Almost No One Makes Money in MLM

Nothing ever changes in multi-level marketing. Even when it looks like the government is taking action against a company like Herbalife, other MLMs continue with business as usual. Almost everyone loses money in MLM. Which means almost no one makes money in MLM. This is a universal truth. More than 99% of distributors will lose … Read more Almost No One Makes Money in MLM

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 … Read more Ponzinomics: MLM Fraud and the FTC

No Such Things as a Good MLM

Defenders of multi-level marketing (MLM) will tell you that some companies “do it” right, while some companies “do it” wrong. One such example is John Hempton, a clown who thinks that Herbalife is the greatest thing since sliced bread. He says the following in an article about Nu-Skin: Disclosure: I am predisposed to believe that … Read more No Such Things as a Good MLM

TelexFree: MLMs are Pyramid Schemes

This week we heard news of $20 million (hidden in a box spring) being seized by the federal agents in its ongoing investigation of TelexFree, a multi-level marketing company that the government says was a massive Ponzi scheme. You can read all about the TelexFree case on Patrick Pretty’s blog. News reports about TeleFree refer … Read more TelexFree: MLMs are Pyramid Schemes

Loss and Failure Rates in Multi-Level Marketing (MLM)

More than 99% of people lose money in multi-level marketing (MLM). In Chapter 7 of Dr. Jon Taylor’s book, The Case (For and) Against Multi-Level Marketing, he details the failure rates of participants in multi-lievel marketing companies. In order to analyze the true failure rates and to calculate actual profits or losses from participation in … Read more Loss and Failure Rates in Multi-Level Marketing (MLM)

More on John Oliver’s Takedown of Multi-Level Marketing (MLM)

Robert FitzPatrick, one of the foremost experts on multi-level marketing, published a piece entitled “What John Oliver Didn’t Have Time To Say In His Hilarious Exposé Of Herbalife And MLM” on Seeking Alpha. (register for free to read the whole article) As always, he did a masterful job o flaying out the case against MLMs, … Read more More on John Oliver’s Takedown of Multi-Level Marketing (MLM)

MLM: It’s About Recruiting, Not Sales

I’ve been telling you for years that multi-level marketing is NOT about selling products. It’s about recruiting people into a fake opportunity. The products are the “front,” meant to make MLM look like a legitimate business. In reality, very little product is retailed to actual consumers. Instead, it’s sold to new recruits into the scheme, … Read more MLM: It’s About Recruiting, Not Sales

MLM is Not a Business (It’s a Pyramid Scheme)

I’ve written many times about how multi-level marketing (MLM) is not a business. Don’t believe me? Others have said the same thing. Today Lazy Man and Money lays out the reasons why MLM is not a business. You’ll have to read the details at his site, but the reasons include: Businesses obey the Commandment of … Read more MLM is Not a Business (It’s a Pyramid Scheme)

Consumers Looking for a “Good” MLM

Robert FitzPatrick of Pyramid Scheme Alert is bombarded every week by consumers who want to ask him, “What about this MLM?” You see, the marketers of multi-level marketing companies have gotten very savvy. They know that plenty of us have figured out their con game. They now have consumers convinced that theirs is “one of … Read more Consumers Looking for a “Good” MLM

MLMs as Pyramid Schemes (Vemma Shut Down)

Multi-level marketing companies – – MLMs for short – – go to great lengths to distance themselves from pyramid schemes. The Direct Selling Association (a lobbying group funded by multi-level marketing companies that helps ensure our government continues to allow MLMs to operate) says that legitimate MLMs have legitimate products or services for sale and … Read more MLMs as Pyramid Schemes (Vemma Shut Down)