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 600 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 to the 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 Multi-level Marketing Unmasked, (especially Chapter 2) which can be downloaded in whole or in sections from this website. MLMs listed with an arrow (►) 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 (listed below, along with names of MLMs that begin with numbers)
MLMs that begin with numbers:
10 Level Riches
4 the Good Life
A. L. Williams (now Primerica)
Advantage Marketing Systems
American Marketing Systems (AMS)
APP – American Petroleum Prom’s
►Amway (was Quixtar in USA for a few years)
At Home America
Ava Anderson Non-toxic
Avalla – distributes Nutrimetrics
Avon – now an MLM
Beyond Freedom Evolution
Big Planet (Nu Skin division)
Business in Motion
Cajun Country Candies
CCM – Consumer Choice Marketing
Common Sense Communications (Telex Free)
Consumer Choice Marketing
Cookie Lee Jewelry
CR Health & Beauty Systems
DBN- Downline Builders Network
DCHL – Digital Crown Holdings Ltd.
De Marle at Home
Direct from Vatican City
Discount Home Shoppers Club
(now Global Income Partners)
Do Terra Earth Essence
Dove Chocolate Discoveries
Dynasty of Diamonds