100% Commission - Is It A Good Thing?

100% Commission - Is It A Good Thing?

Every day I see ads for opportunities that scream the value of 100% commission.

Now lets think about this.  If you worked for an electronics store as a salesperson and a customer walked in and bought a $1,000.00 TV, would you expect to get $1,000.00 in commission.  Of course not!  Some of the money the customer pays has to go to pay for the TV and the store's overhead.

So why is it that you can get 100% commission on line?

What does 100% commission tell you about the product sold on this opportunity.  It tells me that either there is no product or the product is worth $0,000.00.  It is vapour ware.

So what happens to the enrolment fee?  It doesn't go to pay for any product because there is no product.  It goes to pay the upline.  But wait a minute here!  Is that not the classic definition of a Ponzi scheme?
After all the US government is quite clear of its definition of a legitimate enterprise.  Any opportunity MUST have a value added product or service that people would pay for even if there was no opportunity for income attached.  Also you cannot legitimately get commission from web sites, tools or training.
http://bit.ly/A9kQ5E

Here is an example of a company shut down by governments recently :
At the request of the Federal Trade Commission and the states of Illinois, Kentucky, and North Carolina, a federal court has halted an allegedly illegal pyramid scheme pending trial.  The FTC and the state attorneys general seek to stop the allegedly illegal practices of the Fortune Hi-Tech Marketing (FHTM) operation, which claimed consumers would make substantial income by joining the scheme.  The operation affected more than 100,000 consumers throughout the United States, including Puerto Rico, and Canada.  In some areas, including Chicago, the scheme targeted Spanish-speaking consumers.
 (http://www.ftc.gov/opa/2013/01/fhtm.shtm)

Here are some FTC guidelines regarding MLMs http://business.ftc.gov/documents/inv08-bottom-line-about-multi-level-marketing-plans
Here is another one : http://www.consumer.ftc.gov/features/feature-0019-business-opportunity-scams