Multi-Level Marketing Income Disclosures

Medifast Pyramid SchemeSome multi-level marketing (MLM) companies release income disclosures or earnings disclosures. These documents theoretically provide insight into how much distributors earn in commissions or overrides.

However, the disclosures are generally worthless. What is more important than the information in these documents? The information that is not disclosed in the documents.

Multilevel marketing companies purposely omit important information that would allow potential distributors or investors to have real insight into these plans. In general, earnings disclosure statements often fail to provide the following information that is critical to understanding the plans and the results

  • Total distributors throughout the year
  • How the total distributor count is calculated (as of a certain date, using averages, or other methodology)
  • Number of new distributors during the year
  • Number of distributors who quit during the year
  • Turnover rate
  • Number of distributors earning $0
  • Definition of “active” distributor
  • Total number of distributors at a supervisor or leader level (i.e. have recruited other distributors)
  • Total number of  “active” distributors at a supervisor or leader level
  • Amount of product purchased by each level of distributor for the year

Below are links to the earnings disclosures found for various multi-level marketing companies:

If you have any income disclosure statements for the above MLMs (or other major multilevel marketing companies), please send them to the email address on my Contact page.

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2 Comments

  • Amanda says:
    9 October 2013

    A review of the financial statements for 2012 show that Sam Caster, as an employee of “Wonder Enterprises aka Salinda Enterprises” is being paid $300,000 every six months by the company for consulting services, which flies in the face of the court order that he have nothing to do with the company. Obviously he’s still the one calling the shots. Also, there were two legal matters, one being a product suit by a woman with breast cancer, Mannatech settled out of court for $200k … now why would they do that if the woman’s claims were not provable? They wouldn’t.

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