How MLMs Stay in Business (The Scam!)

Multi-level marketing companies that depend upon an endless chain of recruiting are doomed to collapse… as eventually the world will run out of people. Yet MLMs like Mary Kay continue to exist for decades, don’t they? (And the MLM apologists even using this longstanding history to give the company legitimacy…. …

10 Big Lies of Multi-Level Marketing

Following are some excerpts from Robert FitzPatrick’s article “The 10 Big Lies of Multi-Level Marketing.” Robert has studied MLMs and pyramid schemes for years and is the author of the book  False Profits and the head of  Pyramid Scheme Alert. Robert has also served as an expert witness on pyramid …

Massive Failure Rates in MLM

Robert FitzPatrick of Pyramid Scheme Alert has conducted extensive research on multi-level marketing companies (MLMs). The research can be difficult with companies like Mary Kay, which are privately owned and therefore don’t release hardly any information about the dismal earnings of the sales force. On the other hand, certain companies …

Common Deceptions Used to Lure People Into MLMs

Multi-level marketing expert Robert FitzPatrick summarizes the common deceptions used to recruit new marks into MLMs and pyramid schemes. From his paper The Myth of “Income Opportunity” in Multi-Level Marketing: The Lure and the Hook MLM companies divert attention from the flawed business model and the disastrous financial outcome suffered …

The Claim of “Legality” in MLM

Multi-level marketing companies commonly hide behind a claim of “legality” to advance the scheme and recruit new members. MLM expert Robert FitzPatrick explains in his paper The Myth of “Income Opportunity” in Multi-Level Marketing:

Who Profits From Multi-Level Marketing*?

Written by Jon Taylor, PhD A study of Utah tax preparers sheds some light on who is profiting from multi-level marketing, network marketing, pyramid schemes, or a variety of other labels given to these sham businesses. 1. Summary of what was learned from these studies Are MLM’s* (multi-level marketing or …

Why MLM Doesn’t Work

Written by Rachel I recently read a quote from a site promoting an MLM: To recoup your initial $570 costs, focus on enrolling two distributors into your downline and then help them also enroll two people each. This is the problem. Right here. It’s the exponential growth caused by unlimited …

Red Flags of a Recruiting MLM

Dr. Jon Taylor, the founder of the website Truth on MLM has spent years researching multi-level marketing companies like Mary Kay Cosmetics. He’s done a variety of research, but one of his really interesting projects was surveying hundreds of tax preparers about their MLM customers. He gathered data about sales …

MLM Products: Are they Overpriced? Do They Work?

Written by Jon Taylor, PhD How do prices for products from MLM companies compare with alternative outlets? Not very well. In spite of the claims of MLM/DSA communicators that most MLM participants sign up to buy the products at a discount or to resell them for “a little extra income,” …