InteleTravel MLM “Opportunity”

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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.”…

Top Earners in MLM Make Money Off the Backs of Others

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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…

How to Avoid Business Opportunity Frauds and MLM Scams

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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. [jwplayer file=”http://www.sequenceinc.com/videos/onthemoney121508b.flv” image=”http://www.sequenceinc.com/images/videos/otmbizop.jpg”]

Almost Everyone Loses Money in MLM

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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…

Good MLMs and Bad MLMs

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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…

Why MLMs are Pyramid Schemes

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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…

Almost No One Makes Money in MLM

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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…

Ponzinomics: MLM Fraud and the FTC

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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…

No Such Things as a Good MLM

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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…

TelexFree: MLMs are Pyramid Schemes

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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…