MLMs are only illegal if people have to PAY to become a "tier" in your multilevel system. At that point it is a pyramid scheme.
But if they don't have to pay and you are just incentivizing downstream referrals, this should be okay.
Quote:
Originally posted by goBigtime
Is multi-level-marketing/promoting legal if you are just using it for a promotion for your site?
Imagine you have a paysite...
And you tell your visitor:
"Send us one new visitor & we'll credit you with one free day on the site, if that visitor
sends us one visitor, you'll get 1/2 a day credit, if the visitors vistor sends someone you'll get 1/4 credit"
I know there are some laws and regulations around MLM, but I wonder if it would apply to something like this
|