Is Zinzino an MLM business or a pyramid scheme?

First off, we need to establish the common principle upon which all direct sales companies are based. Reaching out to independent entrepreneurs with an opportunity to build a business by promoting their products or services to consumers in a non-retail environment - at home or at work, online or through group demonstrations IRL.

And how does MLM come into the equation? There are a variety of ways to make a living from direct selling and multi-level marketing is by far the most popular business structure, used by hundreds of companies to this day. The MLM model enables distributors to not only make an income by selling directly to people in their community, but it is also a chance to receive a commission from the people they recruit into the distribution network. 

So, when does a direct sales business cross the line and become a pyramid scheme? There are unfortunately a number of MLM businesses out there, giving a dynamic and rapidly expanding industry a bad name by turning the business model into a fraudulent system. They might be hard to spot at first glance. These so-called pyramid schemes share many of the same characteristics as legitimate direct sales and MLM businesses. Both models require participants (often called "distributors") to recruit other people, and both tie an individual's compensation directly to their recruiting results. There are however a few distinguishing factors that separate an unsustainable, illegal investment scam from the close to 125 million distributors building their legitimate business in direct sales today.  

Telltale signs of a pyramid scheme  

For starters, the actual product sold is secondary in a pyramid scheme. There might not even be a real product involved at all. Which by the same token means that finding customers is not a priority either. Instead, extreme emphasis is put on recruiting other participants into the program. Handing over money and getting others to do the same is a primary “skill” here. In any lawful MLM program or direct sales company, it is always free to join as a distributor. The number one investment is your networking abilities and personal recommendations, and you can always opt to only buy the products.  

Watch out for promises to get rich quick 

When you’re dealing with a pyramid scheme, more often than not, there is a promise of sky-high returns in no time at all without having to do much of anything. Apart from turning your wallet inside out, that is. Hard work, patience and perseverance are virtues that will pay off in any legitimate line of business, and direct selling is no different. Here are some potential red flags revealing that a company portraying itself as a legitimate MLM business might in fact be a pyramid scheme.  

- High entry fees or start-up costs and a requirement to regularly purchase a certain number of products —even if you don't have any more incoming orders. 

- Lavish promises of getting rich quick with close to no focus on the actual product or service 

- Extreme emphasis on recruiting other distributors rather than finding new customers 

- Complicated or hard to find terms and conditions of shipping and handling, the compensation plan set up and structure 
 
- A long-term commitment always pays off  

At Zinzino, we believe in leading by example and want to do our part in eradicating toxic pyramid schemes from our industry. Zinzino is one of the fastest-growing Scandinavian direct sales companies. We have been on a steady mission towards global expansion for a decade and are currently operating on 99 markets. Our shares are listed on the Nasdaq First North Premier Growth Market and by that notion we are required to be completely transparent in everything we do. To us, that is the only sustainable way forward. Making money fast is not a sustainable approach and it will never be a measure of success at Zinzino. We reward a long-term commitment and people who are doing the right things for the right reasons. In our book, that always pays off at the bottom line.   

What are the Zinzino company values? 

There are a number of fundamental driving forces and root beliefs that define and manifest our highest priorities as a company and guide our daily behavior with others. These are: “Together, Kaizen (continuous improvement), innovative, integrity, ambitious and inspiring community, recognize effort and result, personal growth.” 

We always want to do our part towards creating a better, more sustainable way of living.  That is why “kaizen” is our main core value, set up to ensure we put our money where our mouth is and give back to communities across the globe. Together with the Glocal Aid charity, Zinzino Gives Back is dedicated to creating a positive impact in the lives of Indian children with programs that empower them through education. 

What is the Zinzino mission? 

We have made a conscious decision to always put the end customer first and we will always reward customer turnover. This is directly reflected in our mission statement to inspire health and wealth for our customers, family and friends by being the most customer-friendly direct sales company in the world. Every day. More than 85% of our sales are made directly to our end customers (in the US the required level is 51%) and we believe this is making us best in class in our industry on a global level. We have a global Customer and Partner Support service easily available with staff speaking the language of all markets we’re present.  

Is Zinzino sustainable? 

We launched our business as a small Scandinavian start-up in 2005. Today, we are a global D2C company shaping the future of health with test-based, personalized nutrition. Close to 210 colleagues from 40 different nationalities are working at our corporate office and 18 000 independent Partners are sharing our brand promise and products with the world. 

We believe that a visionary, inclusive mindset characterized by fairness and transparency is key for long term, sustainable success. We have a clearly defined goal to be a world leader in preventative health with our scientifically proven, all-natural supplements. Our high-quality, premium products are consistently breaking new ground in the field, and they are sold at very sensible, end customer rates.  

- It is free to become a Zinzino Independent Partner and it is possible to climb the ranks and reach the highest income level without making any financial investments. Our Partner Kits only contain discounted products and a Partner can also earn a chance to get our products free of charge in our Z4F program. 

- In line with our Customer first approach, Zinzino incentivizes Partners to recruit at least 25 customer and get 100% return on his/her investment in the Ultimate Partner (start) Kit. 

- The Zinzino compensation plan is easily attainable from our website.  

- To build a strong, lasting business with us, you need to be in this for the long run and with a higher purpose than solely your own personal benefits.  

- We are members of local direct sales trade associations in every country we operate we always comply with the rules and regulations set by the authorities on the individual markets. This applies to our products, IFRS / finance, GDPR, lottery regulatory agencies and licenses.