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Consumer Awareness Institute

Non-profit Corporation

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  Annotated List of RECOMMENDED WEB SITES  on MLM / Network Marketing

If you are reading this separately from my site, you will want to read some of the independent research studies on the effects of MLM compensation plans, profitability and legality of MLM's, guides to protect consumers from losses, and the humor associated with MLM. Go to http://www.mlm-thetruth.com.

Links to other sites:   

http://pyramidschemealert.org – sponsored by Pyramid Scheme Alert, a non-profit corporation established to expose and prevent pyramid scheme fraud world wide. Robert Fitzpatrick is founder and president and is assisted by a team of top experts from a variety of disciplines contributing their expertise and writings. Fitzpatrick has appeared on several local and national TV programs exposing pyramid scheme abuse and has served as an expert in several public and private court cases involving MLM companies.  This site offers resources for consumers, enforcement agencies, legislators, educators, journalists, and consumers.

For a fascinating insider's look at "the world wide conspiracy of lies that is Amway/Quixtar and their motivational organization," go to http://www.merchantsofdeception.com. Eric Scheibeler, a former federal auditor, rose in the ranks of Amway to the top 1/25 of 1% of distributors. What he discovered disturbed him so much that he decided to leave Amway and go public. Due to death threats, the FBI was called in, and eventually Dateline ran a story showing the deceptions inherent in the company's recruiting and "opportunity meetings." You can download his book Merchants of Deception free of charge if you hurry. The author expects that Amway will not take this lightly and will take legal action to stop him, as they have with others who have published information against them. 

 http://www.falseprofits.com – insightful reports and books about both product-based and no-product pyramid schemes. Sponsored by sales distribution expert Robert Fitzpatrick, who also sponsors Pyramid Scheme Alert.(above)  Mr. Fitzpatrick has posted some very insightful new articles on his site, including: "The Myth of MLM Income Opportunity," which lays bare the losses suffered by the vast majority of participants in several typical MLM's. This article analyzes the profitability (actually losses) for paricipants, based on the MLM companies own reports. On the front page of his site has posted other articles – "The American Scam," "The Meaning of Pyramid Schemes," "A Disguised Pyramid Scheme: The Non-Retail 'Direct Selling' Company," among others. I highly recommend these for informative and entertaining reading.

Stephen Barrett, M.D., is one of the most prolific independent investigators of health quackery and related fraud on the web. His extraordinary contributions to consumer awareness is reported on several sites, including one on MLMs which offer questionable health products and bogus income opportunities – http://www.mlmwatch.org  The site even has an invitation for plaintiffs in class action lawsuits against MLM’s. See also “The Mirage of Multilevel Marketing,” at –  http://www.quackwatch.com/01QuackeryRelatedTopics/mlm.html

And for reporting quackery sponsored by MLM/network marketing companies, you are invited to participate in the “Multilevel Marketing Project” at – http://www.quackwatch.com/06ResearchProjects/mlmrsch.html

Barry Minkow, founder of the Fraud Discovery Institute, discovered several major misrepresentations on the financial reports of USANA Health Sciences, Inc. He reported these to the SEC and the media. Go to - http://www.frauddiscovery.net/
The resultant firestorm caused USANA's stock to fall about 1/3 in a month. His lively presentations on YouTube are highly relevant, not just for USANA, but for all MLM's. Go to -
http://youtube.com/watch?v=nUw-UbtORxc

www.mlmsurvivor.com – news, announcements, and resources for persons inquiring about MLM’s – or recovering from experience with an MLM. Particularly thorough on Amway/Quixtar, but covers other MLM’s as well. One of the most popular consumer advocacy sites on the entire web.  

Peter Blood, from Queensland, Australia, shares what he learned from 35 years with 5 MLM companies. He realizes that not only was he deceived, but that he innocently deceived many others. A very readable and informative site. Go to - 
http://www.themlmfile.com.au/index.htm Be sure to also read his article "How to Succeed in MLM" at -
http://www.themlmfile.com.au/howtosucceed.htm

From recovering ex-Mary Kay consultants. Some of the most important sites on the web for those considering becoming Mary Kay consultants – and for those recovering from having lost time and money with Mary Kay are the following web sites. On these sites, you will find a feast of information and feedback from those who have "been there, done that." Go to – http://www.thepinkingshears.org
http://www.pinktruth.com

http://www.pinklighthouse.com

http://www.vandruff.com/mlm – A classic article on MLM/network marketing, “What’s Wrong with Multi-level Marketing?” is written by Dean VanDruff. His “Frequently Asked Questions” is also excellent – http://www.vandruff.com/mlm_FAQ  

Quoting VanDruff about another valuable resource: “Ami Chen Mills ‘Shaking the Money Tree’ is fascinating journalism that captures the ‘stink’ of MLM pathology and culture most vividly. Hold your nose, and dive into major deja-vu” at –  http://www.metroactive.com/papers/metro/10.03.96/cover/multilevel-9640.html

For a wonderful discussion of the spiritual pitfalls of MLM, with soothing background music, go to - http://www.precious-testimonies.com/Exhortations/k-o/MULTI.htm

Two films about MLM have been recently released:

BELIEVE, a movie mockumentary produced by Loki Mulholland. Showing now.

The Downline Movie, an award-winning documentary that follows 5 recruits into a new MLM. Produced by Eric and Anjanette Martinez and directed by Eric Martinez and Jason Allred. The film is making the rounds of film festivals and is not yet available to the general  public. 

MLM – the truth! 

 

Tell A Friend Script provided free of charge by ITistic Inc..

More recommended sites:

Cult expert, founder of “Resource Center for Freedom of Mind,” counselor and author Steven Hassan looks at MLM/network marketing as exhibiting many of the destructive traits of a cult. (The site also posts “10 Tests for Evaluating a Network Marketing Company.” - mentioned above). Check out the cultish aspects of Amway and Quixtar in the article “Amway  Motivational Organizations at–  http://www.freedomofmind.com/resourcecenter/groups/m/mlm

For some more revealing information on Amway/Quixtar, go to the excellent pages offered by Scott A. Larson at http://www.amquix.info/amway.html

Quatloos!  Features useful stuff about scams and financial frauds. Read Scott Larsen's scathing “Guide to Multi-Level Marketing (MLM)” – http://www.quatloos.com/mlm/mlm.htm  

Lee Devlin's Weblog presents the article "The Mathematics of MLMs," which exposes in a very brief analysis the impossible math of MLM. Read how his insights nicely debug the obfuscation of numbers by MLM promoters at –  http://www.k0lee.com/blog/2008/02/mathematics-of-mlms.html

The Cagey Consumer offers reports on multi-level marketing packed with sub-articles, references, and links – http://www.geocities.com/WallStreet/5395/mlminfo.html

Want to read some painfully true stuff from a confirmed cynic, Professor Robert T. Carroll, who specializes in exposing all sorts of popular myths and scams? Check out the MLM section of “The Skeptic’s Dictionary.” http://skepdic.com/mlm.html  

“Amway world wide dream builders and the things they will say to profit from your dreams.”  Potential Amway (now Quixtar) recruits will be inoculated against their program after reading “the things they will say.” – http://www.angelfire.com/or/amwaydreamers/index2.html

Here is a site by someone angry enough to write about MLM abuses and willing to link with other sites, but preferring to remain anonymous (probably fearing retaliation). His title descriptors: “Network Marketing - Networking - Multi-Level Marketing- MLM - NWM - Pyramid Selling.” – http://mlm.4mg.com/

Here’s a site loaded with information damaging to Amway/Quixtar: [Quoting from the introduction] “Welcome to Amway: The Continuing Story”  WARNING! This site presents facts, opinions, and other information that is critical of the Amway business. There are things on this site that the Amway Corporation, its distributors, and Quixtar (its "sister company") would prefer you not know. If you are easily offended by such information (or your upline  would not allow you to view it), please click your browser's 'back' button now so you do not expose yourself to this critical information. Otherwise, please continue... “ [But don’t miss what is loaded on this site.] http://www.cocs.com/jhoagland/

Unfortunately, this and other web sites are constantly under attack by Amway, using expensive legal maneuvers that place a great burden on those trying to speak out against the deceptions they foster. It’s a David and Goliath type of struggle, to be sure. Hopefully, Goliath won’t win in the long run. For information on this continuing saga, check out:  “Welcome to The Anti-MLM and Anti-Amway Webring Home Page” at:  http://www.cocs.com/jhoagland/webhq.html

The Anti-MLM and Anti-Amway Webring features some sites by angry ex-MLM distributors who feel they and millions of others are being routinely ripped off by MLM/network marketing companies. Some of the sites are less than professional, but they are very revealing of how mad some people are about this deceptive business practice.  http://www.webring.org/cgi-bin/webring?ring=amaaaw;list

Rick Ross has compiled an impressive array of resources on the topic of pyramid schemes and MLM’s, which have a very fine line [if any] between them. Here are two examples: http://www.rickross.com/reference/general/general519.html

http://www.rickross.com/reference/general/general546.html

The U.S. Postal Services offers this information to protect consumers from chain letters and MLM's that are thinly disguised pyramid schemes –
 http://www.usps.com/websites/depart/inspect/fraud/pyramid.htm

The FTC published an article entitled “Multi-level Marketing Plans,” in cooperation with the North American Securities Administrators Association November 1996, which can also be found at the following web address. (FTC headlines comes up if you click on it. You must paste in this exact URL in address line to get it) http://www.ftc.gov/bcp/edu/pubs/consumer/invest/inv12.shtm

The Attorney General of New Mexico put out an insightful web site to help protect consumers against MLM and pyramid scheme fraud – http://www.nmag.gov/office/Divisions/Pros/pyramid.aspx

Recommended foreign sites and translations include:

We have begun to seek recommended sites for foreign visitors and to get translations of our reports posted here. For example:

Karl-Heinz Kreiter runs  the german consumer orientated non-profit anti-mlm-website www.mlm-beobachter.de. He has volunteered to translate our report "Who Profits from Multi-Level Marketing*? Preparers of Utah Tax Returns Have the Answer."

Petteri Haipola has for several years been working to educate consumers in Finland about the dangers posed by MLM. His web address includes many useful links for people of Finland – http://www.kolumbus.fi/petteri.haipola/verkostomarkkinointi/sisallys.htm#linkit See also his translation into Finnish of – “Pyramid Schemes and the Internet: Resources to Counteract the Threat” – Power Point presentation prepared for the Economic Crime Summit Conference (sponsored by the National White Collar Crime Center) 

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PLEASE HELP!  I believe this site presents information about MLM/network marketing that is as close to the truth as can be found. It can save you much time, money, and grief, as it has done for many others. And since law enforcement has essentially looked the other way on this type of consumer abuse, it is left to informed consumers to inform and warn their friends and relatives about the potential losses they could suffer from participation in a “recruiting MLM.” So please print and distribute at least 5 copies of the answer cards to those you care about – and ask each of them to share answer cards with 5 people, and each of them with 5 more, etc., etc.  . . .  In this way, you can influence many people for good – through an endless chain of truth-telling.  Click here to see these handy answer cards (4 to choose from) that you can print and distribute now –  as well as carry with you for those awkward moments when you are recruited by a well-meaning friend or relative. For more information, click on the appropriate links above.