From reading the accounts below, you could gain valuable insights
by reading what others have experienced.
JUST IN
I am researching MLM as I have been approached to sign up for eXfuse – another better
health and wealth work@home story. I would like to extend my very grateful thanks to you
for giving me the truth about MLM. I could have made an expensive mistake.
God bless you.
Debbie
FEEDBACK FROM AROUND THE WORLD
Be forewarned if you live in the Alabama or Tennessee area of the USA:
I recently contacted a supposed company called income@home.com due to a local radio ad that was very convincing. The ad was on the radio show Rick and Bubba and because of my familiarity with the show and their good morals I was caught off gaurd. I went to income@home.com and filled out some contact info and was immediately contacted that afternoon.
This person soon became my business mentor and I was in contact with her a minimum of 2 times daily. I became suspicious after I recieved my business training packet and the information was vague and had a lot of rah rah success stories. It presented everyone as happy with lots of free time and luxury cars etc.....
I pressed my mentor for more concrete information about the company that turned out to be Herbalife not income@home.com. Information was promised, but I would have to contiue with the steps layed out for me to become successful in this suppossed great opportunity. They put you on a fast plan to get you involved with little knowledge about what you will be doing. I was asked to set up a new checking account for my business along with a seperate land line for the business less than a week after contacting them. When I refused and said I needed more info before going ahead with the plan I was told that "my steps had been laid out like a map and that I must follow them in order to be a success"
I felt something was wrong. If this was such a great thing why could I not be given all the info I wanted up front? I was told I would know all in due time, but I must continue to follow the plan. In less than a weeks time they had me set up with a website called a retail mall site and also my own personal website. It was very convincing in the beginning. Luckily I smelled a rat and did not get the business phone or checking account. In less than one week I was in for more than $200.00 with my training packet and of course the product that I needed to use in order to build my success story. I'm suppossed to get a refund, we'll see how that goes. What an absolute scam!
Thank you for all of your research and info. I wish I had found this website before getting involved with Herbalife.
Sincerely,
Mark B., Tennessee
Follow-up letter.: I'm located in Tennessee, USA. The ads are being run on Alabama radio and also Fox news is running the same ads. Thanks for getting back with me. Keep up the good work, Mark
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Canadian man finds our research helpful in guiding a woman from MLM:
Hello Jon.
I would like to share this story with you. In February of this year a lady stopped by my office; a fellow I know recommended she talk to me. She was considering joining WFG in Calgary, Her cousin had taken her to an opportunity meeting and she was very excited , the WFG mission statement "No Family Left Behind" really struck a nerve she told me.
By the time our conversation was finished she decided WFG was not for her and although saddened and disappointed, happy for the insite(sic) I had provided .I gave her few web sites to review and access – more info on MLM, pyramids, etc. . . .
Further on in our discussion she did say her relative was not pleased with her decision not to join WFG [and] has not spoken to her since. However she herself felt relieved.
To make a long story short, I would not have been able to help this lady or the few others I am aware of had it not been for the research material on MLM scams, that you and Robert Fitzpatrick and other caring citizens have provided.
Thank you and keep up the good work,
Ed Rooney, Canada
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Another person in Canada is reminded of why he avoids MLM:
Thank you for an excellent site. A relative has just joined yet another MLM (ACN) here in Canada and I wanted to remind myself why I should stay away from it. I'm certain you are saving many people hardship and heartache with your information. Keep up the good work!
Martin R.
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Egyptian at German University sees MLM as epidemic disease that threatens his third world country
I am Egyptian living in Cairo and working, as appears in my signature, in the German University in Cairo. The spreading of the network of that MLM spider at my university terrifies me. Actually, this industry CHANGES people. My friends have changed! They act weirdly and treat me as a "customer". In addition, some of my colleagues, who are supposed to be researchers, left research and now active for MLM!
Now, to be honest, I am being their opponent. I am trying hard to stop that epidemic disease that threatens our community; especially that I am in a third-world country where people tend to be lazy and inproductive.
Thanks a lot for your time and support.
Mohammad A., Egypt
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Swiss financial advisor warns friends and family in Spain against MLM
[Your web site] has been extremely helpful as I am Spanish and live in Switzerland and was never aware that such schemes were actually legal.I have been aproached by an excollegue in Spain to join the so called FANTASTIC opportunity offered by Agel because they are opening up their Swiss branch and at the same time my brother in Spain got contacted through collegues. It took me 5 minutes to look at their website, see their recruitment video to understand it is all a scam. I am a financial investment advisor working in the financial industry now for over 7 years with a long experience in marketing-sales jobs (I worked 5 years at Goldman Sachs) so it wasn-t difficult for me to see that it is a scam.
That said, I am shocked the regulators in the US are so bland on these type of schemes and I believe I had never heard of any of them in Europe until now. All your research has been extremely insightful and hopefully helpful (time will tell). I have forward it on to my whole family and network of friends in Spain and asked them to forward it on as well. By far the best part for me are the 28 points to discern whether it is a legitimate marketing effort or a pyramid scheme. I have had a bit of trouble to find the list of recognised schemes though. Is there any official website from a regulatory body in the US that makes such announcements?
Rosa M., Switzerland
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Woman in London finds Nu Skin recruitment methods deceptive:
Thank you so much for the information about mlm on your website.
Nu Skin are currently putting ads onto London Craigslist, an online job forum in London, England. I sent an application and was invited to a 50-minute or so telephone call with a lady in France called Clemence, another lady from Strasbourg and a man called John who claimed to have been with Nu Skin since 15 years.
I had originally thought that they were looking for a distributor to get them into big department stores.
I checked the Nu Skin website and saw that the prices are very high. I could not understand how it would be possible to sell the products with a profit. I was amazed to hear from John that he had recruited thousands and thousands of people.
They put real pressure on me during the call and wanted me to sign up as a ditributor either for 85 Euros (one-time fee) or 45 Euros (monthly recurring business). It made me suspicious that they insisted on this as the ad said no capital outlay. I was also not interested in trying their product as I use my standard products which are cheaper.
Then I came across your article, thank you very much for your website. Before I came to your website, I was on another mlm website http://mlmtuition.com/kwcp/success/3837/200570, the MLM mastermind system.
I was suspicious when John told me that people in Hungary are making $20,000 a month with their products. What is worrying is, that they are placing their ads on jobsites in European countries now.
Thanks again for your website,
Renata L.
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Woman wishes she could put an end to MLM deception in South Africa:
I have been reading some interesting information on MLM. I cannot believe, looking back at it now that I fell so hard for MLM (Nu Skin) to be specific. I wish I could expose what is happening here in South Africa as to put an end to the deception but I guess that would be a waste of time since people still believe what they want to believe - and they would much rather believe that MLM is a legitimate opportunity
Anyway, it made me feel better to read your stuff
Kind regards
Lerina
INSIGHTS OF PROFESSIONALS
From a licensed private investigator:
SUBJECT: You guys rock!!
ATTN: Jon and CAI editors, investigators and consultants,
I can't tell you how useful your site is. Thank you so much for proving that ethics, moral standards and common sense are not lost. I have a friend who gets involved with the newest MLM every time a recruiter asks him to come to a meeting. It has become such an issue that it has affected our friendship. I will refer to your website often to counter the nonsense and unethical behavior that traps people like my friend. I commend and thank you for your efforts in helping people who truly are victims of this economic cancer.
I am a local (part time) licensed private investigator (with another regular full-time job) that would love to help you in any way I can and if I have the time. (My time would be free of charge) Please let me know if there is anything I can do to help further your cause. I will do anything to help the public see these for what they are, because in one way or another they affect all of us.
Sincerely,
Jake A.
When I wrote Jake to thank him. I explained that my advocacy is all voluntary and that it is heartening to receive such a letter to counter all the deceptions I hear and hate mail that comes my way. He responded as follows:
"You're a good man and the only reason anyone could possibly use to justify sending you hate mail is ignorance. I think a lot of people are playing for the wrong team and just don't know it yet.
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Doctor warned against MLM product. And it’s OK to work at a job for money:
Hi, i was doing research about mlm's and found Your site, it was very helpful, The new item is "maxgxl" offering kind of a wonder drug, well supplement. My wife has medical history and thinking this might help her I did research and took the product to her doctor before she even tried it. The doctor said it can cause her kidney damage and maybe failure, so I am not doing this.
I was asked to join and I told them if this helped my wife I could sell the product but I was told to take the product myself and wait on her, then join and get people under me - thats all I needed to do.
I was thinking this could actually help people and to be honest never really heard of mlm but yes i have heard of the pyramid schemes. Anyways thank you for making things understandable for people that don’t know too much about these programs. [Instead of MLM,] hard work and lots of patience is usually what earns the good old American dollar.
Thank You
Ron D.
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Attorney mom finds web site (mlm-thetruth.com) helpful in debunking deceptions
I found your website and all of it's information extremely compelling and useful, thank you for it. Here is my dilemma, I hope that you can take a moment to respond.
I am an inactive attorney in California, currently staying at home to raise my 15 month old son (I also have a first grader). I received a call from a friend (also an attorney) telling me about this great "business opportunity" and after speaking with her I agreed to attend a PBR (personal business reception) about this wonderful new deal.
It sounded good of course, but light bulbs went off in my head for various reasons so I stalled my friend (I'll call her "Donna") and told her that I would think about it and get back to her.
Needless to say I did some further research, found your website (and others) and realized what a huge scam ACN (and others like it) really is. Here's my issue: I really like Donna, she is about 10 years younger than me and I knew her when she was still a law student. She is now a public defender (as I was when I first graduated from law school) and is pushing ACN. She learned of the business from her boyfriend (now her fiance) and even got her mother involved in the "business". She's very into it because she wants to have a family one day and stay home to raise her children but her law school debt is over $100,00.00, etc ect. and this looks like the perfect vehicle. You get the picture.
I think what pulls the wool over people's eyes with ACN is that they are not selling products (the lotions and potions you describe) but claim to be offering for sale something people use every day, the service on their phones (mobile and landlines) and of course the right to become a representative to sell the service to others. So it seems distinct from an Amway or an Herbalife because people do pay for mobile (and cable and internet) every month, so why not sign them up with ACN and watch the dollars just roll in?
Donna just called me the other day, and asked if I would at least sign up for a service if I did not want to become an "ACN representative". I intend to put in writing exactly why I am not interested but would like to know how can I best refute the claims that ACN specifically makes.
I know that I should just tell her no in conversation and move on but as a fellow lawyer and because she is someone I realy care about, I feel compelled to make a strong case to help her understand what a mistake she is making. I shudder at all the social capital she is expending, never mind all the money she's already invested in seminars and trips to conferences (I attended one in Modesto CA and was surpised at how many people were involved!). Of course I will tell her about your website, the Merchants of Deception book and the fact that ACN was barred from "selling" electricity in California in the mid 90's but anything else that you may have on ACN would be greatly appreciated.
Jon, Donna and I are both Latino and we speak Spanish and she keeps talking about how ACN is going to open up in Mexico etc. and I just cringe when I think of all the people who could get taken in by this and by someone speaking to others in their native tongue. It just seems so wrong to scam someone and the fact that we are lawyers which gives us added credibility sends chills up my spine. What really kills me is Donna really BELIEVES. She would never bring her mother (a real estate agent whose business is right where you expect it to be in this economy) or speak with me about this otherwise. She is sincere. We both have always cared about those less fortunate, hence our professional choices.
Vylma O.
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Tax accountant never sees clients profit from MLM
I have always found your “Truth about MLM” website to be very informative.
I was first exposed to Amway, by a young recruiter, in the summer of 1977, months after I graduated from the local private university. I turned down the opportunity, then, but the MLM business model has, since then, intrigued me. . . but not in a good way! For 31 years, now, I have prepared tax returns for clients, some of whom, try to recruit me into their "great once-in-a-lifetime" business opportunity. At first, my reaction was to be gentle and friendly. Now, when one of my clients tells me he is doing so well, I am bold to say, "C'mon, John... I am the one who does your tax returns, every year!" I have never seen a client profit from one of those "low ticket," product-based, recruiting MLMs!
Now, being a resident of California was one thing. Everything changed, in 2006, when I got married, and in January 2007, I relocated to Utah, the MLM capital of the world! It is unbelievable how many "MLM-Hoppers" there are, out here!
So, though it may be me against the MLM establishment, I published an advisory article online. And, even then, in the last year, two MLM recruiters, who had read my website, tried to recruit me! (Of course, their MLM is different! Yeah, right.)
Phil F., CPA
(Note: For data from other tax professionals, see Survey of Tax Preperers.
Analyst uses web site to debunk the deceptions in one MLM and in MLM as a business model.
Hi Jon –
I found your paper on the internet – the five red flags to identifying product based pyramid schemes. Very informative. I have some friends who are caught up in the Arbonne scheme.
It definitely meets the five red flags and as you said the compensation structure is the key. It has the emphasis on recruiting, you have to pay to play in personal retail volume, there are 6 levels of payout, the “promotions” are based on recruiting rather than by appointment.
The products can supposedly be sold at retail for a higher consultant commission but this is unrealistic because everyone signs up as a non-active consultant for $29 and can order over the internet at “wholesale”. If you want to be “active” you have to do $100 per month retail volume ($65 with consultant’s discount) and at the bottom commission rung of 4% you have to sell to quite a number of customers to recoup your required minimums – so then the emphasis becomes on recruiting.
To jump to the 8% commission level a $1,000 in personal retail investment is involved to qualify within a certain time frame – so they have the opportunity to stick you for this more than once because you buy kits to get started. They pay on 6 levels – they have a width/depth structure.
I forwarded my friends your paper and tried to get them to understand that what they are involved in is unethical at a minimum…but they just sent me back the published hype – all the typical things you referred to in your paper. I think one of these people got in early enough in the scheme that she may be making some money. These [MLM] companies seem to prey on housewives who don’t understand the basics of market supply and demand. They are so naïve that they cannot see the forest for the trees.
Thank you,
- Susan S, MBA
Susan wrote later:
Yes, it was an interesting learning experience for me. I had never been approached by something like this. I also didn’t remember covering these schemes in any of my course work in my undergrad or MBA marketing classes.
It was the compensation structure that got me suspicious - when I realized that these minimum purchases were involved I started doing a little breakeven analysis and realized how much I’d have to sell at these low commission rates to just make back the money they have you spend as monthly minimums. It really does not become clear until you start to calculate how many people you have to sell to just to break even! Then it became clear to me that you had to recruit people to make any money. I thought this was very fishy – and so I jumped on the internet and found your article…and then it all really clicked in my brain.
I was reading your article again last night because I found it very interesting. The part I’m not sure that I fully understood was all the different compensation structures. Matrix, binary, etc. I have never studied these things and I was trying to look at the Arbonne structure and figure out how that one was classified. They have a width and depth – and they only pay as deep as you are wide – and they pay 6 deep. However, there was a promotion – where once someone under you reached a certain level of sales – they promote out from underneath you…and supposedly if you are “wide” enough you will still pick up some override on that groups’s sales. (I was unclear on that point in their compensation structure because the devil was in the definitions of how they compute your overrides)
[NOTE: Susan is describing what is called a "breakaway system," which is very likely the most extreme of all types of product-based pyramid schemes. - JMT]
So, does that create the pyramid groups you were taking about where there are layers of groups of pyramids? [Answer by JMT - Yes!]
Thank you for responding to my email. I love learning about things like this.
- Susan S., MBA
INSIGHTS FROM MLM INSIDERS
MLM job applicant asked if he preferred being a pimp - or a prostitute!
I worked for Nu Skin enterprises, at the company headquarters for over 10 years. I worked in many departments and had many roles including; commission systems, marketing, competitive research, returns, customer service, account executive, manager and SAP implementation team. I LOVED working for Nu Skin, it was a wonderful work environment!
One day back in 1999 they "downsized." I was hit-up by every MLM around and never joined any, then one day I was reading in the Epistle of James . . . just kidding. Actually I followed some of my supposed friends to other MLM's, one of which was XANGO. I asked for a job but they wouldn't hire me and instead suggested I become a distributor, I said "no" I prefer not to work on the sales side for many of the same reasons you share on your website.
I was speaking to Dr. Pendleton at the time and he said, "What's wrong with being a distributor?" I said it wasn't my thing and he made a statement that really turned me off about ALL MLMs. He said, "Oh, you are OK with being a PIMP, but you don't want to be a PROSTITUTE huh?" I always looked at what I did at Nu Skin as honorable work and employment, but after a twisted statement like that, I find any MLM distasteful and I would like to help in any way I can to "Get the Word Out!"
I am fighting an uphill battle since some of the TOP distributors from Nu Skin and Noni are actually close relative. What direction would you suggest I take with other family members to not get sucked in? It's funny, after ten years in ALL aspects of MLM, I would almost consider myself an Expert, but when family (in-laws) see the big houses, nice cars and freedom to go and do as they please. . . all my expertise goes out the window. What to do, what to do?
By the way, the DSA has direct sales statistics with graphs and everything but one statistic that I no longer see on their site was what percentage of revenue goes to the company and what percentage goes to actual distributors to pay commissions??? If I recall correctly from seeing it over 5 years ago, over 75% goes to the company and the rest in paying distributors. After dividing the $17 billion between the 3-400 MLM's, then dividing those numbers by the millions of distributors and taking all of that from only 25% of the $17 billion, I find it hard to believe ANYONE wouldn't head to Idaho and put all that time and money into Lottery tickets???
Aaron T.
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From a former employee who worked in call centers of two MLM companies:
Thanks for your awesome website! I finally quit working at these MLM call centers. I am done forever supporting these terrible businesses. I worked at Nu Skin and Monavie. They both treated me well. But really, it felt like working for the mafia deep down inside and I kept rationalizing it because the pay was good (as a college student).
It is sad when I think about all the people that worked in these call centers that touted it as such a great business. The managers all thought it was the greatest thing and I always wondered how they could be so blind to how many people were falling prey to the "business." I didn't complain outwardly at work, but I was not a loyal employee on the inside. I despised these companies. The things you have written on your website I have seen every day. Especially the part about self-deception. I really do feel that all of the distributors involved either are corrupt and knew it or just somehow convinced themselves of the legitimacy. Taking a step back it is so easy to see the ethical problems with Nu Skin and Monavie.
Monavie is extremely despicable in my eyes. The juice is absolutely ridiculous. It tastes great but the only claim they can really make is "antioxidant protection." The juice has obscenely high antioxidant protection; more than is needed even.
I have seen so many people on fixed income that are wasting their money on cases of juice. They really will sacrifice other important things because they believe "maybe next month I can earn something" and so they keep buying in. I even saw a few people using their unemployment money on it! There are so many times where I wanted to tell the person on the phone: "You aren’t going to make it, please get out!"
The other thing that really gets me is how they cover behind their humanitarian work. Don't get me wrong, I know it is a good thing to help anybody out, and they are doing some good. But around Monavie headquarters, there were pictures of poor Brazilian kids plastered everywhere, and it was just so fake.
Your website helped me a lot in moving forward according to how I felt on the inside, so I wanted to thank you. Thanks for reading!
J. D.
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Former MLM insider uses web site as ammunition against “MLM cancer”:
I just wanted to let you know how much I appreciate your cut-to-the-chase information about MLM and everything related to it. It has been a continual resource as I am approached often about the next great business opportunity that will make me a millionaire. I am a web developer and have worked on the inside of a MLM and saw firsthand the continual plot to capitalize on the failure of others. This site has given me ample ammunition against the spread of MLM cancer. Thanks again,
Mick D.
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MLMs and pyramid schemes – a distinction without a difference. And an insider reveals the obscene wealth of founders:
First of all, I would like to thank you profusely! With the information from your site, I was able to convince my wife that the "fantastic" Nu Skin opportunity she was about to get involved in was a scam. It shocks me to know all these companies exist and continue to get away with it.
When I asked the rep on the phone yesterday (in a hort/unexpected/initial/sickening call) what was the difference between MLM and pyramid schemes his only answer was that the latter one was illegal. He couldn't counter my argument that conceptually they were the exact same thing. This was BEFORE my research. Thanks to your web-site I will be asking many more probing questions. They will be just to torment him because, as I mentioned, I already convinced my wife of the truth.
Again – My sincere thanks!
Matt E.
P.S. One of the things that I didn't see on your web-site (perhaps it is and I missed it), was the math problem of where is all the money going? For instance, the Nu Skin rep that we talked to said they were a "billion dollar company" which I confirmed per their SEC 10K. However, their web site indicates they have 800,000 distributors. So, if that is the case, each person "sold" $1250 ($1 billion/800,000 distributors) on average EACH YEAR. If they each sold that on average, what could they possibly have made in terms of profit. It just doesn't add up.
You as a reader my find my response interesting:
Matt –
Thank you for your kind words about my site. These little thank messages are my pay for all the years of research put into this – all voluntary. I agree with you that law enforcement is remiss in allowing these scams to continue. Reasons for their negligence include the unwillingness of victims to file complaints. My explanation for the silence of victims of endless chains is outlined in my “Frequently asked questions” – linked from my home page.
So (you asked) where does the money go? It is truly a math problem, which is why I labeled the page “Nu Skin’s Naughty Numbers.”
If you read that - and the “REPORT OF VIOLATIONS” of the FTC Order for Nu Skin to cease its misrepresentations, you would have a pretty good idea of where the money goes. In a nutshell, the bulk of the money goes to the company founders and officers, those at or near the top of the endless chain of recruitment, and those who got in at the beginning of the recruitment chain in any given country, etc. So I would estimate that overall, 90% of the payout goes to less than 1% of the head honchos.
To illustrate, a family source (an ex-husband) reported in a confidential interview that one of the founders, Nedra Roney, includes among her holdings at least ten homes:
“I am just guessing, but I have a fairly good idea. The one in Sandy, Utah, worth about 6-7 million, one in Deer Valley; about 4-5 Million. One on Maui or on Oahu: about 3-4 million. On Kauai she has an amazing house worth at least 8 million. We bought also that together like the one in the Trump Intern. Tower, worth now about: 4.5 million. One huge penthouse in the Time Warner Building, also on Columbus Circle, worth about 36 million. A lot of land in Deer Valley worth at least 5 million. Land in the Oakley is worth anywhere between 10 and 30 million, depending how you handle it. A condo in Park City of about 1 or 2 million, the Oakley Cabin; at least 15 million. A ranch in Oregon: 3-4 million, a farm in Spanish Fork, Utah: 3-4 million. Land in California, my guess is as good anyone’s. She owns a lot of stuff I have never seen. My friends have seen the paperwork and it is quite impressive. She also bought and sold a $17. million condo on 515 Fifth Ave. while I was with her. Do you get the drift…?”
A magazine article reported she also owned a Gulfstream II private jet.
My source (an angry ex-husband, so you can take if for what it's worth) wrote me that she has also gone through a succession of 9 husbands, the last a male stripper.
Her brother, Blake Roney, is reported to be worth at least $800 million. Other key figures have accumulated tens of millions each.
Of course, these leaders have initiated and donated to humanitarian causes, and they use this to justify their exploitive scheme. And believe it or not, many in the public and the media buy into this thinking. “They can’t be bad people, if they do such good things.” To use an appropriate metaphor – If you rob a bank and then give 15% to charity, the bank robbery is OK, right? Sure.
And as for the 3+ million distributors (since the company’s founding) who have paid to get into this opportunity of a lifetime? According to my calculations, based on Nu Skin’s own reports, 99.94% of the company’s recruits lose money, after subtracting required purchases and the bare minimum of operating expenses. Less than one in 3,500 distributors ever turns a profit. Perhaps less than one in 20,000 earns the “substantial residual income,” also referred to as “permanent income” – that is promised to new recruits who are deceived into investing in this money trap.
BTW, this is not just Nu Skin. I have studied over 300 MLM programs and found a similar pattern with every one for which I could obtain data. You would be doing friends and family a great favor by using the “Answer cards” on my site to warn them against ALL MLM/chain selling programs. (It refers them to my site for more info).
IMPACT OF MLM ON INDIVIDUALS & FAMILIES
mlm-thetruth.com frees woman sickened by MLM madness.
from Erica
Everything on your website has been going through my mind in the past month. About 2 months ago I started on my "MLM mission" in Arbonne. I was completley head over heels with the thought of "residual income" just for "sharing" with others how they could make "residual" income. Now I am just sick about the whole thing, especially because a close friend of mine signed up under me.
Every night I would cry just THINKING about having to go talk to people about the "opportunity". I was being forced by the whole MLM thinking to talk to friends I haven't been in touch with and pester them or "drip" on them as my upline told me.
I was continually told by my upline that I was feeling down because I was getting out of my "comfort" zone or because it was building my charactor... I was more stressed out then I have been in my whole life!!
I had so much money into it that my husband didn't want me to quit. We even had to put MORE money into it at the end of the month so we didn't "lose" our qualification quota. The night I spent another $450 on our credit card to keep our "district qualification" I broke out in hives, I have never been allergic to anything in my life, I don't think it was a coincidance.
So, after crying every night for a month and being completley sick about life I have decided to stop the madness! Now I feel like I am FREE! It's amazing, I can talk to people without feeling the weight of "did you talk to them about ARBONNE??" on my shoulder. I can't tell you the relief I feel! I regret that I got my very good friend involved and I am afraid of the rift it may have put in an otherwise great friendship. I am not sure how I ever got talked into this or how anyone stays in it! I appreciate your insight and humor...
Thanks,
Fancy Free!
Web site saved man's mother from disaster. From a business and economic standpoint, MLM is "a business model that makes absolutely no sense."
I am very thankful that this site exists.
I am now 30 years old and I have just sold my first successful (legitimate) business. I have been approached by several friends and families members to join an MLM in the past year. Of course having my own successful business made me a prime target for recruiters.
I was not interested in their schemes because my experience helped me realized that there are much easier ways to make money than in an MLM. I also enjoy the study of economics, and think that peddling goods and services, that can’t be sold in stores, to friends is unproductive and potentially harmful to society (but that is a different issue all together). About two months ago, my Mother, who I thought would never want to do anything like participate in an MLM, ended up joining one. I told her I was very skeptical but that if you worked really hard you could probably make a little bit of money.
My business partner, from the business I just sold, recently came to me asking my opinion of "pyramid schemes." I knew exactly what she was saying. One of her friends was actively trying to recruit her to an MLM. Knowing her personality I told her that she should at least stay away from the business opportunity. We talked about how interesting it was that MLMs were becoming so popular and that nobody really knew anything about them. We also talked about how it would be interesting to do some research and put together a documentary (she is interested in documentary film making) looking at the history and the sociological phenomenon that they represent.
While I was looking for a little bit of information on MLMs, I found your page through Wikipedia. I also read your 44 page paper "The 5 Red Flags: Five Causal and Defining Characteristics of Product-based Pyramid Schemes, or Recruiting MLM's." It didn't take me long to figure out that MLMs were much worse than I had thought. I thought about it from a business and an economic standpoint and I realized that this business model makes absolutely no sense. The questions that I asked myself were: Where is the money coming from? If no one wants to be at the bottom level, won't behavioral patterns sway people away from joining at all?
Anyway, I immediately sent my mother the link to your website. Having experiencing the craziness that is the MLMs industry your website made her realize that she needed to quit immediately before she spent another dime. I cant thank you enough for the information. It may have saved her from disaster. I am going to do what I can to spread the message to others.
Best regards,
Noah A.
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From a woman whose family for decades has been torn apart by MLMs:
Dear Dr. Taylor,
Thank you so much for providing the truth regarding MLMs. Pyramid schemes have torn my family apart on many different occasions. My dad was involved in Dare to Be Great in the late 60's/early 70's. Now several of my family members are involved in Lifemax. It hurts more than you can imagine. Seeing everything get taken from us as children and now seeing the potential for it to happen again to my younger sister who has a 10 month old baby.
Perhaps what's worse is knowing so many people who are hurting in this bad economy are desperate and are turning to this. And how the scammers use God and "the chance to help starving people around the world"! It's AWFUL!!!
Just a quick question, I noticed now when I Google " Lifemax and pyramid schemes" that I can no longer find articles about people who've been burned (I know they're out there). Seems that Lifemax has purchased all the key words and used Search Engine Maximization to continue to sell their "lifestyle" and silence the truth. They're deceiving people even more than ever with articles that are disguised as legitimate reviews. So, sadly, people will have a hard time getting the facts. Is there any solution or recourse?
I'm lucky to have found your site. I will keep it in my files for backup when I need it.
Best regards,
Paige B.
Woman loses house, divorce money, and $150,000 participating in 2nd MLM
For just some quick introductory back story of my relationship to MLM, my mother began playing the game with Excel telecommunications when I was about 12 years old. It was more than bizarre. She put 500 dollars on a credit card to buy miniature phone magnets, while I had to be on the free lunch program at school.
But at age 12, it’s hard to tell your mom that she's being scammed. And of course I wasn't as equipped to do the research as I am today. Then flash-forward about 10 years, where she divorces and moves in with her mom. For a while she works normal jobs, and seems more happy than I've ever seen her. We all laugh to ourselves in relief that she has dropped the cultish Excel, but don't bring it up, assuming that she herself is embarrassed about her participation.
Then one day she drops all that, and relapses into Xango. When we finally confronted her about MLM, she had already spent all of the money she had gained in the divorce, lost a house, and went into what we are estimating is around $150,000 in debt.
I know you're not going to believe this, but in almost every other facet of her life she is an especially rational person, but this one sector has her so brainwashed we don't know what to do.
Being as how you are one of the primary - or at least most visible - specialists on decoded MLM rhetoric and practice, I KNOW that you must get these emails often, so let me also say upfront that I'm not writing to beg you to fly here and deprogram my mom, though we (my brother and I) are desperately attempting to do so.
In all my years of education, I never researched something as intensely - and neurotically - as this company and its mode of operation, mostly because no grade has ever been as important as the mental health and well being of my mother.
In a frantic couple of months, I had compiled my research (beginning with Excel and ending with Xango) into a power point presentation that became our two-day long intervention. It was presented in a way such that I thought this was information she was unaware of, and tread delicately, as I felt like I was about to destroy something she loved.
It seemed to break her emotionally, and when it seemed she was going to quit, she left on vacation, and came back, defiant like I had never seen her before, insistent that we are never allowed to bring up this topic again, and that she would continue to run rampantly into debt along with this magic juice Xango. We are the dream stealers. . . My brother and I have had the unique experience of borrowing my mother’s DVD's and training materials provided by this company, and we noticed some peculiar things, one of which is the introductory DVD they give you when you sign up. On the DVD menu, there are 4 videos to choose from. When you play all, it plays the first 3, each of which are maybe 5 minutes long. The first two are essentially the regular MLM hype with limos and yachts, and then the 3rd one basically a commercial for training material for you to buy. And then oddly enough...it just turns off. That's right, the DVD TURNS OFF.
But wait, wasn't there a 4th video? So you go back, turn it on, and scroll down to the 4th video and press play, and it’s about an hour-long video giving you the legal side of what can and can’t be done in MLM, what health claims can and can't be made etc. - basically the part of the video their lawyer made them put in.
We made my mom watch it, because she admitted she never had, and it absolutely decimates the way this business is conducted. I mean, there is NO WAY any of these reps have actually watched or abide by this section of the video - not that that's new to you... but it made me wonder if that becomes a legal issue, deliberately hiding that sort of thing.
You might not also be aware of the family ties within this company. For instance, Joe Morton and Gordon Morton are both executive vice presidents. Oddly enough their brother David Morton, is who they often cite scientifically and consider the "foremost authority on the mangosteen fruit". He insists that he doesn't sell Xango or the mangosteen, though it hardly matters with the never mentioned but obvious family ties.
Even worse, the "Doctor" they cite even more often is J. Frederic Templeman. They even sell DVD's of David Morton and Dr Templeman interviewing each other in this obviously scripted dialog hyperbolically praising the juice. But what I was absolutely shocked to find is that Dr. Templeman is David Morton's FATHER-IN-LAW. (I was first told this from someone, and confirmed it after finding David Morton's wife's Facebook page). It’s insane, to watch these videos again where they are introduced as if they only know each other from the respected field of mangosteen research.
Then I used the website "archive.org" to go back in time and see what changes had been made to Dr. Templeman's website over the years of its development. He has a Question-and-answer section, where interestingly, he changes over and over one question:
Q. Mangosteen is bull crap. How much did they pay you for to promote it?
A.2003: in answer to your question about how much I am paid to promote this fruit - the answer is Nothing.
2004: I receive revenues from the sales of my books, but I am not a distributor of a mangosteen product, nor an employee of any company producing mangosteen supplements.
2005: by 2005, this question was removed entirely.
I also used the site "Opensecrets.org" to track their political contributions, and unsurprisingly they are the largest contributor to Senator Orin Hatch, and gave boatloads of other money exclusively to Mormon politicians (Mitt Romney, Bob Bennet, Mike Simpson). Additionally, there was $30,000 lobbying for the food and beverage industry - though I have no idea if this is standard for beverage companies to do.
Finally, most shockingly, I found this:
http://rs.xango.com/downloads/xango4.0/2007_income_statement.pdf
Please take a look at that, I came across it by reading through the Xango legal contract, which talks about how it is illegal to inflate the average earnings one makes. But please tell me, am I reading this right? Is this really an official Xango document stating that about 97% of its reps make less than $2,000 a year? I mean, that's what I expected, but is this the smoking gun?
And one final question, If I were to find myself going up against this company in any public forum - say I make and widely distribute a YouTube video detailing these findings, should I expect them to be more scared of me, or is this like speaking against Scientology, where the army of lawyers come and destroy your life? I'm only asking because it feels to me no less cult-like.
If any of this is help then I am glad to offer it, and if there is any complimentary information to you have learned, I would love to know about it. Either way my sincerest appreciation for your dedication and your time,
-Richard
MLM-THETRUTH.COM REVEALS DECEPTIONS AND OTHER PROBLEMS TYPICAL OF MLM
5 Red Flags best detection method for MLM fraud:
In 40 yrs. of studying MLM fraud I have not found a better detection method than the 5 red flags found at – mlm-thetruth.com
Frank Thomas
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Man thanks mlm-thetruth for keeping money in his bank account
First off, let me say that your site is an absolute wealth of knowledge on MLMs, and is what started to make me question a recent proposal that sounds a little too good to be true. [After reading some of your reports], I went back and listened to the compensation plan again on UCI's webinar. They specifically state that selling the energy alone is a waste of time, that you need a "team" to get the most out of the program. I am officially dis-interested now. Thank you very much for . . your vast, knowledgeable website, and the money you kept in my bank account, both long term and short term. I will definitely take a long at your 1,357 ways to make more money [thanMLM] list.
Dan M.
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Unmasking MLM deceptions via mlm-thetruth.com
Thank you so much for all your hard work in "Un-masking" the truth about these scams!!!
I almost got involved with Fortune High Tech Marketing because of a friend. Wow!!! You hit it right on the head. Your "Typical Misrepresentations Used In MLM Recruitment" put it to rest for me. THEY ALL FOLLOW THE SAME UN-GODLY LIES. Just to make money off the reps. It's a numbers game. The more people under you, the more people get ripped off to pay you!
I wish the Federal Government would put a stop to these people! Or at least the "Federal Trade Commission".
John T. (not Jon Taylor)
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MBA grad sucked into 3rd MLM in seven years, sinks into depression
My son lives in California, has an MBA and has been involved in network marketing for about seven years. At one point he had a six-figure income and thought the sky was the limit (Cyberwize). When his upline decided to change network markenting companies due to a disagreement and pending lawsuit, my son followed with financially unfortunate results.
Now he and the same upline are in a third company. My wife and I have been pretty much supporting him for the past nine months. He keeps thinking that he will experience a 'break-through' and be on top again, but he seems very depressed some of the time. We are very worried about him.
Do you know of anyone who might help him to see the reality of the MLM lie? I have tried to reason with him, asking him to discuss his situation with a job counselor on several occasions and offering to pay for the counseling. No luck. It seems to me that MLM is very much like a religious cult and that victims like my son will require deprogramming
by a professional. I'm sure he won't listen to me and has a pretty closed mind at this point.
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MLM con men
I do appreciate your website since finding it last week. There are many con men out there and you seem a prominent force against them.
Mike S.
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Woman bombarded by friends wanting to practice presentations on her.
Thank you for this site. I like how organized it is and not full of ads and other bogus
marketing. I have seen enough of that.
I hope this site can help my friends. I have been bombarded with Primerica and Agel bull
crap, and I have been sending this link to my friends who are trying to "practice
their presentations" on me.
God Bless,
Stephanie B.
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Prospect at MLM meeting did not feel good vibe about the MLM hype:
Dr. Taylor,
You offer outstanding insight on MLM's. I recently had been invited to attend a meeting on Fortune Hi Tech Marketing. I went and listened. I didn't feel a good vibe about what they were telling me, so I did some research and found your website. I found it very informative and interesting. I made the conclusion not to join FHTM. . . It appears that the "pay for play" aspect is very much involved in this MLM.
Tim W.
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MLM obfuscation compared to Big Blue (IBM):
In the brief time that I have been "communicating" with a bevy of "Coaches" at Nu Skin, making the obligatory cold calls, listening to the various audio programs that are supposed to "inspire" me to "Blue Diamond" status, I can only say that if my very brief experience could be made into a movie, it would be titled, "Willey Wonka and the Kool-Aid Factory".
Rarely are the products ever mentioned and as far as the Coaches providing me with any type of Standard Operating Procedure (Manual or online version), the total lack of this kind of important resource reminds me of what once was said about how IBM or Big Blue used to indoctrinate and "groom" their executives like they were mushrooms, or in plain English, " KEEP THEM IN THE DARK AND FEED THEM BULLSHIT". I hope that your website [is seen by many MLM prospects] and thanks for your work on behalf of all of "US".
Lee H.
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Time to start a real business:
Thank you for your website. It opened my eyes to a lot of things! I am very young lady but had about 30 jobs in my life and scammers just love to take my money...
Its time to start my own business (not MLM). Thank you for ideas! ("1,357 Ways to Make More Money than in MLM")
Best wishes,
Irena G.
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Red Flags go up when a skin care line is promoted with typical MLM hype:
I personally would like to thank you for shedding light on MLM schemes. I read through your entire article, as I was suspicious of the "business opportunity" I had just become aware of through my friend, who invited me to a meeting earlier in the week, and today to an event with a motivational speaker.
Right now I'm between jobs and decided to investigate this company she's been telling me about, as I've always been interested in health and beauty for women and saw this as an opportunity to perhaps generate some extra income.
My BS radar is pretty high and a couple of things said today and earlier in the week bothered me - when the speaker mentioned he "was doing it all for the glory of the Lord." Please, this is the Bible belt but that doesn't legitimize any business venture for me. Instead it raises a question of hypocrisy and doubt in my mind. I don't like when people use the "Lord" as some kind of tool to convince me of their sincerity. Frankly, it convinces me otherwise.
Also, when much of what is discussed is "how much you can make" - that bothers me too. Also, saying that "You owe it to your children" - using an emotional tug - that didn't sit well with me, either.
The product was barely discussed – the potential to change women's lives by using it – and if this product was created by women and is all about women, why were so few women actually speaking? And the ones that did speak of, I wasn't very impressed with, as I've been in sales myself for awhile and am a pretty impressive speaker myself, so it takes a lot to get my notice. With all that said, I decided to come home and do a bit more research on the topic and I was glad to find your website. Now I want to discourage everyone I met - to not get involved with this venture!
The ladies who invented Proactiv - skin regimen for acne - (Drs. Rodan and Fields) have now developed a skin care line. This legitimizes the product. Their products were previously in high-end department stores but the doctors decided to take it direct market - "in order to help women succeed." I found that all of your red flags were waving, from what I understand of the program thus far. The "consultants" have spoken very little of direct selling to the consumer, and very much of developing your downline in order to generate the high incomes.
Much was made of the fact that "we were getting in on the ground floor" and what a big opportunity this was. Frankly, I want to see facts and figures, and am not impressed by hype. We were told that we would be the millionaires, as this would be very, very big and since it was so new, whoever got in first would benefit the most. We were told that the product line was backed by beauty giant Estee Lauder. The product was further legitimized by Drs. Rodan and Fields, who had already found much success with Proactiv, so brand-name recognition was already in place.
Thanks again for the information presented on your website; I also ran the scheme by my business mentor and he felt the same way about it that I did. He said - "Tell your friend, that you had heard of millionaires birthed by opportunities like this, but had never actually met one. Say - I am probably passing by the chance of a lifetime, but when you get rich off this, come and talk to me - I'd like to hear more about it." So I guess that's what I'm going to tell her, basically.
Best regards,
Diana C.
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MLM version of chasing easy wealth seems immoral
John I just wanted to thank you for your website and info. I have been out of work for a short while and an mlm recruiter came to our house. Out of desperation I chose to sign up. That night I got a bad feeling about this, just to good to be true. The recruiter happened to be a member of the church so I tried to supress my feelings and go through with this or at least give it a shot.
My wife and I attended a meeting where there was all sorts of people overly excited to be chasing easy wealth. These people seemed fake almost rehersed. Then a million dollar earner who got up to speak, who was also a member of the church began talking about education and how it really doesn't matter if you have an education any more.
Then I thought to myself, I remember a church leader speaking to the church about how important it is to get an education. I told my wife, anything that would detract from what church leaders had said has to be bad.
Then I found your site, and the red flags where there. I told the recruiter that I wanted no part of this and that I didn't feel like getting rich at the expense of losing my family and friends and that I felt that mlm just isn't the moral thing to do.
The recruiter then told me that the million dollar earners that had spoke at the meeting where good church members, but I felt that just because it is not illegal does not make it ok or a moral thing to do. I could have lost more than 99 bucks thanks to your info. I will take this as a lesson learned.
Michael R.
MLM scams harm individuals and society financially, relationally, and morally
Recently a close friend of mine got involved with ACN with her grown son and husband. She has turned into a brainwashed zombie and because I'm less than enthusiastic about it (I haven't said anything disparaging, though) our relationship is slowly waning. She's bought into it hook, line and sinker. It seems that at this point she would just rebuff my critical analysis. It has spurred me to do a lot of research, however, and I'm indignant to see it has become a global phenomenon to the detriment of all. Thank you so much for hosting this website. The truth about these scams needs to be presented as an antidote for the lies of illusive riches which only appeal to ones baser nature. I feel these scams harm financially, relationally and morally to individuals and society as a whole. It seems the cancer is growing and spreading to developing world which can ill afford to slow their economic progress. Thank you
CRITICS OF MLM-THETRUTH.COM
Not everyone is pleased with this web site, as the following attests:
Dude you are a complete hipocrit. Get a life. 99.9% jajajajaja. Way to over react.
On top of that, u have created 40, of these so called scams, nice job you ass
- Unnamed
[Unnamed is likely referring to Jon Taylor's having been involved in 40 business startups before getting into MLM. However, all were legitimate, and none were MLM.]
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RE: Get a job, Taylor
You are so out of wack with your so called "experts" and research that you should be held liable for the crap information you peddle. You are so mis-informed about what you spread over the Internet! God, you need to get a life.
Business Millions
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Blah blah blah...Jon, you and I both know that the only people who don't make any money in Network Marketing are the ones who don't do anything! The failure rate is no different for Real Estate agents, life insurance sales, any profession that you are an "independent contractor". It's simple, we were never programmed to work for ourselves, people just don't want it bad enough. . .
Network marketing is easy, the more you show the more you make...period. Product does not have feet, you need to share product, share the opportunity and not care who say's yes or no. It's not about the answer, it's about the process!
Man I wish somebody would lay the blame where it needs to be!
John
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I THINK YOU ARE A LAZY MYOPIC LOSER! PEOPLE DO NOT MAKE MONEY FROM MULTI-LEVEL-MARKETING IF THEY FAIL TO BUILD A FORMIDABLE ORGANIZATION JUST AS YOU WILL NOT MAKE MONEY FROM A PRINTING FRANCHISE IF YOU FAIL TO ACQUIRE CUSTOMERS.
IF ANY MLM BUSINESS PROMISES YOU A GET-RICH QUICK FORMULA IT IS A SCAM, BUT MLM
ORGANIZATIONS LIKE AMWAY, ACN, AVON ETC DEMAND HARDWORK AND PERSISTENCE FROM THEIR REPS IF SUCCESS IS TO BE ACHIEVED. IF A REP FAILS TO DO THE RIGHT THING, HE/SHE WILL NOT GET RICH JUST BECAUSE HE HAS ENROLLED IN A MULTI-LEVEL-MARKETING ORGANIZATION.
ACN AS A MATTER OF FACT IS THE BEST BUSINESS MODEL IN EXISTENCE AT THIS POINT IN TIME, IT DOES NOT MATTER IF LOSERS LIKE YOU SEE IT OR NOT.
I HAVE FRIENDS WHO HAVE BUILT UP ENVIABLE FINANCIAL FREEDOM FOR THEIR FAMILY THROUGH ACN, SO IT IS SAD THAT YOU GO ON CRITICIZING WHAT YOU HAVE NOT EXPERIENCED SIMPLY BECAUSE YOU HAVE TALKED TO PEOPLE WHO ENROLLED IN ACN WITH WRONG PERCEPTIONS AND FAILED TO FOLLOW THE RECIPE AND THEREFORE FAILED TO ACHIEVE ANY RESULTS. WHY DON'T YOU TALK TO THOSE WHO HAVE CHANGED THEIR FINANCIAL FUTURE THROUGH MLM BUSINESS MODELS AS WELL? I BET YOU THERE
THOUSANDS OF THEM AROUND THE WORLD. I LIVE AND INTERACT WITH SOME OF THEM.
IT IS AMAZING HOW LOSERS LIKE TO CONGREGATE TOGETHER AND SEEK ATTENTION FROM PEOPLE IN ORDER TO HIDE THEIR INEFFECTIVENESS AND LACK OFD PERSISTENCE.
MY CHALLENGE TO YOU IS TO ENROLL AS AN ACN REP, FOLLOW ALL THE RECIPE THE COMPANY HAS PUT IN PLACE, AND ENDEAVOR TO BE COACHABLE, IF YOU DO ALL THESE THINGS AND ARE ABLE TO BUILD UP A LARGE ORGANIZATION OF REPS AND CUSTOMERS BETWEEN 2 - 5 YEARS, AND YOU FAIL TO BECOME FINANCIALLY FREE, THEN GO AHEAD AND CONDEMN THE COMPANY; NOBODY WILL BLAME YOU.
OTHER THAN THIS, JUST SHUT UP AND GET A LIFE!
JERRY O.
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Great job of destroying the dreams of thousands of people.. Yes there are problems with some MLM companies however the numbers you quote just don't add up..billions of dollars in sales by direct marketers sort of tells the tale..
In addition, why don't you attack Wal-Mart..they have hundreds of stores that hardly pay a decent living and make millions of dollars off of people..there is a Sears outlet store in about every small community..of course all those independent gas station operators that thought they were going to make it big and went broke tryin to..
You have some type of income that depends on the efforts of others unless you farm and them someone has to get paid for the seed they sold you..
The point is..most MlM companies simply offer an opportunity to be more in control of your financial future via a REAL business..some make it..some do not..most come into the business thinking that they are going to get rich in a few months and fail..either because they did not work the business or they did not work and probably fail at most of what they have tried in the past..
What you do is throw water on the hope of some people because they think you are a doctor and know what you are talking about.. I DON'T!!
Robert B.
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You have too much time on your hands. I found most of your information to be inacurate. You need to talk to Donald Trump or Robert Kyiosaki or anyone who actually has had business success. You clearly have no idea what you are talking about. I would invite you to take a true look at a more upscale, growing and successful company and see if all those points apply--you'll find that they don't.
Donna W.
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I am just amazed that such an article would attempt to be out there after many years of MLM winning the battle initally fought by the granddaddy of MLM, Amway over 60 years ago. Maybe someone should explore what this industry has done for hundreds of thousands of people worldwide and thus making families more focused and together. There is nothing illegal or a scheme with MLM. Read the next billion dollar trend to see the trends and get your records straight and begin educating people the right way.
Rosa S.
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RE: Loved your site!
You know, you seem to be a pretty smart guy...but don't you have better things to do with your time?
Do you know why most network marketing company's fail peopel? It's because people don't work...they are lazy!!!
Paul
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One of the unfortunate things that your site doesn't take into account is that there are few if any small businesses that make any kind of profit within the first 5 years. The only real opportunity for regular people to start their own business is in network marketing. A legitimate networking company will allow someone to start a business for less than a hundred dollars, when a typical small business takes more than a hundred thousand. And yes, most of not all of the money made should go back into the business in order to continue making money, but this is true of all small businesses for the first several years.
Marissa D.
[NOTE: Marissa should read some of the statistics from the Small Business Administration and other agencies that help with small business startups. Based on reliable statistics, all four of the above four sentences are false.]
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RE: Your website is bul-sh...!!
This website should called mlm-thelie. There may be some truths in there but the idea of the website is completely wrong. I would suggest you to evaluate more network marketing companies. And I mean "network marketing companies". Don't put network marketing and mlm together. That is just bull.
Now put that in your testimonial page!
Hung T.
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Can you help me?
hello, uhm, how sure are you that what you presented is true? i know people that are rich from mlm, how can you say such things?
do you know why most people fail? because they didn't do this right. why are you so negative? because you couldn't do what some people can do? not everyone can succeed, but there are +2000 blue diamonds. please explain to me why... i just don't get it...
Sydney T.
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RE: MLM IS THE BEST BUSINESS!
I am writing to you because I am going to prove you WRONG! You obviously are to incompitent to understand what a MLM is. I became a wellness consultant for Nikken back in the beginning of June and this was a life changing decision I have ever made! I received a $2,100 commission check the next month my commission check was $3,200!! I am continually earning a large income and it was because I joined the most amazing MLMs ever!! The people who just start out in a MLM can be very successfull!! If this was a pyramid scheme I would not be making this much money!!! MLMS are the most rewarding business opportunity!!!! I will speak this truth to the very end of my life!!!
David R.
Nikken Wellness Consultant
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My response to "Nikken Wellness Consultant":
David –
If a business is legitimate, one will be able to report profits on their income taxes. Please write me back in a year and tell me what you reported as net profits from your MLM.
JMT
NOTE: David did not write back, and did not respond to a follow-up inquiry two years later.
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Your an idiot! You are ignorant! A website dedicate to that! Get a life! Kelly L.
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1-22-10
Dear Jon Taylor,
1-Saturation? In any country, anyone involved in MLM is less than 0.05% of their
able-adult population. Saturation is a your self-created myth! It can be rejected!
2-Enrolling a member is equivalent to inviting a buyer who would, given an incentive,
invite another buyer. This is the best kind of advertising - the buyer themselves
inviting a new buyer and it spreads! The sales of good is done and it brings sales for
the Company! If we buy from a Supermarket, we get the products and zero incentive
for inviting others to buy! That's discrimination!
3-MLM is exactly like franchising! An MLM distributor is empowered (given a membership
number, signed an agreement with the Company etc) to duplicate what is
done by his upline i.e buy, sell, invite others to join. They, like Franchisee, get the
rights to buy, sell and be rewarded like commissions given by the Franchiser!
What is wrong with that? That is compensation! How the company compensates is up to the
Company! The effort to market and close a sale is not easy. A reward is required!
4-MLM is noble. You can't measure nobility based on cut-throat rich-discriminate-the-poor
capitalist system mentality!
5-Stop spreading the lies. MLM distributors work within a framework and gain based on
effort. Those who fail, has reasons unrelated to the Company system,product or
compensation.
6-Please conduct an open interview with any successful MLM leader from any Company and
publish their comments.
PLEASE PRINT ALL MY COMMENTS HERE AND DECLARE IT ON YOUR SITE FOR ALL THE MLM MARKETERS ALL OVER THE WORLD TO SEE! I CHALLENGE YOU!
Please acknowledge this e-mail to haneefyusoff@gmail.com
Thank you
Mohd Haneef Yusoff
Active MLM Distributor
................................................
My response:
Mr. Yusoff:
I plan to post your letter for a month for all to see. Go to –
However, I will not argue the various challenges you raise because they are all answered on my web site – especially the full “5 Red Flags” report, which I assume you have not read carefully, if at all. This report is a summary of literally thousands of pages of research and feedback from all over the world. Go to -
