MLMs with at least 4 of the 5 red flags
of a recruitment-driven MLM (A to D)

After the most extensive research ever done on MLM as a business model, Dr. Taylor has identified four (and in most cases 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. Where data is available, approximately 99% of all participants are found to lose money, after subtracting incentivized purchases and minimum operating expenses.

But before we share our list of approximately 500 MLM programs we have evaluated, in addition to some shut down by law enforcement. it is important that you do your own "5-step Do-it-yourself Evaluation."We will not be responsible for the consequences of a decision about participation that is ultimately yours to make. (See Disclaimer to the right.) 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.

Listed below are MLMs we have found to use recruitment-driven and top-weighted pay plans, which is the case with virtually all MLMs. For a thorough discussion of problems associated with such programs, download and read the ebook The Case against Multi-level Marketing - an Unfair and Deceptive Practice , (especially Chapter 2) which can be downloaded in whole or in sections from this website.   MLMs listed with an asterisk (*) have released average earnings data, which Dr. Taylor has analyzed (See Chapter 7).

 

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

MLMs Evaluated A – D (below)

MLMs Evaluated E – G

MLMs Evaluated H – M

MLMs Evaluated N – R

MLMs Evaluated S – Z

See a sample evaluation

See a list of MLMs shut down by law enforcement


MLMs that begin with a number

124 Online

1Cellnet

3000 BC

4Life International

4 the Good Life

5Linx

 

A

A. L. Williams (now Primerica)

Acai Plus

Achievers Unlimited

ACN

Adcalls

Advantage Marketing Systems

Advantage Neutraceuticals

*Advocare

Affordable Energy

Agel

AIM

Alivemax

All-star Entrepreneur

Altairia

AlpineV

Amazon Herb

Ambit Energy

American Longevity

American Marketing Systems (AMS)

Amway

APP - American Petroleum Prom’s

*Ameriplan USA

Amerisciences

Amigo Health

Amkey

Amsoil

*Amway-Quixtar

Annasa

Apeus

Approval Warehouse

*Arbonne

Ardyss International

Ariix

Ascend Technologies

Ascential Bioscience

Asea

At Home America

Ava Anderson Non-toxic

Avalla-Distributes Nutrimetrics

Aviance

Avon – now MLM

Awareness Life

 

B

Baby Crazy

Bamboo Park

*Beach Body

BeautiControl Cosmetics

Bel'Air

Bellamore

Better Universe

Beyond Freedom Evolution

bHIPGlobal

Big Planet (Nu Skin division)

Boceutica

Biogen

Biometrics

Bioperformance

BioPro

BioSolace (India)

BodHD

Bodywise

Bookwise Books

Boresha Int’l

Brain Garden

Business in Motion

 

C

Cajun Country Candies

Celebrating Home

Cell Tech

Cell Wireless

Ceres Living

Champion Communications

Cie Aura

Citizenre

Cleur

Coastal Vacations

Cognigen

Common Sense Communications (Telex Free)

Conklin

Consumer Choice Marketing

Cookie Lee Jewelry

cPRIME

CR Health & Beauty Systems

Creative Memories

Customer Advantage

*Cyberwize

 

D

Daisy Blue

DBN- Downline Builders Network

DCHL - Digital Crown Holdings Ltd.

De Marle at Home

Destiny 2000

Direct from Vatican City

Discount Home Shoppers Club

     (now Global Income Partners)

Do Terra Earth Essence

Dove Chocolate Discoveries

Drink ACT

DSX

Dubli

DXN

Dynapharm

Dynasty of Diamonds


 
NOTE: This list (A to D) includes only those MLM's for which we have been able to obtain and evaluate compensation plans.

*A recruitment-driven 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 recruitment-driven MLM could also be considered a "product-based pyramid scheme;" i.e., a pyramid scheme that requires purchases of products to participate in commissions or advancement in the scheme, rather than a cash investment such as those required for no-product pyramid schemes. Product-based pyramid schemes do far more damage than classic, no-product  pyramid schemes, by any measure - loss rates, aggregate losses, and number of victims.