Use Dr. Taylor’s 5-step do-it-yourself MLM evaluation quiz to predict whether or not you can expect to make any money from an MLM. It is based on 20 years’ research and analysis of the compensation plans of 500 MLMs.
Before we share our evaluations, please do your own evaluation here. Use with any MLM or chain selling* program.
We will not be responsible for the consequences of a decision that is ultimately yours to make. (See Disclaimer.) But we are confident that you will here 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 step and follow the links to its conclusion. To be fully informed, read the background information for each of the “5 red flags.” When you have completed all five steps, see how your evaluation compares to ours.
Since it is based on solid research, it is much safer to use this “5-step Do-it-yourself MLM Evaluation” as the basis for deciding on participation, than to accept the claims of MLM recruiters on potential income – especially since law enforcement seldom requires disclosure of information essential to making a good decision.
About this evaluation tool
After extensive research corroborated by MLM company reports, “5 Red Flags” have been identified which when found in a compensation plan lead to losses in excess of 99% – in at least four independent investigations. After completing this evaluation, you might want to read the full report “The 5 Red Flags for Identifying Exploitive Pyramid Schemes, or Recruiting MLMs”, a summary of which was published in the newsletter for the National White Collar Crime Center and presented at an Economic Crime Summit Conference in Dallas.
* Chain-selling programs are referred to as “multi-level marketing” (MLM), “network marketing,” “consumer direct marketing,” etc. The MLM industry would even like to be called “direct selling,” even if little direct selling to actual customers is taking place. Regardless of what promoters call a program, this 5-step do-it-yourself analysis will help you evaluate their potential for income or loss. Avoid falling for the semantic trap of chain-selling promoters who say they are not MLM, or multi-level marketing. If the program pays on more than one level of participants, it is multi-level or MLM. If you get paid only for selling directly to customers and get no override commissions (other than a small referral fee) for recruiting more than one level of participants, it is single level compensation and could be considered true direct selling.