So here they are again. Liberty League International are at it again. I say again because they’ve dealt with this type of lawsuit in the past, however, it ’s never a good thing for company PR when you are getting slammed with things of this nature.
This time, it could be a little more detrimental than the last.But this is where business common sense comes into play:
Would YOU pay $1,295.00 for 3 Personal Development DVD’s, a 50 page workbook, and some sticky notes at Borders Books & Music with no financial opportunity involved?
Now at this moment of writing this article, I have a personal development library that represents nearly $6 thousand dollars and I have A LOT of this stuff. It has transformed my way of thinking and it plays large part in the person who I am today. I know the value of personal development. But I gotta say…couple thousand bucks for a few dvd’s, a workbook, & sticky notes just aren’t my idea of a life changing transformation.
Now I gotta be fair. I’ve listened to the program and watched the DVD’s because a friend of mine actually bought into it. I thought it had great content. So, I got to experience the product but never did buy it. If I did spend the thousand bucks on the program I’m wondering if it would have a larger impact on me. maybe?? So in that respect I need to leave that large gray area out there.
Now, let’s look at the other side of the coin.
What if I told you that if you bought this course for $1,295 (and I think it’s actually more than this) and turned around and sold it you would make $1,000 for every sale you made. Recruit 2 more people and that number doubles. If they recruit 2 people each than that number sky rockets and multiplies faster than your head can spin. As soon as you know it you could be like these other success stories making $80,000.00 a month!!
Now…if you had to pay the $1,295 to join the opportunity for this kind of dough, then ask yourself if you would cough up the $1,295. Different story huh?
Anyhow, tens of thousands of other people get wind of that opportunity and all they can see is financial freedom and a few years later your in a part of a class action lawsuit.
The scary thing is when companies of this nature are caught in a lawsuit.
What makes it scary is the way the pay plan is structured. In the past, a lot of the blame has been turned on to the reps.
If anyone doubts this...they either don't know what they're talking about or are flat out lying.
Once again, i'm not dogging this particular opportunity or this type of business, i'm just stating the results of past horror stories.
Let me explain:
Let's say you pitch me on your "2 up" business. I like it. I buy in.
I fed ex you the check of--let's say $1,295.00 to get started.
Because of the way the payplan is structured, you are taking the $1,295 check that was payable to YOU. YOUR NAME. YOUR ADDRESS. YOUR BANK.
You keep the $1,000 then send the rest ($295) to the company and that's it.
Less liability is on the company.
Let's say you recruited 30 associates and 15 of them each recruited 2. Because those 15 each had 2 checks sent to you, you now have a heap of cash to the tune of $60,000 dollars that you now need to account for. Where is it? Where did it go?
Guess where the big dogs are going to go if they need to recover and account for the other big chunk of money that was “wrongfully taken”. (I say taken because that’s what you’ll always hear the victims call the act of them, at one time, paying.)
Well yup, you guessed it…they’re gonna hunt down good ‘ol distributor joe who probably already used that $1,000 a LOONNNGG time ago to recoup his lost investment and still trying to pay the other $12K he spent last month for the conference in Orlando (or somewhere).
Every situation is a little different with these-what we call in the HBB industry–2 up companies, however it all stays the same.
I’m sure Liberty League International will fight this and win the case but if not, at least they can say that they are (or were) the longest running “2 up” company that lasted in the world of free enterprise. I believe they’ve been running since 2002. All the other ones (and there has been hundreds if not thousands) have all been shut down within about a year.
Anyhow, Good luck Liberty League and all of you LLI associates.
Until Then,
Elias
2 comments:
Hi, Elias. You've raised some interesting questions in your article and it's not my intent to defend Liberty League against the questions.
I'll simply say that there are several aspects to the pay plan that are overlooked as well as the fact that Liberty League has a fulltime compliance officer that DOES provide a high level of accountability when it comes to customer satisfaction. One of those things is the fact that all our products are backed by a 100% money-back policy. I don't know of anything more fair than that.
But, here's my reason for responding: you mentioned that it's "less liability on the company" when the customer pays the Liberty League associate directly.
That's true. But here's why:
Liberty League Advisors are actual business owners. Not commissioned sales-reps.
You see, it's become such a widespread practice in the home business industry for people to EXPECT that customers should pay the company....and then the company should send a commission check to the rep.
But, you know what that's called in the world of business? It's not business ownership; it's a "commissioned salesperson".
In fact, you can prove this to yourself by asking someone in the U.S., "Do you get a 1099 form from your company at the end of the year for all your earnings?" If the answer is yes, that person is not a business owner -- they're a commissioned salesperson.
Now it's true that they get all the same tax deductions as any other business owner. But that's true of all commissioned salespeople no matter what industry they're in.
At the risk of being redundant, let me take this a step further. You see, the guy who starts a business in your local mall doesn't get a 1099. Why? Because he's actually a business owner.
The guy who sets up an Ebay business selling products and services that he buys wholesale or produces himself....he doesn't get a 1099. Why? Because he's actually a business owner.
And somehow the average MLMer has either forgotten what true "free enterprise" is or they never knew to begin with.
Now, I'm not saying this is good, bad, right or wrong. It simply is how it is.
And, I -- along with thousands of other Advisors in Liberty League -- love the fact that when I make a sale today...I get paid TODAY. And I don't have to share my profits with an upline or anyone else. As an Advisor, I keep 100% of all my profits.
And that's why our pay plan is referred to as "the simplest form of free enterprise on the planet".
Two more quick clarifications: you mentioned that most 2-up pay plans get shut down in their first year.
FACT: I've never heard of any 2-up pay plan being shut down for issues with their pay plan. I've seen companies shut down for their product and for pyramid-law violations....but I've never seen any company with this pay plan shut down for issues with their pay plan. If you have, email me at tony@tonyrush.com and let me know. I'd be interested in hearing about it.
Last thing: this alleged lawsuit is pretty much what you'd expect it to be. It's someone who's simply unwilling to take responsibility for their own results and they're looking for someone to blame.
That's MY OPINION, nothing more. But since it's a civil issue, it has absolutely nothing to do with the survival of Liberty League International. We've been around for eight years and plan to be around for decades to come.
Thanks for the opportunity to share an authentic response. I appreciate it.
Tony Rush
Elias: There is a new marketing company starting out of hawaii. Nationwwide launch in September. I'd like to send you a powerpoint. There will be many questions, and we will give you as many answers. If a powerpoint is not an option. Please go to www.netabundance.net.
Rommel Guzman
pacificventures@live.com
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