Is Usana Running an Illegal Pyramid Scheme?

All good multi-level marketing companies have one thing in common: They fail to disclose enough information to allow consumers and regulators to determine if they are in the business of recruiting or selling products. They disclose just enough facts and figures to make it appear that they are being transparent. …

Is Multi-Level Marketing a Legitimate Business Method?

Defenders of multi-level marketing (MLM) are often heard saying that it’s a legitimate business method! Even government regulators say MLM is legitimate. And it is true that state and federal governments in the United States generally allow multi-level marketing companies to operate with little oversight. This is despite the fact …

Are Herbalife and FHTM Similar?

With yesterday’s shutdown of Fortune Hi Tech Marketing, consumers have been asking if Herbalife is a similar operation. Last year Herbalife’s business model was called into question by David Einhorn, and then the company was accused of being a pyramid scheme by Bill Ackman. Naturally, Herbalife denied being a pyramid …

Fortune Hi Tech Marketing Pyramid Scheme Shut Down

Fortune Hi Tech Marketing (FHTM), a multi-level marketing company I’ve reported on previously (and was interviewed about) was shut down today by the Federal Trade Commission. It is being reported that federal agents raided the company’s Lexington, Kentucky office. Law enforcement says that 100,000 people across the country were recruited …

Multi-Level Marketing Income Disclosures

Some 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. …

Fox News Exposé on Fortune Hi Tech Marketing

Fox News in Los Angeles did an exposé on multi-level marketing company Fortune Hi Tech Marketing. This video exposes the truth behind the company: operating like a pyramid scheme, dismal failure rates, false earnings representations, few making any money, broken promises, FHTM lying about its relationship with big name companies. …

Who is Making Money in Fortune Hi Tech Marketing (FHTM)?

Are people really making money from all this recruiting of FHTM Independent Representatives? The vast majority aren’t. An income disclosure statement for Fortune Hi Tech Marketing from January 2010 shows exactly how dismal the financial results are for its representatives: 54% of representatives who qualified for commissions got an average …

Fortune Hi Tech Marketing: Real Money Made From Recruiting, Not Product Sales

Earlier this week I showed you how Fortune Hi Tech Marketing appears to be a pyramid scheme, rather than a legitimate “direct sales” company or multi-level marketing opportunity. Today we are taking a look at the recruiting aspect, which is what I believe makes FHTM cross over the line into …

Fortune Hi Tech Marketing: Multi-Level Marketing Scam or Pyramid Scheme?

Fortune Hi Tech Marketing is one of hundreds of multilevel marketing companies that operate in the U.S through a combination of clever lawyering (“Let me show you how to set up your MLM so it appears to abide by the laws.”) and failure of law enforcement to enforce the laws …