27 Feb

Almost Everyone Loses Money in MLM

Don’t let your Facebook friends fool you: They’re not making money in the multi-level marketing company they keep pitching to you. And you won’t either. Multi-level marketing is not a business. More than 99% of participants in multi-level marketing (MLM) lose money. Companies like Mary Kay Cosmetics promote the “income opportunity,” but when the vast […]

03 Dec

Good MLMs and Bad MLMs

Defenders of multi-level marketing (MLM) will tell you that some companies “do it” right, while some companies “do it” wrong. The fact that a multi-level marketing company like Mary Kay Cosmetics has been around for more than 55 years does not define whether it is a fraud or scam. Remember Enron (in business more than […]

23 Feb

Why MLMs are Pyramid Schemes

Multi-level marketing companies (MLMs) are nothing but pyramid schemes. Oh sure, there are websites that go to great pains to discuss the difference between MLMs and pyramid schemes. But when you boil it down, MLMs are indeed pyramid schemes, and ta class action lawsuit filed against Arbonne International last year explains this well. First they […]

08 Dec

Lack of Retail Sales in MLM

When someone introduces you to multi-level marketing (MLM), they are likely talking to you about the sales aspect of the company. They are talking about the fabulous product (maybe even about how it “sells itself”) and they are probably downplaying the recruiting aspect (since so many people hate the recruiting concept). MLMs like to call […]

09 Jun

Ponzinomics: MLM Fraud and the FTC

Robert FitzPatrick, president of Pyramid Scheme Alert has written a new book about multi-level marketing and how the FTC allows these pyramid schemes to exist. In PONZINOMICS, the FTC’s Protection of Multi-Level Marketing, he discusses the political interests involved in MLM and the lack of action by FTC officials. What is “Ponzinomics”? FitzPatrick uses the […]

25 Apr

MLM Income Disclosure Statements

A collection of annual income disclosure statements published by multi-level marketing companies, continuously updated. Some MLMs release income disclosures or earnings disclosures. These numbers are not required to be disclosed in the United States, but some of the companies do it anyway to appear transparent. The disclosures theoretically provide insight into how much distributors earn […]