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. Then again you might want to review some of the feedback we have received (below).

Click here to begin the evaluation.

Then you can see how your evaluation stacks up against ours. So start the 5-step evaluation now.  Or - if you wish - you may first want to read below from some of the feedback we have received:

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Feedback: 

Our son has been involved in the Quixtar MLM for about a year. I have looked at their webpage and scanned through the products they sell exclusively. My first impression was that the prices seemed quite high and that was before tax an S&H was applied. Our son said it was because the quality and concentration levels were so much better than what we could buy at the stores. I tried several of the cleaning products and felt they were no better and in some instances not as good as what I normally buy. I didn't have the heart to tell him that since he uses the products and thinks they are "superior".

He is currently a full time food service truck driver and makes a good salary but works long hard hours. He also has purchased quite a few tapes and orders many of the products which the cost in my opinion is high. I started researching Quixtar and MLMs on the internet and come across several of your articles. I want to be behind him and encourage him in trying to start a home business but not if it will cause trouble in his family or worse financially get him into trouble.
Donna S.

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  I am exposing my family secret with the belief that it is a necessity for personal healing as well as the hope that others may be warned.

I have read Dr. Jon Taylor's book, The Network Marketing Game as well as most of the articles on his www.mlm-thetruth.com website. I agree and believe what he has said. My parents were involved with Amway – the leading MLM – for 20 years. The costs to my family for their participation have been devastating.

I and my 6 other siblings were robbed of my parents' time, attention, and relationships because they spent most of their waking hours dreaming about their Amway business, going to rallies, seminars and functions that continued to fuel this fire but which eventually cost them their self-respect, their children's and many friends' trust, and tens of thousands of dollars.

It also cost my father his college education because as he was beginning plans for attending school, he decided to join the Amway system because it promised to be a short-cut to financial freedom. Now, after 20+ years of financial, relationship, physical and emotional loss, he struggles to find work that can support his family and pay off his gargantuan debt.

I grew up with the secret that my parents were in Amway – I couldn't tell friends what my father did for a living. I only said he had his own business. I couldn't bring friends to my house because I was embarrassed that they may find out I didn't have any bedroom furniture or that my siblings slept on mattresses on the floor.

Not only have we as children had to pay for our own college educations and weddings, but we had to pay for our own school clothes, school supplies and other basics growing up; except for the time they received welfare. Even now I am not comfortable leaving my own daughter in her grandparents' home because of its depressing state of disrepair.

You may be thinking, well maybe my father was just lazy. But I am here to testify that my father and my mother worked the Amway business without mercy. When we went without the basics year after year we believed as children that if we were patient a little longer while my parents were gone showing the plan or attending meetings, they would one day go Diamond and it would all be worth it. We were going to be rich someday and then we would get our parents back, then we would have clothes and furniture and security.

But the promise couldn't be kept because the compensation plan for MLMs don't make good on their word that it is an opportunity of a lifetime. If working hard and sacrificing your every waking moment for the dream was what it took, my parents should be at the top. They wouldn't quit, no matter how much they and we suffered, they believed it was just around the corner so they kept working the business for 20+ years. The suffering created from belief in the lie and scheme of MLM will continue to haunt my family.

I am here to plead with you to wait before making a decision on this bill. Wait and give it the time and attention to see through the language that masks the dangerous risk of removing the option for families like mine to choose to defend themselves after being deceived and robbed. If this bill passes, people like my family won't have the chance to expose the expertly hidden scheme that MLMs truly are.
- Chrystal B.

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I'm just following up on some very interesting information I found regarding MLM or Pyramid schemes.

Recently, my son, 16 years of age, brought home some individuals who were trying to recruit him to join in a e-commerce business -Quixtar (Amway). They said that college is only to have fun, not to prepare them for a future!!!!

My son understood immediately that this is nothing but a scheme and he is well aware of my intentions. But the concern is with how these children may become enemies of their own parents when they disagree to sign up for them. 

It's just sad!! They forcing the children away from their parents because of the lucrative intention they have. They are putting money ideas in front of  these children because they know that money is what moves any teenager in our society today.

Of course, you can imagine my responses that I will not disclose at this point, but will only tell you that these individuals left my home with the knowledge that they got nothing from my home but a shut door.  They are loosers and that's all you can see in any individual who claims to have achieved nothing at their age even with college degrees.  People who want to make a buck without having to work their way or better yet, without having to move a finger.

Today, I contacted the FTC to hear how illegal their business may be as they are trying to recruit young people and the way they are doing it but got no where.  If you have any feedback, do share as I'd like to put a stop to these perpetrators.
- Celia C.

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  I am not sure why it took me so long to find your site, but I finally just did!  I was
involved with the Quixtar company for eight years and recently quit. Right now I believe
the biggest problem with Amway Global is their fraudulent claims about owning your own business.  Although their website clearly states over and over again that you "own
your own business," the truth is that you own NOTHING.  Their Rules of Conduct
prevents an "Amway Independent Business Owner" not only from belonging to any
other MLM, but also from working for, consulting with, or being in any way affiliated
with any company that sells products that are  similar to any sold by Amway!  Taken at
face value, this means I could not take a job with Coca Cola because they sell beverages!

Another rule (innocuously called the Data Management Rule) states that the minute I input a new IBO's information into their system--i.e. I register someone--that person's
information is now the property of Amway and is considered confidential, trade-secret
information.  It is against their rules for me to ever contact that person for any reason
other than to build the Amway business.

If any of that sounds ridiculous, I agree.  However, I unfortunately was sued by Amway
for violating that "Data Management Rule."  My complaints to the FTC, Michigan
Attorney General, and the Direct Selling Association were all forwarded to Amway, which responded by denying everything and therefore, case closed.  They finally dropped their lawsuit against me after 15 months when I showed them my tax returns and bank statements showing they had already bankrupted me and could really do no further harm.

At this point, I don't care about the claims made by anyone representing an MLM company.  What concerns me more are the terms and conditions distributors are held to without their knowledge or understanding before signing.
- anonymous

  Thanks for the wealth of information, Jon! I attended a couple sessions yesterday and found most of your information to collaborate what I heard. So many people are so excited about making it big, inspired by their uplines who are obviously more successful!! Now and then a major success story comes up in the form of a seminar hosted by a successful distributor. This you have to pay to attend! Supposedly, these are motivational tools. Then there are a series of tools like communication software and educational tools which cost about $100/month. All again supposedly to motivate and improve your accessibility. Then each distributor buys a Britt Kit to "Learn" the
system. Revenues to who?
- Venki

  I am in Grand Blanc, MI. There is a company here by the name of "Team of Destiny" Recruiting people and asking them to "change their buying habits." They want people to start buying the things they normally use (soap, clothes, toilet paper, etc.) from Quixtar on the Internet. They mention selling the products but the real emphasis is on recruiting and buying all of your own products through Quixtar. The prices on many of the products I believe are quite a bit higher than average. They claim in 1-3 years you could have successfully built your downline (if you work hard) and sit back and collect a residual income.
 
Please help, they have persuaded some of my family members to join!
- Candice B.

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 NOW - 

Click here to begin the evaluation.

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 compensation plans of 350 MLMs and alternative business models to clarify differences and to find the causes of high MLM participant loss rates,
• 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 and communications with top MLM officials
  

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 &quotrecruiting 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 on the home page.