MLM Income Disclosure Statements

Standard

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 in commissions or overrides, but they are generally worthless. They are worthless because of what they do not disclose.

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: Continue reading

Multi-Level Marketing Income Disclosures

Standard

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. Continue reading

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

Standard

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 of $93 per month
  • 41% of representatives who qualified for commissions got an average of $256 per month

These figure are before all business expenses. Those who have been involved with multi-level marketing know that there are plenty of expenses, including fees for meetings, travel expenses, promotional materials, sign-up fees, renewal fees, and marketing costs.  I doubt many of these 95% of representatives receiving commission checks actually turn a profit. Continue reading