Hello. I have a question about a business I run and a question about the MLM systems.
I offer an online service for Facebook Messenger and I was thinking to introduce also a "representative/affiliate" element to increase my sales/customers. The service is at $80/month, so I was thinking for anyone someone brings to the service he will get half of that money, $40/month. So if someone introduces 4 people to the company/service he can get $160/month.
I want to confirm that this isn't any illegal scheme. It's just rewarding for bringing people to the company and there is an actual service that is sold and the money are not just made by recruiting. Am I right?
This is the first part and my first question. Now on to the 2nd one.
My 2nd question is related to the first one. If the first one is not illegal (for all the reasons explained) then if I change the service to some other service will it still be legal, right? If the service is exactly this rewarding/recurring payment to someone for the people that he introduces, is it illegal?
Let me explain better. Someone signs up for a company that its service is to reward you for new customers that you bring to the service. You sign up for $80/month and for every person that you bring you will receive $40/month. No downlines, no matrix bonuses nothing. Is this illegal and pyramid scheme? If yes why? What is the difference in this service form the first service that it is not illegal?
If I want to find further information at which service can I address? FTC? BBB? Can I email them with details of my intended business plan and let me know if they consider it pyramid scheme or legal Multi Level? Will they reply or it's pointless?
Thanks for any replies on the matter.