FULLER Brush Co. appears to be more focused on direct selling than typical MLMs. (See checklist below).  

 

Fuller Brush Company has an MLM compensation plan that in some important ways encourages its representatives to emphasize sale of products to actual customers. As such, it could be considered more of a direct selling than a chain selling program. More typical "recruiting MLMs*" use a compensation plan that rewards recruitment more than actual sales of products and services outside the network of participants. So significant income is unlikely without recruitment of a large downline. In a recruiting MLM, there are "5 Red Flags*" in its compensation plan which, taken together, lead to the abuses of an endless chain or product-based pyramid scheme. 

The positive features of the Fuller Brush compensation plan include: (1) For any given sale, commissions to those actually selling the products exceeds what is paid to the total upline. (2) There are a maximum of three levels of discounts, which assures that the focus will be on selling products, rather than on recruiting. (However, there are many titles within the Director group.) This contrasts somewhat with MLM companies which pay on more than 5 levels and which may pay as much or more in overrides to participants several levels above the person selling the product as to the participant who recruited the actual seller. Also, (3) The compensation plan of Fuller Brush is fairly straightforward and easy to understand, as opposed to complex systems referred to as breakaway, matrix, binary, trinary, or hybrid combinations of these."

  

For the full report on the five red flags of a recruiting MLM, or product-based pyramid scheme, and related reports, read the reports listed on our page of consumer guides – and/or read other reports on research related to MLM or network marketing.  You may also find information on legal and regulatory issues related to MLM or network marketing on our page on law enforcemen t and MLM or network marketing. For a more complete listing of pages on our web site go to the home page of our site – www.mlm-thetruth.com. Or if you just want to be entertained, go to our page on MLM humor and satire – including some great cartoons.

* A recruiting MLM is an MLM with a compensation system that rewards recruitment more than actual sales of products to persons outside the network of participants. So significant income is unlikely without recruitment of a large downline.

Here is how Fuller Brush Co. stacks up against the "5 Red Flags*" of a recruiting MLM, or product-based pyramid scheme   

YES NO

1.Recruitment of participants is unlimited in an endless chain of empowered and motivated recruiters recruiting recruiters. 

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2. Advancement in a hierarchy of multiple levels of participants is achieved by recruitment, rather than by appointment.  

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3. Significant requirements that participants "pay to play" the game via product purchases. Thus, new recruits are primary customers. 

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4. MLM company pays commissions and/or bonuses to at least 5 levels of participants, creating great "leverage" at the top.  (Only three discount levels are included in the compensation plan - but with several director titles.)

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5. Most of the payout goes to the upline, rather than to the person selling products, creating excessive incentive to recruit and inadequate incentive to sell products (except to new recruits) – and an extreme concentration of income at the top of a hierarchy (pyramid) of participants. (Discounts for front-line Fuller Brush sales representatives range from 20%-55%.)

 

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* For the full report on the five red flags of a recruiting MLM, or product-based pyramid scheme, and related reports, read the reports listed on our page of consumer guides – and/or read other reports on research related to MLM or network marketing.  You may also find information on legal and regulatory issues related to MLM or network marketing on our page on law enforcemen t and MLM or network marketing. For a more complete listing of pages on our web site go to the home page of our site – www.mlm-thetruth.com. Or if you just want to be entertained, go to our page on MLM humor and satire – including some great cartoons.

* A recruiting MLM is an MLM with a compensation system that rewards recruitment more than actual sales of products to persons outside the network of participants. So significant income is unlikely without recruitment of a large downline.

  PLEASE HELP!  We believe this site presents information about MLM/network marketing that is as close to the truth as can be found. It can save you much time, money, and grief, as it has done for many others. And since law enforcement has essentially looked the other way on this type of consumer abuse, it is left to informed consumers to inform and warn their friends and relatives about the potential losses they could suffer from participation in a “recruiting MLM.” So please print and distribute at least 5 copies of the answer cards to those you care about – and ask each of them to share answer cards with 5 people, and each of them with 5 more, etc., etc.  . . .  In this way, you can influence many people for good – through an endless chain of truth-telling.  Click here to see these handy answer cards (4 to choose from) that you can print and distribute now –  as well as carry with you for those awkward moments when you are recruited by a well-meaning friend or relative. For more information, click on the appropriate links above.