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 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 for and) against Multi-level Marketing – which can be downloaded in whole or in sections from this website.
(MLM's come and go, so a few may now be defunct.)
MLMs Evaluated A – D
MLMs Evaluated N – R (see below)
Narc that Car
NAA (National Agents Alliance)
National Lending Corp.
Native American Nutritionals
Natural Air Products
New Quest International
New Vision USA
NHT Global (Nat'l Health Trends)
Nouveau Riche University
NuLegacy Rx card
Our World Network
PM International AG
Primerica Financial Services
Qing Mei (cards)
RBC Life Sciences
Rodan & FIelds - Victoria SkinCare
Royal Body Care
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.