The Growing List of MLM or Network Marketing Companies That Have At Least 4 of the 5 Red Flags
A - D
If you have not already done your own evaluation, go to "5-step Do-it-yourself Evaluation"
LIST OF RECRUITING MLM'S*, continued:MLM's come and go, so a few may now be defunct.1Cellnet 4Life Int’l 5Linx Acai Plus Achievers Unlimited ACN (See feedback) Adcalls [Advantage Conf's – For info., read “Millionaire Mindsetters”(Houston Press)] Advantage Neutraceuticals Advocare Agel AIM All-star Entrepreneur Amazon Herb Ambit Energy American Longevity Ameriplan USA Amerisciences AMS Amsoil Amway/Quixtar (See also – American Petroleum Promotions Amigo Health Annasa Apeus Arbonne Ascend Technologies At Home America Avalla– distributes Nutrimetrics Avon – Once a retail direct selling model, Avon recently has become much more focused on recruitment and self-consumption See recent feedback. See also - Metro. News-Enterprise) ] Beach Body BeautiControl Cosmetics Bel’Air Better Universe Beyond Freedom Seminars bHIPGlobal Big Planet (Nu Skin) Biometrics Bioperformance BioPro Bodywise Bookwise Books Brain Garden Burn Lounge Business in Motion (BIM) Cell Tech Cell Wireless Champion Communications Citizenre Cleur Cognigen Conklin Creative Memories Cyberwize DCHL - Digital Crown Holdings Ltd. DSX Dubli Dynasty of Diamonds NOTE: This list (A-D) includes only those MLM's for which we have been able to obtain and evaluate compensation plans. Click here for a list of over 650 past and present MLM's.
Sample list of MLM's shut down by law enforcement
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1 | CONCLUSIONS AND RECOMMENDATIONS:After over ten years of research on MLM/network marketing and the receipt of thousands of emails and other communications from all over the world, some conclusions can be drawn about these chain selling schemes. 1. These schemes are uneconomic;i.e., not profitable except for a few at the top of a hierarchy (pyramid) of participants. Many compare this to the huge pay differentials in corporations, etc., but at least a minimum wage is earned by all company workers. Conversely, in chain selling schemes – after subtracting purchases and operating expenses – almost everyone loses money (except the top-of-the-pyramid promoters, or TOPPS - as demonstrated in surveys of tax preparers). 2. "Recruiting MLM's*" are dependent on a whole set of misrepresentations,the primary one being the presentation of MLM as a "business" or "income opportunity." In most cases, they are no more a business or legitimate direct sales opportunity than betting on craps in Las Vegas is a business. In fact, the odds for many games of chance are much greater than the odds of succeeding at MLM. (See MLM Numbers.) And you don't risk spending your "social capital." After all, your relationships are some of your most valuable possessions - and not worth exploiting for personal gain. 3. There are other several lessons learned.Go to "Top Ten Things I Learned from Ten Years' Research on MLM/Network Marketing." * A recruiting MLM, or product-based pyramid scheme, is an MLM with a compensation system that rewards recruitment more than actual sales of products to persons outside the network of participants. So significant income is unlikely without recruitment of a large downline, which requires deceiving recruits into believing it is a legitimate "business opportunity – and persuading them to invest in inventory (front-loading) and/or to subscribe to ongoing monthly product purchases or payments to "do the business," to "be a product of the products," etc. For purposes of analysis, a recruiting MLM could also be considered a "product-based pyramid scheme." 
For an excellent analysis of the inherently flawed concepts underlying multi-level marketing, read Dean VanDruff's excellent article "What's Wrong with Multi-level Marketing." REMEMBER – Aside from the standard job market (and MLM) – there are many satisfactory alternatives for earning an income. Almost any of them are superior to recruiting MLM's. Read more about them in the article "1,357 Ways to Make a LOT More Money than in MLM/Network Marketing." DISCLAIMER: These evaluations are intended purely as a communication of information in accordance with the right of free speech. They do not constitute legal or tax advice. Anyone seeking such advice should consult a competent professional who has expertise on endless chain or pyramid selling schemes. Readers are specifically advised to obey all applicable laws, whether or not enforced in their area. Neither the Consumer Awareness Institute nor the authors assume any responsibility for the consequences of anyone acting according to the information in these reports. |
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