The Truth about Multi-Level Marketing
Researched-based Answers to your Questions
 

Welcome

You came to the right place for authoritative answers to your questions and reliable guidance in making decisions about MLM participation and/or help with recovery. This information is based on the most extensive research ever done on MLM compensation plans and profitability, on distinguishing characteristics separating legitimate direct selling from pyramid or chain selling, and on the deceptions used to sell product-based pyramid schemes.

 

www.mlm-thetruth.com/blog/legal-issues/mlm-network-marketing-direct-selling-and-the-dsa/
 DR. JON TAYLOR & CONSUMER AWARENESS INSTITUTE

 Jon Taylor describes how he became involved in this arena. Having taught college classes in finance, entrepreneurship, and ethics, and having been a successful salesman and entrepreneur, I was skeptical of chain selling schemes labeled as “network marketing” or “MLM.” However, under pressure from respected friends to join various MLM programs in 1994, I decided to do a one-year test of a leading MLM to prove to myself and to others whether or not MLM was a legitimate business model. Though I became successful at recruiting and climbing the ladder of distributors (top 1% if you count ALL distributors – not just “active” ones), I was still losing money. . . more

The work of Consumer Awareness Institute offers more than mere opinions. Through research, analysis, and feedback from participants who do real world market testing, we seek the truth about MLM (endless chain or pyramid selling schemes) and share our results on this web site. Our analyses of over 350 MLMs and of their profitability has guided thousands of consumers worldwide to make better decisions regarding home income opportunities. . . more

What went into this research: The research listed below formed the basis of these reports - the most extensive ever done on MLM as a business model, as well as on specific programs:
• Analysis of 350 MLMs and comparisons with alternative income options to clarify differences and to find causes of high MLM loss rates
• Feedback from thousands of MLM distributors and ex-distributors in a wide variety of MLMs
• Interviews with the top experts in the field
• Surveys of hundreds of tax professionals - representing thousands of tax returns of MLM participants 
- and actual state/IRS income tax records of top distributors in one state 
• Court records in MLM cases
. . . more (the list goes on)

 
   
 
 EXPERT WITNESS AND CONSULTING SERVICES

Dr. Jon Taylor offers consulting and expert witness services to assist attorneys, law enforcement agencies, investment advisors, etc. For more information, read the following:

Key Legal Issues related to MLM

Law enforcement, regulations, and new legislation affecting MLM

DSA vs. Consumers - and FTC abandonment of consumer protection against unfair and deceptive practices common to MLM recruitment campaigns

"The Case (for and) against MLM" -- serialized e-book
 Review Jon Taylor's bio and Vita.

 
   
 
 SPECIAL MARKETS AND TRANSLATIONS

Asian countries, and other markets outside the U.S.  

Utah and LDS

Some of these reports have been translated into foreign languages, including:

Spanish 5 red flags
French
German - tax study
Russian - key findings from research on MLM
Polish-summary of 15 years research
Hungarian
Finnish- Totuus verkostomarkkinoinnista! 

Hebrew - link to article summarizing research

 
   
 

 

 LATEST DEVELOPMENTS
 

Please be patient while our site is undergoing reconstruction. Some links and pages may not yet be in place, but these will soon be corrected.

WARNING -- Pre-launch kickoff of new MLMs

FTC to propose final Business Opportunity Rule

WARNING to Consumers in Markets outside the U.S.

Australia Acts to Stop Promotion of TVI Express "Pyramid Selling Scheme"

 
 
 CONSUMER GUIDES
 
   
 
 RESEARCH
 
   
 
 OVER 350 MLMs
 
In this list of over 350 MLMs, we found at least 4 of the 5 "red flags" in their compensation plans, suggesting they are recruitment-driven, top-weighted, and financed primarily by purchases of participants.

A -- D: ACN, Agel, Amway, Arbonne, Avon, etc.

E -- G: Fortune HTM, GoldQuest, etc.

H -- M: Herbalife, Mary Kay, Melaleuca, etc.

N -- R: Nu Skin, Pre-paid Legal, etc.

S -- Z: Team National, Tupperware, USANA etc
   
 

 

   

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