[pentupentropy]

Not sure about this, but thestealthyone has an ad website that pays out on 3 tiers. In the US, at least, I'm pretty sure it's illegal to pay commissions on anything more than 2 tiers deep. Does anyone know anything that would refute this? It'd be awesome if this is legal

[SlvrBulletV6]

Originally Posted by pentupentropy

Not sure about this, but thestealthyone has an ad website that pays out on 3 tiers. In the US, at least, I'm pretty sure it's illegal to pay commissions on anything more than 2 tiers deep. Does anyone know anything that would refute this? It'd be awesome if this is legal

Are you referring to MLMs?
Multi-level marketing - Wikipedia, the free encyclopedia

[pentupentropy]

my understanding is that ANY busienss that uses this schema in paying for referrals is considered a pyramid

[The Stealthy One]

Originally Posted by pentupentropy

my understanding is that ANY busienss that uses this schema in paying for referrals is considered a pyramid

Not true, actually, but a very common misconception. A pyramid scheme is a setup where folks contribute money to someone "above them" in a chain - and there is no benefit to doing so, other than the promise of more money. This is illegal.

Multi-level marketing, and multi-level affiliate marketing (which is what our ad network falls under), work similarly. In MLM, folks pay for an actual product or service, and also have the opportunity to sell this product or service to others, through several levels (sometimes infinity). In multi-level affiliate marketing (again, this is the category our ad network falls under), affiliates pay nothing to sell someone else's product or service, and can also take a cut of other affiliates who signup with their referral link. Both of these structures are legal in the U.S., and most other countries.

Hope that clears it up.

[pentupentropy]

Yeah, I researched some. I guess as long as thre's a viable product that doesn't rely on members to buy it's fine. I just thought I had read that 3 levels was illegal =) Glad it's not, makes it more profitable.

[The Stealthy One]

^^ You may have well read that, because in some countries, it is indeed illegal. But not in the U.S.