MLMs with at least 4 of the 5 red flags
of a recruitment-driven MLM (H-M)

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 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

MLMs Evaluated H – M (below)

MLMs Evaluated N – R

MLMs Evaluated S – Z

See a sample evaluation

See a list of MLMs shut down by law enforcement

 

H

HBW Insurance & Financial

Health 4 Wealth

Healthy Coffee USA

*Herbalife

Heritage Health Products

Heritage Makers

Home Tec

Hsin Ten Enterprise USA (HTE)

 

I

iBuzzPro

IGlobalPro

*Ignite/Stream of Energy

Igonet

*Immunotec

Independence Energy Alliance

*iNet Global

Inner Light

Inspired Living

Integris Global

IDN (early Nu Skin division)

Int’l Galleries, Inc. (IGI)

*Isagenix

It Works

ITV Ventures

IV-7 Direct

iZigg Mobile Marketing

 

J

Jafra

Javita Coffee

Jeunesse Global

Jewelry by Park Lane

J Hilburn

Jillian Chase

Juice Plus (NSA)

Jus Int’l

Jusuru Int’l

 

K

Kaching Kaching

Kaire

Kangivity Global

Kanosis

Karemore

Kilante Coffee

Kleeneze (UK)

K-Link

Kyani

 

L

Learning Global USA

Leaving Prints

Legacy for Life

Lexxus

Lia Sophia

Liberty International

Liberty League Int’l (LLI)

Life Force Int’l (2-up)

LifeMax

Life Plus

Life TEAM

Life Vantage

Life without Debt

Lifestyles USA

Lifestyle Intra Supplements

LifeWave

Lightyear Alliance

Limu

Live the Source

Livinity

Longevity Network

Loving Works

LR Health & Beauty Systems

Lyonness

 

M

Maakoa

Mandura

*Mannatech

Market America

Mary Kay Cosmetics

Matol Botanical

Mavericks  (World Health Card)

Max International

Maxxis 2000

MB Social

MCA - Motor Club of America

Me2Everyone

*Medifast (Take Shape for Life)

*Melaleuca

Menage International

Metabolife

ML International

MMOGULS

Momentis

*Momentum Plus

*Mona Vie

Monarch Health Sciences

Morinda

Moxxor

MPB Today

Multi-pure

*MXI-Xocai

MyDay1 (like One24)

My Harvest America

My Leisure Business

My Travel & Cash

My Video Talk

My4Life

My7Diamonds


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 website viewers.

*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.