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Amway/Quixtar Negative Sum Game DefinitionsA positive sum game is a game where the participants, as a whole, take home more money then they brought to the game. An example of this could be a diversified basket of blue chip stocks. As the company's profits grow, because of expansion of the business, the stock of those companies can increase in value. Wealth for the shareholders (game players) is created as the company grows when it provides value-added services to the economy. This assumes the company is making a profit. Companies not making a profit are negative sum games. Most McDonalds franchises are positive sum games. The game player, the franchise holder, takes more in revenue from customers than he pays out to his labor and vendors. All McDonalds franchises combined together will report a net profit. A zero sum game is a game in which the participants, as a sum, take home all the money they brought. A home poker game, an investment pyramid, or chain letter are all zero sum games. The participants take all monies home that they brought to the game. Some participants may take home more or less than what they brought, but all the participants together, take home all the money that was brought to the game. A negative sum game is one in which the participants take home less than what they brought with them. Lotteries, casinos, racetracks are all negative sum game. The administrators of these games be it the state, casino, or race track all take money out of the pot which leaves less for the game players to take home. Ten Customer Rule, changed in 1997 to the 50 PV Rule. This rule states that a distributor must sell to 10 non-distributors customers, or sell at least 50 PV per month to non-distributor customers, in order to receive any bonus. It was partly based on the existence and enforcement of this rule that the FTC ruled in 1979 that Amway was not an illegal pyramid scheme.
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