After the most extensive research ever done on MLM as a business model, Dr. Taylor has identified five causative and defining characteristics, or “red flags,” in MLM compensation systems that lie at the root of the deceptions and horrendous loss rates suffered by MLM participants. MLMs with these characteristics could be considered “recruitment-driven MLMs, meaning they depend on unlimited recruitment for their survival and growth. Where data is available, approximately 99.6% of all participants have been found to lose money, after subtracting incentivized purchases and minimum operating expenses.
But before we share our list of over 400 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 of the five steps and follow the links to its conclusion. You might also want to review some of the feedback we have received.
If you have not already done your own evaluation, we suggest you do so now: