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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