Life Without Debt

I have been asked by many over the past 30 years, to answer the most commonly asked question that all network marketing people are asked every single day. That question is: Is it legal! This is an educational program. The marketing plan is a hybrid concept which teaches a basic, positive, common sense philosophy of life which utilizes a combination of elements to create an e commerce distribution network for sales types, or professional individuals, which allows the individual to control the redistribution of their own financial resources, while compounding wealth.

The most famous legal decision made regarding MLM was the Amway vs. FTC. 1979 decision, where it was found after 7 years and expenditure of millions of dollars in legal fees by Amway Corporation, that multi level marketing is a legitimate means by which individuals could earn substantial financial resources. It's also a legitimate and important method by which companies could introduce and distribute all kinds of valuable products and services to the consumer public.

Some of the requirements for companies and individuals to meet in order to comply with this ruling are that the company must provide some kind of product or service to the end user paying financial consideration for the product or service.

Another requirement is that the sales person must create new sales each month to qualify for continued commissions and bonuses received from a downline of the same people. In addition both the company and individual must provide continued support to those from whom they receive financial consideration. One more very important part of the ruling was that nobody can be paid for the sole act of sponsoring.

Those who enter our program do so through a method classified as interstate commerce rather than intrastate commerce, and we provide personal services of value to the person entering the program, before any exchange of financial consideration occurs. In essence we are building a membership list for a private organization, of like minded, success conscious individuals, who share common interest, goals, and in most cases hopefully, religious and political beliefs.

The interstate commerce element of the transaction is especially important in the fact that it bars overzealous and unethical state bureaucrats from gaining legitimate jurisdiction over the activities of any individual living within a state, and the company operations based outside of a state where prejudice or shady local politics could deprive an individual of exercising their constitutionally protected liberties.

This argument is based on the interstate commerce clause of the Federal Constitution, and a ruling made by the US Supreme Court which says that private organizations may operate within the law without registering with any government agency, and private organizations are not obligated to provide any access to the membership list or financial records showing the names or other information about those who make contributions to support the private, member supported organization.

Recent Supreme Court Rulings in the Boy Scouts Of America Case further indicate that the mind set of those who sit on the Supreme Court Bench, also value the rights of a private organization to select it's own leaders and membership, even though it was argued that the Boy Scouts Organization was a business rather than private member supported organization.

Other recent Supreme Court Rulings have sharply curtailed local bureaucrats authority to pass zoning ordinances which restrict a Church from using it's own property. These are all very significant rulings because it clarifies the extent to which a local, state, or Federal Agency can apply it's jurisdictional control.

When you talk about the rights of government to control the activities of people or activities on private property there's a huge difference between the word private, and public. The Life Without Debt educational program is not a network marketing company.

It does not ask for or accept financial support from any government agency. It's a modern, private, home based e commerce facilitator of both products and personal services which are provided exclusively to a private membership, by phone, fax, computer, mail, and private carrier.

There are no contracts to sign and membership is provided on a renewable basis, similar to the way you would renew a Certificate Of Deposit held by any financial institution, or renew an insurance policy, your drivers license, pay your taxes, etc., but there are some very important differences, which make the transaction entirely legal and different than selling securities which are regulated by the government!

1. We do NOT hold or manage your money the same way investments are typically made when purchasing stock, bonds, etc., so you are NOT making an investment in ours or any other company. All we do is provide computer facilities and training material which enables you to understand HOW money is created by the monopolized banking establishment, HOW credit is manipulated by the Federal Reserve, and HOW to manage your own money, and re distribute funds to those who are your support group, responsible for the "continuous support" mentioned in both the FTC ruling and United States Postal Code.

2. All funds entrusted to us for the designated purposes, are typically back in the hands of those who consist of our private membership, within 14 to 21 days from the time of receipt. This is just long enough to do the necessary computer processing for hundreds of contributions being made per day, repackage funds, and then return the funds and educational material to the proper individuals, who have made the contribution and provided the support to complete the transaction. All of this is done on the basis of legal authority found in Article 1; sec 10 of the Constitution!

3. What about the pyramid claim? Our marketing process is called linear step marketing, which requires an individual to progress through a clearly designated series of steps to reach financial goals with as few individuals as possible required. Like all opportunity providers and intelligent business people we realize that we can't control the actions of other people when it comes to making people fulfill their financial obligations, and provide the necessary ambition required for success, but we can make it as easy as possible for all who try, by working around a minimum number based marketing structure. The number is 3 and it's compounded to the 10th power.

4. Although creating such a structure physically is similar and appears to look like a pyramid, in reality this is the ONLY thing about the entire process which has anything to do with a pyramid, as shown on the back of a "$1 Federal Reserve Note!"

5. Pyramiding as defined by law typically refers to the sole act of sponsoring in networking, or the use of "borrowed money" from the banking establishment, such as when a person is involved in a check kiting scheme. In networking the laws are designed to protect individuals from those who take people's money but don't provide anything of value in return for the exchange of the money. However the law can't be legally used by the government to violate any persons right to contract as designated by Article 1; sec 10 of the Constitution.

The question of legality of any business venture must always be based on the facts and intent of those who are involved in the transaction. If there is no evil intent to defraud or injure a person, no criminal act can occur. Nobody in this privately financed organization that I know of, has any intent to injure you, and if they do, we will deal with those problems when they occur, without having to be forced to do so by any government agency. By the same token, we must question the intent of all who enter our program and make it clear that we are not a baby sitting service for unmotivated losers. We do not want your contribution if you are not 100% dedicated to helping yourself and others. We have the 3 contribution within 90 days after entry qualification for a reason, and we expect everyone to meet that qualification requirement.

The FTC ruling is very clear about people involved in the networking process creating new sales each month in conventional network marketing programs in order to receive bonuses from a downline network. HOW can you break a law that says in one breath that you must create 10 new retail sales per month, and in another breath says that it's illegal to engage in the sole act of sponsoring? The answer should be obvious!

IF YOU sponsor any person into this program and then fail to assist them, YOU will be breaking the law, not us! WE work every single day to assist every person in this program, and our duties to each member entering the program are clearly defined in our written material and explained in our audio tapes. It's up to YOU to make the most from the opportunity, and it is YOU, and only YOU who can make the decision to do so. Each membership in our private organization is for 365 days. You will have the complete support of your sponsor and staff as long as you are active.