MLM affiliates receiving giant oversized commission checks means different things to different people.
Prospective affiliates might see a window of opportunity, a chance to better themselves financially.
Existing affiliates might take it as a kick up the butt and commit to their business with newfound focus and enthusiasm.
A regulator might see income claims used to market the company and decide to investigate further.
Personally I’ve come to wonder at the stories behind the checks. Who are the people that made it possible? Were they customers? Were they affiliates?
Behind every dollar written on one of those checks is a story. But unfortunately more often than not those stories go untold.
Through a class-action lawsuit filed a few days ago against Visalus however, rare insight into how one such check receiver built their business is revealed.
Vincent Owens joined Visalus back in 2006 and is a Two Star Ambassador. At or around the time Visalus launched, Owens was personally recruited by Visalus co-founder, Nick Sarnicola.
On LinkedIn Owens describes himself as a “transformational speaker, life coach (and) business consultant”.
As alleged in a class-action lawsuit filed on August 10th by three of Owens’ Visalus downline, Owens’ role as Pastor at a local church plays a big part in his Visalus business.
Owens is Pastor of Household of Faith Empowerment Temple, a church is Aurora, Colorado.
In the church basement, two times a week Owens pitches Visalus to members of his congregation.
It was at one of these meetings that Owens convinced Caprece Byrd’s fourteen year old son Cory to sign up as a Visalus affiliate.
Owens promoted the ViSalus “business opportunity” through Faith Empowerment by making pitches to the congregation
and their invitees in regular Saturday morning, and later Thursday night meetings.
In 2015, Owens encouraged 14 year old Cory to attend his Saturday morning meetings at the church so that he too could learn how to make a “six-figure income.”
Cory began attending the Saturday morning meetings regularly in August 2015.
In these meetings Owens pitched him (and others) the ViSalus “business opportunity,” and told Cory that he could own a part of ViSalus by becoming an “equity shareholder” and in return receive huge payouts for the rest of his life.
Cory was persuaded that Owens, his pastor, had his best interest at heart, and wanted to become a ViSalus distributor so he too could get rich like Owens told him he would.
But since Cory was only 14 years old at the time, he needed the money from Caprece to purchase the ViSalus “business opportunity” to become as rich as Owens.
Cory repeated Owens’s words to Caprece about the business
opportunity and explained to her that he could choose to be one of four people: selfemployed, an employee, a business owner, or an investor.
Caprece called Owens to discuss the ViSalus “business opportunity” for Cory.
Owens encouraged Caprece to attend a Saturday morning meeting at Faith
🤖 Quick Answer
What is the relationship between MLM commission structures and regulatory concerns?MLM commission structures, particularly oversized checks to top affiliates, attract regulatory scrutiny as they may constitute income claims used for marketing purposes. Regulators investigate whether compensation derives from actual retail sales to consumers or primarily from affiliate recruitment, which characterizes illegal pyramid schemes under FTC guidelines.
How do class-action lawsuits against MLM companies typically emerge?
Class-action lawsuits against MLM companies arise when affiliates or participants claim financial losses through undisclosed business practices. These legal actions examine income distribution patterns, disclosure of earnings statistics, and whether marketing claims accurately represent typical participant earnings potential.
What documentation do MLM commission checks provide to regulators?
Commission check records serve as crucial evidence documenting payment flows within MLM structures. These financial documents reveal compensation patterns, identify top earners, and establish whether income sources align with legitimate retail sales or result
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