The Myth of “Product Sales” in MLM

A common tactic of multi-level marketing companies is hiding behind “product sales,” convincing potential recruits that significant retailing of products occurs, while in reality money is made from recruiting new marks. Sure, some products are retailed to third party customers (rather than just distributors making purchases). But the amount of …

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 …

Welcome, New Visitors to Pink Truth

Thank you for seeking out Pink Truth. You may have just seen the story on Mary Kay Cosmetics on ABC’s 20/20, and you probably want more information. Contrary to what our critics will tell you,  this site is not full of a bunch of bitter, lazy, disgruntled ex-consultants who are …

The Myth of MLM Income

Multi-Level Marketing expert Robert FitzPatrick debunks the myth of earning money in MLMs in his article, The Myth of “Income Opportunity” in Multi-Level Marketing. Multi-level marketing companies live and die by the claim that participants can make money. From some extra part-time money to complete financial freedom, MLMs promise you …