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Equinox International Companies' information:
This company is no longer in business. Ninty Nine percent of all the new multi-level companie's will not be in business after five years. Here is an example of a net-work market company which encourage people to purchase a lot of product up front. In the industry that is called "Garage Qualified." The following is part of the complaint filed against the company:
According to allegations in the complaint filed with the Court, Equinox operated a multi-level marketing company which offered distributorships for products including water filters, vitamins, nutritional supplements, and skin care products. Equinox distributors ran classified ads in the "Help Wanted" sections of newspapers which implied that a salaried position was being offered. Persons who responded to the ads were instead given a sales presentation designed to recruit new distributors. The complaint further alleges that Equinox told the recruits that they could earn money by selling products or recruiting but emphasized that the real way that Equinox distributors make money is through recruiting, not through sales. New recruits were encouraged to purchase $5,000 worth of products so they could enter the program at the manager level, to rent desk space for $300 to $500 a month, to subscribe to a phone line so they could begin recruiting others, and to attend seminars designed to train them. The seminars cost between $300 and $1000 and stressed that distributors could make substantial amounts of money. The complaint alleges that a very small percentage of distributors who became participants in the Equinox program actually made more money than they expended for front-end expenses, and that a vast majority of distributors discontinued their participation in the program with little or no earnings. The complaint also alleges that while Equinox purported to link compensation to retail sales, it did not enforce the policies and requirements ostensibly designed to assure such sales. "The result of the structure and operation of the program is that financial gains to Equinox participants are primarily dependent upon the continued, successive recruitment of other participants, and retail sales are not required as a condition precedent to realization of such financial gains," the complaint says.
Multi-level marketing was the biggest growth industry in the 1980's. It is the industry that has made corporate giants of Amway, Shaklee, Mary Kay and Herbalife. It has been termed as the last true rags-to-riches opportunity left in North America, and its ability to bring enormous incomes to almost anyone is legend. But there are problems.
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