Informational Main Page
Concise 4 Points of Multi level marketing
No Retail
The goal of MLMs is not to retail to outside customers but to recruit within the pyramid.
MLMs products are hugely overpriced due to endless chain "commission" obligations and convoluted pay structures. These MLM products can not and are not meant to compete with legitimate market demands in the a free market.
There is no money to be made in MLM through sales of products to non-participants, the primary way to make money is to recruit more distributors within. Mathematically, it does not make sense to sell but to recruit within for income.
What sense does it make to endlessly recruit your competitor? That just shows MLM is not primarily about sales to non participants. If recruits at the top of the pyramid get better "discounts" then recruits on bottom, why would customers buy from bottom pyramid recruits?
Top Weighted
The vast majority of the money distribution of MLMs goes to the top fraction of 1% of the pyramid. As per numerous studies, over 50% of money distribution goes to the 1%
In standard retail, the commission will not go over 4-5 levels. The majority of the commission percentage will go towards the front line sales and will diminish as the levels go up, for example from the initial sales associate to store manager, then to branch, finally to regional. This is completely contrasted in MLMs. The front line doesn't receive the majority of the commission, but the very few at the top of the pyramid which is a self defeating principle in regards to fair compensation. MLMs have an endless or ongoing commission chain which is doomed for saturation and demonstrates a scam
Pay to Play
Mandatory overpriced mass perpetual purchases are incentivized. This keeps the money flow to the top of pyramid. It is a form of laundering
Every MLM Recruit is required to pay to go to seminars, and pay for "education material". The speakers at MLM seminars or ceremonies are often at the very top of the pyramid and do not represent the vast majority of MLM participants. Not only are products laundered for top weighted money transfer but also "education material" purchases
Personal expenses are not reimbursed.
In order to receive the right to recruit as an MLM distributor and earn various incentives such as discounted price, ongoing payments would have to be made on a perpetual basis
Ongoing Recruiting
The promises of vast, perpetual income is based out of recruiting. It is promoted though MLMs through your recruits which are your downlines or legs, their efforts get distributed to you without you doing anything. (This is why people join, not selling to outside customers)
Recruitment is the main focus. It doesn't matter if different terms like mentorship or affiliate marketing is promoted, the principle is the same.
The recruiting of MLM is ongoing. In contrast to standard companies that don't keep hiring due to supply and demand. In contrast with standard retail, product cycles and market demand are always kept in mind, so why keep hiring beyond what is needed?
if you don't remember anything else, remember points above
Downloadables (Books, data, stats)
In this section you can download free books or data explaining the deception of Pyramid Schemes. This section also includes links to other book you can buy off Amazon.com. We make no money from this
Books (FREe download)
Download Full Books Here
Click the blue button below each book to download (PDF)
Read through your computer, phone, tablet or print them out
Merchants of Deception
by Eric Scheibeler (Amway Whistleblower)
Comment: When reading works from the specific author Jon M Taylor, please ignore his writings about a hypothetical MLM that doesn't cause harm to society. It doesn't exist. Robert L Fitzpatrick from Pyramid Scheme Alert concurs. The backstory is Jon M Taylor was devoutly in a religious cult so he wasn't aware of the cult indoctrination aspect of MLMs that parallel his own life. He was only attempting to reconcile MLMs as a business model, in doing so missing possible aspects of undue influence and thought stopping predispositions. Too bad he is no longer alive to defend himself.
Books (Amazon.com)
Ponzinomics by Robert L. FitzPatrick, author of False Profits, is the first comprehensive account of how "multi-level marketing" was created in America, escaped criminal and civil prosecution and spread all over the world. It is the first book to fully explain how the legitimate business of "direct selling" was turned into pyramid recruiting. Ponzinomics dissects the elements that distinguish "multi-level marketing" from legitimate sales, and reveals how a "business" could become a delusional belief.
In the 1990s, when India opened its door to rapid liberalisation and globalisation, what it seemed to have inevitably taken on was a mountain of trouble through money-spinning schemes in the form of multi-level marketing (MLM)/network marketing companies.
In Marauders of Hope, senior journalist and author Aruna Ravikumar dissects MLM scheme companies, draws why they happened and unfolds the remedial measures to stop the cancerous growth of dubious multinational corporations that were quick at feeding off people, hungry to make quick money. Outlining some of the biggest scams that rocked the country, ruining lives forever, Marauders of Hope works on the belief that creating awareness of the anatomy of these frauds is one of the most powerful ways to stay protected from networks that have unfortunately been iron-clad because of the powerful lobbies and the political patronage they received.
Marauders of Hope is an eye-opener and must read for all concerned citizens across society.
False Profits is an in-depth examination of the multi-level marketing industry and related illegal pyramid scheme phenomenon which have grown rapidly in the US and abroad in the last 15 years. The examination looks at the MLM field from the perspective of its social, personal and spiritual effects on those enrolled and solicited.
Amway distributors tout their business as "the best business opportunity in the world." Yet of the five million or so Americans whove been involved over its 40 year history, fewer than 1% have made a profit, and fewer than one-tenth of one percent have established the large incomes that they claim are achievable by all.
Ruth Carter has written a clear, concise account based on her 15 years of experience as a distributor and five years of insider information as the employee of a Diamond. The book attacks head-on the accusations of deception, cultism, and greed which are so often leveled at the Amway business. Here at last are the reasons why, clearly explained by a former insider.
Amway Motivational Organizations: Behind the Smoke and Mirrors takes a serious look at:
- a real Diamonds annual income and expenses
- what is the "system"?
- who makes money in the system?
- what is a cult?
- why is Amway accused of cultism?
Leaving an MLM (multi-level marketing company) can be a difficult experience. This guided journal offers plenty of space for writing and also includes ten helpful prompts to encourage reflection and deeper understanding of the false beliefs and misconceptions that MLMs encourage.
Topics covered include
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Shame and embarrassment over treatment of others
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Losing friends and mentors after leaving MLM
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Blaming self for "failure" at MLM
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The pressure to keep buying inventory
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Spiritual and religious manipulation
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Lies about MLM earnings
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Brainwashing and discouraging research into MLMs
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Misrepresentation about ease of selling MLM products
Statistics, Regulations, Other (free download)
The Myth of "Income Opportunity" in Multi-Level Marketing 2008 Update with Income Analysis of Ten Multi-level Marketing Schemes and Income Analysis of Amway/Quixtar and its Secret "Tools" Business by Robert L. FitzPatrick©2008
(Preview)
(Preview)
NU SKIN ENTERPRISES, INC. DISTRIBUTOR COMPENSATION SUMMARY
NuSkin Data
A Statistical and Business Model Examination of the Economic Legitimacy of Multi-Level Marketing
Robert L. FitzPatrick, Report Editor and Analyst Charlotte, NC Feb. 28, 2014
(Preview)
The Pyramid Scheme Legalization Act of 2017
By Douglas M. Brooks, Bruce Craig and Robert Fitzpatrick
(Preview)
MLM Chronology - by Douglas M. Brooks
This is a very helpful timeline to briefly explain the history of the MLM Pyramid Scheme by Douglas M. Brooks. This is a helpful for understanding chronologically.
(Preview)
10 Big Truths about Multi-Level Marketing: Hidden, Obscured and Denied…
This is a partial book. Truth #7 exposes the lack of regulation in the MLM (Mult-Level Marketing) industry. This is a truth that MLM recruiters would refrain to expose and try get around.
(Preview)
MLM List (Alphabetical Order)
Print or download this MLM list to use this as a reference on what to avoid. Bring this to career fairs to make your job search more time efficient. Share this list with others and contact us to update the list.
(Preview)
Twelve Tests for Evaluating a Network Marketing (MLM) "Opportunity"
By Jon M. Taylor, Ph.D., Consumer Awareness Institute
Multi-Page Slides by Pershing Square Capital Management exposing the MLM, Herbalife
See the documentary Betting on Zero
Cult Information
(Preview)
Freedom of Mind: Undoing Undue Influence and the B.I.T.E Model
Behavior Control
Information Control
Thought Control
Emotional Control
Influence Continuum
From The B.I.T.E Model
Behavior, Information, Thought and Emotional Control
(Preview)
Coercive Techniques in Business Opportunity Cults
By Douglas M. Brooks
Government Sources
In this section you can access external links of The Federal Trade Commission and different govt. sources in responds to multilevel marketing (product based pyramid schemes). You will notice very convoluted language on this matter. You will notice the condemnation of illegal pyramid schemes which are straight money based, and as they condemn illegal pyramid schemes they indirectly condemn multi-level marketing in principle (..if it looks like a duck, it quacks like a duck). To justify Multilevel marketing they bring up nonsensical points that conflict with the multi-level marketing platform. Such examples include condemning the infinite expansion of recruits of illegal pyramid schemes and at the same time mentioning legitimate MLMs don't focus on recruiting internally but the sale of products to outside recruits, which is far from the truth. These articles have mixed languages and some make valid points exposing the flaws of MLM. These articles show that the legal existence of product based pyramid schemes through extensive lobbing doesn't exist with rationality.
Consumers are on their own for evaluating MLMs. At best, government sources would only display a half truth and not give the full picture. There's no consumer protection from the financial harm of MLMs. Unlike franchises MLMs are not required to disclose any financial information that would make it obvious of being a financial trap with the loss rates, average incomes or operating cost.
Federal Trade Commission
- This article struggles to make a solid distinction between a multi-level marketing and pyramid schemes (because in principle there is no distinction). The points that try to validate MLMs don't exist, or hardly at all because the MLMs platform is contradictory to promote outside retail sales.This article is evidence that MLM existence from aggressive lobbying don't exist with logic and sound reasoning.
Summarizing Comments:
(Click for Link)
- See list of various articles. Articles include various companies and the predatory targeting practices of Latinos
Summarizing Comments:
(Click for Link)
New York Attorney general
(Click for Link)
Summarizing Comments:
- Highlighted Quote: "A legitimate multi-level marketing company emphasizes reliable products or services. A pyramid scheme uses products or services to disguise its quest for collecting money from the investors on the bottom levels to pay other investors further up the pyramid."
-(PSTC Comment) MLMs ARE pyramid schemes that launder products to recruit investors at bottom levels to pay upper levels.
California Attorney General
(Click for Link)
Summarizing Comments:
Highlighted Quote:
"If an opportunity has one or more of the following, it could be a pyramid scheme:
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You make money mainly based on how many people you recruit and the money they pay to join, instead of through sales of products to the public. This is the number one sign of a pyramid scheme."
Florida Attorney General
(Click for Link)
Summarizing Comments:
- This article states 5 points on how to choose a multilevel marketing company. Those points are valid questions to ask, however with further research of those questions beyond the article, you will find out MLM is a flawed model. In the link those reasons to support MLM are nonsensical. This article avoids the fact ALL MLMs are about recruiting rather than selling as well as avoiding the fact it is inevitable market saturation will happen from MLM.
Illinious Attorney general
MULTILEVEL MARKETING
Things You Should Know About..
(Click for Link)
- This article represents 7 valid problems of multi-level marketing and the IL attorney general seems not as pro-MLM as some others.
There is no registration requirement for MLMs unlike franchises. Why are MLMs are not obligated to disclose certain financial data, unlike franchises. MLMs can keep certain information to themselves away from the public. For example, average earnings per distributor and loss rates.
Summarizing Comments:
INdiana Attorney general
(Click for Link)
Summarizing Comments:
- This article fails to mention that in principle MLMs are pyramid schemes however makes a valid point that "Multi-level marketing plans paying commissions based on sales by lower level distributors may eventually result in a financial loss due to a reduction of new distributors joining at lower levels." The may needs to be crossed out in the article since the lost rates are close to 99.9 percent.
Washington Attorney general
(Click for Link)
Summarizing Comments:
Highlighted Quote: No. This office does not endorse or approve any marketing program. Anyone who says that their program is approved by the Attorney General is engaging in a deceptive act.
Ask why would this article even mention the quote above, unless MLMs or pyramid schemes actually made those false claims on a frequent enough basis
FBI (Federal Bureau of Investigation
The Corporate Psychopath
By Paul Babiak, Ph.D., and Mary Ellen O’Toole, Ph.D.
(Click for Link)
Summarizing Comments:
Highlighted Quote: "There also is the risk for economic crimes to be committed. For the corporate executive and the criminal justice professional, the issue is the possibility of fraud. Today’s corporate psychopath may be highly educated—several with Ph.D., M.D., and J.D. degrees have been studied—and capable of circumventing financial controls and successfully passing corporate audits."
Media
This section are links of communication channels that disseminate news. These are links to media articles relating to pyramid schemes or mult-level marketing. This section is helpful if for students or any professional to save time researching this specific subject from a media perspective. Notice the media sources are often more aggressive in calling out these schemes since there is no obligation to balance legality of the psuedo-business of MLMs. This section is not an endorsement of different media organizations but a guide for MLM news and info. Articles will be updated or added as time goes by
New York Post
- See list of various articles. The latest news are Bernie Madoff victims getting another $378.5 million dollar payout
Summarizing Comments:
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(Click for Link)
Highlighted Quote: Checks are in the mail for nearly 350,000 people who said they lost money trying to run an Herbalife business, the Federal Trade Commission said Tuesday.
Summarizing Comments:
(Click for Link)
Highlighted Quote: The FTC disagrees. “Rather than focusing on selling products, Vemma uses false promises of high income potential to convince consumers to pay money to join their organization,”
Summarizing Comments:
(Click for Link)
Highlighted Quote “There’s no question this guy was a con man,”
Summarizing Comments:
Washington Post
(Click for Link)
Summarizing Comments:
Highlighted Quote: Federal regulators raided the Tempe, Ariz., headquarters of Vemma, halting the operation of the energy drink distributor that used college kids to peddle the beverage, sold under the name Verve.
Females read here, don't waste your life
Summarizing Comments:
(Click for Link)
Summarizing Comments:
Highlighted Quote: "Trump is being sued by four people who say they were duped into joining the multilevel marketing company ACN years ago because of his endorsement. The suit characterizes ACN as a pyramid scheme and accuses Trump of having made misleading claims as a paid pitchman prior to his presidency."
Forbes
Highlighted Quote: Herbalife, the nutritional shakes and multi-level marketing company, entered into a deferred prosecution agreement with the US Department of Justice on Friday and agreed to pay $123 million to settle charges it bribed Chinese officials, the third time in 4 years it's been slapped with penalties by the US Government
Summarizing Comments:
Highlighted Quote: "60% of participants sold less than $500 over the past five years."
Summarizing Comments:
(Click for Link)
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Highlighted Quote: "MLMs typically require participants, referred to as “distributors,” to pay startup fees to join along with incidental costs down the line, such as purchasing products and event tickets, and traveling to large-scale, conference-type events."
Summarizing Comments:
Vice
How to Get a Friend Out of an MLM
October 22, 2018
Highlighted Quote: "If Beau’s story sounds familiar, it probably is. In 2017, more than 18.6 million people in the U.S. were “employed” by a multi-level marketing (MLM) company. According to the FTC, two recent and unrelated studies both found more than 99 percent of people who join MLMs ultimately lose money."
Summarizing Comments:
YAHOo
A WONDERFUL PRECENDANT THAT WAS SET.
Summarizing Comments:
Separate Organizational sources
See pyramid scheme information from different sources or organizations. See the continuality
Freedom of Mind
This organization specializes in cult recuperation. Steve Hassan has counseled individuals involved with MLMs. Their articles are informative. See link below for their website.
(Click for Link)
- Explanation of loaded language MLMs use to promote financial trap
- Referencing Betting on Zero Documentary
Summarizing Comments:
(Click for Link)
- See Reference to Dream podcast
- Read about flawed legislation of HR 3409
Summarizing Comments:
- See BITE Model as a helpful reference for pyramid scheme methods and manipulation
Summarizing Comments:
(Click for Link)
See explanation of money transfer scheme
See Reference to Amway lawsuit settlement
Summarizing Comments:
(Click for Link)
Steven Hassan’s BITE Model
November 6th, 2018
- See BITE Model as a helpful reference for pyramid scheme methods and manipulation
Summarizing Comments:
(Click for Link)
The Need to Educate Judges, Attorneys, Citizens, and Governments About Undue Influence
August 3rd, 2017
(Click for Link)
- The legal system should be updated to reflect the current understanding of bioethics and to help diverse individuals and groups affected by undue influence. Destructive cults include Multi Level Marketing
Summarizing Comments:
Resources from PSA (Pyramid Scheme Alert)
This is a separate organization, the first of its kind to inform about the treachery of MLMs. PSA (Pyramid Scheme Alert) aids legal cases and provides MLM or pyramid scheme info to shows and documentaries. These articles provide deep insight. Our organization is distinctive from the PSA due to our 501c3 status, which is useful to start a collective movement against MLMs.
About Multi Level Marketing
Product-Based Pyramid Schemes:
Apr 15, 2010
- Intro to pyramid schemes and MLMs
- obscurity and non transparency
Summarizing Comments:
(Click for Link)
BBB Warns IJango Is a Pyramid Scheme
Apr 20, 2010
- Notice common themes of MLMs through example
- Question BBB rating system
Summarizing Comments:
(Click for Link)
Fed Prosecution of Pyramid Money-Processor, Payza, Reveals Dilemma of Identifying “Legitimate” MLMs
Jul 29, 2020
Highlighted Quote: As an unintended consequence, this criminal prosecution provides yet more evidence that it is not possible to tell the difference between illegal MLMs and what the government calls “legitimate” MLMs.
Summarizing Comments:
MLM Scheme Sued in Texas
Apr 20, 2010
(Click for Link)
- Notice the flaws of endless chain commission and endless chain recruiting
Summarizing Comments:
Own My Travel Sued by SEC
Apr 20, 2010
(Click for Link)
- SEC sues MLM Company for being a pyramid scheme. (compliant attached)
Summarizing Comments:
(Click for Link)
Summarizing Comments:
Multi-Level Marketing Exploits Recession
Apr 19, 2010
Summarizing Comments:
- During US 2008 recession, it is despicable that MLMs used that time to target the vulnerable into financial traps.
(Click for Link)
Mannatech Pays Millions to Victims
Apr 19, 2010
(Click for Link)
Summarizing Comments:
Federal Judge Rules that Herbalife Can Stand Trial
Apr 20, 2010
(Click for Link)
Summarizing Comments:
Highlighted Quote: The bottom 99% (99.24%) of all Herbalife sales representatives earn a mean average income of $1.65 p. wk. before all business expenses and inventory purchases are deducted.
(Click for Link)
Highlighted Quote: The analysis also showed that less than 2% at the top of the Stream/Ignite sales pyramid received 55% of all commissions.
Summarizing Comments:
(Click for Link)
Highlighted Quote: Update: The MLM scheme, Fortune High Tech Marketing, was ordered in ’09 to stop doing business in the state of North Dakota by state regulators. FHTM is one of fastest growing new versions of “endless chain” recruitment schemes based in the USA.
Summarizing Comments:
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Summarizing Comments:
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Summarizing Comments:
Highlighted Quote: This icon of “direct selling” just announced that it has agreed to pay restitution to consumers and reform costs estimated at over $150 million.
Highlighted Quote: Despite the Trump endorsements and all the hype about income, Montana’s case against ACN was compelling: virtually all ACN distributors in Montana had lost money.
Summarizing Comments:
(Click for Link)
(Click for Link)
Summarizing Comments:
Highlighted Quote:The average paid out to the bottom 96% is $115 per mo. This is less than the initial and monthly cost of participating, not counting all other normal business costs.
(Click for Link)
(Click for Link)
Summarizing Comments:
Highlighted Quote:The analysis also showed that less than 2% at the top of the Stream/Ignite sales pyramid received 55% of all commissions.
(Click for Link)
Summarizing Comments:
Highlighted Quote: After years of delay in the Belgian courts, a ruling was finally gained: It concludes that Herbalife is exactly what the consumer group claimed it is, an illegal pyramid scheme based on “endless chain” recruiting. Such a plan dooms the vast majority to losses, by its design and deception.
(Click for Link)
Summarizing Comments:
Highlighted Quote: Texas consumers who were involved in the scheme may be entitled to refunds, totalling more than $1.3 million. The company has also agreed to pay hundreds of thousands of dollars to the state of Texas for legal costs of prosecuting the scheme.
(Click for Link)
(Click for Link)
Summarizing Comments:
Highlighted Quote "The staff of the Federal Trade Commission (FTC) has reversed its earlier position on the need to regulate multi-level marketing and has now recommended exempting all MLMs from a proposed “business opportunity rule.” This means MLMs will have no rules requiring disclosure of income averages, recruiting requirements, saturation, failure rates..."
(Click for Link)
Summarizing Comments:
Highlighted Quote: "Now, however, it appears that even the “unlimited” income offer is not working. The obsolescence of this product in the face of cell phone and Skype technology may be greater than even Donald Trump’s endorsement."
Summarizing Comments:
Highlighted Quote: Royal Canadian Mounted Police (RCMP) in the province of Manitoba in central Canada have brought criminal fraud charges against a prominent multi-level marketing company, its president and 12 of its promoters.
(Click for Link)
China Leads New Crackdown on MLM Frauds
Apr 20, 2010
(Click for Link)
Summarizing Comments:
Highlighted Quote: "The story is a lesson for the world. In China, the schemes are seen as especially pernicious during a Recession because they cause financial harm to people who are already financially struggling. Additionally, the government of China sees pyramid schemes as a subversion to the general economy and therefore a threat to the nation."
Dec 28, 2012
(Click for Link)
Summarizing Comments:
Highlighted Quote: "Herbalife is at the center of headline news stories right now. Major investors are calling Herbalife a “pyramid scheme” and a money trap. They report that 99% of all who sign up never make a profit. "
(Click for Link)
Summarizing Comments:
Highlighted Quote: A state judge in Utah modified an earlier decision and now has ruled that a prominent Nu Skin whistle-blower is legally allowed to call that company an illegal pyramid scheme, based on the whistle-blower’s analysis, direct experience and knowledge of the Nu Skin business.
Nu Skin Facing the Ultimate Whistle-Blower
Jun 3, 2012
Summarizing Comments:
(Click for Link)
Highlighted Quote: "Loyalty and obedience are cultivated among followers who are taught to “exalt” their sponsors. The highest ranking company leaders are presented at sales rallies as near demi-gods."
(Click for Link)
Highlighted Quote: "A hedge fund manager – who is famous for rigorous research, uncanny insight into future trends and for selling “short” the companies that he thinks are unsustainable – publicly asked a few pointed questions about the MLM company, Herbalife. The mere questioning appears to have triggered a panic sell-off of the stock."
Summarizing Comments:
(Click for Link)
Highlighted Quote: "Why would Amway be asked “how much” of the products are actually retailed? The reason is that this question determines the very legality of the entire Amway enterprise. And Amway is continuously accused of operating illegally."
Summarizing Comments:
Highlighted Quote: "The lethal combination of cult and pyramid in a multi-level marketing company was vividly explored in a recent newspaper series on the multi-level marketing company, NXIVM (pronounced like the acid reflux “purple” pill)."
Summarizing Comments:
(Click for Link)
(Click for Link)
Highlighted Quote "The FHTM case reveals, not that consumers are protected by the FTC, but rather they remain in extreme danger from the multi-level marketing “industry” due to FTC’s failure to define the terms of legality for MLM enterprises."
Summarizing Comments:
Feb 19, 2014
(Click for Link)
Summarizing Comments:
Highlighted Quote: The ratio of the winners to losers will be the same and the only way for anyone to make money will be by transferring “losses” from most to the few winners.
(Click for Link)
Highlighted Quote: "The MLM cult rules always require continued paying of money to the MLM’s and free marketing work for the MLM. Doubting the rules or the promise is a MLM sin. Questions are MLM heresy. "
Summarizing Comments:
(Click for Link)
Highlighted Quote; Herbalife has been called a “pyramid scheme” by one of the country’s largest hedge funds who presented a 300-slide presentation laying out the facts on Herbalife of a pyramid money transfer, inflated pricing, deceptive earnings claims, excessive charges for shipping, and large-scale losses by Herbalife distributors.
Summarizing Comments:
(Click for Link)
Summarizing Comments:
Highlighted Quote: It is often said that recognizing “pyramid schemes” is difficult, complex, and confusing. Over the years that I studied “multi-level marketing”, I came to realize that the challenge of recognizing pyramid schemes is not complexity or disguise; it is political protection, denial and avoidance.
News Media Keep Taking the Bait of MLM “Products”
Jun 14, 2019
10 Big Truths about Multi-Level Marketing
Feb 4, 2019
Author Robert L. FitzPatrick, Pres. of Pyramid Scheme Alert has published an eye-opening, succinct exposition of the realities of “multi-level marketing.
Summarizing Comments:
(Click for Link)
(Click for Link)
Saturation Reality and the Myth of MLM “Growth”
Jul 20, 2015
Summarizing Comments:
Highlight Quote: Using data from 11 MLMs that published “income disclosures”, the report showed that less than 1% of all MLM participants ever earn a profit, according to the MLMs themselves.
(Click for Link)
Summarizing Comments:
Highlighted Quote: Donald Trump was paid $400,000 to endorse ACN. New about ACN’s purchase of publicity and credibility
ACN: Red Flags and News Items of Interest
Jun 16, 2015
(Click for Link)
Summarizing Comments:
Highlighted Quote: Less than 2% of reported Herbalife Supervisors received $35,000 or more on average, before expenses and product purchases are deducted. The reported income of the top 2% is based on worldwide, not domestic-only recruitment chains.
(Click for Link)
Summarizing Comments:
Highlighted Quote: "One of the the greatest obstacles – perhaps the most important one – to law enforcement of Main Street pyramids is the disguise of pyramid schemes as “direct selling” enterprises that offer a viable “income opportunity” to large numbers of people ."
The True History and Actual Identity of MLM
Dec 8, 2014
(Click for Link)
Highlighted Quote: Yahoo Finance reporter, Stephanie Asymkos’s podcast marks the first time the business media has dealt strictly in reality about MLM and acknowledged the real-life experiences of millions of people of extreme deception, psychological manipulation and financial loss at the hands of MLM promoters, with no personal recourse to the courts or government.
Summarizing Comments:
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Highlighted Quote: MLM is always called “legal” but this refers to lack of law enforcement, not settled law. Bernard Madoff was also referred to as “legal” for almost 20 years before the truth of his illegality was finally revealed. He was never legal, just not investigated.
Why MLM Is Invisible, Part 1: False Language
Aug 22, 2014
(Click for Link)
Has MLM Corrupted Avon?
Jul 31, 2011 | News
Summarizing Comments:
Highlighted Quote: "Avon has long been, and is today, the pillar that holds up the credibility of the direct selling industry. It has unintentionally lent legitimacy to multi-level marketing (MLM) schemes that sold outrageous health scams, some that were sued by financially ruined consumers and others that were shut down by regulators for pyramid fraud."
(Click for Link)
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Here is a list of movies and clips on multi-level marketing fraud that not only bring a smile but also open eyes and minds. It appears that comedians and satirists see the fraud of multi-level marketing plainly, while regulators and the main stream media are flummoxed.
Laughing into the Face of Fraud
Dec 3, 2010
(Click for Link)
Summarizing Comments:
Highlighted Quote: In fact, as an “endless chain” recruiting model, MLM is rigged – fixed. The losses are inherent and would occur no matter how many “tried” and “worked hard.” Those at the top always win.
(Click for Link)
Summarizing Comments:
Highlighted Quote: In fact, prosecutions of one MLM typically resulted in top recruiters starting numerous others, modeled exactly on the ones that were shut down.
History of Pseudo-Law Enforcement at FTC Protects MLM Pyramids and Lures People into them.
Jan 24, 2020
PSA: Continued (Other Pyramid Schemes
Penny Stock
(Click for Link)
Highlighted Quote: Millions of shares are issued but only 20% are actually sold to the public. One or more people control the other 80% even though they may have invested little or no money of their own. This ensures massive profits to the insiders, including the company waiting in the wings for the merger, and to prevent any interference from those who actually put up the money.
Summarizing Comments:
The Penny-Stock Pyramid Scheme
Apr 13, 2010
About Social security
(Click for Link)
See info about social security and contrast that to an MLM scheme
Summarizing Comments:
- See info about social security and contrast that to an MLM scheme
- MLM recruiters often criticize social security to promote their scheme, ironically social security has more foundation than MLMs
Summarizing Comments:
(Click for Link)
Gifting
(Click for Link)
- See a list of articles on gifting schemes
Summarizing Comments:
Gifting Schemes
Apr 13, 2010
(Click for Link)
Summarizing Comments:
Highlighted Quote:
"A Michigan newspaper reports that “seven Newaygo County women have been arraigned… on felony charges in connection with a pyramid scheme targeting women.” The article states that the women are facing charges of pyramid chain promotions, which carries up to a seven-year sentence and a $10,000 fine."