Regulation & law

Front-loading

Persuading new participants to buy large product quantities up front.

Also: frontloading

Front-loading is the practice of getting a recruit to purchase far more product than they can sell, usually by tying starting rank or bonuses to pack size. Regulators treat it as a warning sign because the sponsor's income comes from the recruit's purchase rather than from retail sales.

A plan that offers "start at Director with the $2,000 pack" is describing front-loading.