+ Reply to Thread
Page 1 of 4 1234 LastLast
Results 1 to 16 of 56

  1. #1
    Join Date
    Jul 2008
    Posts
    21,906

    The 70% Rule in a Nutshell

    There are certain posters here who plainly dont understand the 70% rule, so here is an explanation.

    For instance, some attorneys general interpret the 70 percent rule to require that distributors have sold to nonparticipant retail customers at least 70 percent of inventory before reordering. This interpretation is fairly rigid and inconsistent with the definition of most leading direct selling companies, which recognize the personal use component as an important component of their sales. Thus, most leading direct selling companies provide in their rules that the 70 percent rule requires that distributors are not reordering until they have sold or personally used at least 70 percent of previously purchased product. Some companies in their 70 percent rule go so far as to provide "that 70 percent sold" means product which has been sold to nonparticipants, product which has been used for personal or family use, or product which has been used for demonstration or for samples.
    http://mlmlegal.com/seventy.html

    There are even certain States in the US who state that personal use is within the rule as does Europe.
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  2. #2
    Join Date
    Oct 2012
    Posts
    789

    Re: The 70% Rule in a Nutshell

    Quote Originally Posted by ChrisDoyle View Post
    There are certain posters here who plainly dont understand the 70% rule, so here is an explanation.


    http://mlmlegal.com/seventy.html

    There are even certain States in the US who state that personal use is within the rule as does Europe.
    And what is the main focus in these 70%-rules? Retail sales. Are you allowed to sell to other IBOs or yourself as an IBO for an MLM? No. Who's left then? The general public ergo retail sales to non-participants.

    Read between the lines.
    If it´s too good to be true, it probably is.

  3. #3
    Join Date
    Aug 2011
    Location
    Earth
    Posts
    21,438

    Re: The 70% Rule in a Nutshell

    Quote Originally Posted by ChrisDoyle View Post
    There are certain posters here who plainly dont understand the 70% rule, so here is an explanation.
    http://mlmlegal.com/seventy.html
    There are even certain States in the US who state that personal use is within the rule as does Europe.
    So which MLM companies actually enforce this rule? And if they enforce it, what is done, other than IBO self declaration to make sure that the rule is followed?

  4. #4
    Join Date
    Jul 2008
    Posts
    21,906

    Re: The 70% Rule in a Nutshell

    And they still dont get it. Incredible!
    Not really, its the ultimate definition of a closed mind.
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  5. #5
    Join Date
    Oct 2011
    Location
    Amsterdam
    Posts
    15,510

    Re: The 70% Rule in a Nutshell

    I always heard that 70% of all statistics were made up. :

  6. #6
    Join Date
    Sep 2012
    Posts
    1,388

    Re: The 70% Rule in a Nutshell

    Quote Originally Posted by ChrisDoyle View Post
    And they still dont get it. Incredible!
    Not really, its the ultimate definition of a closed mind.
    Chris, you have to remember that you are dealing with toddlers here that are still sucking the gubment tit and really don;t know much outside of being taken care of by the gubment.

    They only see that as long as they can take from us all is well, everything else is a scam.

  7. #7
    Join Date
    Jul 2008
    Posts
    21,906

    Re: The 70% Rule in a Nutshell

    Quote Originally Posted by iamempowered View Post
    Chris, you have to remember that you are dealing with toddlers here that are still sucking the gubment tit and really don;t know much outside of being taken care of by the gubment.

    They only see that as long as they can take from us all is well, everything else is a scam.
    Afraid so.....
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  8. #8
    Join Date
    Oct 2012
    Posts
    789

    Re: The 70% Rule in a Nutshell

    Quote Originally Posted by iamempowered View Post
    Chris, you have to remember that you are dealing with toddlers here that are still sucking the gubment tit and really don;t know much outside of being taken care of by the gubment.

    They only see that as long as they can take from us all is well, everything else is a scam.
    Don't be too judgemental now. What is your take of the 70%-rule? Only stating that we know nothing and have closed minds without even attempting to comment my quote below is indication that you have a closed mind.

    Quote Originally Posted by ChrisDoyle View Post
    And they still dont get it. Incredible!
    Not really, its the ultimate definition of a closed mind.
    Any comments on my quote here? Whenever I find a valid point you ignore them. Now why is that? No bulletts left?

    Quote Originally Posted by Zapticon View Post
    And what is the main focus in these 70%-rules? Retail sales. Are you allowed to sell to other IBOs or yourself as an IBO for an MLM? No. Who's left then? The general public ergo retail sales to non-participants.

    Read between the lines.
    If it´s too good to be true, it probably is.

  9. #9
    James R's Avatar
    James R is offline I'm no crook...my upline told me to do it! User Rank
    Join Date
    May 2005
    Posts
    4,651

    Re: The 70% Rule in a Nutshell

    Quote Originally Posted by ChrisDoyle View Post
    There are certain posters here who plainly dont understand the 70% rule, so here is an explanation.


    http://mlmlegal.com/seventy.html

    There are even certain States in the US who state that personal use is within the rule as does Europe.
    Why is the 70% rule rigidly enforced when you try to get a refund?

    Why can't you get your money back on 100% of your purchases?
    Excited about Nopalea Cactus Juice? Learn how to make your own for FREE!
    Don't be another "$50 a bottle" sucker....best of all you know exaclty what's in it. Click HERE.


    Here's a good one....
    "That's why I changed my 'story'".
    Where else can you find this nonsense besides here?

  10. #10
    Join Date
    Jul 2008
    Posts
    21,906

    Re: The 70% Rule in a Nutshell

    Quote Originally Posted by James R View Post
    Why is the 70% rule rigidly enforced when you try to get a refund?

    Why can't you get your money back on 100% of your purchases?
    You can what are you talking about?
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  11. #11

    Re: The 70% Rule in a Nutshell

    I know that an IBO can also be the end consumer but if he is getting it at a wholesale rate why is it so hard to separate personal consumption from retail sales ?

  12. #12
    James R's Avatar
    James R is offline I'm no crook...my upline told me to do it! User Rank
    Join Date
    May 2005
    Posts
    4,651

    Re: The 70% Rule in a Nutshell

    Quote Originally Posted by ChrisDoyle View Post
    You can what are you talking about?
    This one...

    Quote Originally Posted by ChrisDoyle View Post
    The refund policy is as follows:
    90% of product purchases for the current month are refunded when the distributor resigns.
    30% of product purchases for previous months purchases are also refunded.
    Why only 30% you may ask; because of the ´´Amway 70% rule´´ that´s why and this rule is expressly mentioned in the P&Ps, stating that ´´70% of all product purchases must be consumed, sold or used in business building every month´´.
    Hope this helps!
    Excited about Nopalea Cactus Juice? Learn how to make your own for FREE!
    Don't be another "$50 a bottle" sucker....best of all you know exaclty what's in it. Click HERE.


    Here's a good one....
    "That's why I changed my 'story'".
    Where else can you find this nonsense besides here?

  13. #13
    Join Date
    Jul 2008
    Posts
    21,906

    Re: The 70% Rule in a Nutshell

    Quote Originally Posted by noagenda View Post
    I know that an IBO can also be the end consumer but if he is getting it at a wholesale rate why is it so hard to separate personal consumption from retail sales ?
    Why is it hard. Personal consumption is a retail sale.
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  14. #14
    Join Date
    Jul 2008
    Posts
    21,906

    Re: The 70% Rule in a Nutshell

    Quote Originally Posted by James R View Post
    This one...



    Hope this helps!
    Nothing like the refund policy of the company I'm with, which is quite simple. 30 day, 100% guarantee to everyone.
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  15. #15

    Re: The 70% Rule in a Nutshell

    Quote Originally Posted by ChrisDoyle View Post
    Why is it hard. Personal consumption is a retail sale.
    I don't know Chris. I've always thought the difference between wholesale and retail would be the IBO's gross profit. If the IBO is getting his product at cost I would think it be culled from some kind of income disclosure.

  16. #16
    Join Date
    Jul 2008
    Posts
    21,906

    Re: The 70% Rule in a Nutshell

    Quote Originally Posted by noagenda View Post
    I don't know Chris. I've always thought the difference between wholesale and retail would be the IBO's gross profit. If the IBO is getting his product at cost I would think it be culled from some kind of income disclosure.
    You're right of course, about the wholesale to retail profit.
    I know its confusing but retail simply means ''a sale not for resale'', in other words its in the hands of the last person in the chain...the user.
    So, confusingly, even if the distributor buys at wholesale price, if he consumes it, its a retail sale by the company.

    Yes, I suppose a company could ask every distributor every month what they did with the product, did they sell it or consume it, but why would they want to do it, what is to gain for them by doing it?
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

Similar Threads

  1. Islam in a Nutshell
    By conserv4ever in forum Political Scams
    Replies: 1
    Last Post: 03-13-2015, 03:20 AM
  2. The 70% Rule. .. simplified.
    By ChrisDoyle in forum MLM Scams
    Replies: 115
    Last Post: 10-18-2013, 06:14 PM
  3. When it Legit, When it's A Pyramid in a Nutshell
    By BoxAlarm126 in forum MLM Scams
    Replies: 40
    Last Post: 08-14-2011, 09:13 AM
  4. rule of thumb
    By do not scam me in forum Mail Order Scams
    Replies: 0
    Last Post: 01-24-2011, 10:23 AM
  5. The Rule of Law
    By sojustask in forum Political Scams
    Replies: 0
    Last Post: 07-13-2006, 06:16 AM

Tags for this Thread

Bookmarks

Bookmarks

Posting Permissions

  • You may post new threads
  • You may post replies
  • You may not post attachments
  • You may edit your posts
  •