The trouble with tie-in's


To stay in the NFLI program and remain eligible for commissions and bonuses each month, a minimum level of purchases may be required. Distributors who want to stay in the NFLI program and be eligible for bonuses on the volume generated by their downline are required to have made a minimum level of purchases each month. So that distributors can be sure that they are eligible each month, they can authorize the purchase of "gift certificates" to bring thier purchases up to this minimum level. NFLI calls this the order assurance program, and distributors who do not agree to participate in this are penalized with a lower bonus percentage.

To help distributors become better distributors, they may purchase motivational training tapes from NFLI's business partner Nightingale-Conant. Once again, to encourage participation, NFLI reduces the bonus levels for those distributors who choose not to participate.

Bottom line on tie-in programs

Distributors aren't forced to participate in such programs, any more than they are forced to remain distributors, but distributors should be allowed to decide for themselves whether such programs make sense, rather than being coerced into participating through a higher or lower bonus percentage.
These programs are not in themselves a problem, but the tie-in to the bonus levels is. Regulators should have obtained a committment that commissions and bonus levels are based solely on the products and quantities of products purchased by the distributor and his downline. Any other factors used to determine the commission and bonus should be considered extraneous and should be prohibited.
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