MLMs with at least 4 of the 5 red flags
of a recruitment-driven MLM (E to G)
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.) 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 an 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
MLMs Evaluated E – G (below)
Easy Daily Cash
*Ecoquest (now Vollara)
Elite Marketing Alliance
Emerald Passport (Profit Masters)
Eniva Gold Marketing
Excel Telecom’s (acquired)
EZ Wealth by Design
Financial Education Services
First Financial Security
First Fitness International
First Source Marketing Alliance
FM Group World
*FHTM (Fortune Hi-tech Mktng)
*Free Life International
Fruda Vida International
Fuel Freedom International
GDI - Global Domain International
Genewize Life Sciences
Global Equity Lending
Global Health Trax
Global Income Partners
GIN- Global Information Network
Global Resorts Network
Global Travel Trends (PRT Travel)
Global Wealth Trade
Gold Mine International
Golden Neo-life Diamite
Good Life International
Great Life International
NOTE: This list includes only those MLMs for which we have obtained and evaluated compensation plans. Most of the MLMs were listed following requests for information by visitors to our website.
*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.