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

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 tot he 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

MLMs Evaluated E – G

MLMs Evaluated H – M

MLMs Evaluated N – R (see below)

MLMs Evaluated S – Z

See a sample evaluation

See a list of MLMs shut down by law enforcement

 

N

NAA - National Agents Alliance

Narc that Car

National Lending Corp.

Native American Nutritionals

Natural Air Products

Nature's Own

Nature’s Pearl

Nature's Sunshine

Network Marketing VT

Neucopia

Nerium

Neucopia

Neutrie

NeutroGenesis

New Face of Wealth

New Quest International

New Vision USA

Neways

NextFit

Nexx

NHT Global - Nat’l Health Trends

*Nikken

Noevir

North American Power

Norwex

Nouveau Cosmeceuticals

Nouveau Riche University

NSA (Juice Plus)

Nucerity

NuLegacy Rx card

NuMed

*Numis Network

*NuSkin Enterprises, Inc.

Nussentials

Nutronix

Nuvante

 

O

Ohana Health

Olivana

Omegatrends

Ominex

One24

OneX

Online Exchange

OnPoint Direct

One Viz

*Orenda Int’l

Organo Gold

Orovo

Our World Network

Oxyfresh

 

P

Palmary

Pampered Chef

Pangea Organics

Paperly

Passion Parties

Passport LLC

Petromagic

Pharmanex (Nu Skin division)

PhotoMax

Pink Papaya

Plexus Pink

PM International AG

Polaris Global (was Liberty 
     League Int’l)

Power Mall

Power2Marketing

Premier Designs

Prepaid Legal

Prepaid Living

Primerica Financial Services

Private Quarters

ProActiv (Empower Network)

Protandim (Life Vantage)

Prixdale Ventures

Pur3x

Pure NRG

Pureworks

Purse Party

 

Q

Qing Mei

Qing Mei (cards)

Qivana

QL Exchange

Qnet (was GoldQuest)

Qscience

Questnet

Quixtar (formerly Amway – 
     now Amway again)

 

R

Rain Nutrition

RBC Life Sciences

Refer Life

Regeneca

*Reliv

Rend Ltd.

Resorts 360 Vacation Club

Retire Quickly

Rev Up Daily

Ripplin

RMP Infotech

Rodan & FIelds – Victoria

     Skin Care

Royal Body Care

Royale Business Club

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.