The late Jon Taylor, PhD wrote a thorough and excellent book about multi-level marketing (MLM): The Case (For and) Against Multi-Level Marketing: The Complete Guide to Understanding the Flaws – and Proving and Countering the Effects – of Endless Chain “Opportunity” Recruitment, or Product-Based Pyramid Schemes. He put the book together in 2011 and 2012, … Read more How Does MLM Affect People?
A collection of annual income disclosure statements published by multi-level marketing companies, continuously updated. Last updates done 11/18/19. 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 … Read more MLM Income Disclosure Statements
PlanNet Marketing Inc. offers the InteleTravel MLM opportunity. They avoid language that would give away the fact that it is MLM, but since people recruit a downline into multiple levels, it is indeed multi-level marketing. Participants are referred to as “independent representatives” (IR). They pay upfront and monthly fees to have an “online travel agency.” … Read more InteleTravel MLM “Opportunity”
Do you think it’s only the “bad” people who do bad things in multi-level marketing? Those who frontload new recruits, dial for dollars at the end of the month (i.e. get people to order products they don’t need), talk only about their highest commission check, lie about how profitable the MLM is for them, or … Read more Top Earners in MLM Make Money Off the Backs of Others
In a past appearance on CNBC’s On the Money, Tracy Coenen talked about how consumers could protect themselves from business opportunity scams and multi-level marketing (MLM) schemes. MLMs parade themselves around as business opportunities, but they are nothing more than elaborate pyramid schemes that swindle millions of consumers each year.
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 … Read more Almost Everyone Loses Money in MLM
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 … Read more Good MLMs and Bad MLMs
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 … Read more Why MLMs are Pyramid Schemes
One of the most upsetting parts of the recruitment into a multi-level marketing company is the false earnings claims. People are lured into these companies with the promises of riches. It is not only done by presenting the tiny fraction of people at the top of the pyramid as typical when they are not. It … Read more False Claims in Multi-Level Marketing (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 … Read more Lack of Retail Sales in MLM