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.) 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 () in front of them 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 (below)
MLMs Evaluated H – M
MLMs Evaluated N – R
MLMs Evaluated S – Z

See a sample evaluation

See a list of MLMs law enforcement has shut down or issued sanctions against

Easy Daily Cash
E-bio (India)
►Ecoquest (now Vollara)
eFoods Global
eFusion (acai)
Elite Marketing Alliance
Emerald Essentials
Emerald Passport (Profit Masters)
Empire Dreams
►Empower Network
Eniva Gold Marketing
Envision CC
Envy Organics
Epic Network
Escape International
Essensa Naturale
Essentially Yours
Evolution International
Evolv Health
Excel Telecom’s (acquired)
Extreme Research
EZ Wealth by Design

Feeder Matrix
Financial Education Services
First Financial Security
First Fitness International
First Source Marketing   Alliance
FM Group World
For You
Foru Int’l
Forever Green
Forever Int’l
Forever Living
Formor Int’l
Forte Builder
*FHTM (Fortune Hi-tech Mktng)
*Free Life International
Freedom Rocks
Fruda Vida International
Fuel Freedom International
Fuller Brush
Fun Unlimited

Gano Excel, Gano Life
GDI – Global Domain Int’l
Gem Lifestyle
Genesis Global Network
Genesis Pure
Genewize Life Sciences
Global Equity Lending
Global Health Trax
Global Income Partners
GIN- Global Information Network
Global Resorts Network
Global Travel Trends (PRT Travel)
Global Wealth Trade
GOG (India)
Gold Canyon
Gold Mine International
Golden Neo-life Diamite
Goldshield Elite
Good Life International
Great Life International
Green Organics
Green World
GVO Team Elite

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 visitors to our website.
 MLMs, or product-based pyramid schemes, are MLMs 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, any 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.

3 Comments on “MLMs with 4 red flags of a product-based pyramid scheme (E to G)”

  1. Stogie

    Excellent information. I have long believed product-based MLM schemes to be merely disguised pyramid schemes. You have confirmed that belief.

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