MLM Buyback Policies: Why the 90% Rule Matters
An MLM buyback policy lets participants return unsold inventory for a refund, often a high percentage of the price. The DSA code of ethics is commonly cited for a 90 percent standard; verify in current text.
Key facts
- Topic: mlm buyback policy
- Approach: neutral, education-only explainer
- Income note: most participants in direct selling earn little or nothing; read each company’s income disclosure
- Regulatory note: FTC guidance says earnings claims must reflect typical results
What a Buyback Policy Covers
Typically resalable inventory within a time window. Terms differ; read yours. See MLM vs pyramid scheme.
MLM Buyback Policy and the 90% Rule
The Direct Selling Association’s code is the usual source of the 90 percent figure. Confirm on the DSA code of ethics and compare with state law.
How to Use It
Request in writing, keep records, and avoid inventory loading. See is network marketing legit.
Related Reading
Continue with MLM vs pyramid scheme, is network marketing legit and MLM regulations.
Key Takeaways
- Be transparent and honest with prospects.
- Focus on real customers and documented facts.
- Never make income claims.
- Check primary sources.
Frequently Asked Questions
What is the 90% rule?
A DSA code standard for repurchasing inventory; verify current text.
Do all companies follow it?
Not all are members.
How do I request a refund?
In writing.
Is there a deadline?
Check policy.
Sources
- FTC: Business Guidance Concerning Multi-Level Marketing
- Direct Selling Association
- AARP Foundation MLM Research Study (2018)
QastMe does not endorse any company. Information is for education only and is not financial or legal advice. Earnings in direct selling vary widely, and most participants earn little or no money. Review each company’s income disclosure statement before deciding.
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