MLMs with at Least 4 of the 5 Red Flags in their Compensation Plan

E - G (below)

If you have not already done your own evaluation, go to "5-step Do-it-yourself Evaluation"

 

DISCLAIMER: It is important that you make your own decision on whether or not to participate in an MLM based on your own evaluation. This list is intended purely to communicate information in accordance with the right of free speech. It does not constitute financial, legal, or tax advice – merely the author's evaluations based on his own research and that of others. Anyone seeking professional advice should consult a competent professional who has 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 any of the reports on this web site.


LIST OF RECRUITING MLM'S*:

MLM's come and go, so a few may now be defunct.  

A – D

E – G (below)

H – M

N – R

S – Z

See a sample evaluation

 

E. Excel

Earth Essence  

Easy Daily Cash (2-up)

Ebiz.com  

Ecoquest

eFusion (acai)

Eido

Eiro

Emerald Passport (Profit Masters)

Empire Dreams

Empower Net

Enagic (Kangen water)

Enfinitia

Eniva Gold Marketing

Enliven  

EnvisionCC

Epic Network

Escape International

Essante

Essentially Yours

Evolution International

Excel Telecommunications  

eXfuse

Extreme Research

EZ  Wealth by Design  

First Financial Security

First Fitness International  

Fuel Freedom International

FFSI

FM Group World

For You

Forever Green  

Forever Int'l

Forever Living

Formor Int'l

Forte Builder (New Vision)

Fortune Hi-tech Marketing

Free Life International  

Freedom Rocks

Fruda Vida International  

Frutaigo

Fuller Brush

Fun Unlimited

Gano Excel

GBG

Gemcap  

Gem Lifestyle (UK)

Genewize Life Sciences

GDI - Global Domain International

Global Equity Marketing and Global

Equity Lending (World Leadership Group)

Global Health Trax  

Global Research Network (1-up)

Global Resorts Network

Global Travel Trends (PRT Travel)  

Global Wealth Trade

GNLD

GoHFT

Gold Mine International

Golden Neo-life Diamite

GoldQuest

Goldshield Elite

Good Life International  

Goyin

Great Life Int'l

Continue with list of evaluated MLMs beginning with letters H-M

NOTE: This list (E-G) includes only those MLM's for which we have been able to obtain and evaluate compensation plans.  Click here for a list of over 650 past and present MLM's.

 

Sample list of MLM's shut down by law enforcement

 

 

CONCLUSIONS:

After over ten years of research on MLM/network marketing and the receipt of thousands of emails and other communications from all over the world, some conclusions can be drawn about these chain selling schemes.

 These schemes are uneconomic and unfair.

MLMs are rarely profitable for new recruits. Those who do  profit are those few who got in at the beginning or sit at or near the top of a pyramid of participants. Many compare this to the huge pay differentials in corporations, etc., but at least a minimum wage is earned by all company workers. Conversely, in chain selling schemes – after subtracting purchases and operating expenses –  almost everyone loses money (except the top-of-the-pyramid promoters, or TOPPS - as demonstrated in surveys of tax preparers).

"Recruiting MLM's*" are dependent on a whole set of deceptions.

The primary misrepresentation is the presentation of MLM as a "business" or "income opportunity." In most cases, they are no more a business or legitimate direct sales opportunity than betting on craps in Las Vegas is a business. In fact, the odds for many games of chance are much greater than the odds of succeeding at MLM. (See MLM Numbers.) And you don't risk spending your "social capital." After all, your relationships are some of your most valuable possessions - and not worth exploiting for personal gain.

Are there "good" MLM's – which are not like typical MLM's?

In studying the compensation plans of over 250 MLMs, I have not seen one with a compensation plans that could not be considered a "recruiting MLM." The compensation plan of such a "good MLM" would be very different from typical MLM programs that feature endless chain selling of participants as primary customers. Examples of possible exceptions are Fuller Brush Company and Pampered Chef.

We also see MLM companies that were once focused on legitimate direct sales to end users. However, perhaps because of unfair competition posed by recruiting MLM's, they begin to make tradeoffs that take away from what was once a great program. Some engage in "channel stuffing," or pressuring participants to buy products they have a hard time selling, leaving them with out-of-pocket costs that are difficult to justify in conducting a profitable sales operation. Or they have "pay to play" requirements that make them marginal if not technically recruiting MLM's. Or they may have several levels of distributors that give leverage to those at or near the top of their hierarchy of participants, but make it very difficult for those at the bottom to profit except through aggressive recruitment. Or they pay more to upline participants than to the person selling the products.

So – the notion of a "good MLM" may be an oxymoron.

There are several other lessons learned.

Go to "Top Ten Things I Learned from Ten Years' Research on MLM/Network Marketing."

 

 For an excellent analysis of the inherently flawed concepts underlying multi-level marketing, read Dean VanDruff's excellent article "What's Wrong with Multi-level Marketing."   

 REMEMBER Aside from the standard job market (and MLM) – there are many satisfactory alternatives for earning an income. Almost any of them are superior to recruiting MLM's. Read more about them in the article  "1,357 Ways to Make a LOT More Money than in MLM/Network Marketing." 

 

 

 

*A recruiting MLM, or product-based pyramid scheme, is an MLM with a compensation system that rewards recruitment more than actual sales of products to persons outside the network of participants. So significant income is unlikely without recruitment of a large downline, which requires deceiving recruits into believing it is a legitimate "business opportunity – and persuading them to invest in inventory (front-loading) and/or to subscribe to ongoing monthly product purchases or payments to "do the business," to "be a product of the products," etc. For purposes of analysis, a recruiting MLM could also be considered a "product-based pyramid scheme."