel marketing, network marketing, or 
pyramid business plans. 
  b) Sales agents who sell the products and ser -
vices.
2.  a) Money that a salesperson earns based on the 
amount of sales completed.
  b) $600.
3.  You will receive commissions for your sales 
and for the sales of those people you recruit to 
become distributors.
4.  a) People you recruit to become distributors.  
  b) To recruit distributors who recruit other dis -
tributors.
5.  a) If a sales business opportunity offers to pay 
you commissions for recruiting new distribu -
tors.  
  b) Most states outlaw this type of business.
6.  a) For the sale of products to customers.  
  b) Not for recruiting new distributors.
7.  Because the only people who make money are 
the people who started the pyramid business 
plan and quickly recruit as many distributors as 
possible before the pyramid plan crashes.
8.  a) All distributors lose their money.  
  b) Those at the top of the pyramid (who started 
the pyramid plan).
9.  Student's choice of 3 questions.
10.  Attend training classes or buy training books.  
Buy sales leads.  Purchase products to sell.
11.  1) Claims (statements or promises) you make 
about the company and its products.  2) Claims 
you make about how much a new distributor 
you recruit will earn.
12.  Verify (check out) any claims you hear or read 
before repeating those claims to another dis -
tributor you are trying to recruit.
13.  Beware of plans that ask new distributors to 
purchase expensive products to sell.  Beware  of claims that you will make money through 
"continued growth of your downline."  Beware 
of plans that claim to sell miracle products or 
promise huge earnings.  Beware of shills.
14.  To sue the promoter who sold you the business.
15.  Decoy people paid by a plan's seller to lie about 
the money you can make.
16.  Student's 3 tips.
17.  Student's opinion.