A fraudulent process whereby even representatives of legitimate MLMs are required to buy large,expensive amounts of inventory is known as _________.
A)forward pricing
B)snake oil
C)front loading
D)opportunity meeting

Question

Quizplus · Accepted Answer

Front loading refers to the practice of requiring new members to buy large amounts of inventory or products at the beginning of their MLM career. This benefits the company by providing immediate income, but can harm the new member by leaving them with excess inventory and potentially crippling debt. Forward pricing and snake oil also describe deceptive practices, but do not specifically relate to front loading. An opportunity meeting is a standard MLM recruiting event.

A Fraudulent Process Whereby Even Representatives of Legitimate MLMs Are