No MLM Policy
Last modified: 04.05.2020
Barcato is a niched community for people running independent businesses. Participation in Barcato is focused on building relationships with other business owners and strengthening your professional reputation. That being said, Barcato will not extend membership to anyone promoting, advertising, selling, or mentioning an MLM, (also known as multi-level or network marketing ) on Barcato web sites. For our purposes, an MLM is defined broadly as any business that recruits distributors, resellers, consultants, or others for the sale or representation of a product or service that does not originate from the person requesting membership with Barcato. This includes matrix marketing and direct sales companies, in addition to "Get Rich Quick" businesses.
The nature of an MLM business is to compensate its distributors based on product sales they personally generate as well as the sales of other distributors whom they have introduced to the company ("downline"). A distributor's success depends upon developing an ever-expanding network of people who join the business. MLM sales, in addition to "Get Rich Quick" opportunities, tend to draw focus from independent business networking toward selling secondary business opportunities. At Barcato, we are not comfortable having our members solicited or propositioned to join or add another business.
We do not judge the merit or question the legitimacy of such companies. Though it is possible for a representative from an MLM (as we define it) to simply sell the product or service without recruiting distributors or resellers, Barcato has chosen not to engage valuable resources attempting to police this activity. Therefore, any mention on Innohill.com or at a Barcato event, of such a company, its products, or of a business dependent on its products, is strictly prohibited.
Barcato welcomes people who have developed their own businesses.
If you participate in a business other than one that violates Barcato's No MLM policy, and if you can successfully promote it without mention of the violating company or its products, you may promote your non-violating business on Barcato. If your primary business is in any way associated with a company in violation, then Barcato is not the right fit for you.
How do we determine whether a membership violates our No MLM policy?
In determining whether a member's profile or activity violates our No MLM policy, Barcato will consider the following factors:
Offering commissions to recruit new distributors.
Business is structured around hosting parties where guests purchase product.
Requiring new distributors to purchase costly inventory or "start-up kits."
Profits from sales are derived from recruited sellers ("downline"), rather than solely their own sales.
Commissions derived from sales moves "upline."
Monetary distributions originate from funds paid by new or existing participants.
Businesses monitored by the Better Business Bureau, state Attorney General, Federal Trade Commission, or any state or federal agency.
Unrealistic or unsupported promises regarding profits or return on investment.
Thank you for your understanding.