Before we share our list of over 350 MLM* programs we have evaluated, it is important that you do your own evaluation. We will not be responsible for the consequences of a decision that is ultimately yours to make. (See Disclaimer below.) 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 step and follow the links to its conclusion.

Click here to begin the evaluation.

Then you can see how your evaluation stacks up against ours. So start the 5-step evaluation now. 

Feedback regarding Amerisciences:
 

I would like to file a complaint against a company called AmeriSciences, LLC.  AmeriSciences is registered in Florida with its main offices in Houston, Texas.  The principals of the company are Barry Cocheau, Lou Gallardo and Steven Redman.  AmeriSciences manufactures nutritional supplements and weight loss products, and has identified as its main target physicians and other professionals. 

AmeriSciences is a multi-level marketing company (MLM), but often refers to itself as a “network marketing” company.  Whatever the terminology they used to describe it, AmeriSciences is a product based pyramid scheme.  The company emphasizes that the secret to success is the “residual income” you can earn by building your “down line.”  In practice, this means that a new recruit will succeed only by building an endless chain of new recruits duped into believing they can make money by recruiting more recruits.  New distributors are also encouraged to buy in at the highest level to maximize the money they will receive if they bring in a new person.

Like all MLMs, AmeriSciences attempts to escape the strict legal definition of “pyramid scheme” by incorporating a retail sales component into its distributor business model.  Doctors are encouraged to sell the products in their medical practices and to push patients into buying them.  However, the prices are so high that the average person cannot afford them.  When retail sales fail, the realization is that the ONLY way to profit from this so-called business is on the back of a new recruit who is likewise lured into “investing” by purchasing these overpriced products.  The new recruit must continue the chain by convincing others to invest, ad infinitum (i.e., the pyramid aspect of the program).

My partner and I invested $210,000, and I am still paying back a second mortgage for the loan I took to finance this “business.”  Another physician in our group lost her childrens’ college funds, and another husband/wife practice lost their life savings.  Educated individuals are not immune to the techniques used by an MLM like AmeriSciences.  AmeriSciences has designed a well-honed presentation to specifically exploit physicians’ frustrations over the changing face of medicine, as explained below.  We were blinded by the one-sided sales pitches and the upbeat promises of residual income to help secure our future, and also provide a way to help our patients lead healthier lives.  The truth, of course, is much different.

AmeriSciences also makes false earnings projections to potential distributors.  For example, in a glossy company magazine designed to impress new prospects with the potential profitability of the distributorships, several physicians from our area were listed as “Top Producers.”  One was a doctor in our group, and beside her name was the sizeable sum of money she had allegedly “produced.”  The suggestion, of course, was that she had actually SOLD this amount of product to end users at a profit.  In reality, this significant sum represented the amount of product she had personally PURCHASED from the company to get in at the highest level.  She has made only a few token sales to end users and still retains the vast majority of these products.  In other words, what was lauded as a great source of profit and a wonderful success actually represented a huge loss and a regrettable failure.

Eventually, it became apparent that AmeriSciences is based on a flawed business model enforced by a one-sided adhesion contract.  When we asked the company for a partial refund, company representatives showed their true colors by placing the blame back on us, stating that we did not work hard enough to sell and recruit.  We were repeatedly reminded that we were highly educated, intelligent and sophisticated and that we knew what we were getting into.  As a matter of fact, we did not!  If there had been SOME meaningful disclosure of the true failure rate, disclosure of legal actions and a list of references, we would have never become involved in such an unfair and deceptive marketing scheme. 

It was not until after we realized the true nature of this scheme that I discovered the excellent research on MLMs by Jon M. Taylor, MBA, Ph.D., president of the Consumer Awareness Institute.  On his website “MLM-thetruth.com,” Dr. Taylor has published a list of “Typical MLM Misrepresentations.” I was astounded to learn that nearly all of the tactics and misrepresentations on this list were employed at some point by AmeriSciences during our recruitment.

Doctors may not garner much sympathy because they are perceived to be wealthy.  This assumption, however, is no longer justified as the practice of medicine has changed dramatically over the years.  For many doctors it is more frustrating and less lucrative than ever, especially those who still engage in small private practices, taking care of patients first and business second.  Our financial future is not secure as it was for the former generation of practitioners.  Reimbursements are low, practice costs are high, and the long working hours and lower job satisfaction tempt us to look for other ways to secure our financial future.  AmeriSciences understands ALL of this and preys upon our frustrations.

The targeting of medical professionals by this company is especially harmful for another reason: it turns doctors into salespeople, and patients into “marks” for the sale of products.  Shortly after we joined AmeriSciences, a representative came to our office and made numerous suggestions on ways to “educate” patients on the products.  We were aware of the potential problems, and had even heard a patient of another distributor complain that she had felt “pressured” to buy products.  Our good sense, however, was overcome by the skillful argument that we would be offering our patients the very best products available for promoting their health and well-being, as opposed to the inferior products they would likely purchase from the grocery store.  Due to these issues, we no longer sell products to patients unless they specifically request it.  But this also means that we will not be selling the sizeable inventory we purchased to get in at the highest level.

I believe that the structure of AmeriSciences and the misrepresentations used by this company to entice physicians and other people to join are inherently deceptive.  I further believe that the company’s focus on physician practices raises ethical issues that undermine the relationship of trust between doctor and patient.  It is time for federal and state government, as well as other consumer protection organizations to investigate this company.

Rose C., M.D.

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. Read the full report on “The 5 Red Flags of a Recruiting MLM“, a summary of which was published in the newsletter for the National White Collar Crime Center and presented at the Economic Crime Summit Conference in 2004. 

Since it is based on solid research, It is much safer to use the "5-step Do-it-yourself Evaluation" for an MLM program, than to accept the claims of MLM recruiters in making your decision on whether or not to participate.

"Your logical questions and objective research are exactly what is needed in this industry."  —Donna Horowitz

Research and Consumer Guides:  This research and information on MLM (multi-level or network marketing, etc.) was prepared with the help of top experts over ten years by the Consumer Awareness Institute, directed by Dr. Jon Taylor. Opinions vary widely on MLM's legitimacy. But here you will find objective research on success and loss rates, compensation plans, etc.

What Went into This  Research: The investigative research that formed the basis of these reports includes: 

• Extensive comparative research on MLM compensation plans and alternative business models to clarify differences,
• interviews with and feedback from thousands of MLM distributors and ex-distributors in a wide variety of MLM programs, 
• Interviews with the top experts in the field, 
• Surveys of hundreds of tax professionals where MLM is concentrated – representing thousands of tax returns of MLM participants, 
• Actual tax records examined by Wisconsin investigators
• Court records in MLM cases – including IRS income tax records of top distributors in one state, 
• Household consumer surveys regarding MLM participation, 
• Surveys of leading MLM company presidents, 
• Private and public financial disclosures by MLM companies, 
• Communications with law enforcement officials at all levels, and— 
• Direct experience with prominent MLM companies.

For more information on the research and analyses underpinning these reports, go to – MLM Research and MLM Consumer Guides

"Thank you for your great insights and all the work you have put into researching this little-understood subject.  If every [person] interested in joining recruiting MLM's would just take the time to read your [reports] and educate themselves, they could save a lot of grief."  —Michael Rawlings

* 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.

DISCLAIMER: These evaluations are intended purely as a communication of information in accordance with the right of free speech. They do not constitute legal or tax advice. Anyone seeking such advice should consult a competent professional who has some expertise on endless chain or pyramid selling schemes. Readers are specifically advised to obey all applicable laws, whether or not enforced in their area. Neither the Consumer Awareness Institute nor the authors assume any responsibility for the consequences of anyone acting according to the information in these reports.

PLEASE HELP!  We believe this site presents information about MLM/network marketing that is as close to the truth as can be found. It can save you much time, money, and grief, as it has done for many others. And since law enforcement has essentially looked the other way on this type of consumer abuse, it is left to informed consumers to inform and warn their friends and relatives about the potential losses they could suffer from participation in a “recruiting MLM.” So please print and distribute at least 5 copies of the answer cards to those you care about – and ask each of them to share answer cards with 5 people, and each of them with 5 more, etc., etc.  . . .  In this way, you can influence many people for good – through an endless chain of truth-telling.  Check out these handy answer cards(8 to choose from) that you can print and distribute now –  as well as carry with you for those awkward moments when you are recruited by a well-meaning friend or relative. For more information, click on the appropriate links above.