Answers to your questions based on analysis of over 500 MLM programs,
consultation with other top experts, and over 18 years of worldwide feedback
MLMs with at least 4 of the 5 red flags of a recruitment-driven MLM* (E to G)
After the most extensive research ever done on MLM as a business model, Dr. Taylor has identified five causative and defining characteristics, or “red flags,” in MLM compensation systems that lie at the root of the deceptions and horrendous loss rates suffered by MLM participants. These characteristics are causative in that they cause thehigh loss rates, and defining, in clearly distinguishing them from other types of busineses.Where data is available, and at least the first four of the five "red flags" appear, approximately 99% of all participants (including dropouts) are found to lose money, after subtracting incentivized purchases and minimum operating expenses.
But before we share our list of MLM* programs we have evaluated, it is important that you do your own "5-step Do-it-yourself Evaluation." We will not be responsible for the consequences of a decision that is ultimately yours to make. (See Disclaimer.) But we are confident that here you will receive the best advice available on how to make that decision.
To begin, obtain the compensation plan of the MLM program you are considering. Then answer the questions for each of the five steps and follow the links to its conclusion. You might also want to review some of the feedback we have received.Listed below are MLMs we have found to use recruitment-driven and top-weighted pay plans, which the case with virtually all MLMs. For a thorough discussion of problems associated with such programs, download and read the ebook The Case for and) against Multi-level Marketing – which can be downloaded in whole or in sections from this website.
MLM's come and go, so several we have analyzed are not listed. But a few of those listed below may now be defunct.)
Global Equity Lending (formerly World Lending Group)
Global Equity Marketing
Global Health Trax
Global Income Partners (ACN)
Global Research Network (1-up)
Global Resorts Network
Global Travel Trends (PRT Travel)
Global Wealth Trade
Gold Mine International
Golden Neo-life Diamite
Good Life International
Great Life International
NOTE: This list includes only those MLMs for which we have obtained and evaluated compensation plans. Most of the MLMs were listed following requests for information by vistiors to our website.
*A recruitment-driven 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 recruitment-driven MLM could also be considered a "product-based pyramid scheme;" i.e., a pyramid scheme that requires purchases of products to participate in commissions or advancement in the scheme, rather than a cash investment such as those required for no-product pyramid schemes.
For more information
You should find on this web site the answers you seek to questions about MLMs like the ones you may be considering. For a more thorough analysis of MLM as a business model, read Chapter 2 of the eBook by Dr. Jon Taylor titled The Case (for and) against Multi-level Marketing – which can be downloaded from our web site at – mlm-thetruth.com. Other chapters explore typical misrepresentations, statistics on average earnings of participants, legal issues, etc.
Also, for a brief analysis of the inherent flaws of multi-level marketing, read the article by Dean VanDruff titled "What's Wrong with Multi-level Marketing" – available at vandruff.com. And some excellent reports and information can be found at the following web sites: pyramidschemealert.org and mlmwatch.org.