Revenue Sharing Pyramid Scheme

Wikipedia defines revenue sharing as the distribution of revenue that is the total amount of income generated by the sale of goods and services among the stakeholders or contributors.

Revenue sharing pyramid scheme. Exp realty revenue share is a percentage of revenue that agents earn for attracting that agent generating the revenue into the company. It should not be confused with profit shares in which scheme only the profit is shared i e the revenue left over after costs have been removed nor with stock shares which may be bought and sold and whose value may fluctuate. A pyramid scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme rather than supplying investments or sale of products. Wikipedia defines revenue sharing as the distribution of revenue that is the total amount of income generated by the sale of goods and services among the stakeholders or contributors.

Here s what we know freedom 5 has. According to the federal trade commission pyramid schemes promise consumers or investors large profits based primarily on recruiting others to join their program not based on profits from any real investment or real sale of goods to the public. The top ten famous pyramid schemes listed below all have one thing in common. Your income is based mainly on the number of people you recruit and the money those new recruits pay to join the company not on the sales of products to consumers.

Some multi level marketing plans have been classified as pyramid scheme. Pyramid schemes have existed for at least a century in different guises. A pyramid scheme is a sketchy and unsustainable business model where a few top level members recruit newer members who pay upfront costs up the chain to those who enrolled them. When an agent closes a deal a percentage of the companies 20 goes back to the agent that sponsored them.

You re required to buy lots of inventory. As such pyramid schemes are unsustainable and often illegal. All agents at exp realty are on an 80 20 split with the company. 5 level deep commission levels.

As recruiting multiplies recruiting becomes quickly impossible and most members are unable to profit. This type of business structure is completely legal though there are many advocates against it. In fact some of the companies have been investigated by the ftc and fined but specifically not called a. Here are some signs that the company is operating a pyramid scheme.

Encourages members to use bit coin. It should not be confused with profit shares in which scheme only the profit is shared i e the revenue left over after costs have been removed nor with stock shares which may be bought and sold and whose value may fluctuate. Multi level marketing mlm also called network marketing or sometimes pyramid selling is a marketing strategy for the sale of products or services where the revenue of the mlm company is derived from a non salaried workforce selling the company s products or services while the earnings of the participants are shared in a multi tiered compensation commission system.