When social media makes get rich quick, passive income and financial independence promises, network marketing is often behind it. The latest explainer video from the Austrian Financial Market Authority in its series “1 Minute – 1 Begriff” (“A term explained in a minute”). Network marketing frequently involves products like financial training courses or crypto-assets – typically customers become distribution partners, and are required not just to get new customers on board, but also other distribution partners. Family members are friends are quickly involved. The boundaries to illegal pyramid schemes and unauthorised conduct of business are soon breached. Such models are repeatedly reported to the Austrian Financial Market Authority (FMA) by victims of such schemes. Victims frequently only realise that they have been connect after one to two years.
The “1 Minute – 1 Begriff” videos can be found in German only on the FMA’s Instagram channel @redenwiruebergeld and on the FMA’s YouTube Channel.
All relevant links can be found here:
“1 Minute – 1 Begriff: Netzwerkmarketing” on YouTube
“1 Minute – 1 Begriff: Netzwerkmarketing” on Instagram
“Let’s talk about money” issue number 19: Structured Sales or Network Marketing
Journalists may address further enquiries to
Boris Gröndahl (FMA Media Spokesperson)
Telephone: +43/(1)249/59-6010
Mobile: +43 676 8824 9995
E-Mail: [email protected]