The Burn Lounge trial: it’s about customers

This case may have some bigger than expected ramifications. It’s mostly about whether the company has any “just customers.” Or whether it’s just a recruiting game.

Trial is expected to begin December 8, according to gourmet leads provider Peter Mingils of PM Marketing.

Just customers are people who do not also sell the product. The FTC says Burn Lounge did not have enough of them. This matters because many other network marketing companies are in the same boat. They recruit, and that’s it.

“The BurnLounge compensation program primarily provided payments to participants for recruiting of new participants, not on the retail sale of products or services, which the FTC alleges would result in a substantial percentage of participants losing money.” More here.

Bottom line: BUILD a CUSTOMER base that is independent of your recruits. I even have a program to help you do it…and there is even a bribe with it until Friday, 6PM PT.

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Kim Klaver

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