Pyramid Schemes and Multi Level Marketing Explained

I have just done a radio interview about pyramid schemes and why they are a bad idea. I only had ten minutes so I struggled to get in all the information. Click on the image below to listen to it. I am at 1.32.

 

 

Here, I cover the information I gave, with references and further information that I couldn’t cram in.

What is a pyramid scheme?

It is useful to think of pyramid schemes on a spectrum. Just before you get to pyramid schemes, there is Direct Selling. This is where people sell things and get a commission from the sales. Like a double glazing salesperson who goes door to door and gets a cut of the sales. That is perfectly legal, although it can be hard on the salesperson to earn money if they don’t sell much.

On the other extreme, after pyramid schemes, there are Ponzis. These are schemes where people pay a fee to join. They have to recruit to people and they recruit two people, and they recruit two people. When the pyramid is a certain size, all the joining fees from the people on the bottom rung go to the person at the top. They then retire with a large amount of money and everyone moves up a rung. To be successful and leave with money, 64 people would have to pay the fee. Quite often, not al the spaces can be filled and the whole thing collapses. An example of a Ponzi is the Airplane game.

Ponzi schemes are illegal in the UK. In Albania in 1997, there was a civil war due to a Ponzi scheme collapsing. Two thousand people died and a government was toppled.

Between Ponzi schemes and direct selling, you have pyramid schemes. These are defined by the Fair Trading Act 1973, under the section called ‘Part IX Pyramid selling and similar trading schemes’. The law calls these schemes ‘Trading schemes’ that have to comply with the pyramid selling regulations. It talks about the pyramid structure of the schemes. In 1996, when the Trading schemes laws were being updated, there was an attempt by Amway ( a large multilevel marketing scheme) to have the term ‘pyramid scheme’ defined as an illegal scheme. The Government stated that they saw the terms ‘pyramid selling’ and ‘multi level marketing’ as interchangeable.

It doesn’t sound very good though, to say that you are in a pyramid scheme. It would be very hard to recruit people if you said you were in a pyramid scheme. The Direct Selling Association (DSA) are a trade association and promote these schemes, trying t make them appear respectable. Of course, they wouldn’t want to put off people joining their schemes so they say this on their website.

I challenge them to show me where in law it says pyramid schemes are illegal. I believe in fact checking and looking at the evidence and I will be happy to change my statements if they are wrong.

So what is a pyramid/multi level marketing scheme? The 1997 consultation document makes this clear-

More simply, this means that people are in a trading scheme if they sell products, usually in their home, and recruit others to do the same. They can earn commissions from the sales of the people they recruit, and also get bonus payments. The structure is pyramid in shape. To be considered legitimate, they must adhere to a set of rules. These are The Trading Schemes Act 1996. The Pyramid Selling Schemes Regulations 1973 , and later The Trading Schemes Regulations 1997  lay out the conditions that a scheme must follow to be considered legal. If any of the conditions are broken, the scheme is illegal. Importantly, the law says that the definition of a ‘trading scheme’ remains the same as in previous legislation.

““trading scheme” has the same meaning as in Part XI of the Fair Trading Act 1973.”

These are the conditions-

Part 3. Adverts for the scheme must say the name of the company, describe what is being sold, and give the statutory warning.

Part 4. A written contract has to be given to anyone joining up.

Part 5. The contract can be cancelled within 14 days. People must be told of their financial obligations for the first year. Further minor contract details.

Part 6. When someone leaves a scheme, they are entitled to a refund for the products bought in the previous 90 days.

Part 7. Some technical rule about refunds.

Part 8. People in these schemes must be given receipts from the company for every transaction.

Part 9. Rules about commission payments once someone leaves a scheme.

Part 10. People cannot pay more than £200 in the first week of joining a scheme.

Part 11. People who join up are under no obligation to buy anything unless it was clearly stated in their initial join up agreement. They should not be tricked into buying anything.

Section 1, part 3 of The Trading Schemes Act 1996 says that trading schemes must provide products or services to external customers. The participants can’t just purchase products for themselves.

That is quite a list of rules that a company must adhere to be considered legitimate. You can see why it is difficult to determine if a scheme that is being presented to you is ok or not.

These schemes cause problems for people, regardless of whether they are legitimate or not.

These problems are-

1. Dr Jon M Taylor analysed the statistics of MLMs and found that participants typically lost money in 99.9% of cases. He concluded that gambling on roulette gives 286 times more chance of winning money than earning anything in Amway. These statistics were presented to the Federal Trade Commission.

Image from MLM-The Truth Website.

2. People lose money through paying for training, going to conferences, buying their own marketing products, petrol costs from driving everywhere, buying nibbles and drinks for in-house parties, buying samples, buying prizes for raffles, buying products for themselves, paying for stalls at fairs.

3. People in these schemes follow the Law Of Attraction where they are taught to believe that bad things happen if you have bad or negative thoughts. They also believe that good things happen if you exclusively concentrate on positive things. The Law teaches that if you want something, you can have it if you want it hard enough and visualise it enough, sending out the correct ‘vibrations’. You are encouraged to act rich if you want to be rich. The theory is that you acting all successful will attract success and will attract recruits who want to be like you.

Hence you see memes like this

People in these schemes become afraid to think of their failure and will not allow themselves to focus on the money they are losing. This type of dangerous thinking could be called a mind control technique. People stop themselves from being critical and lose the ability to be rational. This is a very dangerous state to be in. It keeps people in these schemes longer than they would otherwise stay.

Another side effect of this way of thinking is that people are encouraged to cut contact with people who are being critical. I know people who have lost brothers, sisters and children through these schemes. They were taught that the negative vibrations from these people would bring failure. This further isolates people and they surround themselves by other scheme members who are all believing the same thing.

A further problem with this type of thinking is that when people inevitably fail, they will blame themselves. They will have attracted the failure to themselves. This makes them feel ashamed and they will often try to forget about the whole thing, and not come forward to speak about their experiences. So the deception continues. When people leave a scheme, they often find themselves ostracised from the group, who now see the person as a failure who could bring them down. They are now left feeling like a failure, lost friends/ family and no support group. This can make people feel terribly isolated.

4. People in these schemes are often seen making false health claims for the products they sell. This is because the products are expensive due to the added amounts that are needed to be fed up the pyramid. The sellers become desperate to make sales so that they cam achieve their monthly targets and to earn money themselves. The products are nothing special so people will lie about how good they are, breaking advertising laws and encouraging people to ditch their medications in favour of their snake oil.

Truth in Advertising (TINA) have documented some false health claims they came across with MLM products. They found that of the DSA member companies in the USA“( 97%) have made or are making — either directly or through their distributors — claims that the companies’ products (which include supplements, as well as devices, clothing, and skin care products) can treat, cure, prevent, alleviate the symptoms of, or reduce the risk of developing diseases or disorders, in violation of the law.”

Who joins these schemes?

Anyone can be vulnerable to joining one of these loss making schemes. People who need money and are not getting what they need from their current situation could join. They are vulnerable because often it is a trusted person who approaches them to join and people don’t think their loved ones would lie to them. Often, people are promised that it is easy to earn money, just follow the system, recruit people and you will be successful. Examples are held up of the few people that earn large amounts of money.

Image from TINA.org

It is easy to see why people would want to try pyramid schemes when their current situation is less than ideal.

Intelligent people and professionals are sometimes targeted because they can lend credibility to the company. I have seen adverts on Facebook aimed at NHS staff, trying to recruit them to sell MLM products and the opportunity.

It is important to realise that anyone is vulnerable to being recruited. The best protection is to educate yourself. Stay one step ahead and be as aware as you can. If you are on Twitter or Facebook, follow me or the MLMtruth coalition. There are a few campaigners you can add to the people you follow. Keep these scams at the forefront of your mind and you may be better able to resist.

What to do if a friend is involved

This can often be a very difficult situation. Your friend may be asking for your support and may be desperate to make a success of it. They may not know of the full facts around MLMs and may not be willing to hear it.

I wrote a blog post full of tips that you can look at for ideas on how to deal with your situation. Have a read of it here.

If you have a friend who goes from one scheme to another, get them to read this article on how to choose their next one. You may not be able to help them leave just yet, but you might be able to stop them joining one of the more ridiculous ones.

If your friend is maybe open to the idea of listening to reason and they want to hear what you have to say, get them to read this or this.

If you would like more of an insight into what is going on with your friend, you would do well to read up on cults. Pyramid schemes have been described as commercial cults or greed cults. Once you read up on why they are cults and how they work, it can be quite concerning. However, it will give you a good understanding of the behaviours you might be witnessing. Have a read of Steve Hassan’s work. He has written two really good books on the subject called Combatting Mind Control and Freedom of Mind. Margaret Singer has a good book on the subject too, called ‘Cults in our Midst: The continuing fight against their hidden menace’.

Cultwatch explain how cults work, and they delve into commercial/greed cults.

Steve Hassan has a website about cults that you may find useful.

I have written a piece on MLM and cults with John Evans from Juice Plus Lies website.

How to fight MLM

Become a Bot Watcher and join the team. You might be able to help us or the coalition if you have any skills or experience that might be useful in our cause. Perhaps you could help with some research or advise us.

If you have had an MLM experience, consider telling us about it and we can get your story out there to warn others.

Write emails to complain if you see something dodgy going on. Complain to fairs that allow MLM stalls. Complain to schools if they allow MLMs anywhere on the premises. Write to your MP if you feel things need changing. I have some letter templates here to help you guide your writing.

Report dodgy health claims to the ASA and get the advert pulled. Blog post on understanding about health claims.

Order something from the coalition’s little shop to help our cause and help spread awareness.

 

Take the cup to work to spread the message. Keep cards in your pocket to slip to people that you might hear being prospected. Someone we know has been slipping the cards in library books aimed at MLM reps!

Please contact us if you need any advice with any of the issues discussed in this article.

If you come across a Ponzi scheme or a pyramid scheme that you suspect is an illegal one, complain to Trading Standards via their Consumer Line. You can also report illegal schemes and fraud to Action Fraud. They are part of the police.

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Letter templates

If you see an advert for an MLM at a jobs fair or a school fete, please complain to the organiser. Let them know that more and more people like yourself disapprove of these things and want them stopped.

If you send a letter and get a request for more information or you would like assistance in drafting a letter, please contact us on FB, Twitter, email or in the comments here and we will get back to you as soon as we can.

If you get a positive reply, please let us know in the comments. It would be great to know that, together, we are making an impact.

MLM at a job fair

Dear organiser,

I have noticed that (insert MLM here) will be appearing at your jobs fair on……….. at…………..  The inclusion of this organisation concerns me somewhat, for the following reasons.

1. The company does not offer jobs, they offer the opportunity for people to act as independent contractors, earning commission on sales and the sales of the people they recruit.
2. The company offers no employment benefits at all.
3. People who sign up under this company are led to believe they will own their own business and be in control of their activities. In reality they are tied to a very restrictive set of terms and conditions. Please look them up under the company’s website.
4. Research by the FTC in America has shown that 99% of people in these schemes lose money. Figures published by these types of company show that the average earnings before expenses is dismally low. Search for an ‘Income Disclosure Statement’ for the company to see what their figures are.
5. People in these schemes buy products, marketing materials, training materials, samples, business cards, leaflets, website fees, etc etc. They take all the risks for the company and are given very little in return.
6. There is no proper leadership or hierarchical structure. Anyone can recruit anyone and become an ‘upline’ who becomes like their manager, with no experience, management training or anything resembling someone with authority. These uplines tell their recruits what to do, often giving really bad advice, leaving the recruit to take all responsibility if they make mistakes.
7. These types of companies often target women, especially mothers. They guilt them into questioning their choice to go to work, leaving their children behind. They tell women they can earn a living with this scheme so they do not need a traditional job. Giving up a job for this scheme would be a disaster.

People who join these schemes are put in really difficult positions and can waste many months and hundreds or thousands of their own money before they realise it is a scam. Please help protect future victims of this type of company by not allowing it a presence at your fair.

Please advise if you need further information on the matter.

Thank you for your assistance in this matter,

 

Kind Regards,

 

MLM at school fair, fete, market stall etc

Dear organiser,

I have noticed that (insert MLM here) will be appearing at your…………… on……….. at…………..  The inclusion of this organisation concerns me somewhat, for the following reasons.

1. The products from this type of company are often of average or below average quality, with inflated prices. The prices are expensive to reflect the commission that needs to be paid to the seller, the person who recruited them, their recruiter, etc, all the way to the top of the pyramid.
2. The people running these stands will say they are an independent, local business but that is not true. The main company is a large one and the stall holder is just a contractor who pays for the ability to sell the products. They are tied to the main company by a very restrictive contract and actually have very little say in what they can do.
3. The people in these schemes will try and recruit the people at fairs so they can earn off the commission they might make. They especially target women, young mums and pregnant women who might feel they need more time at home.
4. Research by the FTC in America has shown that 99% of people in these schemes lose money. Figures published by these types of company show that the average earnings before expenses is dismally low. Search for an ‘Income Disclosure Statement’ for the company to see what their figures are.

 

The general public are becoming increasingly aware of this type of scam and the inclusion of it at your event will diminish the enjoyment of many people and tarnish the event’s reputation.  Please reconsider this stall’s inclusion at your event, both to protect your reputation and the risk to the attendees of being recruited into the money losing scheme.

Please advise if you need further information on the matter.

Thank you for your assistance in this matter,

 

Kind Regards,

 

 

 

 

 

 

 

How to be a Bot Watcher

 

 

Fed up of the scamming MLM companies you come across?

Is it time you took a stand and took your interest further than just observing from a horrified distance?

If you would like to join the fight, here are some things you can do.

Twitter

Join Twitter if you haven’t already and follow the people/ sites that are likely to offer upto date information on MLM developments. If you are new to Twitter, have a look at this Wikihow article on how to get started.

I have compiled a list of people/organisations to get you started. If you subscribe to the list, you will see all the valuable tweets they make. Add in some companies or people that you have an interest in as well. Make sure you also follow other non-MLM people/ pages of interest, otherwise you will be inundated with depressing tweets. Follow your favourite companies, actors, musicians to balance out the dark stuff. ‘Faces In Things’ is quite funny if you need a distraction.

Take a stand and comment on MLM tweets, showing up their lies. Tell people in MLMs that are making health claims that they are wrong. Follow the MLM companies’ official accounts so you can see what they are up to.

Retweet tweets that need to be spread so that awareness can be spread to your followers.

Using Twitter as a Bot Watcher can be a passive or active activity. You can join in the arguments, retweet stuff, or just watch and gain information to stay up to date.

Don’t forget to follow Bot Watch. Click on the twitter symbol at the top of tis page to join us.

Facebook

We are on Facebook so you can watch us there for some updates or join in the discussions there. Sometimes MLM supporters turn up, trying to defend their companies. Feel free to join in the arguments, whichever side you are on. We will not block you just because you support MLM, but we will if you try to recruit or we think you are using us to gain traffic to your ‘business’.

To follow us on Facebook, click on the link at the very top of this page.

Here are some other Facebook pages you can follow-

Juice Plus/MLM Lies Exposed  People post things they have seen and heard about MLMs, and there is often quite an enthusiastic discussion on the posts. It reveals the deceptive practices and obvious lies that people tell to try and recruit or sell their products.

Elle Beau The Antiblogger.  Elle was a presenter with Younique until she saw through the lies. Now she tries to spread awareness to protect others from making the same mistakes she did.

Timeless Vie Their original page was taken down due to people reporting them for using that well known hate/ racist word ‘Hun’. This page is a back up one. They offer support and information to victims of MLMs, as well as being a spoof MLM.

Sounds like MLM but OK This group has over 22,000 members so there is a wealth of information posted. Lots of discussions about the items posted. You’ll see a lot here.

 

Internet discussions

You could join in or observe discussions about MLMs, asking questions or sharing knowledge you have. You are sure to learn a lot here.

Mumsnet  This link will take you to the ‘money matters’ page. From here, look for the thread that contains the words ‘MLM botwatch’. The people here are very knowledgeable and you are welcome to join in and ask questions/ make contributions. I hang out there under the name TooBusyToWee.

Reddit have a subreddit where MLM subjects are discussed.

Report

If you see an illegal health claim or dodgy advert for an MLM product you know is banned, report them. The Advertising Standards Authority in the UK are the people to report advertising infringements to. They have advice on their website about what you can complain about.

If you see an MLM is due to appear at an event, try complaining to the organisers, warning them of the MLM’s intention. If they are sponsoring an event, complain. Let people know about the event and complain, and others can also let their feelings be known. If you want to remain anonymous, pass on the information to us here and we can complain about it. Make a noise. Tell people on Twitter, write letters, email, mention it on forums. If you want to explain to organisers why MLMs are a BAD THING, you can copy and paste from this piece or give them the link.

If you see someone in an MLM making claims or doing something dodgy, confront them or report them to their own MLM. MLMs have compliance departments that investigate dodgy behaviour. They are very quick to sanction people. So much for them being ‘independent business’ people! I try not to go down this route because people are often the unwitting victims and do not know what they are involved in. Sometimes, however, it is justified. Use your judgement.

If you see a scheme that is behaving like an illegal pyramid scheme you can report them to the police at Action Fraud via the phone or online. If a business is operating without having customers or breaks any of the pyramid scheme laws, they can be reported for investigation.

 

Share your experience

Tell your story and help spread the truth. Make sure there’s lots of evidence out there for people researching joining one of these schemes. Make sure that the truth outweighs the propaganda. You can do this in a number of ways-

1. If you are a talented writer, consider writing a blog. Either write a post for someone else’s blog or start your own. If you want your story telling but don’t want to write it yourself, consider speaking to Bot Watch, Timeless Vie or Elle Beau to see if they could use your story.
2. Give a brief rundown of what happened or what information you have so you can go on Bot Watch’s database. You might be needed when a reporter contacts us, looking for people to interview. This happens quite regularly. Unfortunately we are often not able to find people who are willing to help. This means the story doesn’t get written. It would be really useful to have you on our list, along with details of whether you need to anonymous or not. Drop us an email at botwatchmail@googlemail.com and tell us how you can help.
3. Add your voice to the twitter discussions or website forums and make sure people hear what you have to say.
4. If you have any professional experience and wish to give your take on something, e.g. a dietician who has looked into Juiceplus or a business person who wants to give an analysis, please let us know. You might be able to act as an adviser or write your own post.

Recognise an MLM/Pyramid scheme

To be a Bot Watcher, you need to make sure you know what you are looking at. If you see a company and you suspect it may be an MLM, you could look it up on the Directory of MLMs here at Bot Watch. If it isn’t there, it still might be an MLM, but just hasn’t been put on the list yet (there’s so many).

If you Google the name of the company, followed by ‘MLM’, often you will get loads of results if it is one. Look for posts of people trying to recruit into it.

The key things you are looking for are-

1. There is usually a mention of a ‘compensation plan’ instead of a wage or hourly rate.

2. Look for terms like ‘team building’ or ‘recruiting’ or a chance to grow your team.

3. Are there pictures of cruises, holidays, cars, piles of money? Promises of what you can obtain if you join?

4. Search for the company on Twitter, Facebook, Instagram etc. Are the sellers using a lot of emojis and unable to spell correctly? They may be making outrageously incorrect statements or just seem dodgy.

5. Do not rely on websites that claim it is not a scam or pyramid scheme if they then try and get you to join. It is a very common thing to see people put titles on posts such as ‘Is company X a scam?’ or ‘Don’t join company X until you read/watch this’) These are always written by people in the schemes trying to trick people who are suspicious and change their minds to join them. Don’t fall for it.

6. If in doubt, email, FB message or comment on posts here. I’ll get back to you                  pretty quickly with an answer. Then I can add the details of the company onto                  the Directory.

Research

Learn what you can about these schemes. Have a look at some blogs on the subject, read some books, watch some programs or short YouTube clips to learn more. Here are some ideas to get you started.

Websites

Timeless Vie’s blog has some interesting exposes, interviews with victims and articles that look at MLMs from a feminist angle. On their menu, they have a drop down bit where you can look up different MLMs that they have written about.

Elle-Beau’s blog  This is a multi part story on a Younique presenter’s experience from beginning to end. Funny and addictive. You’ll learn about the tactics used.

Ethan Vanderbuilt‘s website has details of many individual MLM scams as well as more general articles and MLM news. He has videos and written articles.

Pyramid Scheme Alert is a consumer organisation that confronts the abuses of MLMs. Full of information.

Truth IN Advertising (TINA) is an American website that fight false and misleading advertising. As such, there are many mentions of MLM scams.

False Profits by Robert Fitzpatrick, an MLM academic and expert witness on the subject.

MLM The American Dream Made Nightmare by David Brear gives detailed analysis on the subject. He’s been researching MLM for over 20 years.

Videos/ programs to watch.

 

Betting On Zero is a very informative documentary that looks at Herbalife and the deceptive practices that go on. It also looks at the financial battle going on with the company’s shares. It’s more interesting than I’m describing here! You can buy this film on Netflix or iplayer. Here is a  free trailer for it.

 

 

This episode of John Oliver’s ‘Last Week Tonight’ takes a satirical look at Multilevel marketing, focusing on Herbalife but the message applies to all MLMs.

 

 

Documentary where an investigative reporter looks into MLMs that prey on people in Uganda, selling them false health products and promises of riches.

 

 

 

How to spot a pyramid scheme video. This explains the basics of how pyramid schemes/MLMs work. 6 mins 21 seconds long.

 

 

 

This video contains the testimonies of many Herbalife victims. It is really quite sad.

 

 

Reading list

        

Complain

If you discover that an MLM are going to be at a jobs fair or will be running a stand at a fete, please let the organisers know what these companies are like. Ask for them to reconsider the inclusion of the company and give them a list of problems associated with MLM. Some templates you can use can be found on this blog here.

Dodgy MLM Products List

Some products are legal to sell in one country but illegal in another. If you are in an MLM, you might want to check you are not breaking the law by selling prohibited products. It is no defence to say that you did not know. If you are saying you own a business and are selling products, you have taken on the responsibility for checking them out.

If you are a Bot Watcher, you may want to check the activity you are observing is legal, in case you want to complain.

Here is a list of some of the prohibited items I have come across. It is by no means an exhaustive list. Please send me information on any products you come across that need to be added.

Vida Divina

This item is a drug in UK law and needs to be sold with a prescription. It cannot be sold through MLM channels.

 

Sleep N Lose by Vida Divina has Melatonin in it which is not licenced in the UK to be sold outside of a pharmacy without a prescription.

People selling this could be reported to the MHRA or the ASA.

 

 

This email was sent to a rep and she put it on Facebook.

 

See Botwatchblog’s analysis of Vida Divina.

 

Forever Living

Forever living do not have any products listed with the MHRA for medicinal use, including for use as a Traditional Herbal Remedy.

There are no allowable health claims for their products.

In the EU, companies can apply to their own country’s authorities for authorisation to sell their Aloe Vera products as a constipation cure, but that would be the only allowable claim.

In the USA, the FDA removed Aloe Vera as an allowable drug to be sold over the counter. It is now used there as a supplement. The US Department of Heath and Human Services say this about Aloe Vera.

Forever Living’s products are not illegal to sell, but it is illegal to sell them as being medicinal in any way in the UK. I imagine it would be pretty hard to sell the products without being able to make any claims about Aloe Vera, especially when you bear in mind that testimonials are not allowed either, even verbally.

 

Juice Plus+

Juice Plus+ are not registered with the MHRA in any way so they are not allowed to make any health claims for their products in the UK. Their products are classed as supplements.

Please be aware that there is vitamin A in these products so they really should not be used by pregnant women.

 

Ariix

On the 11th September 2017 I came across this message on Facebook from an Ariix seller.

“Higher levels of ingredient than UK legislation likes” means illegal then!

So Optimals, Power Boost, Beauty Boost and Restoriix are illegal to sell in the UK. I have asked Ariix for clarification. Here is their reply

 

Valentus

Valentus are trading illegally in the UK. See what happened to Charlotte Thomson in this Daily Mail report.

Do not buy or sell any of these products in the UK.

For more on this MLM, see this post on Botwatchblog.

 

Xerveo

 

Ganoderma mushroom does not have any allowable health claims in the UK. If this coffee is sold in the UK, there can be no weightloss claims made about it or any other claims that it can do anything to your bodily functions. It can only be sold as a normal coffee.

At £40.95 for 24 servings, that is expensive coffee.

 

How to check for illegal health claims

In the EU, there is a database you can check to see if the claims for your product are illegal or allowed.

Please check here before making claims or copying adverts for products with medicinal properties. Clicking on the link takes you to this page-

Please click here to check out claims made for food ingredients. This is the page you get when clicking the link.

Search here for the scientific information about an ingredient and its uses.

 

To check if a product has this allowable use in individual countries, you need to check the individual country’s databases. In the UK, it is the MHRA that police this.

This database lists all the names of products, the company that makes it, and the allowable claims for it.

 

 

 

 

 

 

 

 

How to choose a Network Marketing company to work with

This is a serious article and is not a spoof or a trick. It is not an attempt to get you to sign up to anything.

This article gives pointers to people who are in Network Marketing and are looking for a new company. I am not against the individuals who are in these schemes. This site is aimed at facts and exposing the realities of Multi Level Marketing.

I am forever seeing people go from one company to another and making dreadful mistakes along the way. Some of you have been led into illegal schemes or tricked into doing illegal things yourself. Many of you will have had your reputation affected and gone through a lot of trauma.

A bit of research before joining a company could save you a lot of trouble.

 

Products

What are the products? Don’t be swayed by the level of commission or an assurance that the products will ‘sell themselves’. Products do not sell themselves, you have to sell them. If you don’t wear make up, don’t sell make up. If you aren’t into sports, don’t sell sports products. You will have no credibility if you try and pretend you know about these things.

You could run the risk of looking like an idiot if you are selling something you know nothing about. It is not enough that the company provides training in the products. People will see through you. People with a real interest in the market will spot you a mile off.

Is there a market for the product?

Will people actually buy the product for what it is? Is the price reasonable? Do you know of people that will buy it because they want it? If they saw it in a shop, would they buy it? You need real customers, do not rely on friends and family who you think will support you. They may initially order from you to be supportive, but you do not want pity purchases. Pity purchases dry up, and can cause resentment between you and people you care about. Friendships are more important than selling a lipstick. Ideally, you would want repeat customers who like the product and ask you for it, instead of you chasing them for orders.

Do you want to sell to customers or will you have to beg?

Is the company registered at Companies House?

It doesn’t take long to check a company is registered and their accounts can be looked at. Go to their website and type in the company name in the search box. You can find out when the company was incorporated, who runs it, all sorts of information. Take a bit of time to look into the details that you find out.

It isn’t enough to be told by someone you work with that a company is legitimate. Find out for yourself. It really doesn’t take long. If you are investing your time and money into a scheme, you really should be doing these background checks. Google the names you come up with. Have any of them been in trouble with the law? If there is no information on them anywhere, this might not be good. You would think that someone who has set up a business that is going to be really successful would have experience and leave a footprint all over the internet on their previous activities.

Compensation plan

Have a look at the compensation plan. Do not be distracted by people or figures that show you can earn a lot of money at the top. Have a look at what you think you are likely to earn.

If you need to host parties, how many do you realistically think you will do? It may be suggested that you do 2 parties a week to earn a certain amount of money. How realistic is this? How many people do you know that will be happy to host parties for you? How far away will you have to travel? How much time and cost will be involved? Two parties a week does not sound much, but could you keep it up for long?

Don’t get carried away with what could be possible. Work out what you can realistically achieve. Look at the details. Work out a plan properly. If someone says it is easy to set up parties, ask them for the details on how they do it. If someone tells you it is simple and no effort, they are likely not being honest with you. Especially if they are trying to persuade you to join their team.

Are there minimum amounts of money that you need to bring into the company every month? Companies have different amounts that you are expected to bring into the company in order to remain active and to earn bonuses. Find out what this is. Will you be expected to make up the amounts with your own purchases? Wold you be buying these products anyway at these prices or would you end up spending money you would otherwise have spent on bills? People think they will just make up the amounts on their own purchases for a bit, and then their businesses will take off and they won’t need to anymore. This is not a good tactic. You will be wasting your money and you could end up being your own customer.

Advertising and marketing

Check what type of product you will be selling and what the selling points are. You will need to find out what claims are allowed and which ones are illegal. When you put claims on social media, you are as responsible for the advertising as a standard company is when they advertise on the TV or in magazines. Officially in the eyes of the law, you are responsible for your claims.

If a company sells coffee and you market it as weight loss coffee, you could get into a lot of trouble if you break advertising rules. Have a look at the CAP rules for the UK. This page tells you nice and simply some of the main advertising rules you need to adhere to, like what you can and can’t say. It covers weight loss rules, before and after pictures, testimonials, health claims etc. If you are told to sell a product by claiming it can do something like increase metabolism, cure diabetes, lose weight, help with depression, you need to check this is actually allowed.

Link to weight loss rules at the Advertising Standards Association.

Have a look at this index from the ASA that covers all the advertising rules you’ll need. There’s sections on competitions, environment, customer data, health claims.

If you are satisfied that the product claims can be advertised by you legally, you will be in a good position. The last thing you want is the ASA telling you to remove content or Trading Standards turning up at your door. You will not be able to blame the company for your claims, it is you that is responsible for it.

It is not acceptable for you to say that you were told to make the claims or that you just copied an advert. Make sure you carry out your responsibilities seriously.

If a company just sells weight loss coffee but you know you cannot sell it as weight loss coffee without breaking the law, could you sell it just as coffee? If not, you might want to find another company.

The DSA

Some people will tell you their business is legitimate if it is registered with the DSA. However, this does not provide you with any protection at all. Some companies have been with the DSA and been shut down by the authorities for being a pyramid scheme. The DSA is made up of people that run Network Marketing companies. They act to protect the companies, not the individuals signing up as reps. People who have complained to the DSA have found their complaints just passed onto the company.

Beware the hype

I’ve seen the hyped up videos, you probably have too. You know, the ones where someone is screeching  about the amazing opportunity they have just stumbled upon. Join now, it’s amazing, they’ve looked into it and it’s perfect. DO NOT TAKE THEIR WORD FOR IT! You may like them and trust them and want to join their team. You may even have worked under them before.

Signing up to a new company should be a big decision and not taken lightly. Do your own research. You don’t need to tell the person you don’t trust them. Check out what they are saying, follow the points in this article and decide for yourself if it is a good opportunity for you. If you decide it is legitimate and you think it is for you, join up. If it isn’t for you, find something else instead.

If you decide not to join and you are put under pressure, remember you are in charge of what you do and which company you chose. You should not be working with someone who tries to pressure you into their team. That’s not how professional people behave, that’s what bullies do.

How will you get paid?

Being paid isn’t as simple as being paid straight into your bank account. Most MLMs pay into a third party account. You might be charged for withdrawing money or there might be minimum balances needed before you can access it. Some companies pay bonuses in the form of stock or discounts on their products. Is it important to you how you get paid?

Is it an illegal pyramid scheme?

This can be a tricky subject and I have seen may different interpretations on what a pyramid scheme is. It is usually the people who are recruiting that give the loosest definition. You should be familiar with pyramid scheme laws so that you can avoid one. Here is an article I wrote that brings together the relevant rules for England and Wales. Have a look. There are links to the actual law so you can see with your own eyes what the law is.

In summary, the big rules (In England and Wales) are-

You cannot be your only customer

There has to be a product or service that is sold

You cannot spend more than £200 in the first month in a scheme

You have to display the statutory wealth warning on recruiting adverts

There are some irrelevant ‘facts’ that you might hear to explain pyramid schemes like- “corporations are pyramid schemes, if people can overtake you in the pyramid it is not a pyramid scheme, it is registered with the government so it must be ok, I have earned money so it must be ok…” No doubt you will hear all sorts of rubbish. Listen to what people say by all means, but check out what the actual law says. After all, it could be you that is breaking the law if you are not careful.

In the US, you need to look at the FTC’s rules. Have a look at what they said about Herbalife.

 

Extra costs

What sort of training is available? Some companies provide training manuals or online modules as part of the joining fee. Some will charge you for it. Some will charge you for training courses. Some will expect you to travel long distances at your own cost and pay for your own hotel.

Are there events that you are expected to go to? Herbalife have recently been in trouble and are being sued for their events. They told people they would make money if they attended all the events. These events turned out to be a money making exercise and did not help anyone make any money.

Have a look at postage and packaging fees. Will you have to pay for it if you order for a customer? Younique presenters and LuLaRoe end up paying a lot for postage. Is there a minimum amount per order?

Will you have to pay a fee for having a back office or for being paid? Will you have to pay a fee to your upline to be in groups ( I have heard of this happening).

If the person trying to recruit you tries to fob you off and not answer your questions properly, or tries to tell you not to be so negative, take this as a warning sign. It is perfectly acceptable to work out what your running costs are going to be before you invest your time, money and reputation in a company.

 

Look for criticisms

Other people may have been in this company and had problems. What problems did they have? It will be useful for you to know how others have done. You may be told not to look for ‘negativity’ and to stay as positive as you can. This is not helpful when you are assessing a business opportunity.

Imagine you looked up a company and found a criticism about the product availability. Maybe there is never anything in stock or there is a three week wait for stock. This would be useful to know. What if people are never paid the correct money or ex members complain about hidden costs? You need to know this.

Make your own mind up over what you are going to do with this information. You may want to dismiss it as the ramblings of a bitter ex-rep. You may decide that the problems are going to be a problem to you to.

Deciding to ignore any criticism and any problems could backfire on you. If you have a friend who has concerns about the opportunity, do not dismiss them. They may have a valid concern. Listen to what they say and then make up your own mind about it. There is no need to fall out with them or cut them out of your life. It is a very special thing to have someone looking out for you and telling you what they think.

Of course, there is a difference between someone who dislikes you and makes mean comments, and someone who is worried you will make a mistake. Please dismiss the nasty people, but listen carefully to worried people that love you. You don’t have to do what your loved one says, but it is hurtful and unnecessary to cut caring people out your life who have not done anything wrong.

 

Understand what FDA accreditation means

Quite often, you hear the claim that a product has some sort of FDA backing. Is it certified, registered, certificated? Do you know what these terms mean? Do you know which applies to the products being sold? Have a look at this website that clearly sets out what they mean and how you shouldn’t be misled by the phrases. Don’t be impressed by the claims until you know what it means.

Your attitude

I get that you need to be positive, I really do. You deserve to do well, I want people to be successful. Boosting your self esteem and believing in yourself are good things. These can give you confidence and push you to try new things. These are healthy attitudes and help in everyday life.

I do not want to knock anyone’s confidence, or belief that everything will work out OK. What I do object to though, is the attitude that you can have anything you want, just because you want it hard enough. Your desires may give you the push to be more adventurous and give you a purpose in life. This is good.

What is not so helpful are the people who persuade you to ignore your rational thinking and natural curiosity and just do what they tell you to do, based on the belief that just wanting it is good enough. You need more than that. You deserve more than that, you really do.

If you want to be taken seriously as a business person, do your research. Don’t just hope it will all work out alright because your friend said it would. Think for yourself.

 

I hope you find the above advice useful. Remember the following points

You are responsible for your actions

Don’t take people’s word, find evidence

Don’t break the law

Listen to criticism, is there any truth in it?

How to leave an MLM

If you have made the decision to leave your Multi Level Marketing company, chances are you are filled with all sorts of emotions right now. And probably a few worries as well. Let me walk you through some things you can do to help yourself get out of your situation.

 

Be kind to yourself

More than 99% of people will lose money in an MLM, no matter how hard you try. It is not your fault that you did not become a successful millionaire like you were promised. It is not you that is the failure, the MLM system is set up to be like that. For the few to be successful at the top, the vast majority of people need to fail.

When you joined your company you were slowly and subtly subjected to techniques that changed the way you think. It is possible you ended up doing some things you were not proud of. Some people feel ashamed of some of the things they did and said and how they treated people.  Please do not feel that any of this makes you a bad person or that it is your fault it all went wrong.

You would do well to think of yourself as a victim of a fraud. Take some time to examine your thoughts and feelings and try to be kind to yourself. You have been through a traumatic experience that should not be underestimated.  If you are having trouble with your thoughts, you would do well to confide in friends and family or even seek counselling.

 

Reconnect with old friends

You may have unfriended people on social media or declined social engagements, withdrawing into your MLM. Perhaps you cut off friends and family that you thought were not being supportive of your ‘business’. These people cared about you and you may have pushed them away.  Maybe some of them unfriended you when you constantly tried to recruit them or persuade them to hold parties or buy products.

All is not lost though. Your good friends and your family will have seen what happened to you and they may well have been very concerned for you. They might be very upset at losing you. I have had some very distressed people contacting me about people they love who have been lost to them because the MLM took over their lives.

Reconnect with people that you have lost touch with. Don’t just add them as friends on Facebook because they might  think that you are still trying to sell them something. Send them a message or phone them. Explain what has happened and how you have left the company and you want to catch up with them. Chances are they will leap at the chance of meeting up and will be very happy for you.

Be aware as well though that relationships may be a bit strained at first as your friend could be wary and may not understand what happened. Be patient with them and explain you want to get back to the old you and you need their help.

Your upline

I think it best that you don’t tell your upline until you have formally left the company. There is always the chance they might persuade you to stay and you could be quite fragile at this point. Some uplines might be lovely about it but others could turn nasty. It is probably best that you don’t find out how they treat leavers until after you have left.  They may be charming at first and promise you things, sweet-talking you. Then they might turn to blaming you for your ‘failure’ and try to make you stay on a bit longer. Here are some things that were said to an MLM escapee.

“Thing is if you are 100000% dedicated and WANT it to work…. there’s no way you can fail”

“Lots of people do give up. Everyone wants the success but not everyone is prepared to do whatever it takes. This business seriously changes lives.”

This is victim blaming. You cannot be successful just because you want it. You should not be expected to ‘do whatever it takes’ to make any money. You will have been having a bad experience because the system is designed for you to fail.  You are the gambler and the house has won again.

Your upline will most likely be finding it hard to recruit and make any money so you leaving is going to make their job even harder. They don’t want you to leave.

 

Cut all ties with your old company

Shut down your Facebook groups, unfriend MLM people that you do not know, and probably never even met. There are likely hundreds of them and they won’t even notice you disappear. Remove yourself from group chats, leave your MLM completely, do not even remain as a customer. Shut down any websites you might have set up. You need to make sure that you will not be tempted to join again. You do not need to see glimpses of special offers or news of a old upline doing well. You were tempted before and you could be tempted again. Are there any website or group fees that might be automatically renewed? Make sure you cancel them.

You need to protect yourself from having another go. Like an alcoholic giving up drink. You don’t want to have just one little drink in case you get drawn into alcoholism again. I think being in an MLM can be like gambling, hoping the next move will be a good one and you will be lucky this time. Throwing good money after bad, trying to win back more than you lost. The good feeling when you make a bit of money, ignoring the money you lost and will lose again.

You may need to assess for yourself who you cut out and who you stay in contact with. Perhaps a very good friend recruited you, or your sister. It is entirely possible to maintain good relationships with these people. You will need to think long and hard about how to deal with some people. If they turn nasty or start spreading things about you, delete and block. They can try and make amends when they see the light, but for now, you can do without that kind of aggravation and stress. They aren’t trying to help you, they are trying to hurt you.

 

Get rid of all your products

You might be able to resell a lot of it back to the company. They are obliged to buy back a lot of it, depending on which country you are in. Most MLMs have a ‘buy-back’ clause which is supposed to protect people from stockpiling products and being called a pyramid scheme. Have a look at your terms and conditions. You won’t be able to get all of your money back but it is worth a try.

If you are backing out less than 30 days from joining, you may be able to get most of your money back. This is to do with having a cooling off period when making an online purchase. Again, check your terms and conditions carefully.

Make sure you cancel any autoshipping agreements. These won’t automatically be cancelled when you leave a company.

Sell any of your left over products on Ebay. It’s what thousands of people end up doing. The MLM won’t be able to do anything about it. You won’t get a great price, but there isn’t much else you can do with it.

 

Believing in the product

MLM products are often very poor quality with no real customer base. The only customers are the people selling the stuff or friends and family of the reps buying out of a sense of duty. I have often seen people who have left an MLM but who still believe in the product and still purchase it. Please analyse the product and look at similar products. Note the price and quality difference. You will have been told lies about the products and have started believing in them. You have to believe in the product to sell it so you may have made yourself like it. Please be objective. Stop purchasing these products because you will be supporting the company and enabling it to continue.

Many MLMs make false health claims. Please look into a product if you have been using it for health reasons. Chances are, it isn’t good for you at all.

 

Here is an example of an MLM product-

They sell 12 bottles of Cheddar water for £14.76 ( £1.23 a bottle). Go to Cheddar water’s website and you can get 24 bottles for £12.72 with 10% off at the moment as well (48 p each).

How can they get away with that sort of mark up? Because they convince people that their product is great and everyone believes in it so much, they don’t question it.

Here is an extract from this MLM’s magazine.

 

 

Deal with money problems

It is likely that you have been spending money irresponsibly, seeing it as an investment in your business. It is easy to spend a lot of money in an MLM. Add to this the factor that you probably really needed money when you started, could be a recipe for disaster.

Face your money issues head on. Be assured that your money problems would have continued to get worse had you stayed. At least now you can be realistic and unbury your head from the sand. I have written a blog post on money issues which has contact details for organisations that can help. Also there are some ideas on how you might make some money from legitimate sources. I haven’t been paid for any of the links or information in these posts. You will not be directed to my own dodgy scheme as you often see in MLM type blog posts.

 

It is not your responsibility to bring down the MLM company

Some people react to their experiences with anger and horror. They can become obsessed at fighting MLMs and warning everyone about them. This can sometimes come at a high personal cost, and overshadow people’s lives. The Freedom of Mind website has a very good article on this phenomenon which is worth reading.   It describes how people are confused and angry and need to get over what happened to themselves instead of lashing out and being consumed by the overwhelming need to do something.

It’s kind of like seeing a bad driver and getting road rage. It isn’t up to you to shout at the bad driver and stress yourself out about it. Accept there are bad drivers and you do not need to put yourself in front of them, swearing and threatening. The best thing to do is to drive defensively and keep calm. Don’t get into a fight where you might get hurt and your blood pressure is at risk.

 

Law of Attraction

This theory is rife among MLM members and you definitely will have come across it. How much you believe in it is dependent on how long you were involved. For those unfamiliar with it, here is an illustration.

If you believe in this, you may be thinking your ‘failure’ is due to you not trying hard enough or being negative. You didn’t believe in yourself enough. Again, this equates to victim blaming.

Please stop believing this sort of dross. You may need to examine your thinking for quite a while after leaving your MLM. You may experience your inner voice telling you that everything is your fault, you haven’t tried hard enough, that you have invited failure into your life.

Please, please be aware that if you have made the decision to leave MLM, this means you have become aware of the reality of your situation. You will now be able to make sensible decisions to get your life back on track. Don’t let the nagging ‘law of attraction’ crap cloud your freedom. You don’t have to pretend anymore that everything is ok. Be realistic and practical, drop the false hope and gratitudes that you may have been encouraged to indulge in.

You can be you again. No more pretence. No more prospecting, no more looking at people as potential recruits. Just be you. The you that used to have hobbies and interests and friendships based on fun and support, not based on who can give you success. Friends can be very forgiving if you give them a chance. Explain to them what happened to you and ask for their forgiveness if you need to. They have probably been waiting for this moment.

 

Thanks

The information used in this post has come from the experiences of people who have left an MLM, as well as from reading around the subject and from my experience of supporting people through the process. I hope you have found it useful.

 

I would like to thank “Chammy in real life“, Elle Beau and the numerous people who have explained to me over the last year or so what it is like being in an MLM. It is because of the people that speak out that we know what is going on.

 

If you have left an MLM and have any more tips to add, please comment below. Thanks.

Directory of MLM information.

If you are worried about someone in an MLM and want to know what is going on with them and how you can help them, have a look at these links-

How to help someone. Explains how to research MLMs and how to speak to people in an MLM.

Having second thoughts. Aimed at people who have joined an MLM, might help them see the truth.

Someone who cares about you is worried. Explains to people why you are worried about them being in an MLM.

Expectation versus reality. Aimed at people considering joining an MLM. Information from ex MLMers about the truth of what really goes on.

Watch this You Tube film by Ethan Vanderbuilt that has some advice.

This Skeptoid article gives you three options on what to do if someone you care about has a worrying belief in ‘woo’, whether that be a ‘cure’ or a financial trap. Well worth a read.

MLMs in General

Elle Beau’s story about her real life experiences whilst in Younique, or Poonique as she calls it. Many people have said they can relate to her story. It shows you how people can get sucked in and what really happens once you join an MLM.

Are All MLMs Scams? By MLM Alert.

Is it a pryamid scheme? by TINA

MLM bingo, what they all say. By BotWatchBlog

Lazy Man and Money explains why MLM health products don’t work.

10 big lies of MLMs by MLM Watch.

How to identify a product based pyramid scheme by MLM Watch.

The Talented Ladies Club has written an article on ‘The seven lies an MLM rep will tell you- and the REAL truth you need to know.’

Albania had a near civil war with thousands of deaths in 1997 due to the collapse of pyramid schemes. New York Times article about it.

Assess an MLM to see if it will make you money or if it is a scam. A simple 5 step assessment with explanations for each point. Written by an expert.

The Anti MLM Coalition is a group of people fighting MLMs and supporting ex reps and reps who find themselves in difficulty. Bot Watch is a member. We aim to provide a lot of information and collect people’s personal stories to share.

Timeless Vie- Facebook page and Blog. They are an MLM parody site that aims to educate and support people on all things MLM, with the aim of stamping out MLMs. Contact them with your questions or experiences.

Bot Watch- We have a Facebook page too if you want to contact us in confidence with questions or just ‘like’ us and keep up with information. Follow us on Twitter (@MLMBotwatch) for developments. There’s always something kicking off in the MLM world.

Information on specific MLMs

If you know of any more MLMs or have any links or information, please contact us at Bot Watch and tell us about them.

1st Phorm

Their website. They operate in the US.

They sell sports clothes and supplements aimed at sporty people. Their sports leggings cost $60.00. They have a ‘110% guarantee’ where they will refund 110 of the retail price if people are not happy with their purchase. This only applies to proper customers though, not the reps.

Their reps are called ‘Legionnaires’ and ‘sponsored athletes’.

Founded in 1999 by Andy Frisella and Chris Klein.

Short discussion about them on this bodybuilding forum.

In 2013 the company were sued by someone who used one of their diet pills and suffered a stroke. News story here.

There are many contraindications for using the products- being under 21 or over 55, having depression, seizures, psychiatric disorders, thyroid problems, diabetes, enlarged prostate, glaucoma, difficulty urinating, kidney disease and recurrent headaches. They shouldn’t be taken with antidepressants, NSAIDS, MAO inhibitors, aspirin or drugs containing stimulants.

Possible side effects include chest pain, dizziness, irritability, nervousness, tremors, severe headaches, irregular heartbeat, nausea, and shortness of breath

 

2xtreme Performance International

Shut down in 2000 by FTC. They found that their earnings claims were not realistic and people would not make what was promised. This caused the FTC to label it a pyramid scheme.

For further links on this MLM, have a look at this website.

4life

Their website. They sell supplements. Policies and procedures.  They operate in many countries.

Their income disclosure statement shows that approximately 80% earned nothing. 20.9% earned less than $59 a month on average, before expenses. A very very tiny amount of people earned anything decent. Their figures add up to over 100%.

They are members of the DSA.

5linx

Their website. They sell loads of different types of products (security, business products, coffee, health products)

Pissed Consumer have numerous bad reports about this company.

Details about lawsuit and fraud allegations against 5linx’s ex President.

7 Minute Workout

31 Gifts (see Thirty One Gifts)

100% Pure

A Bit Rude

Australian MLM. They sell adult products.

I’d tell you more about this MLM if I could remember the password to get the child lock off the internet rude filter.

 

Abby+Anna’s Boutique

They sell clothes and accessories. In USA only. Their website.

They operate in Puerto Rico, USA and Guam. They hope to expand to Canada in 2018.

Abundant Health Ltd

ACN

Their Canadian website has some earnings figures from 2010. Why 2010? Are their figures worse now? ‘Not all IBO’s make a profit’. How many don’t make a profit? They don’t tell us. Their figure of $500 a year earnings only include active members that earned money. What about all those that didn’t earn any? I think they are relevant! IBOs have to make a yearly payment to remain members of US$149 and purchase training materials and attend events at their own expense. Source.

Ethan Vanderbuilt says ACN is a legal scam. This website has a very comprehensive breakdown of ACN and the facts behind it. Well worth a read if you want to know more about ACN.

Some researchers have found that participants lost on average $605. Fewer than 1 in 200 people will recover their initial investment.

ACN have been linked with Donald Trump. The National Review discuss how Donald Trump associated himself with ACN for years and made millions of dollars from it. He then denied knowing anything about the company when he started his presidential campaign.

IBOs in ACN are not allowed to solicit customers from cold markets. They have to persuade friends, families and other people known to them to buy the non-competatively priced products.

An ACN whistleblower’s story.

ACN Policies and Procedures.  From the policies-

“B. Eligibility for Compensation. In order to receive compensation, IBOs must maintain a minimum number of phone points per ACN’s Compensation Plan.”  This means that you may make an investment, put time and effort in, gain customers and make sales but still get paid nothing.

The policies also state that, should a disagreement occur between the IBO and ACN, the IBO/exIBO is not allowed to sue ACN in a class action suit. Also, IBOs have to agree that, should a disagreement come to court, they have to waive their right to a trial by jury!

Undercover investigation into the ACN  product.

Acti-Labs

“Surgery like or medically inspired treatments for use in the home.”

Used to be called Actiderm. They just changed the name in 2016 to take into account that they are introducing non-skin products. In America they are called Acti-labs Paris. Some of their products still have Actiderm on them.

Compensation plan.

Here’s someone who has used their  wraps on their arms. Do we think the results are down to the wraps or from turning her arms round?

This is a British company registered first as Aesthetimeds Ltd. and then Acti-Laboratories UK Ltd. Aesthetimeds was set up in 2006, buying beauty products made in France and selling them using  traditional methods. In France the manufacturing company seems to be called Cosmetic Research Group, with the brands Soskin Paris, Tom Robbin and Hellionature. In the UK Aesthetimeds  started using a multi level marketing scheme to sell their Actiderm products in 2011. Aesthetimeds Ltd changed its name in Dec 2015 to Acti Laboratories Uk Ltd. It is owned and run by Christopher Hillyard-Miller and James Hillyard-Miller, chemists.

This Actilab blog seems to imply that the French company Cosmetic Research Group and Actilabs are the same company but I can’t find out who owns the Cosmetic Research Group. It looks like a French company make lots of different types of cosmetics, including a line called Actilabs that is sold in the UK and now USA through MLM.

Related companies that have been set up and dissolved by these people are-

Aesthetimeds research group Ltd– opened and closed in 2010.

Institut Soskin Ltd  opened and closed in 2007.

There is no income disclosure statement available which should be a red flag. They say they will be opening up in Canada soon so maybe there will be one then, as it is required by law there.

Addlife

Adjuice

Adornable.U

Advance Finance Inc

This pyramid scheme was shut down and the owner sent to prison for 5 years. Gary A. Eisenberg was the owner who conned a lot of his family and friends. Los Angeles Times news report here. His scheme involved getting an ‘investment’ from people and he used the money to loan to companies. He used the new investment money to pay interest to the older members.nds will not be available for 6

Advita Energy

Advocare

Website against Advocare called Advocarefacts

Advocare is mentioned in this New York Times article on the Olympics and supplements.

FB group against Advocare- Advo-Truth

Lazyman and Money’s assessment.

Another article criticising Advocare. You just need to ignore the pop ups and promotion of the author’s own scheme.

TINA’s investigations into illegal health claims made for the products.

Bottlesoup do a financial analysis on the earning potential.

Income Disclosure for 2015. These figures are annual payments. Let’s hope your team managed to buy $500 of stock every month to make you eligible for payments.

Aerus Elecrolux

Agel Enterprises

Akasuka

Alice’s Table

 

All’asta

Reps arranged auctions for their own and party hosts’ things. They also seemed to have a catalogue and stock? It’s all a bit confusing. They called their reps ‘Independent consultants’. Review here.

It won the DSA’s 2015 ‘Rising Star Award’.

Their twitter account was last updated August 2016. Clicking on the links doesn’t work. Their website domain is available to purchase. It seems to have gone without trace or explanation.

Alliance In Motion Global/ AIM Global

Their website. They sell Natura-Ceuticals supplements.

They predominantly operate in Asia and the middle East. One of the products they sell is a skin lightening cream.

They hold a world record

Like many Asian MLMs they have a hand signal.

Allysian Sciences

Aloette Cosmetics

Aloe Vera of America

Bought out by Forever Living Products.

Alphay International

AlurVe

Their website.

They sell anti ageing beauty products.

They seem to have problems with their website or they have shut down. When I clicked on the link to see the products, there were none to be seen. When I clicked on ‘opportunity’, I was redirected to a page telling me I could buy that domain name. The date on the website is 2016, is this when it closed? Why no message saying it is closed? Why no explanation. These schemes just seem to go bust and abrubtly disappear.

Amare Global

Amazon Herb

Ambit Energy

Their website.

Member of the DSA. They sell gas and electricity. They operate in the USA and Japan. Started in 2006 by Jere Thompson Jr and Chris Chambless.

Lots of complaints from disgruntled customers on this website. Along with glowing reviews from reps. Complaints include cheques bouncing, bills being put up after a year, poor customer service. A few people are saying that if you don’t renew your package after a year ( as a customer), you are put on the highest tariff and end up paying $50 a month extra. If you try to leave the company they charge you $199.

Pissed consumer website has a lot of unhappy customers.

Amega

American Income Life

Ameo

Ameriplan Dental Plan

Amore Pacific

Won a DSA award in 2018 for being number 35 highest ranking ‘direct selling’ company.

Amsoil

Amway

Merchants of Deception– a free book about one man’s experience in Amway. Most MLMs these days seem to be based on this MLM.

A Polish subtitled video  from 1997 that exposes Amway for what it is. Actual footage from meetings. Former members share their experiences.

An investigative undercover program looking into Quixtar/ AKA Amway.

FTC proceedings against Amway in 1979.

David Brear’s assessment of Amway. David Brear’s website, The American Dream Made Nightmare.

The Finance Guy analyses the financial figures for Amway and finds the average person lost $1176 in 2010.

TINA’s investigation into illegal health claims made for Amway products.

If you look up Amway on Companycheck, you will find AMWAY (EUROPE) Ltd is worth £223.8 million. There are many other Amway entries in Companycheck where sellers have registered themselves when they joined Amway. You can see how well they have done. There are 45 companies with AMWAY in the title. One of them has earned money in addition to Amway (Europe) and that was a freight company, nothing to do with AMWAY. All of the others say N/A for the figures or show a loss, here’s some examples-

Annique

Annmarie

Ann Summers

Unusual for an MLM, in that they have shops and sell products to the general public.

Go Compare investigate the earning potential and interview a party host. She points out that people only want parties at the weekend and it is only really possible to arrange 2-3 parties a fortnight, not the promised 3 a week. The poor woman blames herself for not trying hard enough.

The Guardian Explore Anne Summers as a career. They find that most people are supposedly (no evidence given) able to earn £80-£120 gross a week, but out of this comes their expenses and rental of the equipment.

An ex-Ann Summers party planner asks for advice at The Consumer Action Group after finding herself not earning money and ending up in debt.

AnRan

Apiori Beauty

Apollo

Aquasource UK

Their website.

Nutritional and skin care products sold in UK, Greece, Estonia, Russia, Finland, Croatia, Bulgaria and Macedonia. Owned by homeopaths David Howell and Robert Davidson.

Member of the UK DSA.

Arbonne

What you can expect to earn. Their income disclosure statement. and here, on their canadian site.  Their British website.

The earnings here are particularly poor. The independent consultants line at the bottom is only including 20% of the ones that bought/ sold enough stock to get a payment. AVERAGE EARNINGS OF ARBONNE PARTICIPATNTS IS $60-$500! A year.

Here is the USA income disclosure–

The above chart only contains the payment details of the top 13% that actually earned a payment by selling/buying the qualifying amount. I have worked out from this what the real average earnings are.

Total amount of people in the chart are 23000. Total payments made= $146,293,340. Total payments divided by the full 175,500 consultants= $833.58 a year. This figure still doesn’t take into account the people that joined and left during the year. The churn rate would need to be known to calculate more accurately the actual earnings. It is likely much less than the $833.58.

Compensation Plan. It is very complicated as product costs are converted into points and these points are accumulated to qualify for earning percentages of purchases and downline purchases. There is a minimum spend to qualify for payments but I haven’t got the time or sanity to calculate what it is. If you know and can explain in a few simple sentences, comment and I can update my information. Thanks.

An undercover Mirror reporter investigates Arbonne. He finds it costs about £1500 to get started. One quote from this piece- “I’m a traditionalist and prefer jobs that don’t involve buying stuff from the company I work for – and ones that come with a salary.”

Ethan Vanderbuilt classes Arbonne as a scam.

TINA’s investigation into illegal health claims made for Arbonne products.

Arbonne’s financial statements at Companies House in the UK.

Ardyss

 

Ariix

Also cryptically known as ‘The Opportunity company’. The symbol of Ariix is two infinity symbols, because

The ‘width and depth’ they are talking about here is the dimensions of the pyramid of people underneath you. There are not infinite numbers of people. Their statement is non-sensical.

A critique of some Ariix research.

Some background on Ariix’s doctor.

A person associated with Ariix giving a ‘nutritional talk‘ about a medical condition at a hotel for people with cancer.

Average earnings statement for Ariix sellers. A clip from that document-

In the UK, this equates to £814.06 Gross. For an entire year. Of course, some people at the top of the pyramid will earn more so people joining at the bottom will be earning a lot less than that. According to Ariix’s website, there are costs involved in order to be eligible for bonuses-

1PV seems to be $1. so it costs $150 to start with the company and $75 every 4 weeks to be eligible for bonuses. Over a year, this adds up to $1125. Take off the average earnings and the average person earns $69 in a year.

Timeless Vie interview an Ariix escapee.

Dr Fred Cooper, one of the founders of Ariix was still president of USANA when he started up Ariix, directly breaking the rules of USANA.

Arsoa Honsha

ASEA

Their website.

They think their products can stop aging at a genetic level?!?

They operate in UK, Denmark, USA, Spain, France, Hong Kong, and many other countries.

Their ‘science’ consists of trying to scare people with facts about ageing. Science Based Medicine looked at their science and found it to be very funny. Their article on it is worth a read.

The ingredients for their main product are listed as water and salt!

Their income disclosure shows the earnings of ‘executive ranks’ in 2014. It doesn’t say how many there are of these or how many there are in the company that are below that rank. I suspect there will be a lot of people they are not including in this chart.

If you search online for false health claims, there are LOADS! Here is someone claiming that ESEA products saved him from cancer.

Lots of information about ESEA from Lazy Man and Money can be found here.

Aspire/Digital Altitude.

(See entry under ‘Digital Altitude/Aspire)

Athena’s

Athome America

Atomy

Their website. They sell skincare products. Established in 2004 in South Korea by Han-Kil Park and then spread to America and the rest of  South East Asia.

The countries where they operate-

This review of Atomy has an interesting discussion at the end where contributors are either defending the company or accusing it of being a pyramid scheme.

 

Ava Anderson (see Pure Haven)

Ava Rose Designs

Avon

MLMs will use the fact that Avon is an MLM to legitimize the whole system. Everyone has heard of Avon and assume it is a good company. It used to be a direct selling company but has more recently become an MLM. Becoming an MLM has complicated things for them and tarnished their reputation. Have a read of Pyramid Scheme Alert’s analysis in this article – Has MLM corrupted AVON?

Costs involved in being an Avon rep- Can you make money selling Avon?

The Pink Truth’s article on AVON. It is worth reading the comments at the end.

There are loads of people complaining about AVON on Complaints Board. Here is a detailed one that highlights some bad business practices.

AVON have announced they will no longer have a presence in Australia.

A personal experience of an AVON rep is described on the Anti-MLM Coalition’s website.

Azuli Skye

They sell jewellery. Started in 2008. Members of the DSA.

Banners Broker

Shut down for being a Ponzi scheme. They were pretending to sell advertising.

Before they were exposed as being a Ponzi, they were accepted by the MLM community as being a normal MLM. One of their members was listed on a ‘top 100 earners list’, alongside other MLMs.

 

 

Simon has gone on to form his own company ( The Advert Platform) that is pretty similar to the Ponzi where he made loads of money. It sold advertising. More recently, it moved into cryptocurrency. As of April 2018, there seem to be problems paying the members.

 

 

 

Most recent legal papers. Tara talks gives a summary of all the legal proceedings and lots of links.

Ethan Vanderbuilt looks at the scam.

Open letter sent to affiliates-

Bamboo Pink

They sold jewellery.

Founded in 2011 by Frances Gadbois, Jude Steele and Debbie Millar.

 

Barefoot Books

Their website. They sell books. In America and Canada they are MLM, in Europe they just sell to bookshops and libraries.

The reps are called ‘ambassadors’. People in Canada can join by buying starter kits for $99.99 or $179.99 and pay a yearly fee of $49.99. There are no minimum amounts to spend to be ‘active’.

The founders are Nancy Traversy and Tessa Strickland.

Truth in Advertising investigated their false income claims and found quite a few. You can view them and the letter TINA wrote to them asking them to stop.

Bath.ologie

Their website. They call their reps ‘bathologists’.

People make their own bath products at parties (Blending Bars). The guests then make their own label.

Stacey Madsen founded Bath.ologie in 2011. It only operates in the US.

They had started applying for a trademark but this application was abandoned when the company stopped responding or were late with their paperwork.

May 24th 2018 it was announced that Bathologie were shutting down. They gave their reps one day’s notice to shut down their ‘businesses’. MLM News Report give the details here. Here is a screenshot from the email the company sent to their reps. As of 25th May 2018, their website is still up as normal and there is no public sign of the company closing.

Beachbody

Beachbody website.

Analysis by Lazy man and money.

Ethan Vanderbuilt says it is a scam.

17 Beach Body coaches describe why they left the MLM in this reaction to an anti-Beachbody blog post.

BearCere’Ju

BeautiControl

Their website.

They belonged to Tupperware but were sold to Youngevity in 2017.

Beautycounter

Beauty Society

BeCAUSE Cosmetics

Their website. Founded 2017.

They sell make up (unsurprisingly!) They claim to be cruelty free but they do not have Leaping Bunny certification.

Become International

Bedroom Kandi

They sell adult products

Beever

*snigger*

They sell hair care products. Launched in 2008 by Steve Beever, hairdresser, they initially sold products through traditional methods to hair salons. Since 2016 they have been following the MLM model.

Their website.

Registered at Companies House as Beever Haircare Ltd in 2014. Paul Hammond and Steven Beever are the secretary and director.

Beijo

Belcorp

Bell Lifestyle Network

Bella Branch

Sells jewellery.

Bella Vintaj

 

Bellaroma

Beyond Organic

bHIP Global

Big Planet

Biltmore Inspirations

Bioceutica

Biometics

BioPerformance

They sell fuel additives.

Biopro Technology

Blessings Unlimited

Established in 2006. They offered ‘Christian and inspirational products’ in the home décor market.

This is what their Twitter account says “Blessings Unlimited is a party plan business founded in 2006 by DaySpring Cards. Mission: To pursue the heart of God and bring blessings to others.” 

Dayspring cards have a website.

The Twitter account hasn’t been used since 2011. When you click on their website link for blessingsdirect.com, you are directed to Mary and Martha, another MLM.

This rep has posted a link to the website where it is saying it was a member of the DSA.

There isn’t much information out there about them. They seem to have just fizzled quietly out.

Bod·ē Pro

Body Alive

Body By VI/ Visalus

This MLM sell meal replacement shakes. There has been much criticism of these shakes, namely that they do not encourage healthy eating, their healthy diets are flawed, and there are some bad ingredients in the shakes. These two websites look at the MLM and analyse them.

Health Living, Heavy Lifting. This site looks at the shake and the marketing.

Graham Thomas Online. This blog post looks at the supposed science behind the products. There isn’t any.

Their compensation plan is mind-boggingly confusing.

Their arguments supporting the facts that Visalus is not a scam are

1. They give to charity.
2. Big companies have a hierarchical structure.

 

There is no income disclosure statement, even on the Canadian website. They don’t want you to know how much their sellers earn. Multilevel Marketing Madness is a website that has analysed the claimed earnings.

Body FX Direct

Body Shop at Home

Their website. They sell cosmetics, soaps, lotions etc. They have high street shops.

It was established in 1976 by Dame Anita Roddick and bought by L’Oréal in 2006. The Body Shop had prided itself on its high ethics and non cruelty to animals. The takeover by L’Oréal was seen as controversial by many customers. 1994 The Body Shop branched out into MLM and The Body Shop at Home started.

BBC video on The Body Shop story.

In 2017 The Body Shop was bought by Natura with high hopes for returning to its ethical roots.

An ethical website looks at the ethical issues of the takeover. http://www.ethicalcorp.com/how-brazils-natura-can-enrich-not-exploit-body-shop

Timeless Vie tell the story of one woman’s experience in this MLM.

An informant tells us at Bot Watch about what happened to her when she was a consultant for TBS at home.

Daily Mail story about a Body Shop at Home consultant and a questionable tactic of using children to get money out of.

Body Wise

Boisset Collection

Bookwise

Boresha Coffee

Boston Finney

This MLM had people selling the opportunity to buy electricity. Except they didn’t have any electricity to sell.

The California Public Utilities Commission shut them down. San Fransisco Chronicle details the case here. They report how reps were claiming it wasn’t a scam because they were getting paid.

Bounce Life/ Bounce Network

Their website. They sell insurance. They call their reps ‘bouncers’. They go on a ‘bouncing journey’ as they join up and try to earn money and recruit. They only operate in the UK.

They name their levels in the pyramid after jewels.

They don’t have an income statement.

Brain Abundance

Bud Star

Canada only. They sell marijunana products

Burn Lounge

Founded in 2004 and supposedly sold music online. In 2007 the FTC sued them for being a pyramid scheme. Here is the FTC’s website with details of all the legal stuff.

Press release from FTC about the money they have retrieved from the pyramid scheme to give back to the fraud victims.

Analysis of the case by False Profits website.

Buskins Leggings

Buyezee

CAbi Online

Their website. CAbi stands for Carol Anderson By Invitation. Started in 2001.

They sell clothes. They call their reps ‘stylists’. They operate in the US, UK and Canada.

Known as CABI Experience Ltd in the UK. Companies House has this entry. This is interesting-

 

This is on Companies House in March 2018.

 

It looks like they were going to be subject to a compulsory strike off but the company managed to avoid it. They were only set up in 2016.

It will be interesting to see if they do publish their figures, and if they do, how well they are doing. Watch this space!

Stylists refer to each other as cabi sisters.

It’s difficult to work out how much people earn as they don’t have an income disclosure. I found this though-

 

 

How much do shipping and postage cost? Let’s say $300. The rep then pays for nibbles, invitations, drinks, leaflets etc for the show ($50?). Outlay is $3100.

After the season, if reps do well, they might sell $3000 of stock. They are then $100 out of pocket.

Then the next season begins and it happens again.

 

 

If a stylist fails to sell a certain amount, they are not allowed to sell the next season. They have to attend two conference trainings a year which will add to their costs.

There are no details anywhere about how much UK reps spend. It is illegal for them to spend more than £200 in the first two weeks. Information is very sparse for the UK and Canada.

2015 Fortune article about CAbi.

Cal Nutrisciences

Cambridge Weight Plan, formerly Cambridge Diet

Members of the UK DSA.

Their website.

This is a diet company based on a keto diet. A bit like Weight Watchers but on an MLM model.

Captain Tortue

Their website.

They sell French clothing for women and girls. Members of the UK DSA.

Carico International

Cashback World

See Lyoness

Celadon Road

Celebrating Home

Cellements

Their website. They sell 3 different types of sprays that come in credit card sized containers.

They are based in Estonia and started by Anders Karlsson. He was a big earner in Vemma.

Behind MLM review.

Chalk Couture

Chalky and Co

Chandeal

Charle

Charlie’s Project

Chaum

The Chefs Toolbox

This MLM went into liquidation 15th November 2018.

Their website.

Australian  company selling cooking stuff. Founded by David Mills in 2003.

This Product Review website documents complaints about the products. As is usual for MLM companies, there are 5 star and 1 star reviews, with not much in between. A common complaint is that when the products fall apart, the customer is told they weren’t using the product properly.

Chez Ami

Chloe and Isabel

They sell jewellery.

Christian Bling

Faith inspired jewellery.

Cieaura

ClaudiaG

Jewellery and bags.

Clever Container

Their website. They sell containers. They operate in the USA. Started in 2006 by Karen Eschebach and Jennifer Weaver.

Member of the DSA. Stephanie Merrick Blaser is the president.

Close To My Heart

Cloud 9 Parties

Coastal Vacations

Color Street Nails

Their website. They sell nail polish strips. Based in New York. They operate in the US only. Their terms and conditions.

Color by Amber

Their website.  They sell jewellery and are environmentally friendly.

There is not much information about this company.

There is no income disclosure.

Color Me Beautiful/ Colour Me Beautiful

They call their reps ‘consultants’ and their parties are called ‘Beauty Hours’.

Their website. They sell clothes, jewellery, cosmetics and bags. It was founded in 1988 by Mary Spillane. They do not have ‘Leaping Bunny’ status to show they are cruelty free. This does not stop the reps from claiming they are ‘cruelty free and no animal testing’. Have a look on EBay to see what their reps are claiming. There’s plenty of unused stock being offloaded there.

I cannot find an income disclosure for this company.

The book ‘Colour Me Beautiful‘ came from this MLM that explains their theory on how to work out what colours suit you.

Conklin

Cookie Lee

They sell jewellery

Cookie Lee founded the company in 1985 and it became MLM in 1992. It operated in the USA only and was a DSA member.

2013 the company was sold to a real estate company.

Compelling Creations

Member of the DSA. They sell jewellery with faith inspired messages.

The Coral Connection

Country Gourmet Home

Country Scents Candles

Country Suds

Cosway

Their website.

Based in Malaysia. Member of the DSA. They sell ‘health and beauty’ products.

Cprime

Creative Memories

Credit Repair USA

Crunchi

Cryptonian

Cutco

Their website. The sell knives and kitchen equipment. They started in 1949

They call their reps ‘specialists.’  People can have home parties and recruit people under the company name ‘CUTCO at home’.

Vector Marketing are part of CUTCO. They have Direct Selling reps that just sell the products and are paid a fee for seeing customers. See this Wikipedia article about it.

The company targets college aged people to sell for them and they have been accused of employing very deceptive tactics. There have been a number of law suits against them.

A group called SAVE (Students Against Vector Exploitation) was set up by someone who successfully sued Vector for breaking labour laws.

In 1990 they were sued by the Attorney General in Arizona.

In 2008 they were sued in a class action for failing to pay wages and tricking people into joining up. (Harris v Vector Marketing Corp) The case was last in court in 2010 when the court said the case could go ahead. It is about the company not paying their employees for the two days of training they have to do.

CVSL

Dakomodo

I’ve not found out much about this one. Komodo is a cryptocurrency.

Damsel in Defence/ Defense

DasCoin

Launched in 2015.

DasCoin is the cryptocurrency associated with MLM called Coin Leaders/ Net Leaders. Reps have to purchase a ‘licence’ from Netleaders to participate. It is this licence and membership into the group that is sold.

John Pretto is the owner of Net Leaders. He was high up in the One Coin scam.

Discussion about them in a forum here. They discuss how ‘education’ packages have to be purchased and that people are rewarded for recruiting.

Behind MLM wrote about Dascoin in a less than positive light. It claims that it is a Ponzi scheme.

Twitter account @DasCoinScam are ‘outing the DasCoin scammers one at a time’.

Ethan Vanderbuilt reviewed the company. He says it is a scam.

Dazzle and Daze

Demarle at Home

Detech

Diana

Digital Altitude/ Aspire

Founded by Michael Force.

Their website.

From their website-

It’s not strictly an MLM, more like a scam aimed at people who want to do better in MLMs.

They have been found to be making false income claims by TINA. They found more than 100 of these claims!

The FTC filed an injunction against them and this was approved in March 2018. For a discussion about the case, see TINA.

From TINA-

Dione Cosmetics

Direct Cellars, sometimes referred to as DC Nation

An MLM wine membership club. They operate in US, UK and Australia.

Companies House information.

Their Facebook page.

Their website is Directcellars.com.

Owned by Peter Sperling and opened in America in March 2017. UK company details held at Companies House. Incorporated in the UK on 25th March 2016.

Their income disclosure and compensation plan.

There is no retail commission. Participants are paid purely for signing up reps. They have to pay a monthly fee. 40QV has to be spent by the rep each month to remain eligible for payments. This seems to be £88.95 ($125.16). Over 12 months is $1501.92. Add in expenses, and the rep doesn’t earn much. They will probably make a loss.

Discovery Toys

Divvee

Launched in 2016.

In 2018 they rebranded as Nui. They have a very confusing history, changing names and what they sell. Review at Behind MLM.

 

Do TERRA

Analysis by Lazyman and Money.

Bottle Soup website looks into the financial details to work out how much money can be made in Do TERRA.

DoTERRA have claimed their essential oils have CPTG certification or that their oils are FDA certified. They are not FDA certified. CPTG is a mark made up by DoTERRA, it means nothing. These points are covered in this article.

DoTERRA recommend adding their products to food or drink. (12-24 drops a day). That link has changed since I initially put it here. Here is another link to look at. Here is an image from their website.

Don’t add essential oils to food or drink. It will make you ill or kill you, according to this well researched and informed article by an aromatherapist. They explain how it can be used safely. Here is a statement by the Alliance of International Aromatherapists on using essential oils internally.

CNN news article about the FDA issuing warnings to DoTERRA regarding their claims that their essential oils can cure Ebola.

The FDA warning letter in full to DoTERRA regarding numerous false health claims being made.

This article in the New Yorker is about Young Living, but if you read it, you will find some information about how DoTERRA came into existence and some dramas they have experienced.

Science Based Medicine have looked at DoTERRA a few times. Have a look at these articles here, here and here. Needless to say, DoTERRA and their reps do not have a good grasp of science.

This article is written by someone who was in Doterra. She explains why she thinks it is a pyramid scheme.

Do You Bake

Dot Dot Smile

Their website.

They sell clothes for girls. Their reps are called merchandisers.

Founder is Nicole Thompson in California. Started in 2013.

Dove Chocolate Discoveries

See Mars

DS Max USA Inc

Du North Designs Ltd

Their website.

They sell clothes, with an emphasis on leggings.

DubLi Network

Dudley Beauty

Their website. This can only be accessed in countries where they operate. I have been unable to look at it. They operate in USA, Bahamas, Brazil, Canada and Zimbabwe.

Their Facebook page. The company seems to be aimed at black women/ African Americans.

Started by Joe Dudley in 1957 in America.

Member of the DSA. They sell make up and beauty products. They have salons, a beaty school and a ‘cosmetology university.’

TINA found that Dudley reps were making false income claims.

DXN Holdings Berhad/ DXN Global

Dynamic Essentials

This MLM shut down in 2003 after a class action law suit brought about by the FDA. This was related to illegal and misleading claims for their seaweed product called Royal Tongan Limu. Court papers here. Discussion about it on Casewatch here.

NBTY were the parent company of Dynamic Essentials. NBTY was formerly known as Nature’s Bounty.

E-conomize

Their opportunity website. Their customer website.

They sell shares in the company to distributors or they can ‘earn’ them. The plan is to recruit 2-3 people and get them to recruit 2-3 people etc etc. They say recruitment is easy, you just need to show a video to your prospect, you won’t need to sell, the opportunity will sell itself.

They sell energy, insurance, water, phones, financial products. Most of the sections have ‘coming soon’ written over them. The things they do sell come from a company called Utilico.

“The company was established by two experienced entrepreneurs Andreas Papaiacovou and Ababil Sher“- according to their website.  The website claims they had seen many network marketing companies fail to deliver on their promises, but this one is different.

The company was registered in September 2016. The two company officers named on official documents are Andreas Papaiacovou and Matthew Postlethwaite. Andreas is the director of Utilico, a series of businesses that provide the services being sold by e-conomize.

Ecosway

EcoWarehouse

Electrolux USA

Elk River Soaps

Ella Tina

Their website.

They sell leggings for women and girls.

Elli Kai

Elvacity

Their website. Their website is full of health claims, and the usual disclaimer that they don’t make health claims.

They sell Elevate coffee. They also sell vitamin patches, skin tightener, skin mud and anti-aging serum. This diet website looks at the coffee and discusses some concerns they have.

Joining initially costs $49.97, then there is a $25 fee every month.

Elysee Cosmetics

Emerald Essentials

EmGoldEx

Empower Network

Enagic

See Kangen

ENERGETIX Bingen

Official name is ENERGETIX GmbH & Co. KG. Registered in Germany.

Their website.  They sell magnetic jewellery. Apparently millions of people buy the jewellery because they like it and they want to be near magnets????!!!!!

Roland Forster is the sole shareholder and owner. Founded in 2002 as ENERGETIX.

They operate in Peurto Rico, Australia, Eastern Europe, UK, Turkey and Mongolia.

Members of the UK DSA.

Kevin Costner modelled for their catalogue.

 

Energy Release

EnerSource

Behind MLM did a review on them. Launched in 2016 and sells nutrition products.

Enhanzz

Their website.

Currently in pre-launch (As of May 2018).

Their website is full of scenic pictures and bland statements that don’t mean much or identify what they are actually selling. This is from their website-

“A movement with a mission can hold extraordinary appeal, especially for the younger generations who are reshaping the world’s social landscape. Enhanzz is a Swiss-based company, and proudly so. Switzerland is the global icon of quality, precision and reliability. And by identifying as Swiss, we are making our own commitment to exceptional standards in every aspect of our company’s products, operations and appeal. Our outstanding opportunity is designed to add to the increasing amount of worldwide conversations about happiness. There’s an open invitation to everyone, of every age and every background, to join our mission of empowering people and enhancing happiness“.

 

Enjo

Their website. They sell ‘chemical free cleaning products’!

Members of the UK DSA.

Eniva

ENJO

Entrenet

Enzacta

Epicure Selections

Epxbody

Equinox International

Sold water filters and vitamins. Founded in 1991.

2000 the FTC declared them an illegal pyramid scheme and shut them down.

In 1996 it was listed as one of the top 500 fastest growing companies in the US by Inc Magazine.

Bill Gouldd was the president. He was barred from having anything to do with any MLM for the rest of his life.

Esbe Designs

Sells jewellery by Sarah Blaine.

Essante Organics

Launched in 2009.

Their website. They sell supposedly toxic free products, including essential oils ( known to be toxic), cleaning products, bath stuff and the pseudoscientific pH alkaline nutrition.

Essential Bodywear

Etcetera

European Grouping of Marketing Professionals/ GEPM

Set up by Jean Godzich, a former member of Amway in 1988.

Also known as ‘The Business’ by the followers. The headquarters were in France.

In 1995 the company formed ‘The Grouping’, a team of professional cyclists. These included Luc Leblanc, Ronan Pensec, Pascal Lino and Graeme Obree.

It shut down in 1995 after its members increasingly complained that it was a cult. Wikepedia covers the controversial MLM. The French authorities investigated it.

The former members of GEPM formed a new MLM called AKEO, to be taken over by a company called NOAO.

European Home Retail

This is the company that owned Farepak, the Christmas savings club that went into administration in 2006.

Other subsidiaries were Kleeneze; eeZee TV; I want one of those.com; kitbag.com.

Evanescence Network

EVER Skincare

Evergreen Life Products

Evolution Travel

Their website.

They are an online travel agents. They charge a very low fee to do a course and then issue certificates so that members can sell holidays. 80% of the commission earned is kept by the ‘agent’ and the rest goes up the pyramid.

The company very much emphasise the importance of recruiting. Their compensation plan is very very heavily reliant on recruiting. Their compensation plan talks of selling ‘PTAs- Professional Travel Agent’ packages. This is the package new recruits buy. Thus, members are paid for the number of people they recruit. Agents have to pay a monthly fee to be active and ‘earn’ money.

Evolution Travel are not covered by ATOL or ABTA. Agents claim they will be covered soon (claims made in March 2018) because Archer Travel who provide the holidays have bought out Barrhead Travel in the UK. Barrhead were actually bought by North American Travel Leaders Group. News story here. In fact, Archer Travel are members of the Travel Leaders Group. How this relationship will affect the ability of UK agents to claim ABTA and ATOL remains to be seen.

EvolvHealth

Exfuze

Express 2 System

Faberlic

Fakebake

Their website.

The jury is out on this one. There is a joining fee, starter kits, parties at home and offers for hosts. There are recruitment posters. There is a promise of flexible working and a career opportunity. What is not so obvious is the compensation plan, success days and ‘build a team’ focus. If anyone has any thoughts, please comment.

Family First Life

Family Heritage Life

Fantasia

Fgxpress

Fibi & Clo

Fifth Avenue Collection

DSA member

Financial Finders

Financial Halo

Financial Prosperity Alliance

Firebird Management

First Fitness Nutrition

FITTEAM

Their website.

They sell supplements aimed at people trying to get fit. They call their reps FITTEAM brand partners.

Their income disclosure can be found by clicking on the link at the bottom of this page.

Here is an extract

They were founded in 2015 so they should really have data to make a proper income statement now. Please let me know if you see it updated so I can update the above statement. $500-$2000 a year isn’t much of an income. I wonder how much people have to spend in order to be eligible for these payments?

Reps have to sell/spend $46.99 a month to be eligible for their commissions and bonuses. If they don’t spend/sell this much two months in a row, they will lose their downline. The payment structure can be accessed by clicking on ‘compensation plan’ at the bottom of this page.

You see where I put sell/spend in red? That is important because it means you don’t need to have any customers. You could just buy products and recruit. Your recruits could just do the same. If there is no need for genuine outside customers, this is a huge red flag. It could mean the company is a pyramid scheme under US rules.

Here is a picture on their website illustrating the ‘opportunity’. This type of picture has been banned by the FTC in their ruling on Herbalife where they were telling them how not to be a pyramid scheme.

A review of the products by a supplement website. They discuss the ingredients and dosing.

Five Star Autoclub

People paid into this to try and get their dream car on lease. Here in one rep’s website explaining how it all works, describing the earning potential, ranks, commission etc.

Legal case here. The FTC said they were a pyramid scheme and that the members were misrepresenting the amount of money people could earn. They were shut down in 2000. The people who set it up were banned from participating in future MLM companies. They had already been involved in quite a few. Mr Sullivan, the main owner, was found to be legally responsible for all the false advertising that was put out by the reps. This was despite him saying he couldn’t be.

FTC timeline of the case.

Flamingo Paperie

Flashnet

Flavon USA

Fleuresse

See Kyani

FM World

Their website

A perfume website called Basenotes has a forum discussing the products. They describe the perfumes as not-so-cheap knockoffs. They essentially copy well known brands. Then some FM advocates wade in and exclaim it is not at all pyramidy (yawn).

Food Service Professional

For Days Co. Ltd

For Every Home

For Your Pleasure

Forbes Lux

Force Fuel and Engine Conditioner

Forever Green

Forever Living

Scandal of Forever Living using Great Ormond Street and a children’s illness to sell their products.

Why Forever Living cannot make health claims.

TINA’s investigation into illegal health claims made for FL products.

Newspaper story in Sunday Times about Forever Living targeting health care staff.

Newspaper story in Daily Mail about Forever Living misusing Barclays Bank facility aimed at helping local businesses.

Another Daily Mail article, this one showing what the realities are for people in FL. A follow up piece by Timeless vie about the abuse the whistle blower was subjected to, as well as support from others in the same situation.

A whistle-blower’s story exposing Forever Living and their dodgy practices.

ASA ruling on a Forever Living rep’s advert.

Reality versus expectation in Forever Living- stories from a few ex FL whistleblowers.

Avoiding tax. How some companies funnel money around to avoid tax.

Newspaper article on FL’s owner paying a huge amount of money to an anti gay-marriage campaign.

A whistleblower’s testimony of what happened when they stood up to conflicting advice from Forever Living.

A mother’s story of how she and her team faked success.

For Tails Only

Sells dog treats/ supplies.

For You

Forex Enterourage

Fortune Hi-Tech Marketing

This MLM was declared by the FTC in the USA to be a pyramid scheme and was told to shut down a lot of its operations and pay compensation.

TINA have an article on it.

The FTC’s statement about it.

Forum Technologies

Four Corners Alliance Group

Fox

France Lux

Fragrant Jewels

Fred L. Hansen Corporation

Free2Live

Freedom Equity Group

FreeLife

Free-Mart

Freeway To Success

Frezzor

Friendly Home Parties

Friends United Network

Fuel Freedom International

DSA listed

Full Life Products

Fuller Brush

Fun Unlimited

FundAmerica

Formerly known as Arctic Island. Went bankrupt in 1990 after accusations of it being a pyramid scheme. A lot of the company’s money was allegedly sent to two companies by Robert T. Edwards, the president of Fund America, plunging the company into debt. The Los Angeles Times said

“FundAmerica’s two largest creditors are the same overseas entities that its current management has said received $11.3 million in electronic-fund transfers from company founder Robert T. Edwards, who resigned shortly after his July 19 arrest by Florida authorities on pyramid-scheme charges.

No one in FundAmerica management claims to know what the company’s relationship is with Theta Ltd. of the British West Indies or Acheteur International in Amsterdam. Edwards wired millions of dollars to the two entities in the months before his arrest.”

FuXion Biotech USA Corp

G and S Total Rejuvenation

Gano Excel

DSA member

Ganolife

GBG

Gel Moment

Founded 2014.

Gemstra

Genesis Global Network

Genesis Pure LivePure

Gia Wellness

Giffarine

Gigi Custom Jewellery

Gigi Hill

Glazer-Kennedy Insider’s Circle

Global Domains

Global Dynamics

Global Health Trax

Global Information Network

Global Innovations

Global InterGold

Global Legacy International

Global Online Systems

Globalpreneurs

Global Prosperity Group

Global Wealth Trade

GNLD International/ NEOLIFE

Members of DSA UK.

Based in Sweden. They sell supplements, skin care, home care, personal care and weight loss products.

Their website. This is the website for NEOLIFE. It is where you are directed when typing ‘http://www.gnld.com/ ‘.

Review at Best Company. The review says that there is no money back guarantee, there are poor Glassdoor ratings and you cannot find out any prices unless you enquire with a rep. A person says in the comments that there is a money back guarantee. The Glassdoor ratings are much better now.

Go Foods

GoDesana Organics

Going Nuts

Going Platinum

Gold Canyon Candles

Golden Pride

Golden Sun

Good Life USA

Grace Adele

Grace and Heart

Gray Enterprises

Great Lakes Jump

Great Lif

Green Mountain Energy

Green Organics

Green Valley Plant Rentals

Green World

Greeting Cake Company

Grubby hands

Analysis by Timeless Vie here.

GT

Gus Presents

GVO

H2O At Home

Hanky Panky Parties

Harmony Green America

Harris Global Marketing

Harrison F. Luke, For Profit Motive

Hart2Hart Distributing

Harteis

Hawaii Grown

Hayward’s Gourmet Popcorn

Healing America

Health Mor (HMI Industries)

The Health Network

Health Resources

Healthy Coffee Business

Healthy Habits Global

Their website.

Based in California, USA. They sell hot drink powders with three herbs in that are alleged to have lots of health benefits. They also sell a substance you can put in your car’s fuel. Founded by Ted FitzGerald (formerly from Gano Excel).

There are 4 levels of joining packages, ranging from $99- $999. People get different access to payment levels depending on how much they pay in.

Science Based Medicine looked at the long list of health claims made for the products in this MLM in 2015.

Here is an example of one of the health claims on their website as of August 2018.

Here is another claim that is ridiculous.

Their income disclaimer says that there is not enough information to be able to give an accurate income disclosure and that one will be produced after a year of operating. This is on their website in 2018. HHG have been around since 2013. Their ‘estimate’ of earnings is between $500 and $2000 gross a year.

A lot of the videos are not working on their website. It is not clear on their website what countries they operate in. Some of their spelling and overall presentation is a little odd and amateur looking.

Behind MLM have reviewed this company. As usual, the comments are worth reading.

 

 

Healthy Peach (The HealthStyle Emporium)

Healthy Pursuits

Heavenly Chia

Helix Education

Helo LX/ Helo Globe

This is the ‘wellness band’ of wor(l)d. Their website.

It is like a fitbit. Except the product claims to test blood sugar, blood pressure, respiratory rate, alcohol levels, ECG (electrical cardiac activity) and mood. This video shows how it is worn. You cannot test these parameters with a wrist device. You would need a cuff to compress an artery, blood samples and sensors attached on the chest.

HempWorx

They sell CBD oil. This is a cannabis product.

In 2018 Canada decreed that Hempworx had to stop selling their products in Canada as they were illegal. News article at CBC describes the situation. From the article-

The article reports that the company have not been truthful with the reps. From the article- “The company told affiliates the shut-down to the Canadian market was “due to the increasing demand to bring HempWorx products to Canada and our commitment to compliance.” 

Hendrix

Herbalife

The FTC’s rulings on how Herbalife have to change the way they operate in the US. Made in July 2016. Briefly, they have to pay $200 million in compensation for all the people that lost the most money, they have to ensure that there are real customers (not just Herbalife workers buying stock), there will be an independent compliance auditor ensuring the new rules are followed.

Well acclaimed documentary called ‘Betting on Zero’ about Herbalife, the people it has harmed and the financial battle being fought that is a big threat to the company. It has a 100% rating at Rotten Tomatoes. It is available here, along with a trailer.

Facts about Herbalife scam

Free short video showing experience of Herbalife victims.

A Herbalife victim speaks out.

A selection of articles by TINA about Herbalife.

Brenda’s story. Brenda left Herbalife. Here is her story.

UK income disclosure. 2014. Initially, it looks like the average person earns $5,456 a year, but that is disregarding the 87.1% of people who earned nothing (80%) or the 7.1% that earned on average $48. I think all members should be included in this calculation, after all, it is unfair to include just those that are doing well.

Total people in chart- 554,353

Total money paid out- $392,210,128.

True average yearly payments= $707.51.

 

Sales and marketing plan.

Herbalife were going to be sponsoring The Great North Run in the UK but there was a Twitter campaign and a petition and Herbalife were dropped. For more, see here.

Heritage Makers

Hillarys Blinds

They appear at number 60 in this list of top MLMs in 2016. Their website doesn’t seem to show any evidence of being an MLM now. I have tweeted the company to ask if they are an MLM.

Holiday Magic

Started in 1964 by William Penn Patrick and shut down in 1974.

Cosmetics company that was accused of using dirty tactics.

AVON sued them because they claimed that AVON were using fraudulent tactics.

They were investigated and taken to court for being a pyramid scheme.  SEC vs Holiday Magic in 1974.

There were numerous schemes operated that charged Holiday Magic members fees to improve their ‘business’. These included Mind Dynamics; Sales Dynamics and Leadership Dynamics.

Hollywood Eye Magic

Their website.

Their sign up form and terms and conditions.

They sell one product- a serum that claims to remove bags under eyes, whether that is due to tiredness, old age, jet lag, allergies, stress, sodium, medication. Reps pay an autoship to get regular products.

Holzman Diversified

Home Interiors

USA division bought by Celebrating Home and still operating in mexico.

Home Land Mortgage Corp

Home Travel Agent

Home Travel Discount Cards

Homegrown Eatery

Homemade Gourmet

HomeTec

HTE USA

Huis Clos

A French MLM.

Hy Cite

Hybridorporated

Hyten

I Love Healthy Chocolate

I T P Travel

Iamaa Direct

Ideality

IDlife

Ignite

Igniting Passion

Based in Canada. Sells adult products.

Imarkets Live

IMatrix

Immunotec

In a Pikle

Income-Advantage

Independent Executive Recruiters

India Hicks

Based in UK. Sells Jewellery and accessories.

Infinitus

Number 5 highest revenues on the DSA’s top 100 list for 2018.

Information Research Center

Initial Outfitters

Initials Inc.

DSA listed

Inkd Up Nails

Innerlight

Innovative Management

Innovative Technologies Corporation of America

Innov8ive Nutrition

Their website. They sell supplements, shakes, energy drinks.

CEO is Heidi Whitehair. They call their reps ambassadors. Launched October 2016.

Interior Design Nutritionals

International Heritage

 

International Silver Network

Their website.

Their income disclosure states that because the company has not been trading for long, they do not have accurate figures for earnings. They state that after their first year they will do a more detailed survey on pay. As it stands, they estimate that earnings will be $500-$2000 a year.

ISN was founded in 2010. I would have thought they have had enough time to put together an income disclosure by now. Could it be that they don’t want to? Or have they done it and decided not to share that information?

 

There is a review of ISN by Behind MLM. They look at the compensation plan and the cost of the silver. Essentially they conclude that the compensation plan is unclear and over complicated (33 pages) and their products are cheaper elsewhere. There is a monthly fee and an obligatory purchase to make. They conclude that the commission is biased towards the number of people you recruit and the amount of autoship payments paid by these recruited people.

Internet Lifestyle Network

Internet Opportunity Group

Intimate Expressions

Intimo

Based in Australia/ New Zealand.

They sell adult products.

InTouch VOIP

Ion Cosmetics

Isagenix

Isagenix- cutting through the crap  This is a blog post I did on Isagenix, including financial and product analysis.

TINA’s investigation into illegal health claims for Isagenix products.

This is their Income Disclosure. For analysis of this, see the above link. 0.36% of members earned above the poverty line. And that isn’t taking into account all the stock, expenses and tax, which can be hundreds or thousands of dollars.

This Australian article looks at the business model, a member’s account, and an analysis of the products.

An article by a well qualified nutritionist explains why the ingredients in the products aren’t what they seem. The article is called “How Isagenix Lies To Its Distributors And Consumers About GMOs, Preservatives, And Artificial Ingredients”

A doctor who fights against health frauds has written about the absurd health and science claims that Isagenix claim. Some of them are bizarre. Here is one quote

“The claims on the Isagenix website are a mishmash of pseudoscience, myth, misrepresentation, and outright lies. For example:”  She goes through quite a few of these silly assertions that Isagenix make.

Ethan Vanderbuilt analyses Isagenix here.

Iscentu.com

It Works

Dr Bill Sukala (an exercise physiologist) reviews the products.

Truth in Advertising (TINA’s) evaluation.

Lazy Man and Money’s assessment of It Works.

Income disclosure statement. This shows the average earnings of its members is $189 / £128 and that this does not include expenses which run into hundreds or thousands of dollars each year.

This Fitness columnist has written a really informative article on It Works entitled “The Secret Of Weight Loss Wrap “It Works!” Is That It Fucking Doesn’t”.

Iwowwe

Izumio

J. Elizabeth

They sell women and children’s clothing.

J. Hilburn

They sell custom suits.

J P Mailing Profit

J.R. Watkins

See Watkins Incorporated

JAFRA Beauty/ Beauty

See Vorwerk Worldwide

Jamberry

A Jamberry escapee’s tale.

Another story of a Jamberry escapee.

Bottlesoup have analysed the earning potential for reps.

A follow up post about the above article and the fallout from it.

UK company information at Companies House.

Income disclosure statement on page 2 of their compensation plan.  They only include people that have been in the company for a year. That is excluding an awful lot of people from the statistics. In MLMs, it has been shown that 80-90% of people leave within the first year. The earnings shown below are from the people that have persevered against the odds.

Terms and conditions. These state-

Here are the points for individual items.

An application kit costs £12.50 Sellers buy at wholesale price of 60% which means they need to spend £75 a month or sell £125 of stuff. This adds up to £900 a year of personal product costs. In CAD$, this is $1061. For someone earning $36- $998 a year, this is not great. (disclaimer- the pound is undergoing a massive flux in value due to the Brexit drama so these comparisons may be different in a few week’s time.)

PEOPLE HAVE TO SPND MORE THAN THEY EARN IN JAMBERRY. The only money to be made is by selling the products bought. Good luck with that. Or of course, attempt to recruit loads of other people and getting them to recruit loads of people.

Timeless Vie interview a Jamberry escapee. The £600 sales targets they talk about there are to remain a consultant. The £900 I mention is to qualify for bonuses.

Jamie At Home

They sold kitchenware

Janice Collection

This is a brand under Gemstra. They sell wax burners.

JapanLife

Java Momma

They sell coffee

Javita

JBloom Designs

JD Promotions

Jerky Direct

Closed and reopened under new management with new products and structure — Beef Jerky Products.

Jeunesse

TINA’s evaluation.

Income disclosure. 86% earn less than $213 a year.

Lazyman and Money’s assessment.

Class action being taken against Jeunesse for being a pyramid scheme, as reported by TINA.

TINA’s list of illegal health claims for their products. It’s a long list.

Jeunique

Jewel Kade

Purchased by 31 gifts. They sell jewellery and handbags.

Jewelry in Candles

Sold scented waxes and body products with jewellery. Shut down. Reps directed to Gemstra.

JewelScent

Brand under Gemstra. Scented candles with jewellery.

Jewelry In Candles

Jewels By Park Lane

JGO

Jimon

JK Apparel

Based in Canada. Sell women’s clothes.

The Job Marker

Jockey Person To Person

John Amico Haircare products

Jordan Essentials

Make up, skincare and home products. Founded 2000.

JoyMain

JuicePlus+

This company is actually called NSA which stands for National Safety Associates. NSA is on all their paperwork. It seems NSA is the company, Juiceplus is the product. In the past they have sold fire safety equipment, water filters, air filters and children’s books. NSA was founded in 1970 by Jay Martin, who is still the CEO now. In Europe, the company is registered in Switzerland.

Oncology journal article warning against using Juice Plus during chemotherapy.

Review of their so called research. Juice plus people bring out this research to back up any and all claims they make about their products.

A critical look at Juice Plus by MLM Watch.

You can be promoted or demoted by your upline, which is quite unusual in MLM circles apparently. This pro-MLM website explains it at the bottom of the post.

An article in the Independent about Juiceplus and other MLMs. It is from 1995 but it is still relevant today.

The Juiceplus starter guide. How to prospect people, how many you have to recruit and how much to sell/buy to earn any payments.

Juiceplus do not provide an income disclosure statement so we cannot accurately see what expected earnings can be. The Canadian Juiceplus website has this image. It isn’t very detailed but it is the best I could find. Which should be concerning in itself.

Juiceplus run a child health study that provides free Juiceplus capsules to children aged 4-18 if they take part in a survey. As long as an adult commits to buy Juiceplus for themselves for a year. At a cost of £246- £693. And they fill in 6 questionnaires. This is not very free.

 

Juiceplus’ doctor, Dr Mitra Ray recommends pregnant women take Juiceplus tablets-

Pregnant women should not take any supplement that have vitamin A in, as well as avoiding too many foods with naturally high levels of vitamin A. Doing this could damage your baby. This information is from the NHS website.

There is vitamin A in Juiceplus products-

Just Jewelry

Jusuru

Juuva USA

K and REnterprises of Ol jump

K and K Designs

K Par K

A French MLM.

Kaeser & Blair

They sell promotional products. Established in 1894.

Their website. They call their reps ‘Business Owners’. At first this looks like just a direct selling model but upon scrutiny, you can recruit people and earn off their sales. They describe their recruits as having a  ‘sub business.’

They don’t have an income disclosure statement.

Kalo & Co

Kang Ting

Kangen water

The assumption made with Kangen water is that your body works better if it is alkaline. A very basic understanding of human physiology will show you that everybody has to have a blood pH of 7.35-7.45 for you to stay alive. Changing it outside of these small parameters will kill you. Luckily, drinking alkaline fluids will not change your body pH. It may affect the pH in your stomach though, which is supposed to be about pH2. If it is made less acid, you can’t digest nutrients properly. But, as ever, the danger with MLM isn’t with the pseudoscience, it is with the financial aspect and the effects being in an MLM will have on you and your relationships.

Lazy man and money’s assessment.

Kangen water is made by a Japanese company called Enagic.

Enagic in hot water in Japan. Story on false claims made for Kangen water and their ‘opportunity’.

Kangmei

Kannaway

Karatbars

They sell gold. Head office in Germany, gold products made in Turkey. Founded in 2011.

Their website. 

Karemor

Karl Jacobson

Kasly Ju

Kaszazz

KEEP collective

Their website. They sell jewellery. Their reps are called designers.

Jessica Herrin formed this company, the same Jessica that started Stella and Dot.

Keep Me Safe Organics

They sell make up.

Kele N Co

Kelti

Kemp Enterprises

Keoke

Kilambe Coffee

The Kirby Company

Kitchen Fair

Kitsy Lane

KK Assuran

Kleeneze, also referred to as Klife

BBC report on the company going into administration in April 2018. The article says 5000 reps and 114 employees will lose their positions.

Their website.

They have a catalogue that distributors deliver to people’s door and then collect payments for orders. There are no territories though so sellers could end up competing with each other.

Distributors have to pay for catalogues.

This blog lists all the problems with Kleeneze and compares it to a cult.

A newsletter for Kleeneze. (https://dsa.kleeneze.co.uk/wp-content/uploads/2015/09/dsa-Team-talk-sept-2015_TT-sept-15-new.pdf) Spot all the persuasive messages to entice people in and keep them trying to make money.

Kobold

Kohlman

Koritnik and Associates/ Shaklee

Koyo-Sha

Kuol Cat

Kyani

TINA’s evaluation.

Kyani in trouble about lies they told about their products. They made numerous false health claims.

Lots of illegal health claims for Kyani made in the USA, compiled by TINA.

37.8% of active distributors earned more than $10 or more in a year. Here are their earnings.

 

L’Bri Pure N Natural

They sell cosmetics and skincare.

L Paige Lipstick

La Bella Baskets

They sell gift baskets, charms, candles.

Lady Godiva Beauty

Landmark Forum

Their website.

This company isn’t strictly an MLM, although members are expected to recruit people into this self-improvement group. It promises to improve your life- at a cost. Have a read of this person’s experience when she and her friends went to a meeting about it.

Latasia Beauty

Latoka Engineering

Lavylites

Le Reve

Le-Vel

Le-Vel’s website.

Iron Beaver analyses Thrive from a fitness perspective.

Truth in Advertising’s analysis of Le-Vel.

There is no income disclosure. They do not want you to know how much their people earn.

Information from TINA on adverse health effects from Le-Vel’s products.

Advertising Standard Authority‘s ruling against Le-Vel.  It is interesting to read in the ruling how Le-Vel treated their rep.

Lazy Man and money‘s article about Le-Vel. For which they are suing him. He won his court battle.

 

Lean Java Bean coffee (product sold by Vitae Global)

See this analysis in a Botwatchblog post about this MLM.

Their coffee is billed as ‘clinically proven’ to help weight loss. It is nothing of the kind. The post above analyses this research and looks at the ingredients.

I am currently investigating this company. More to follow in due course.

Legacy Designs

Brand under Gemstra

Legacy For Life

LegalShield

Their website.

This company sell legal cover. There are a network of lawyers that customers can contact if they need legal help. Their reps are called ‘associates’.

They operate in the US and Canada.

Their income disclosure. This is for 2015. Their figures show that only 2.5% of their associates managed to make a sale in that year. It cost $249 to join, plus the cost of becoming licenced. The information provided about earnings only relate to the 2.5% that made a sale.

Ethan Vanderbuilt  believes it is a scam.

Legging Army

Their website.

A complaint about the product and customer service.

The website does not use https so transactions are not as secure as they can be.

Lemongrass Spa

Founded 2012. Sell make up,essential oils and skin care.

LEO

Member of UK DSA.

Their website.

They sell products to ‘help’ the entrepreneur. They also sell gold. Their reps are called trainers.

Let Us Close

LG Household and Healthcare

Based in South Korea.

Bought out AVON Japan for $96 million in April 2018.

Lia Sophia (Outlet by Lia Sophia)

Do you remember Victor Kiam? He is the man that was in the Remington adverts and said that he liked the products so much, he bought the company. In 1986 he bought a company called Act II and called it ‘Lady Remington’.

Victor passed on Lady Remington to his son, Tory and Tory’s wife Elena Kiam. They renamed it Lia Sophia. They sold costume jewellery in America and Canada. Reps were called ‘advisers’.

In 2014 the company shut down. Read a newspaper story about it at the time.

When you go to their website now, you get this message.

This is the website where you can put in a claim if you ever bought a starter kit from this company. The deadline for applying was April 9th 2018. On June 6th 2018, there will be Final Approval hearing. See the previous link to follow any developments.

Here are the legal details of the case, obtained from the above link. The document says that a settlement was reached after extensive legal battling where the company was accused of

The reps were upset because the lifetime guarantee on the jewellery was revoked, and because the owners knew they were going to shut down but continued to encourage recruitment and purchases for 6 months.

Lia Sophia were members of the DSA (Direct Selling Association).

There were concerns about the business when it was running. This Consumer Affairs article addresses the problems of lead being an ingredient in the jewellery (including the children’s lines), overly expensive prices and poor quality of the items.

Life’s Abundance

Life Force

Life Plus

Members of DSA UK. They sell nutritional supplements. This seems to be a ‘referral business’ instead of an MLM. People get a fee when someone buys a product and mentions the referrer.

Their website.

Life Leadership

Life Plus

Life Shotz/ Oxyfresh.com

Life Tree World

Update-  10th March 2017.

Lifetree World has now been liquidated, leaving many creditors. A lot of members had purchased goods and never received them, and many had bought into programs that promised more profit for them. They have all lost their money now. The only assets the company had when it was closed down was a car that still had finance on and some pretend money in a ‘Gateway’ account. This amounted to -£885 in assets and a total of £454,319 owing to everyone. Companies House have all the documents if you want to look at the details.

We won’t have heard the last of them though. Previous players in this company have gone on to form another MLM and another MLM team which moves people from MLM to MLM, ensuring a few of them will always be at the top of a pyramid somewhere. More on this in future blog posts.

Life Tree World have not been accepted by the DSA as members. They have disappeared from the prospective list.

There was a  dispute between LTW and a supplier, culminating in court action. A petition is due to be heard on 11/07/2016 for insolvency, brought about by a company called Per-Scent Ltd. I am told they agreed to pay the company in instalments and they were not shut down at that time.

Payment scheme

Overview of LTW

‘Prize car’

Netmums discussion– This discussion has now been deleted by Netmums.

LIFEMAX

Lifepharm

Lifestyle Innovations

Lifestyles USA

LifeVantage

Their website.

They are a ‘wellness and personal care company’. They claim “we’ve done studies”.

Their studies can be found here.  A lot of the studies were written by Joe M McCord, who was a well paid employee (Director of Science) of LifeVantage. Wikipedia report that McCord earned a fee for each time Protandim was sold.  Wikipedia has a very thorough account of Protandim and the controversial issues that surround it.

In 2017 LifeVantage got a warning letter from the FDA for making many, many health claims that they had no business making.

Science Based Medicine have written numerous posts about Protandim and the pseudo health claims. They take a close look at the research and also write about reps’ reactions to the analysis they performed.

For financial analysis of the company on the stock market, read this. Here are their profits over the last years in this order 2017, 2016, 2015, 2014, 2013.

Their income statement.

Here is a quote from that document-

“There were approximately 63,000 total U.S. Distributors during the period, with approximately 48,500 U.S. Distributors paid in the same period.
Note: These figures do not represent a Distributor’s profit as they do not consider expenses incurred”.

This means 14,500 earned nothing at all, before expenses.

This chart shows that 23 % earned nothing and 58% earned less than $79 a month.  That’s 81% earning less than $79 a month before expenses.

August 9th 2018, TINA report that LifeVantage are facing a lawsuit claiming they are a pyramid scheme.

LifeWave

Lightyear Wireness

Lilla Rose

Limitless Worldwide

Limelight by Alcone

This MLM sells makeup and is based in New York. Their reps are called Beauty Guides.

Here is their website.  They only operate in the USA. You can read their terms and conditions if you get to the application stage. You don’t have to give any information to get to this stage, you do need to choose which starter kit you want.

There is a monthly charge to maintain the third party site the guides get paid through, and a charge for withdrawing money from it. There are yearly renewal fees. There are monthly fees for having a company website to sell products from, this is not optional.

Pissedconsumer website lists some complaints about this company. Some issues- problems with orders, reps lying, cosmetics not as free from nasty chemicals as claimed by the company.

Excellent blog piece here that asks the ten questions you should ask yourself if you are thinking of joining Limelight by Alcone. It could apply to a lot of MLMs.

Limu/ The Limu Company

Lindt chocolate RSVP

Yes, this is Lindt, as in the nice chocolate that you can buy in shops.

This blogger had a Lindt party after the company sent her the products.

They shut down in 2013 due to ‘low sales and the high cost of business’. Story here on the closure.

Linen World

Lipsense

This is the product sold by the MLM known as SeneGence International.

Liquidity

Liv

Live Bionic

Live Body Coach

Live Green

LivElite

Livesmart 360

Livingston Avenue Community Empowerment

Livv

The Longaberger Company

Owned by JRJR Networks.

Longrich

Lorraine Lee Linen

Love What We Do

Loveast

LOVEWINX

Adult products.

Loving Works

LR Beauty and Health/ LR Health and Beauty

Based in Germany.

LuLaRoe

This is an MLM that, thankfully, is not in the UK. It seems to just be in the US. They sell leggings. Some issues with this company are-

Their leggings have been criticised as very poor quality, with them ‘ripping like wet tissue paper’. Many people are unhappy about them and trying to get refunds. Reps are refusing to refund because it will cost them.

They are in trouble for charging people tax in some states where tax should not be charged. This is the subject of legal action.

The reps don’t get to choose the patterns on the leggings. They just buy a batch and hope they are good ones that will sell well.

This is the consultants’ contract. Some information for consultants who want to leave-

Income disclosure statement.  Here is a snippet “The average annual bonus payments made by LuLaRoe to ALL U.S. Consultants at all ranks (which includes Eligible and Ineligible Consultants) in 2015 was $91.65, and the median annual bonus payments made to ALL U.S. Consultants at all ranks in 2015 was $85.80. ”  YEARLY bonuses of $85.80! And that’s not taking into account of the losses they most probably made buying the products. 87.04% of reps did not earn a cent. The document states that costs can be hundreds to thousands of dollars.

There is now a 2016 income disclosure that, on the surface, looks better as “The average annual bonus payments made by LuLaRoe to ALL U.S. Independent Retailers at all ranks (which includes Eligible and Ineligible Independent Retailers) in 2016 was $2,064.77. ”  Look closer though, and you find that most people don’t get paid any bonus, and of those that do, they don’t get much. As usual, it is the very few at the top that earn anything decent, pushing the average figures up.

The above table shows that only about a quarter of people in Lularoe earn anything, and of those that do, 99.84% earn $5103 a year before expenses. They have a lot of expenses.

For stories, have a read here-

news article with links.

Lulaoe say no Twitter account highlighting latest news.

Scary Mommy Blog post about the refund problem.

Bottlesoup have doe an analysis on the earning potential for reps.

Truth In Advertising’s summary of Lularoe’s problems.

Mommygyver on twitter is campaigning for LuLaRoe’s reps trying to get refunds when they leave the company. Many people are left thousands of dollars out of pocket. LuLaRoe are taking legal action against her to get her to reveal her sources for her stories.

3rd December 2017 another lawsuit commenced against them. This one accused the whole company of being set up to con people and is responsible for making many women losing everything while he owners made hundreds of millions of dollars.

This is a really well researched Businessweek article on what goes on in LuLaRoe, from the lowly people struggling at the bottom, to the top ‘mentors’ who experienced troubling things.

LuLu Avenue

Lyf

Lyoness (also known as Lyconet in places)

Article by Behind MLM.

Dragons’ Den Canada where someone tries to pitch Lyoness to the Dragons. They don’t get the funding. Watch it from 25 minutes in.

Income disclosure statement.

The figures in this chart are abysmal. ‘The median income of all members was $0.04’. The median is the middle number if all the numbers are lined up in order. It is what most people earn. 4 cents a year is horrendous!

January 2018 Lyoness have been told to stop operating in Norway due to them being a pyramid scheme. The government found out that income was mainly made up from recruiting people, and not sales. This article is in Norwegan but you can use Google translate to get the gist of what is being said.

An analysis of lioness and the link to cults is discussed in detail at MLM The American Dream turned nightmare.

M.network

Their website. Mr Kerry Brown is the founder of this MLM, his title is ‘headmaster’! Launched January 2017.

They sell ‘hydration and weight loss products’.

Their compensation plan.

Their Facebook page.

The Supplement Police looked at the supplements and find the ingredients are the same as energy drinks but without the calories. They express concern that there are no clinical studies available even though the company claim their products are ‘scientifically proven’.

M.O.M. Team

Maakoa

Maddy Moo Creations

Maddison Handbags

Magnabilities

Magnolia and Vine

Main Street Auto Repair

Man Cave

Now closed. Sold things to do with cooking meat. Featured in a Penn and Teller documentary about pyramid schemes in a series called Bullshit! The episode was called easy Money and you can watch it if you have Amazon Prime.

Their home parties were called MEATings.

They operated in America only. Their compensation plan and other information is on the MLM Legal website.

Video here on the ‘opportunity’.

Man Cave seem to have somehow evolved into a different entity altogether, no longer selling through the MLM method. They now seem to be called ‘Mighty Spark Food’. They sell food products in shops and donate a meal to the poor for each item they sell.

Manna From Heaven

Mannatech

mark.

Market America

Their website.

Something to do with online shopping-

“Market America’s UnFranchise Business is a proven plan for your financial success. Market America Worldwide provides systemization, standardization, state-of-the-art management systems, merchandising and marketing tools, growing visibility & the opportunity to own multiple business locations”. I hope that’s clear.

It seems to be a scheme where you shop through their website and earn commission.

Started in 1992 by J R Ridinger. Operating in Australia, Canada, Hong Kong, Mexico, Singapore, Malaysia, Taiwan, Spain, and the United Kingdom.

According to one MLM reviewer– “There is an initial set-up fee of $130, a monthly fee of $20 and a $99.95 yearly fee. In addition, you are expected to purchase hundreds of dollars of product from Market America at the start, and ongoingly to keep up your personal business volume.”

This scathing review on Pissed Customer tells how a woman joined up and became so involved in it, the marriage crumbled and finances were destroyed. Here is an extract

“If your spouse is getting involved with this, do everything you can to get them out of it before it’s too late. If your friends are getting into it, tell them you aren’t interested. If some random stranger approaches you in a coffee shop about it throw hot coffee in their face and walk away.

Seriously, this company is a scam and a cult. It’ll empty your bank account before it puts anything inside of it.”

Bot Watch does not advocate throwing hot coffee in people’s faces.

Marketing True Residualome

Marly Ray

Maruko

Mary and Martha

Mary Kay

Their website.

Pink Truth, a website dedicated to exposing Mary Kay and also touches upon other MLMs.

Ten reasons not to join Mary kay. Number 5 is that you have to wear a skirt to all company events!

Pink Truth Discussion board. See what people are saying.

Earnings disclosure from their Canadian website.

The above statement is only counting people who have been involved for a year or more. Most people leave MLMs within a year so the vast majority of people in this scheme (29,614) have been totally disregarded. These figures apply to people who have spent $2700 on products over the year. 47% of them earned over $100. Not great.

A website called Families Against Cult-Like Expoitation in Sales has a bit about Mary Kay.

Stories from victims of Mary Kay.

MaskCara Beauty

Their website. Founded by someone called Cara. Hence Maskcara.

Founded 2017. Their reps are called Beauty Artists.

Matsumoto Noella Hauoli

Max

Max Sales

Medifast

Megan’s Pantry

Mega$net

Mega Holdings

Melaleuca

Merris

Merro

Metabolife

Products contained ephedrine and was used for weight loss.

2006 they shut down as it was made illegal by the FDA to sell ephedrine for that purpose in 2004.

Wikepedia entry.

Matilda Jane

Max and Madeleine

Maxwell Clothing

Medifast

Their website. They sell meal replacement shakes aimed at weight loss. Founded in 1980 by William Vitale.

Take Shape for Life are what the MLM arm are called.

Medifast have been accused of being a pyramid scheme. Medifast sued the accuser for defamation but the courts did not uphold the claim. Read about it here on Fraud Files. Further details of the case here.

The reps are called coaches.

Mona Ameli was appointed to the DSA board in 2015. She is the president of DSA member Take Shape for Life.

Melaleuca

Menard Cosmetics

Metabolife

This company sold supplements but when there was a ban on ephedra, the company went out of business.

In 2002 the Justice Department investigated the company for lying about adverse effect reports made by users of their products. The document says that there were 2000 adverse reports but that Metabolife had told the FDA there were none. The report in the link is quite scathing of the company and accuses them of acting with indifference, with little regard for people’s lives. This USA Today story details the FDA concerns about the company and the product and an individual person in Metabolife.

2005- This little sentence appears in a newspaper article about Metabolife and the tax evasion they were being accused of-“Metabolife co-founder Michael Ellis still faces weapons charges and charges that he lied to federal regulators about the safety of Metabolife 356.” This newspaper article describes how Ellis was a convicted felon (drug charges) and was being prosecuted for owning weapons and ammunition that he shouldn’t have had.

The San Diego Source describes how “Michael Blevins, 54, a high school friend whom Ellis made a Metabolife board member was indicted in 2003 for federal gun charges. Like Ellis, Blevins was barred from possessing weapons for his role in the same 1988 meth lab bust. Blevins served time in prison; Ellis, who worked as an undercover FBI informant, received probation.” The article gives details about Ellis’s gun charges.

2006- William Bradly, a co-owner of Metabolife was convicted of tax evasion and sentenced to 6 months in prison. This San Diego Union Tribune story covers the issue. An extract from the article- ‘According to assistant U.S. attorneys Phillip L.B. Halpern and Kyle W. Hoffman, Bradley used various schemes to avoid paying taxes, including diverting corporate profits, improperly classifying corporate income, failing to report personal income from his towing company and using a charitable foundation to conceal income.’ 

This website lists links to Metabolite news stories with a summary for each one.

Mi Lifestyle

Their website.

This is an Indian company that sells supplements.

MiA Bath and Body

They sold customised bath products. Set up By Steph Appleton in 2012, after she left Bathologie. Bathologie accuse Steph of stealing their concept and set up a FaceBook page to publically show everyone their evidence.

Mia Bella Scent Sations

Mia Mariu

Mialisia

Michael S. Brown

MICHE

This company sells handbags with changeable covers.

Their website. They were founded by Michelle Romero and Annette Cavanness in 2005.

They sued Thirty One Gifts (another MLM) for copyright infringement in 2011. The courts decided there hadn’t been a breach. See entry under ‘Thirty One Gifts’ for links to the case details’ and links.

They went into liquidation in 2016.

MICHE are still active in Canada and Europe. They host parties and have reps that earn commission but I am unsure if they are still an MLM company.

Micorp-Jobs

Mid American Opportunity Research Enterprises

Miessence

Miki

Mile High Management Systems

Millenium Innovations

Miller Marketing South

Mineral Resources

Modere

Their website. A Utah company that believes in ‘living clean’ and avoiding ‘bad chemicals’.

Some of their reps have been selling their products under the pretence of helping people with cancer.

Moja Works

MojiLife

Momentis

Mommy 2 Work

Mon Ami Gourmet

MonaVie

Their income disclosure statement

At first, this income disclosure doesn’t look too bad. $1,536 yearly income is quite a look for MLM. Then, look at the small print underneath.

The above chart only includes people who have managed to recruit someone, spent money within the last 8 weeks, and worked enough to receive a bonus. 87% of people have not achieved that, and presumably their earnings are going to be close to $0.

Lazy Man and money has a lot to say about MonaVie.

“What I’ve found is tons of irrefutable evidence supported by reputable third parties that MonaVie is a grossly overpriced product, with little nutritional value, wrapped in a poor business opportunity that appears to be illegal pyramid scheme, supported by nonsensical “scientific” studies and illegal medical claims.”

In 2009 Oprah Winfrey’s company sued MonaVie over claims that her and Dr Oz’s names were used to promote the products.

This juice website compares Monavie products to an apple. Guess which one is better for you?

Law suits and FDA warnings.

Their website says that Mona Vie is a Jeunesse product.

Monat

They sell hair products.

Their website.

Their policies and procedures.

I have been unable to find an income disclosure for them.

They have a lot of ex-reps and customers not happy about customer services, refunds or shipping arrangements. The BBB has quite a few complaints. So does Ripoff Report.

There have been lots of reports of Monat producs damaging people’s hair and reps telling them they are using the products incorrectly. This stylist blogger explains about why the products are harmful.

This article looks into the claim that Monat products were tested at Princeton University. They weren’t.

Class actions are being made against Monat for the damage they claim has been done to their hair. Some reps have been saying they are FDA approved. They aren’t. News story here.

TINA found that MONAT have been making lots of false income claims.

Morinda Bioactives

Motives Cosmetics/ Motives by Loren Ridinger

Their website.

Unsurprisingly, they sell cosmetics. They operate in America, UK, Hong Kong, Australia, Singapore, Taiwan and Malaysia.

Motorclub of America (MCA)

Moxxor

Multi-Level Marketing Inc

Multi-Media

Multiplex Systems

Multipure

Mustang Marketing

MPB Today

MWR Life

MXI Corp.

My Amelia James

My Club 8

My Daily Choice/ MDC

Their website.

Their products list health claims and then say at the bottom that their products aren’t intended to treat anything.

Some of the ingredients they use- deer antler fur, emu oil, coral, apple stem cells. Some of the health claims- ‘balances pH levels, reduces risk of chronic illness, combats anxiety’.

One of their products has melatonin as an ingredient. This cannot be sold in the UK unless there is a prescription and it is sold in a proper chemist. There are only a few circumstances where this drug is appropriate. It is illegal for people in the UK to sell it, even via a website. Anyone seen selling it this way can be reported to the MHRA/ Trading Standards.

They have a line of products called Hempworx which contain CBD oil derived from cannabis. The psychoactive substance THC is removed. CBD oil is readily available in high street shops like Holland & Barrett.

There is no income disclosure statement.

My Freedom Grocer

My Fun Life

MyEcon

MyNyloxin

This is an MLM that sells Nyloxin, a homeopathic ‘pain reliever’ made from snake venom. It is made by the company Nutra Pharma Corp.

This is their ‘research’ supporting their assertion that their product helps with pain. The papers are from Chinese papers that look at venom. There is no evidence offered at all for the homeopathic remedy at all. Homeopathy is where an ingredient is diluted until there is no ingredient left, it is just water. So the research means nothing.

Review on Behind MLM.

MyVideoTalk

My Secret Kitchen/ Your Inspirations at Home

Owned by JRJR Networks.

In liquidation.

N4U International.

Boyd Wathen cites in his LinkedIn profile that he was a co-founder of this company. He was the man who invented Plexus’ pink drink.

Nanci Corporation

Nancy A Laplante

Nancy serba CPTG Essential Oils

Narges Valikhani/Mazeh

Naris Cosmetics

National Alliance For Insurance Education and Research

National Safety Assocates

Became JuicPlus+

National Wealth Center

Natura

Natural Health and Nutrition

Natural Health Secrets II

Naturally Plus

Nature Direct

Australian company selling essential oils.

Nature’s Bounty

See Dynamic Essentials.

Nature’s Sunshine Products

NatureRich Distribution Center

Neal’s Yard Remedies

Neal’s yard exposed as selling an illegal remedy for Malaria on Quackometer.

Their compensation plan is not available  to view until you join up. Likewise, there is no information on how much their people actually earn. Why hide this?

Neese Enterprises

Nefful International/ USA

Neolife

Nerium International

TINA list many, many problems with this MLM. There are false health and income claims listed on TINA’s website.

TINA found that the DSA gave Nerium an award in 2016, despite it breaking the DSA’s own ethics code.

For updates on the Gerdo v Nerium court case, check out this website.

January 2019, Nerium started rebranding as Neora. See TINA article about this.

Network Marketing

Nevetica

New Earth

New Spirit Naturals

New Success Network Group

New Wave Financial Marketing and Investment

Neways

Newbet’s Choice

Nexgen3000

NHT Global

Nikken

NL International

This is a French MLM that sells products with the name ‘Laboratoires Beautysane’.

Noevir

Nomades

Noonday Collection

North American Power

Norwex

This MLM sell cleaning products for the house. They are against ‘chemicals’.

Their website.

Terms and conditions.

Ecofriendlymama reviewed their products and found that they aren’t as eco friendly as they claim.

That link to the product manual doesn’t work. Try this link.

There is no income disclosure from this company, which is always a concern. When you get companies openly disclosing that their sellers make £100 a year, how little must they be making for a company to keep it a secret?

Nouveau Riche

This was an MLM that worked by providing training in a ‘university’ about real estate investment. The students were encouraged to invest in property which turned out to be a higher risk than was promised.

In 2011 The Arizona Corporation Commission fined Nouveau Riche for operating a fraudulent investment scam.

Novus Era

NSA

Nspire Network

Psudoscientific products with ridiculous claims like ‘chemical free’. Their website.

Their Twitter feed.

An actual advert they use.

Incoporated April 2017 in the UK. Details at Companies House. It is listed as a non-trading company.

Ntime

Nucerity International

Nu Life

Nu Med

Nu Skin

Nu Skin fined for breaking FTC’s rules. Again.

A Nu Skin whistleblower’s story.

Interesting link between NuSkin and Olympic drug cheats in this New York Times article.

Analysis of earning potential of Nu Skin by Dr Taylor, Pyramid Scheme Alert.

MLM The Truth’s analysis of NuSkin.

Cultish behaviour at a NuSkin convention from MLM The Truth.

An ingredients analysis of NuSkin’s toothpaste.

TINA’s investigation into illegal health claims made for NuSkin products.

NuSkin released an income disclosure in 2011-

These figures use the numbers of current members, discounting all the people (probably a large number) of people who left during the year. The figures show the amount earned by active distributors only, which make up just 41.61% of the total. And of these, only 12.68% actually got a cheque. This means that only 5.28% of people in NuSkin in 2011 actually earned any commissions. Half of these lucky few got paid $492 a year.

A document that shows how NuSkin has attempted to discredit its main whistle blower. Dr Jon Taylor. He provides arguments against their statements.

Nucerity

Numis Network

Bought by World Ventures

Nuriche

Nupro

Nutrient Foods

Nutrimetics

Based in New Zealand/Australia.

Nutromix

Nuverus

NWB Guardians

NXIVM

This was an MLM that supposedly sold self improvement courses. It turned out to be a cult that was involved in people trafficking, slavery and sex abuse. Smallville actor Allison Mack was involved and her court case is pending.

News article here.

NYR Organics

Ocean City Network

Ohana Health Wellness

Omnia

Their website.

Omnilife

Omnitrition

OneCoin

video about onecoin

article about onecoin

Ethan Vanderbuilt article on Onecoin organisers arrested in India for running a scam. His website has many other stories on this scheme.

A blockcoin expert describes how Onecoin is a fraud

on Ethan Vanderbuilt’s website.

OneHopeWine

OPN The Opportunity Company

Optavia

Their website.

Sells prepackaged food, meal plans and uses ‘personal health coaches’.

Originally was Medifast weight loss food sold through ‘Shape for Life’.

Dr Wayne Scott Andersen was the founder of Shape for Life and was the medical director for Medifast. He is listed as being an anaesthetist and critical care doctor who has written books about dieting. His facebook page gives lots of information about him.

Opulenza

Orenda

Organo Gold

Their website.

Their income disclosure statement.

They sell coffee and other hot drink powders, many containing Ganoderma Lucidum. This is a mushroom that has no allowable health claims in the UK and can be very harmful to a few different groups of people.

Reps selling this coffee often tout it as a weight loss product. Which it really isn’t. They also claim some ridiculous things as here-

In 2014 Organo were in trouble  with the DSA for pretending to be members. The FTC weren’t happy with them for making inflated income claims and health claims of their products.

Oriflame

They sell beauty products. They originated from Sweden.

They recommend buying ten catalogues every three weeks.

Information from their website.

There is no information on actual average earnings.

This comment is a little concerning- “The compensation plan awards recruiting more independent consultants higher than that of selling the company’s products“. This is from a Best Company review page where people rate the company they work for.

Oriflame were shut down in Tehran in 2010 for operating an illegal marketing scheme and evading tax. Story from the BBC. Oriflame said it was because they employed women and was no different from any other business. This news report  about the Tehran incident makes the case for Oriflame being a pyramid scheme. There is an Iran Oriflame Facebook page now so maybe it is up and active again? Although the last post was in February 2016.

This is one bit of a Glassdoor review. It is a theme that crops up a few times.

“Cons
Top Management: Most of the mangement have been having same or similar positions on the top for 10-15 years. The men have normally never worked at any other company except for Oriflame and just rotate each others’ chairs despite the company performing poorly for several years.
Sexist: there is definitely a glass ceiling at Oriflame. If you are an ambitious, young woman, there are much more equal opportunities at other FMCG companies. Do not waste your best years here, no mater what they promise. All but a couple of the MDs are men and in top mangement there is only one woman.
Micro management: it is an extremely top down company.
Wavering priorities: the company never stick to their decisions and will change their mind on decisions including company strategy .”

Origami Owl

OXO Worldwide

Oxyfresh Worldwide

Ozeanity

Their website here. Distributor agreement here. Section 5 says you must generate 50 points every 28 days. There are no prices given on the website for the products.

This MLM has an odd mix of products. At first it was bedding, now they have added dried fruit powder!?

Amandeep Rajput is the CMO (Chief Marketing Officer). You may have spotted him before. He was one of the people that ran Lifetree World but left before it was liquidated. Link to his current status at Companies House.

Other people involved that are listed at Companies House are

Myrja Oketch, who owns Akom Ltd, a non-specified wholesale company. I can’t find anything about this company.

Harrison Oketch is listed as the Director.

They have both been involved in a dissolved company called Stirling Academy Ltd, and are both now involved in Citizen 2000 ltd which seems to be an educational institution. Myrja is Head of Academics and Registrar and Harrison is the principal. Their website gives information on how international students can apply for Tier 4 visas so they can come and study. Unfortunately though, they were investigated for visa fraud and this status has been revoked, according to The PIE News, an international education website. Here is an article about the investigation and fraud. This page gives a business analysis of Citizen 2000. It seems they may have shut down.

P.E.E.L.

Pacific International Credit

Paid 2 Save

Their website. The founder and CEO is David Hart. He was previously involved in an MLM called Waiora as a Diamond club member.

This company sell memberships to have access to discounts. Reps have to be members of this discount club themselves. There isn’t an actual product. It is ‘pay to play’. There is no mention anywhere what discounts people can get or who the discounts are through. It is all a bit vague.

Review by Behind MLM.

The Pampered Chef

Pangea Organic

Paparazzi Accesories

Their website. They sell costume jewellery and all their items cost $5.

Information about the 4 founders here. They are Misty and Trent Kirby and Chani and Ryan Reeves.

Their compensation plan explains that to be eligible for bonuses, a ‘consultant’ must buy 25 items a month (50 PV).

That is a lot of jewellery to collect.

 

This would explain why reps end up with massive piles of stock like this

 

This stock and presentation equipment must have cost quite a bit.

 

 

There is no income disclosure statement.

Paperly

Owned by JRJR Networks

Park Lane Jewlery

Partylite

An MLM company selling candles and accessories. They are owned by Blythe Industries that are in turn owned by The Carlyle Group.

Business guide with all the rules and earnings structure.

Sellers only get bonus cheques once they have sold more than $2,300 worth of candles. The bonus is only 7% of the sales each month. That’s a lot of candles to sell. $14.95 a month is payable to be able to use Partylite’s IT systems. Starter kit $250.

There are monthly sales amounts to achieve.

I cannot find an income disclosure statement anywhere which s always a red flag as it means the company are not willing to disclose what your realistic earnings are likely to be.

Party Time Mixes

Passion Parties

Bought by Pure Romance.

Paw Tree

Paycation

Peach (formerly called Zyrra)

They sell clothes. They call the type of clothes they sell ‘athleisure wear’.

Their reps are called stylists.

Review by BehindMLM.

Pearl Chic

Perfect

Perfectly Polished

Perfectly Posh

Their website. They sell soaps and seem to just be operating in the USA. Their policies and procedures. Their commission structure.

One person’s real life experience of being in PP, as told to my partner page The Anti MLM Coalition.

Bottlesoup have analysed the company and found people need to sell at least $550 of product a month to break even. And that doesn’t even take into account expenses.

There is no income disclosure. Here is their excuse-

FDA sent a warning letter to Perfectly Posh for false health claims made for their soaps!

2017 Andrew McBride was terminated from the board. He was a co-founder. Video here. Andrew’s facebook post about the issue. Loads of Facebook posts of infighting between Andrew McBride and Ann Dalton, with a lot of comments from reps. Andrew went on to found BeCause Cosmetics.

Perium Health

PGI

Pharmanex

Phillips Health International

Phoenix Trading

PHP

PhytoScience

PIE Transfer

Pink Papaya

Pink Zebra

Piphany

Founded by LuLaRoe’s founder’s twin. See this Businessweek article for a mention. The origin story for this MLM is exactly the same as LuLaroe’s, according to the article.

Platinum Payout

Plexus Worldwide

Their website. They sell dietary supplements in the USA. They sell the ‘Pink Drink’.

Income disclosure statement–

82.41% of reps earnt $301! The median annual commission earnt by all reps was $172.

Lazy Man and Money review the company.

Ethan Vanderbuilt looks at the company.

See the anti-MLM Coalition’s Plexus info page for information.

Pinkdrink is a person who was once in Plexus and is sharing her experiences on her website.

Truth IN Advertising investigated Plexus for their false, rule breaking health claims.

This blogger examines the drink and the ingredients.

Plunder

PM International

POLA USA

Polaris Global (PMG)

This BehindMLM article has a lot of information on them. There are links at the end of the article for many other articles on the subject.

Poofy Organics

They operate in America and were founded by Kristina Gagliardi-Wilson (CEO) and Nella Gagliardi in 2006.

They sell organic beauty products, essential oils, home cleaning products.

They use testimonials and health claims to sell their products. Check out this eczema cream.

Not all their products are certified organic. Make sure to check each individual product’s details.

Their reps are called guides. There is a monthly fee of $9.95 for the website reps need an a sign up fee of $39.95. Guides are encouraged to spend $200 on products when they join. Hopefuls have to complete training before they can join. Reps have to buy/sell $200 a month to be eligible for commissions and bonuses.

Their terms and conditions.

They do not publish an income disclosure statement. The only information I have been able to find is info put out by people selling the products.

Pola

Power Pops

Prai Beauty

Pre Paid Legal Services

Premier Business Systems

Premier Designs

Prepare Then Share

Primebuy Network

One rep’s website promoting the opportunity. They seemed to sell licences for websites and sold things through the websites.

There was a class action by reps accusing this MLM of being a pyramid scheme. Case papers here. Shut down in 2001.

Primerica

Their website.

They sell insurance and investment products to the North American market. Some reviews by customers and reps here.

Ethan Vanderbuilt declares it is a scam (in his opinion). He alleges that a common ploy these reps engage in is setting up fake job interviews to reel in new prospects. More on that issue on this Consumer Fraud website.

This blogger describes how he was contacted by a Primerica rep to attend a fake job interview. There are over 1000 comments on this post that are worth a read.

This information about earnings is provided on their website section entitled “Important Disclosures.  “From January 1 through December 31, 2015, Primerica paid cash flow to its North American sales force at an average of $6,119 per life licensed representative. Average cash flow includes commissions paid on all lines of business, and reflects combined U. S. and Canadian dollars remaining in the local currency earned by the representative. Exchange rates fluctuate daily and could impact the average.”

They only give payment details for the ‘life licensed representatives’. There seem to be other types of products they sell that do not need any licensing. I wonder how much they make? Or what the real average of their whole salesforce is?

Costs incurred by the reps- “The IBA fee is $103.95 (including applicable sales taxes) and the monthly Primerica Online fee is $28.00.” IBA stands for Independent Business Application. This is a total of $439.95 in the first year. Also, take into account other expenses such as stationery, travel, phonecalls etc.

This is mentioned on the Canadian site– “Any cash flows stated represent gross income only. All commissions are subject to Deferred Commission Account withholding and applicable taxes, and Representatives are responsible for their own business expenses.”

This Seeking Alpha article explains some of the issues. They explain how Primerica have 28% of the licensed reps in the country and only 1.83% of the market share. Also, they say that Primerica were vocal in objecting to rules that made companies sell products that are in the best interests of the customers.

This page gives financial information about the company. On it is this chart-

Look carefully at the figures. in Q4 2015, there were 106,710 life licensed reps. In Q4 2016, there were 116,827 reps. This is a net increase over a year of 10,117 of life licenced sales people.

We can see that each quarter there are about 11,000 new life-licensed recruits. (11,144 if we take the average of the quarters provided).

This means that in the 4 quarters of Q4 2015 and Q4 2016, there were 44,576 new life licensed reps (LLR) joining the company.

So in Q4 2015-     106,710 LLR

Between Q4 2015 and Q4 2016  44,576 LLR join up.

This makes 151,286 LLRs in total.

Q4 2016 there are 116,827 reps remaining.

This means 34,459 LLR left the company.

44,576 joined and 34,459 left. For every person that joins, 0.77 leave. That is quite a high churn rate. And this is only counting the reps that made it as far as qualifying for their license.

I wonder if they left because it was too difficult to sell the products? The stats show that life licensed members made on average 0.22 sales per month, equating to less than 3 policies sold in a year.

On Twitter, follow @whatsprimerica or @PriParodyRep for some light relief on the subject of Primerica.

Princess House Inc

Their website.

They operate in the US, Puerto Rico, Mexico, Canada and Australia. They sell homewares. Their reps are called ‘lifestyle consultants’. The company started in 1963.

Owned by Ray Chambers. CEO is Connie Tang.

In 2017 TINA found that Princess Inc were making false income claims.

Privilege Car Club

Registered in the UK at Companies House.

This scheme started in August 2017 in the UK and ended in May 2018. The idea was that people would join up for £199 and pay £50 a month (plus £199 yearly). Then they start recruiting. Once there are 81 people in the downline who have been paying £50 for a number of months, the person is eligible for a car, as long as the people below keep paying in.

Here is a slide from one of their presentations.

As of 3rd May 2018, all evidence of this MLM/ Ponzi/ pyramid is rapidly disappearing. This message has been widely circulated by members of the club.

Although the ‘club’ were saying they were a ‘crowd funding group’, they were operating in just the same way as a Ponzi scheme does. I will keep an eye on any ‘regulatory issues’ as they arise.

For reviews of this scheme, see Behind MLM. The author says in the comments that members of this scheme are saying the website is down temporarily and it has not collapsed. They are still presumably hoping they weren’t involved in a scam.

They seem to be operating in the USA and Panama.

Pro Step

Pro Travel Network

Profitable Sunrise

Shut down in March 2013.

Pro-Health

Prosper With Integrity

Prosperity Team

Protégé Marketing Team

ProtravelPlus

PRP Promotions

Pruvit

They operate in the US, Singapore, Malaysia, Macau, Hong Kong, Canada and Australia.

Their website.

Income disclaimer. They say they expect their ‘pruvers’ to earn between $500- $2000.

Their policies and procedures.

Here is their selection of research and articles that support a keto diet. This is a diet that omits carbs so that the body has to break down fats and proteins, releasing ketones as a byproduct. It is quite a leap to assume you can get the same benefits by eating a normal diet and just take ketone supplements. Some research is now showing that taking ketone supplements can worsen athletic performance.

Truth In Advertising show how Pruvit are making illegal health claims, including one of the co-founders, Rob DeBoer. Rob had been ordered to pay compensation for his part in the pyramid scheme ‘Burn Lounge’. The website shows how Rob has been saying his products can help with autism.

Pulse Cosmetics

Pure Alternatives

Pure Haven

Formerly known as Ava Anderson

Pure NRG fx

Pure Romance

Adult products.

PUREly

Formerly known as Simply Aroma. They sell essential oils, beauty products, nutrition and household products. They claim their products are ‘pure’ and ‘natural’.

Purium

Qnet

Formerly known as Questnet, Goldquest and QI Ltd.

QSciences

Quixar

See Amway

Rainbow Vacuum

RBS Life

Red Aspen

RED Safety

RengaLife

Launched April 2018 in California. CEOs are Jason and Eunjung Cardiff. They own Redwood Scientific Technologies as well. RengaLife sell Redwood Scientific Technology products.

They sell medicines that are contained in strips that dissolve in the mouth.

Reps have to   spend $200 a month to be eligible for commissions. There is a mandatory autoship.

BehindMLM review.

Regal Ware

Reliv International

Members of UK DSA. They sell nutritional products.

Their website.

Rena Ware International

Revital U

Another weightloss coffee MLM. Their website.

Their coffee ingredients

They call their reps ‘Brand Influencers’. Reps get paid bonuses for recruiting people. Here is their compensation plan.

Active in Canada, UK and USA.

Amy and Richard McWilliams are Americans that are listed as the directors in the UK business at Companies House. The company was incorporated in May 2017. Amy is the registered owner in Texas, USA. Launched in Texan in September 2017.

There is no income disclosure statement.

Rexair

RIWAY

This MLM sells capsules containing deer placenta for improving your health!

They operate in Thailand, Indonesia, Malaysia, Philipines, Taiwan and Singapore.

Their Twitter account hasn’t been updated since 2015.

A website analysis shows very poor social interaction and almost all of the site visits are from Russia.

People interested in cults might like to look at the opening video on their website.

Rodan and Fields

Their website. Their policies and procedures in America.

Is Rodan and Fields a scam? By Lazyman and money.

There are lots of entries on the consumer site ‘pissed consumer‘ for R&F products and the behaviour of the reps.

Income Disclosure statement.

Rodan and Fields are being sued over an ingredient in their makeup. There is controversy over whether the ingredient should be classed as a drug. Story here. The story from the lawyers who are suing.

 Picture from law firm’s website.

Bottlesoup have analysed the earning potential for reps.

An experience from someone who joined R+F, as told on the Anti-MLM Coalition website.

Rolmex

Royal Tongan Limu

This was a seaweed extract product sold by Dynamic Essentials. Misleading and illegal claims were made about this product which ended with the FDA and other authorities shutting down Dynamic Essentials.

Ruby Ribbon

Saba

Sabrika Jewelry

Their website. They call their reps ‘consultants’.

Founded by Karin Mayr.

Safgirl

This company didn’t do so well as an MLM so the owner changed it to a more traditional business model. The company has since gone into liquidation. The below information has been left in case anyone wants to see what it was all about. It is outdated information now though.

Their website.

Their Twitter account is @safety4girls. It is an odd mix of crime statistics, Labour party support and information about and from charities that support victims of crimes.

Their product catalogue. You can only purchase these items through contacting a rep or joining yourself.  They sell an odd range of products- rape alarms, car crash escape kits, child locators, red dye spays for spraying at attackers, carbon monoxide detectors, to name but a few. They charge £18 for a 125 decibel gaudy pink attack alarm. This is double the price of alarms found on Amazon that are a lot nicer looking.

As with all MLM products, there is a high markup on the products. Take their ‘Red in the Face spray’ for example. Shown below is Safegirl’s product and the original product.

 

Companies House information about this company (Safegirl Ltd) shows the officers to be Andrea Clark, Christopher Shipman and Samantha Shipman. They are also involved in Safegirl Holdings Ltd which is a management consultancy business. Both businesses were registered in November 2016. The Safegirl website mentions Andrea and Samantha but there is strangely no mention of Christopher.

They are a prospective member of the DSA which does not really mean much as it is just a trade organisation.

Safegirl terms and conditions. It describes how Safegirl Sisters (the title reps are given) have to purchase the products and sell them on. It says that profits are only made on sales and there are no monthly obligated purchases.

There are two ways safegirl sisters can join the business-

Sister level- you buy products at 25% discount and sell on. You buy £100 of products and sell for £125, making £25. If you purchase £300 or more in a month, you get a 5% bonus. So if you bought £300 of product, you would get £15 in bonuses and would then have to try and sell it all for £375 to get a further £75 profit. That’s 20 personal attack alarms to sell in a month for £90 profit. Attack alarms that can be obtained much cheaper or free of charge elsewhere. It is worth noting here that if you sold an item to someone online, presumably, you would have to purchase the item and pay the P&P to send it to your customer. This would nibble into your profits a bit. Then there’s taxes and expenses too, of course.

Sponsor level- You will earn a small percentage of your downline’s sales as long as you purchase £300 of products in a month.

I do wonder if this company is being discriminatory by naming their sales reps ‘safegirl sisters.’  There seems to be no provision for men who want to join. This Telegraph article discusses research and expert opinion that found feminized job descriptions actually encouraged discrimination against women. It says the job holders were perceived as less professional and devalues women. This is at odds with a company that claims to ’empower women’.

Saivian

This MLM has been popular with people leaving Lifetree World.

It is supposedly a cashback scheme where you register your top 10 retail sites and a pay method. You then have to send copies of receipts to Saivian to get 20% cashback. You have to pay $128 every 28 days to be a member in this scheme. This means you have to spend $625 every 28 days to break even. Never fear though, just recruit people to earn money off them. You can just recruit people and pay your fee, you never need to use the cashback scheme at all. Hmmmm. It is only available in the USA. Everyone else can just join the global option where you get cashback for travelling.

A review by avertscams.

Behind MLM review looks into a bit more detail about the compensation plan and the organisers. They conclude it is a pyramid scheme.  It is worth reading the comments at the end of that article for what happened to the company. It looks like Saivian are no longer operating in the US. There are some serious problems discussed in the comments.

They shut down in October 2017, blaming ‘rampant fraud perpetrated against our company’. Their website comment explains.

The BBB page for Saivian gives a link to the American website. When you click on it, this is the page you get.

 

Salad Master

Sanki Global

SAS Spurilla

They have been found making false income claims. Check out this TINA page where they show them.

Scent-Sations

They sell candles and car air fresheners. Their website. They sell Mia Bella products.

There are some serious accusations levelled at the company on this Ripoff Report website.

Scentsy

Their website. They sell fragrant waxes that you burn, soft toys and cleaning products.

Operates in US, UK, Germany, France, Spain, Austria, Ireland, Italy, Poland, Luxembourg, Australia and New Zealand.

‘Tiff” tells her story on the realities of being in Scentsy in this blog post on the Anti-MLM Coalition website.

They call their annual conference a ‘family reunion’.

Income disclosure for 2014 for the US. They have quite a high churn rate. About a third of their members left in 2014 and were no doubt replaced continuously.

This chart shows that 102,973 out of 105,192 active reps earned less than $1870 a year.

A 2017 UK income disclosure.

How much does it cost to remain ‘active’? You need to pay £85 to join and pay a fee for the website of £10 a month (free the first month). This costs £196 (plus local tax and shipping- about £17 tax and £10 shipping), so the first year costs £223 just to be in the company.

How much do they need to sell/buy to be eligible for any commission/ bonuses? Their website says this “Scentsy Consultants must generate sales resulting in 200 points or more in PRV in at least one month within any contiguous three-month period. The 200 points in PRV can come from individual customer orders, party orders or online orders made through your Personal Website (PWS).” This kind of makes it hard to work out exactly what it costs to earn anything, a tactic used by all MLMs. It was 150 PRV but was increased to 200 in March 2017.

This rep has a page on her website on how to achieve 200PRV a month and she says 1PRV is about $1. A lot of her tips are to buy it yourself. This would add £570 minimum a year if you were to spend equivalent $800 a year ($200 every 3 months) to your costs.

Total spend- £793 in first year, plus marketing materials, P&P etc.

Average amount earned- £602

Loss of at least £191

(2,379,465 earned by group 1, 1,518,692 earned by group 2, total amount earned 3,898,157 by 6,466 people.)

Truth in Advertising looked at their false income claims and found quite a few. Click on this link to see them.

Scout and Cellar

Seacret Direct

Opened in 2005 in Scottsdale Arizona. It was set up by two brothers- Izhak Ben Shabat and Mordechai Ben Shabat. Their products are Dead Sea products. They operate in USA, Korea and Australia.

There are some pretty damning reviews on Glassdoor, with some interesting observations of the owners.

Their reps are called Seacret Agents.

Lots of complaints from people who were approached by sellers when they were selling products in mall kiosks.

Send out cards

They have been found to be making false income claims. Check out TINA’s web page where you can view them.

SeneGence International

This is the MLM that sells Lipsense.

Their website.

Their reps’ titles are Princess, Duchess, Royal etc!! Their downlines are called Dominions.

Joni Rogers-Kante is credited by the company as starting SeneGence and travelling round the world with scientists developing amazing makeup with anti-aging properties.  Her husband and son help run the company.

This snippet is how Joni describes one of their products in The Direct Selling News. “As the product line grew, the company also added an anti-aging benefit to the products. “SenePlex Complex is the proprietary anti-aging formulation exclusive to SeneGence,” she says. “All SeneDerm and creamy SenseCosmetics contain this one-of-a-kind kinetic enzyme that fights the signs of aging by renewing your skin from  the inside out an average of 23.3 percent more rapidly, which in  turn reduces fine lines and wrinkles by an average of 55 percent for 100 percent of our consumers.” 

I’ve heard of skin renewing faster than normal, it’s what happens in dandruff and psoriasis.

I have tried to find the clinically proven research paper to analyse. I love a good bit of analysis. SeneGence give this information. Lots of charts and numbers and assumptions. No reference, no author or paper title. I’d like to look at the actual research. I have tweeted Senegence for the details (15th May 2017). I will keep you updated.

There is no income disclosure statement anywhere, not even on the Canadian website.

There are problems with products at the moment. The distributor packs that people purchase to start their business are currently out of stock. But that’s ok, you can still pay to join up and recruit others. The reviews at Glassdoor indicate there have been stock issues for a number of months now. There is an allegation of bullying by uplines, frontloading being encouraged, cult-like behaviour and lying.

The Complaints Board Website is full of Senegence complaints. People complaining they can’t get stock, customer services unhelpful, still recruiting when no stock available, ‘senecash’ not working, refunds not being given, many, many problems.

This blog post is by someone who left SeneGence and she spills the beans. She explains that distributors have to spend $200 every 6 months on products, the website costs $300 a year, you are encouraged to get a credit card to pay for products and to build up an inventory. The $55 join up fee has to be paid every year, you have to buy hundreds of dollars of stock each month to be eligible to earn from your dominion. This is one of the gems in the comments by someone in this MLM ‘nothing comes easy when its you being independently earning money next time you try something like this out give it some time and keep your optimism you could have reached those goals had it been something you really wanted to do. its really that simple if you dont want to put the work and time in then obviously you wont get the return you expected’.

A blog post where someone describes how they were terminated by Senegence. She was a Crown Princess and tells what it was like. She has started a Facebook Group for disullusioned  Senegence people- “Anyone wanting to join Verbal Release Therapy, message me on my facebook; Robyn Elizabeth Berry (I’m the one from Canada).”

A blog post on Crownless Princess that lists blogs to do with Senegence members and their experiences.

Bottlesoup analyse the earning potential for reps.

Sevenpoint2

“The world’s first alkaline movement”.

This MLM have been criticised by TINA for making false health claims.

40 examples of false health claims are detailed by TINA here.

Shaklee

Sherlock Nation

Shopping Sherlock

Shrimp and Grits

Signature Homestyles

Silpada

Silver Icing

Simple Man

Simply aroma

Simply Said

Simply Fun

DSA member

Simply Success Elite

Sisel

Sitetalk

Sitting Pretty

Sisel International

SkinnyBodyCare

Their website.

This very detailed blog post evaluates SkinnyBodyCare. The blog looks at the ingredients in the products, the people behind the company and financial information.

Details on this blog of a court case against SkinnyBodyCare.

BBB rating of F. They have not responded to 10/12 complaints.

They have no income disclosure statement. They do not want people to know what small amounts their people earn.

Sky High Party and Pizza

Skybiz 2000

Small Business Marketing

Smart Circle

Smile Enhance Network

Their website. Started by Rebecca Moorfield.

They sell toothpate and tooth whitening products, including a ‘detox’ kit for teeth. They also sell CBD oil.

I tried to look up the ingredients in the products. There is no listing on their website. I looked at the products in their products section and clicked on ‘purchase’, hoping it would open up a box with more product information. The website then prompts you to register with them. There isn’t even a price on the website.

The smile enhance products are made in the UK, according to sellers.

On EBay there are lots of Smile Enhance products. They list the ingredients there.

Solavei

Founded in 2012 by Ryan Wuerch in America. They ran a mobile service using T-Mobile. They shut down in 2014 after filing for bankruptcy.

On 18th November 2015 the company was still promoting its activities on Facebook.

This is the last message they posted-

They didn’t post more announcements.

 

This mobile phone website announced that Solavei were ceasing operations on Dec 4th 2015. They said it was due to the company being unable to recover after bankruptcy.

This Geekwire Report article describes what happened when it shut down. The announcement mentioned on Solavei’s Facebook page is accessible on that article.

Sophie Paris

Soul Purpose

South Hill Designs

South Pacific Islands Inc

South Western

Southern California Star Systems

South Hill Designs

Southwestern Advantage

Southern Living at Home

Sozo

Spa Girl Parties Inc

Speciality Products

SpiritLife

Sportron

Spring Rainbow Enterprises of Oklahoma City

Springtree

SPX Nutrition

Sseko Designs

Stahr Meridian

Stampin’ Up

Stanley Home Products

Starlight

Steeped Tea

Stella and Dot

Their website

How much money can you really make in Stella and Dot? The Talented Ladies Club investigate.

A 2013 article on the CEO and creative director of S&D, Jessica Herrin and Blythe Harris.

Income disclosure statement for 2014

 

In 2016 their income statement was a bit worse

 

A review on Glass door website. “You have to buy all your won products and displays. Which never ends because they are constantly discontinuing certain lines so you have to buy more each season. They run promotions to earn credit for free jewelry or qualify for 50% off but it’s a scam. As a stylist if your jewelry breaks to bad that “we want the customer to always be happy” doesn’t apply to stylists. You have to buy it again and at full price. The company makes money off the stylists not customers. If you want to make money you will be working more hours than any sales job I’ve ever had. And if you have stylists under you and you don’t make your required dollar amount those stylist get out under the person above you and they make the money not you. There is little support for stylists each team is very different. Very little training. They sell stay at home moms on oh you just have to throw trunk shows with your friends and for and for a few hours a week of work you can make great money. It’s a total lie. They want you to use an iPad with their app but you have to buy it. Most will spend more than they ever make. They keep expanding the line so you have to buy more and more and more products. Jewelry, purses, bags, makeup, scarves, glasses…..“

An example of emotional manipulation used to entice mums to join Stella and dot-

The Financial Times looked into the earning potential of Stella and Dot in this thorough article. The article points out that the company are willing to boast about profits from a few years ago but won’t talk about recent earnings. And that the company think it is different to others and more ethical because they offer buy back of unused stock. They fail to mention that this is actually a legal requirement in British law.

Stemtech

Sterling Bay

Stiforp

Stokes Associates

Strategic Resources

Stream Energy

They were sued in a class action and by TINA for being a pyramid scheme. For links to documents and a timeline of the case, have a look at TINA. March 2018 an agreement was reached between the parties.

Stream Gas and Electric

Streamingomes

Strongbrook

Success Connection

Success Is Not An Accident

Success Through Advertising

Success University

DSA member.

Sunrider

Member of UK DSA. Started in Utah by Dr Tei-Fu Chen in 1982. They sell supplements. They also own shops.

Their website. Their compensation plan.

Forbes list Dr Tai-Fu Chen as a billionaire. He was the 43rd richest person in Taiwan in 2017. He dropped out of Bingham Young University. He has a degree in ‘pharmacy‘, but I can find no mention of a PhD or medical training.

Details about the lawsuits claiming Sunrider is a pyramid scheme can be found on TINA’s website.

Sunset Gourmet

Sunshine Empire

Shut down in 2009 for being a pyramid scheme. It was based in Singapore.

Sunstar AAA Product and Profit

The Super Affiliate Network

Superlife

Surge 365

Sweet Minerals

Swift Marketing

Swissgolden

SwissJust

Symmetry Corporation

Synergy Worldwide

Syntech

Tahitian Noni

Take Shape For Life

Talk Fusion

A member of the DSA in America. At least, they are as of May 2017.

Their website. They say they provide video communication products.

Their compensation plan. You have to sign up 3 recruits in a month to be eligible for a bonus. Within this compensation plan is the income disclosure-

69.54% earn nothing! 11.93% earn less than $50 in a year. A further 12.31% earn less than $250 a year. This means 93.78 earn less than $250 a year. That’s pretty poor. Note that 0.015% at the top earn over $200,000 a year. They have been in the scheme for 55 months. The lower earners who pay into the scheme and leave fairly quickly don’t earn anything. This demonstrates a continuous recruiting chain of people entering, paying money, not getting anything and leaving, while people at the top profit from this.

This pyramid scheme alert post explains how Talk Fusion are being sued for being a pyramid scheme in America.

Ethan Vanderbuilt discusses the case here. He outlines the points being complained about and has the actual court documents that you can scroll through for yourself.

Taqueria Santa Maria

Tastefully Simple

Tavala

Based in Utah, USA. Founder is Boyd Wathen. He is the creator of Plexus’ pink drink.

Behind MLM review.

They sell weight loss products.

Tealightful

Teaporia

Team In Focus

Team National

Telecom Plus

DSA member

TelexFREE

Went bankrupt in 2014.

2016 The US Attorney’s Office reported that TelexFREE were found to be running a billion dollar pyramid scheme.

Reps thought that it was an MLM at the time. The company seemed to be operating as an MLM to the untrained eye. Much as many MLMs are today.

Merrill was sentenced to prison for his part in the scam.

Behind MLM looked at the case of TelexFREE shutting down.

Behind MLM describe how the SEC said that TelexFREE looked like a cult. There is a long discussion in the comments on this article.

TelexFREE sponsored a Brazilian football team called Botafogo.

Tempo Wireless

Ten Fu Tenmax

Their website. Owned by Chairman Lee Rie Ho and started in Taiwan. The products are supplements, with an emphasis on tea extracts.

Terra Biotech

Thermomix

Thirty One Gifts

Their website. They sell bags, jewellery, scarves and some home décor items. They are only in America and Canada.

The company was started by Cindy Monroe in 2003.

Their income disclosure statement. for 2015.

This shows that 14% earned nothing at all. Of those that did earn something, 92.1% earned an average of $548 in a year. Their disclosure shows that expenses ‘can be several thousand dollars annually’.

In 2010 another MLM Miche Bags sued Thirty One Gifts for patent infringement. They alleged that Thirty One Gifts copied their bags with changeable covers. The court found that there hadn’t been an infringement. The court denied Thirty One’s request for compensation because they hadn’t bothered to respond to the suit or even to turn up at the original hearing.

Thrive

See Le-Vel

Thrive Life

Thrivent Financial

Tianshi Health Products

Tiber river

Tickle Your Fancy

Tiens

A Chinese company with a UK branch.

They sell supplements, cosmetics, vegetable washers and ‘complementary health products’.

This investigative documentary exposes the company and how they operate in Uganda, specifically with false health claims.

Member of UK DSA.

Tiscali

Titalwave Select

TLS Weight Loss Solution

Their website.

This product is sold through the MLM Market America (see above under M)

TML Group

TOCARA

Tomboy Tools

Owned by JRJR Network.

They sell three different types of products-

• Longaberger products. These are baskets that cost upto $6,000!
• They sell tools for women. Really!
• Paperly- not sure what this is. It is just one photo of a desk and no info.

Their website.

The tools include pink items, including hammers, wrenches, power tools, gloves and tape measures.

Tom Gibbons Exec. Buying Service

Top Companies

Top Notch Distribution

Top Rank Business Associates Group

Total Health and Wellness

Total Life Changes

Ethan Vanderbuilt says it is a scam. He concludes it is a product based pyramid scam.

There is no income disclosure from TLC. They do not want you to know how much their people earn.

Their products offer dubious claims and have dangerous ingredients in them. (according to Ethan’s assessment in his blog).

Touchstone Crystal

Their website.

They sell jewellery. The business is  part of the Swarovski company.

Founded in 2009. DSA member.

Joining costs $139 or $299. There is a $9.95 a month fee for the website.

See my article on traditional companies that turn MLM for more details.

Touchstone Essentials

Traci Lynn Fashion Jewelery

Trades of Hope

DSA member

Traffic Authority

Traffic Monsoon

Andrew Pennman exposes this scheme as a scam.

Facebook group for people who have been scammed by Traffic Monsoon.

Tara Talks, a website that highlights Ponzi schemes.

A Digital Marketing website explains how this sort of scheme works and how bad Traffic Monsoon is.

Traffic Monsoon is in trouble with the authorities. Tara Talks and the Salt Lake Tribune report. The Salt Lake Tribune report how most of the victims came from poor countries, including Morocco and Bangladesh. Some people lost hundreds of thousands of dollars. The money earned by some was 99% from joining fees of new people. Classic Ponzi.

Traffic Swarm

Tranont

Their website.

CEO Lorne Berry formed the company in 2014. Tranont offers services in financial, legal and health provided by third party merchants.

Behind MLM website reviewed it and found it to be very confusing.

Reps have to pay $125 monthly subscription fees.

Transynd

Traveling Vinyard

DSA member

TraVerus Global/ Travel

Trek Alliance

Trevo

DSA member

Triad Search Marketing

Tristar Enterprises

DSA member

TriUnity

Trivani Online

TriVita

Tropic Skincare

Their website.

They sell make up. They call their reps ambassadors. Susie Ma won The Apprentice in 2011 and set up her Tropic business with Lord Alan Sugar, with him sharing the business 50/50 with Susie.

Lord Alan Sugar and Susie Ma.

They don’t have an income statement but they do have this-

Let’s see if we can work out the average income. We can assume that a few people started in 2011 and the numbers grew year on year. We can also assume that a lot of people joined and then left. Let’s try and cancel these facts out and assume there were, on average, 8000 people from the beginning and no one left the scheme. In reality, the number of total reps, past and present, would be more so we are being generous.

If there were 8000 reps and they earned £13 million between them, each one will have earned £1,625 in total. If you break this down to a yearly amount, it is £232.

Roughly then, each rep will have earned on average £232  a year, less expenses. Even if these figures are wrong by a factor of 4, this would still be a very poor earning potential.

Registered at Companies House.

There is no information on their website about how much it costs to join. A rep in a webchat stated in 2011 that it costs £120 to join.

Tru Dynamics

TruIntegrity

The Trump Network

TRUTH Niagara

Their website.

They sell bath products. They claim to be cruelty free but do not hold Leaping Bunny status.

TruVision Health

TS Life/ Team Strong Life

Set up by Caius Hale after he got dropped from Vida Divina.

This is an image from Caius’ Facebook page. There is a ‘TM’ there which indicates the name of the company is Trademarked. I searched the American and British databases of Trade Marks and there is no evidence of a Trade Mark being granted. I have hyperlinked the search facilities for these databases so you can check yourself.

 

In this video, Caius explains the company with Jade Coyle. In the background, there is a copyright symbol instead of a TM mark?!

September 1st 2018 will be the launch date in UK and Ireland. USA, prelaunch Nov 1st.

They are planning on having 5 products but are only showing three of them.

Caius says in his live above that there are leaders setting up for prelaunch. Some of these leaders apparently have ‘incomes’ and are working providing training and support to get people’s mindsets right before launch.

Tupperware

See this article I wrote on why companies turn MLM. Tupperware features in it.

Bottlesoup have examined Tupperware in some detail in this article.

Tvi Express

TWH Network of Companies

Twin Dynasty

Tyra Beauty

Their website. Unsuprisingly, they sell cosmetics.

U Design Jewelry

Ultimate Profits Network

Undercoverwear

Unicity Int.

They sell food supplements.

They allow people to order more than £1000 worth of products when signing up. The legal limit in the UK is £200. See the law on this matter.

Their income disclosure for 2015

Reps have to spend $125 on products each month, or $1500 a year. The above figures show

21% earned some money/ 79% earned NOTHING.

10.5% earned less than $125 a year/ 89.5% earned less than $125 a year.

2.1% earned more than $2300. Take into account the $1500 a year they spent on products, this means they earned $800 A YEAR.

How many people signing up will be concentrating on the last little statistic of  ‘1% earned more than $46,000’? This is 1% of 21%, remember. That is 0.21% of participants.

 

Truth In Advertising (TINA) found that Unicity reps were making many false health claims for the products. There are links to the health claims on the website.

United Freedom Team

United Sciences of America

MLM Watch‘s year long investigation into this MLM.

They sold meal substitutes and supplements. FDA regulatory letter warning about false health claims.

1987 they filed for bankruptcy after being sued by Attorney Generals in three states for being pyramid schemes.

United Warehouse

Univera

Univera Lifesciences

Unlimited Network of Opportunities

Uppercase Living

Owned by JRJR Networks

USANA Health Sciences

Their website.

Their compensation plan.

They sell nutritional supplements, body care and related products.

Income disclosure for 2015. The average income is US$859.

USANA is on the stock market. See here for how it is performing.

A Forbes article detailing some criticisms of USANA. Subjects discussed are Ponzi accusations, product criticisms, legal problems. USANA replied to the article.

TINA’s list of illegal health claims made for USANA products made by the sellers.

Usborne/ Usborne Books and More

Usborne are an unusual MLM, in that their products are mainstream and sold in high street bookshops and Amazon etc.

There is a Twitter campaign against them, have a look at @uzzieuncensored. They have a website here. They accuse Randall (the owner) of falsifying figures. They allege that any negativity or criticism from reps and they get fired. They offer evidence of these accusations.

This patronising blog post was written by an Usborne rep. However, she has since left them. The comments at the end are worth a read.

Information from Usborne about the ‘opportunity’. There doesn’t seem to be an income disclosure statement on this MLM. What are they hiding?

EDUCOC are how Usborne are known on the stock exchange. Some financial documents about them on the US EDGAR system.

This blog post details why MLM is not a suitable platform for books to be sold through. Their reps are untrained and should not be offering the advice they do.

USI Tech

Their website.

Their Twitter account hasn’t been updated since Jan 1st 2018. (@USITechBitcoin)

It is registered in Dubai and no one seems to know who the owner is.

A company that supposedly trades bitcoin using revolutionary technology. It has shut down suddenly in USA and Canada, following multiple investigations by financial authorities there. Investors have been unable to get their investments back and many have lost a lot of money. As of Jan 2018, they continue to trade in other countries, including UK and Australia.

Here are details of British Columbia Security Commision’s findings.

Here are details about the Texas cease and desist order against USI Iech.

I wrote an article on USI Tech after people contacted me who were worried about family members who were involved.

In the official letter to investors in the US, they were told that the company was having to shut down due to the actions of a few members, not because of a problem with how the company was operating. Direct Selling Report discuss the letter that was sent.

Ethan Vanderbuilt looks into the issues. He concludes it is a scam.

Behind MLM looked into USI Tech.

Blogger Bare Naked Scams has invested some money in USI Tech and is documenting what is happening to his investment. His computer screen is showing a huge rate of profit but there are problems. Many of the videos he has linked to have been deleted. He thinks he has made money but he hasn’t tried to withdraw any of it yet. I will be watching.

 

Utility Warehouse

David Brear explains Utility Warehouse here.

Sellers have to sign up 6 customers before they get paid any commission.

Financial statement from Utility warehouse contains this-

According to their figures, 11,100 distributors joined in a year. By the end of the year, there was only a net increase of 1,737 people. That’s quite a high churn rate.

The Guardian published an article on Utility Warehouse and how their numbers don’t add up.

The Mirror Newspaper revealed in 2016 that UW were charging 94% of its customers too much money.

They got in trouble with OFGEM and ordered to improve the way they dealt with complaints handling. The report is from January 2017.

The Advertising Standards Association upheld a complaint about UW’s online advert for their phone deal in April 2018. The advert claimed they had the ‘UK’s best value mobile’. The ASA disagreed and ordered UW to remove the misleading advert.

V Stream TV

Valentus

This MLM sell coffee that is billed as ‘the healthiest coffee in the world’.

Ethan Vanderbuilt says Valentus is a scam in his opinion.

5 of the 7 levels require members to arrange an ‘autoship’- setting up a monthly order of products.

There is no income disclosure document anywhere, despite the terms and conditions saying that it must be provided anytime any sort of income claim is made.

Their terms and conditions include the following points- You have to recruit, you’ll probably lose money, you have to purchase products each month to get bonuses, Valentus can use you image, words, story as they like and you can’t refuse or approve it, most members spend more on products than they earn.)

Valentus are being sued by Vitae Global- who supplied their coffee beans and are now their rival, selling Lean Java Bean Coffee. A counter claim has been put in by Valentus which contains many damning allegations. It got very ugly very quickly.

Review by Behind MLM, an MLM positive site aimed at people who are involved in MLMs. The review of Valentus is not overly positive.

This is one of their products

One of the ingredients (phenylamine) is a type of amphetamine and should only be used occasionally. There are some conditions and medications that make this drug very dangerous. It can be addictive, increases blood pressure and blood sugar levels. For more information, have a read here. The maximum recommended dose is  500mg. How much is in Prevail? The dose is not on the packaging or website.

Vanguard Enterprises

Vantani

Vantel Pearls

Their website. They sell jewellery made with a pearl from a pearl party. This is where people open up an oyster and find a pearl inside. There is some controversy about this type of activity.

Joan Cabral is the founder and CEO.

As of 26th April 2018 they are closed to new people joining. They give the reason that they are trying to improve shipping and customer service.

Their policies and procedures.

Members of the DSA.

Vasayo

Vault Denim

Vector Marketing

DSA member

Velata

Vemma

Their website.

Raided by the FTC n America in August 2015 for being an illegal pyramid scheme. Vemma fought back and have been allowed to trade but they have to follow strict rules to keep them legitimate. As a result, they have not done so well. Read TINA’s (Truth In Advertising) article on recent developments.

Lazy Man’s article on Vemma.

Vestige Marketing

Vfinity

viaONEHOPE

Viaviente

DSA member

Vida Divina

Their website.

Watch out for false health claims from this company.

Botwatchblog article on this MLM is called ‘Vida Divina breaks the law‘.

Vie at Home

(closed — formerly The Virgin Cosmetics Company and Virgin Vie At Home) — Sold cosmetics, jewellery and homeware.

Viridan Energy

Virtual Financial Group

ViSalus

See Body by vi.

Visi

Vision

Vision For Life

Vision International People Group

Vita Craft Corporation

Vitae Global

The listing for this company is under Lean Java Bean Coffee (the product they sell.)

Vitality Extracts

Vitamin Power Inc

Vitamist

Their website. They sell vitamins.

Viviane

Viviant

Volo

Vollara

DSA member.

Vorwerk Worldwide/ USA

Votre Belle Maison

Votre Vu

Voxxlife

Waiora

Their website. They sell supplements and use phrases like ‘recommended by doctors, approved by moms’. They use words like ‘detox’ and ‘cosmeceuticals’. See here for their compensation plan.

Wakaya Perfection

WakeUpNow/ WUN

Started in 2009 in Utah by Troy Muhlestein. Picked up momentum in 2013 and dissolved in 2015. They sold loads of different things, mostly with the prefix ‘WUN’.

This 2014 Business For Home article describes how the company was losing drastic amounts of money and seemed to be failing. Their annual statement to investors was showing the losses they were making. Truth in Advertising dissect the case of WUN closing down. They discuss the way that the company sued a CEO named Kirby Cochrane and his family from making financial mistakes and being fraudulent. He has a history of being involved in companies that end up financially ruined.

Truth In Advertising gained a list of complaints made to the FTC by disgruntled reps.

When they shut down, the reps weren’t told the truth and believed their MLM shut down due to another company conning them. Look at this excuse given by a rep on a website that was supposedly reviewing WakeUpNow (the ‘review’ is really a cover for the author to sell their own brand of making money).

Ethan Vanderbuilt labelled them as a scam. He states that the discounts provided by the MLM are just that= discounts, not an investment. It is not money earned. Also, he shows how you can find all the products cheaper elsewhere and no money is even being saved.

Ethan discusses the Income Disclosure Statements. Here is their 2013 income statement.

 

82% of reps earned nothing in a year. NOTHING!

 

Let’s see how much it cost to earn $0 a year by looking at this very informative slide show from a rep who was with WUN at the time.

If you wanted to earn some money with WUN, you would have to spend a minimum of $779.40 a year. Considering 82% earned nothing and 14% earned $1213 a year, that would have been a very bad investment. That’s 96% earning $433.60. Take off other business expenses and you can see that hardly anyone was earning anything.

 

Walsh Industries

Watkins Incorporated

WBC Group

DSA Member.

WCM777

Wealth Generators

Wealthperx

Wealthy Affiliate

Weeconomy

The new face of Flexkom, a Turkish MLM company.

Write up by Lazyman and Money. There are some very detailed posts in the comments section about Flexkom. It looks like Flexkom took a lot of people’s money for franchise licences and technology, only to never deliver. Then they disappeared.

Wela

Weleda

Their website.

Reps are called ‘wellbeing advisors’.

 

Wellness Advantage Marketing

Wellness International Network WIN

Westbend

Whitehead Enterprises

Wholefood Farmacy

Wikaniko

Wild About Beyond Organic

Wildtree

Willing Beauty

Willow House

Winasun

Wineshop at Home

Woodberry Events

Work At Home United

World Book

DSA member.

Worldconnect

Wor(l)d Global Network

Their website.

Their income disclosure statement.  During 3 months, the average participant was paid US$393.35 for Jan-March 2017.

This means that 58.79% earned nothing. Of the remaining 41.21% , 86.45% earned less than $1988 in 3 months. 86.45% of 41.21% is 35.63%. These figures add up to 94.42% not making much at all.

World Class Travel Network

Operated during the 1990s as a travel agent MLM.

1997 they were in trouble with the FTC. There was controversy about the training they offered. A settlement was made with the FTC and compensation was paid.

Article here on a travel industry website.

World Internetworks

World leadership group

Dissolved in 2008.

World Link Discount Telecom

World Marketing Alliance of Hawaii

World Financial Group

DSA member.

World Perfume

WorldVentures

Their website. They are online Travel agents.

Their income disclosure statement for 2016.

The small print explains how only 20.05% of reps earned anything. About 19% earned less than $1,125.

World Wide Equality

Worth Unlimited

WoTaBu

WSK Marketing

Xango

Medical advisor was Dr Templeman. There was some controversy about him. Check out the comment at the bottom of this article.

Their website. They sell fruit drinks. Xango seem to have been taken over by Zija in May 2017.

Xango were compared to Vemma by the FTC. Vemma was shut down for being a pyramid scheme.

Xango review from 2013.

Xerveo

See article I wrote about them. And this one, and this one!

They sold coffee with herbal extracts in them. The UK part of this MLM did not do very well. The company was being run from someone’s living room, products weren’t being received by buyers and many promises were made and not kept.

There is no trace of Xerveo now. it was rumoured that they were bought up by another MLM but there is nothing official or any statements out there. Xerveo just fizzled out.

Ximo

Xocai

Xoom Energy

Xooma Worldwide

XStream Travel

See TraVerus Global.

Xyngular

 

Yanbal International

Yanbal

Yandi

Yelloow

YEVO

Yofoto

Not to be confused with the Yofoto that prints your photos.

This Yofoto is a Chinese company that sells food, personal care and cleaning products. Established in 2004, they now operate in Russia, Vietnam, Thailand and Cameroon, as well as in China.

Chairperson of the company is Huang Jin Bao.

Ranked number 34 in biggest earning MLM in 2018, as rated by Direct Selling News.

Yofoto seem to be linked to a company called Replicel that are a science company. Financial analysis here.

Some facts about the company here. One of the facts is that the company says they are vegetarian but they sell fur seal oil?!

Yoli

Yor Health

Youdazzle

Young Living Essential Oils

Their website.

This company sells essential oils.

TINA (Truth In Advertising) have compiled a list of dishonest and illegal health claims made by sellers of Young Living.

Bottlesoup have done a financial analysis of the financial opportunity for reps.

The New Yorker wrote a good piece on Young Living. They examine the culture, money earned and the man behind the scheme (Gary Young). Here are some excerpts from the article about Mr Young

 

The article continues with many revelations which are worth a read. Here is another one-

 

 

I’d like to draw your attention to the top line there…

94% of distributers earn on average $1 a month. This doesn’t take into account the associated costs like ‘advertising or promotional expenses, product samples, training, rent, travel, telephone and internet costs, and miscellaneous expenses.’

Youngevity

They bought Beauticontrol from Tuuperware in 2017.

Younique

Their website.

Talented Ladies Club investigate the earning potential of Younique. They find the average rep earns between $9-$14 a month.

Bottlesoup do some analysis on earning potential.

An ex-Younique victim’s story from Timeless Vie.

Elle Beau The Antiblogger was in Younique and she writes about her experiences on FaceBook and on her blog. She is @ElleBeauBlog on Twitter. Elle is one of the Anti-MLM coalition’s members and we at Bot Watch work closely with her.

Chammy In Real Life is a blogger and she had an experience with Younique as well. Here is her story.

Younique’s website claims there are 734,924 presenters worldwide as of 9th May 2017, let’s see how that number changes over a year.

This excellent Timeless Vie blog post on the horrors of MLMs includes an analysis of Younique’s infiltration into an economically deprived British town. Really worth a read.

Younique do not provide an Income disclosure statement. Why?

Terms and conditions.

Use the hashtag #Poonique on Twitter for Younique critics.

Your Inspiration at Home

Owned by JRJR Networks

Your RX Help

YTB, formerly Your Travel Business.

Discussed in this Travel agents website.

Formed in 2001 under Scott Tomer, Lloyd Tomer and Kim Sorensen.

2012-2014 CEO was Andy Cauthen, who is now CEO of PlanNet Marketing.

Several lawsuits arose in 2008, one of them accusing YTB of being a pyramid scheme. A settlement was made that cost YTB $1 million. The Judgement can be read here.

“In 2007, the annual median income for those selling travel was $39.00, less than one month’s cost to operate the website. The majority of consumers who purchased YTB websites made no money through the sale of travel, and many lost money through continued website operations. “- from the Attorney General of California’s website.

YTB blamed their reps for their bad and unprofessional behaviour for their the company’s bad reputation in the travel industry.

Their website says that they are no longer recruiting new reps but old ones can still operate.

2013 YTB filed for bankruptcy with assets of $1.3 million and $7.1 million of liabilities. They were bought by Jamravel Inc who said they would call the new company YTB Global Travel. Story here.

Their website hasn’t been updated since 2015.

Yves Rocher

Zeek Rewards

A penny auction website scheme that was deemed to be a Ponzi scheme. Zeek themselves claimed to be an MLM.

Zeek’s MLM lawyer, who has also represented Herbalife and USA, among others, convinced members that the company was legitimate. More here about that on the False Profits website. The article discusses how Zeek Rewards is just like any other MLM.

Official announcements from the receiver about Zeek.

US Department of Justice updates given here about Zeek.

Zenith Petroleum Corporation

Zenzuu

Zermat

Zeropoint

Zija International

They sell supplements.

They took over Xango in 2017.

Zilis

They sell CBD oil.

Zinzino

Zippi

Zrii

Zurvita

Zyia Active

Zyntravel

Zyrra (now called Peach)

MLMLegal have information on this company. The website says they are DSA members but I cannot find evidence this is true.

Their website.

They sell bras. The reps take 10 measurements in 10 minutes and then order a custom made bra which arrives within 4 weeks. The company was set up in 2007 by Christi Andersen and Derek Ohly. They are now called Peach.

Action against MLM. Things you can do.

Report a dishonest or illegal advert to the ASA on this complaint form. 

Complain to event organisers about an MLM stall using this template from Timeless Vie.

 

Report to Trading Standards if any of the following apply

The DSA are the Direct Selling Association. MLMs are members of this group and they value this membership because it makes them look legitimate. The DSA have a code of conduct that the MLM companies and sellers have to adhere to. You can complain to them if these rules are broken and the DSA can step in. 

Here is a basic overview of the codes of ethics-

The whole code can be accessed on the DSA site for consumers and business conduct. If you are concerned that these codes have been breached and you are not getting a satisfactory response from the MLM company, contact the DSA to complain and they will step in to help.

 

 

 

 

 

 

 

How to help someone in an MLM

I have complied this factsheet in an attempt to help you understand what your friend or relative is going through and how you can best help them out of this situation. I have gleaned this information from reading books on the subject and background research on MLMs and cults.

A word of warning. This is a very difficult subject and people can be emotionally and financially tied up in these schemes and can be very vulnerable. If you attempt to help them and you feel you may be making it worse, back off. They will be vulnerable and you don’t want to make things worse. Just remember, you are on their side and want to help them.

Notes on this article

I will refer to the person in the MLM from now on as ‘your friend’ to avoid repeatedly having to say ‘friend/relative/colleague/person you care about.’

Some other sources of help.

Ethan Vanderbuilt has made this useful YouTube video of advice for people who have a friend or loved one in an MLM.

This article- “Emergency Handbook, what to do when a friend loves woo”  is very enlightening. It covers MLMs as well as pseudoscientific products. It is from the Skeptoid website.

Your overall aims and objectives

You should not be aiming at ‘getting them out of the MLM’. Instead, you should be trying to empower them to understand their situation and to allow them to autonomously decide for themselves that they want to leave. They should not be emotionally blackmailed or forced to leave. You should be trying to give them back their lost powers of critical thinking.

Accept that this may take time and cannot be achieved with one quick meeting and a handover of facts.

Do not go in with the attitude that you know best and they are stupid. You could make them dig their heels in further and upset your relationship. Your friend has been subjected to some very clever techniques and we need to tread very carefully.

 

• Take the time to educate yourself about what MLMs are and how they operate.

You need to understand what you are up against and to understand their responses when you talk to them.

Here is a good simple video called ‘How to spot a pyramid scheme.’ It describes how MLMs work.

Here is a video showing people’s experiences in Herbalife. Their experiences are relevant to all MLMs.

Some blog posts I have written explain the realities of MLM- Expectation versus reality. An analysis of the payment structure in one of the schemes here. A page on the things people in MLMs say and the truth behind them. This last one will be particularly useful to read before having a discussion about MLMs. Visit Bot watch on Facebook for links/ articles/ facts.

Have a look at Timeless Vie on Facebook and their blog and read about the bullying that goes on and some of the uncomfortable facts about MLMs. Here you will read about how vulnerable people are targeted, bullied and lied to. You will learn about some of the people behind the companies.

Visit Lazyman and Money for well researched articles on specific MLMs and more general themes that will give you some facts.

For a more detailed analysis of the workings of MLMs you could visit MLM expert David Brear’s website MLM The American Dream Made Nightmare.

Also, you might want to join in conversations or ask questions of people who can help you with answers. Send a message to Bot Watch, Timeless Vie or the anti-MLM coalition (of which I am a part of) who can advise or send you links that will help. Or join in the discussion on Mumsnet and jump right in. Go to the Money section there and select the discussion starting with the words ‘MLM chat’.

 

• Look after yourself

It can be very distressing having discussions with people about their MLM. They will feel very loyal to their company and could get very defensive towards you. You will need to assess how much effort you are willing to put in.  If you have been contacted by an old school friend and asked to join their team, just say ‘no thanks’ and then leave a link for them that explains your position. ‘People who care about you are worried‘ is a good one that lays out some facts explaining why MLMs are a bad idea. Whether you take it any further is up to you.

If you are trying to help a close family member or partner, you will need to be a lot more involved and seek support. You will need to involve other family members and good friends. Make sure they realise what the person is involved in. You will need a united front and you will need to help each other. It will be very stressful for you if you are so closely involved and you feel you are on your own. It may take time and some people may not see MLM as a real problem. It will be worth the effort though if you can all work together.

• Be aware that your friend is not who they used to be.

Your friend will have been changed by subtle but clever techniques from the MLM. You may notice personality changes and strange behaviours that are out of character for them. This is what has prompted observers to call them ‘bots’. This refers to their robotic behaviours and scripted-style responses. They may start posting inspirational memes, being overly happy and optimistic, posting pictures on social media constantly saying how amazing their life is. They may be lying about things that you know just aren’t true.  They are literally trying to change who they are and emulate the people higher up than them in the pyramid. They will have been subjected to ‘mindset training’ that tells them how to think and act.

Elements of Neuro Linguistic Programming (NLP) are used to change the way a person perceives the world and interacts within it. They are trained to see the outside world as hostile and desperate, their MLM as amazing and a perfect opportunity. They think their MLM is benevolent and the products desirable. They become unable to perceive things from multiple points of view and can only see things as presented by their MLM.

They sometimes become addicted to working on their ‘business’ and gain warm feelings and reinforcement from any sign of success. See this person’s experiences on Timeless Vie.

To borrow Steve Hassan’s concept from  his book ‘Combating Mind Control,’  the person changes from Mary-Mary to Bot-Mary. Mary has been partially taken over by Bot (Robotic) personality but it is still attached to the original Mary. She is still in there somewhere.

 

• Do not criticise the company.

Your friend will take any criticism personally. They will see it as an attack on them and their dreams. They have had it drummed into them that their hopes and dreams can be achieved by this amazing company. People who stand in their way are just haters and do not understand how wonderful this opportunity is. By disagreeing with it you are criticising their choice and jeopardising their dreams. They genuinely won’t understand why you are trying to destroy their dreams.

The biggest danger of criticising the MLM is that you will be considered a threat to their success and could bring them failure. There are many, many instances of friends and family being cut off because of that. There have been divorces, lost friendships and family splits. This is a real threat, even if you had a very good relationship before.

 

• Don’t buy the products and don’t join their team.

If you do, you will be giving your friend false hope and making them feel their MLM is legitimate. It might make them continue in it for longer. You may feel guilty and made to feel you are not being supportive but you are helping them really.

If you find yourself at a ‘party’ where products and the ‘opportunity’ are being sold, do not feel pressured to buy anything. Do not feel you need to give an excuse because they will just find a reason around that. Say something like ‘No thanks, I won’t be buying anything’ or ‘no thanks, it’s not for me’. Don’t feel guilty for being impolite, that is just a social norm that is being exploited by the methods used in MLMs. The system is banking on you making a pity purchase. Do not support this system.

If you are invited to one of these parties make sure you don’t take any money with you. Then you won’t be able to crumble and buy anything. You can confidently tell the person that you have no money on you. There’s not much they can do about that.

• The stages people go through on their MLM journey

Understanding what phase they are in will determine what your approach will be. Also woven into this will be how close you are to them, so you will have to tailor your approach to your circumstances. This following bit is based purely on my observations, readings and speaking to people who have left MLMs.

1. Interested about the opportunity. Might ask for ideas/ advice at this stage. Tell them everything. Maybe show them something like Timeless Vie or the reality vs expectation information.
2. Invested in joining up and assigned an upline. First party booked. At this point they will be very excited and have spent money on the scheme. They are full of hope but will not have been changed too much. You might still have a chance here, but tread carefully and don’t criticise MLMs just in case they are deeper than you think and they cut you off. You could try some gentle questioning (see later point) here and react accordingly. Often at this point, they will be closely supervised by their upline so it could be difficult to have an opportunity to talk to them about it.
3. They will have invested a lot more time and money and not making much back. They probably will be being pressured by their upline to work harder and will be starting to blame themselves for their perceived failure. At this point they will be very vulnerable. They will be tired, stressed and financially stretched.  Concern and support are the best things you can offer at this point. Be there for them and show you care for them. Do not be tempted to buy anything.
4. By now it will be painfully obvious to your friend that they are not going to make it in this MLM. They could well find that a piece of information at this time could be the straw that breaks the camel’s back. Tailor the piece of information you share with them to their own personal ethics or knowledge. Essentially here you are finding their ‘hot button’, the trigger that will get to them. Just like how they were targeted when they joined the company. There is plenty of information out there to chose from- facts about the top bosses, conduct of experts, targeting of vulnerable people, using sick children, illnesses and charities to sell products.

 

Presenting information to your friend.

 

Moments of doubt.

Your friend may express doubts about what they are doing. Don’t jump on this this and tell them you are glad they have found the truth and then proceed to tell them how dreadful you know the whole scam to be.  It is very common for people to have moments of doubt but then return to what they were doing. You will then be seen as a threat and will be avoided. Their defences will be up when they are around you. See it as a kind of bad relationship and they told you they have split up. Then they get back together again. Your relationship with your friend would be seriously damaged.

Instead, be supportive and gently questioning. Ask them why they are having a wobble. Help them explore their feelings. Help them navigate around the issues but don’t tell them what to do or think. If they ask for your opinion, say you are not sure and look for the answers together.

Having discussions with your friend.

 

Connecting with the non-bot part of your friend.

Your friend may be thinking and acting as Bot-Mary as discussed previously and your aim is to connect with the old Mary-Mary. Try to steer conversation to interests you used to share. Invite them to a film you know they would have liked before. Talk about shared memories. Ask them about something you once did together. Don’t let the old ‘Mary’ disappear and be taken over by ‘Bot’ where everything is all about the MLM. You could use this technique to steer conversation away from recruitment attempts or sales pitches. Show your friend that you still value them and want to connect with them.

Helping your friend see things from multiple perspectives.

This can be difficult but if it can be achieved, can be quite effective. They have been trained to see things from just one perspective- that of the MLM. They have lost the ability to see things critically anymore. If you can get them to see their situation from a different perspective, they may be able to start making connections and think their way out of their situation. You could ask them how their old selves might have perceived something. E.g.

Time- “Wow, Mary! What would your old self have said if she knew you would be up at 3am posting comments on social media trying to sell a face cream?”

Person- “How is your partner coping with all this working that you are doing?” Don’t get judgemental, just help your friend explore how their actions might be impacting on others. Has anyone said anything to them about how their MLM activity is negatively impacting on them? “Have you had much negativity?” Maybe explore what negative comments they have had and where these might have stemmed from. Try to leave your friend with something to think about.

Non threatening but relevant topics.

Your friend may have been programmed to shut down and stop listening when their MLM is being criticised. You may be able to discuss other relevant issues though that they do not see as threatening to their ideals. Typically people will be able to see flaws in other MLMs. They feel able to criticise and listen to criticism of other MLMs because theirs is not being targeted. You could try to present information about other MLMs and get their take on it. Show them an income disclosure for another MLM and see what their thoughts are on it. They might agree that the MLM in question does indeed have a dreadful pay structure. They may well be left wondering what their own income disclosure looks like. Plant that seed. Pursue it as far as you feel able. It doesn’t have to be an income disclosure, it could be an issue you have seen on Bot Watch or Timeless Vie.

 

Conclusions

I apologise for not being able to give you a simple, step-by-step account of how to help someone in an MLM. Instead, all I have been able to do is give you some understanding and principles to work with. I hope that some of these tactics can be used to help your friend. Remember, your aim is to support your friend and gently try to guide them towards being able to make decisions for themselves.

I wish you luck in supporting your friend.

If you have lost someone to an MLM and you are concerned about them and have been unable to help them, would you consider talking to us to add your voice to the growing number of people who are telling their stories? You will be treated in confidence and your concerns taken seriously.

Please feel free to comment below with any insights you have on how to talk to people in these situations. What have your experiences been? Have you come out of an MLM? What was it that made you see the truth? There are so many people out there looking for ways to help their loved ones, any insights would be useful, thank you.

 

 

In need of an alternative/ extra income?

This post explores help available for people needing a bit of extra money or an alternative income. I have not received any payments from any of these companies for promoting them, neither have I personally tried all these methods of earning money. I have just trawled the internet for ideas and put them together here. Hopefully they might serve as a starting point for you to search more thoroughly and come to your own conclusions on what is best for your circumstances. If you would like to see something here that I have missed, please drop me a message. If you think any of these links are not what they seem or might be dodgy, please let me know so I can delete the link. I don’t want people being scammed.

We advise you to avoid any companies that are Multi Level Marketing (MLM) schemes. 99% of people in these schemes lose money. 90% leave within a year. They seem legitimate but are not. If a company seems to be offering a nice way of earning money from home, google the name of it, followed by ‘MLM’. If you get lots of results, stop searching and try another company. Seriously, don’t even be tempted. If you see people saying ‘It’s legal, it’s not a pyramid scheme’, it will be a pyramid scheme or as close to it that the definition doesn’t matter. If you are considering joining an MLM, have a look here first and assess the scheme.

 

Help with debt/ making ends meet.

Money saving Expert offer hints, tips, tools and a forum to help you make ends meet. Try some of their calculators, read a forum, join a forum and get into some good habits. With support of the people on the forums, you can be supported in reducing debts.

Debtline can help with advice and they have some factsheets on how to get help with debt.

Step Change are a debt charity that can help. They have a calculator that helps you plan what you can do.

 

Are you receiving any benefits you might be entitled to? Have a look at this handy calculator from Entitled To just to check.

 

 

Legitimate work from home opportunities.

 

   

Check out the CAB’s checklist of what to consider before setting up as self employed.

Customer service phone operator at home. If you love customer services and can navigate yourself around a computer program whilst talking to people, you could set yourself up as a customer services operator. This website takes on people as independent contractors that do just that.

Freelance IT work. If you’re good with computers you could help people create websites, assist with their content, check for mistakes. This website has examples of some opportunities and gives the hourly rate. There is an advert for AVON in there though, so beware. Just apply for the positions that give actual hourly rates! You could sign up with Clickworker and perform tasks that companies need doing, such as data entry, form filling, website checking. You get paid for each task, just do the bits that you can do, when you’ve got a bit of spare time.

Website designer. You can work online during hours that suit. If you are not great at that sort of thing but are interested, you can learn skills online.  Like at this website or this one.

Website testing. Visit websites and test them out, reporting back on your findings. User Testing is one site that does this. You visit a website, complete a set of tasks and verbally record what you are thinking. Whatusersdo are a panel of testers that you can join. This blog post gives details of 11 sites that pay for this sort of service.

Home typist. You are sent a recording of someone talking and you type it up. One company that does this is called Take-Note. This page tells you how you could work for them.

Bookkeeping. Train at home online for a bookkeeping qualification and then set up as a bookkeeper at home. The Institute of certified bookkeepers has more information.

Virtual Assistant. Work as a virtual assistant if you have experience of being a secretary or admin assistant. You could work freelance for a company or set yourself up in business when you have some experience. Time etc is one company that offers these work from home positions.

Courier. Work as a self employed or employed driver in your local area. Pick up parcels and deliver them. From just a few to a lot, depending on what you can do. Yodel offer this model of courier service. I had a look at one of their many job adverts and it was for £30-£70 a day. You pick up the bagged parcels, plan your route and then deliver them. You need to have a car and be a driver for this job.

Exam marking. Have a look here and here for more information.

 

Businesses you can set up yourself and run.

   

 

The Talented Ladies Club have written a blog post on how to start a  business with no money. Have a look at their website for ideas and support.

Dog walking. It might take up a bit of time to build up but you could do this for a bit of extra money and get some exercise at the same time. Maybe extend it to dog sitting as an alternative to people putting their pets in kennels? Here, the Pet Owners’ Association explains how to set up a do walking business.

Swimming teacher. You can complete a teaching course locally to you and obtain funding to help with costs of the course. Check out the ASA website that has details of where courses are held and what funding there is.  Set up your own group of students around your commitments.

Childminding. There are some hoops to jump through and some paperwork to sort through but this could be an option if you want to work from home and have small children of your own keeping you at home. For some thorough information and links to other pages of interest, check out the careers service website. Perhaps you wouldn’t want to commit to actually having children round your house all the time. You could set yourself up as a babysitter. Get yourself trained as a childminder and then offer your services around your schedule. Have a look at Childcare.co.uk for the types of positions available. Register here to offer your services. After (considerable) expenses, taxes etc, earning potential is roughly £400 a month. This will depend hugely on the number of children and their ages.

Cleaner. If you don’t have a young child with you during the day, you could try offering your services as a cleaner during the hours that suit you. A start up website explains in 8 steps how to set up a cleaning business.

Beauty Business. Set up your own beauty business at home. If you have a spare room, an interest in beauty and treatments, look into this option. Or be a mobile beautician and visit people in their homes. The National Hairdressers Federation give ten tips on how to do this.  Twenty two tips here from the Beauty Biz. If you don’t know much about actually doing treatments, you can do online courses from home, such as these ones.

Not sure what to do and need ideas. Have a look at this website that goes through some ideas to think about. There are 6 areas of home business that you might like to consider.

Flexible jobs on an employed basis.

  

Caring roles. These often require minimal initial training and are not too difficult to come by. You could look at local hospitals or agencies for a bank or agency position where you choose which shifts you would like to do. You get paid for the work you do, are given free training and usually uniforms. You would also accrue holiday pay. Some positions would be in a hospital, others involve visiting the elderly and offering companionship or help with their shopping. Here is a checklist from an agency on whether caring is for you. And some information from the careers service.

Adult educator. Do you have any skills or specialist knowledge? Could you pass on your knowledge in night classes? Contact a college  or library local to you and ask if they offer informal classes in a subject you are good at. Perhaps you could teach woodworking/ flower pressing/ family history tracing/ cake decorating. If you are knowledgable and confident it could be a great opportunity, with not poor pay rates. Enquire informally in the first instance and ask to observe a lesson/workshop for an idea on what would be expected.

There are part time evening courses that you can do to become a qualified adult educator that can be done around a family. If you have a degree you could do the adult educator qualification and you can then teach that subject formally. The Department for Education has some information on the qualification.

English teacher. This website tells you about the different types of qualifications available for teaching English as a second or foreign language. You can do these courses on a part time basis and you could then teach TEFL or TESL either abroad or in a college. Especially useful if you live in an area where there are many non-English speakers.

Other ideas.

Night shifts. Could you work a few nights a week? If you have children and have someone to look after them at night, you could work overnight and then stay awake in the day. You would only be able to work two or three nights a week doing this, ensuring you don’t work two nights in a row. All the better if you can have a couple of hours’ nap in the day.  Places that offer night shifts are hotels, warehouses, nursing homes, hospitals, bars, factories, shops (shelf stackers).

 

 

 

Magazines. Write funny letters, short articles, send in cute child or pet pictures, write up holiday reviews, jokes, quizes. Get some magazines like Take A Break, Bella, Woman, Chat (You know the type) and have a look at their content. Email them your letters, articles etc and you might earn a little bit of money. Take A break tell you how to sell your story by filling in a form. If it’s a good one, you could get upto £2000. Maybe you’ve got a good MLM story to tell?

Etsy. Are you an artist or good at making things? You could set up an online shop on Etsy. The quicker it is to make the item, the better. You can sell things virtually there, such as patterns for clothes/ toys, colouring in pictures, templates, signs, prints. You just need to upload these once, and then get sent payment when someone buys one.

Rent a room out. Do you have a spare room? Could you rent it out to a lodger? What about turning your house into a temporary Bed and Breakfast? Have a look at Airbnb for how to do that.

Selling your artistic talents. Can you draw cartoons? Consider putting some work on Cartoonstock and earning money when someone pays for it. Have you got any photos that you could sell? See here on ideas how to do that. This blog tells you how you can sell traditional art, prints, photos and other types of art.

Write a book. This option isn’t as difficult as it used to be. Now you can publish a book to Kindle and start selling it straight away. Writing a book can take a lot of effort and the potential rewards could be very small. However, if you have a flair for writing, then why not? Read this free edition of ‘How to write a nonfiction book in 21 days- that readers love.’

Enter competitions. Someone’s got to win. Some determined people make a living out of it! Look for websites that advertise competitions. Like this one, this one and this one.

People who care about you are worried

Someone is worried for you and wants you to understand why this is so.  They are not negative haters. They want you to do well, they really do. They are afraid of offending you or upsetting you or are afraid you will distance yourself from them.  Therefore, I am attempting to put forward some of their concerns. They may be worried about some, or all, of these factors.  Please read them all and take your friend/ family member’s concerns seriously.  They probably agonised for ages over whether to send you this link.

 

You have joined, or are thinking of joining a Multi Level Marketing (MLM) scheme. There are some concerns about this type of scheme that you may not be aware of. Here are some of them.

 

Negativity

A very common theme in MLMs is to ignore any criticism of MLM/ the product/ the specific company.  You will have been taught that these people are negative and don’t understand the business.  They are jealous. You may have been taught about The Law of Attraction where negativity attracts further negativity so you need to cut negative people out of your life.

Please remember that people do have differences of opinion, even friends and family members. Please don’t let this come between you. True friends will tell you the truth, even if it means it is painful to you. These are good friends.

 

Closed/ Open minds

You may have been told that people who criticise your business have closed minds and that you have an open one.  Please keep yours open. Don’t shut down people without listening to them because you think they have a closed mind. Do not be afraid of differing opinions.

 

Making money

Statistically speaking, you are very unlikely to make any money in an MLM scheme unless you set it up yourself. Some experts have calculated that 99.9% of people will not make any money in these schemes.

The World Federation of Direct Sellers Association (WFDSA) oversees MLMs over the world and produces reports on them. They are pro-MLM. They produced a report recently showing the sales made by MLMs. The report can be read here. Their facts show that in 2014 there were 99,724,641 sellers worldwide who made $182,823 million (6 zeros) in sales. This works out to be $1,833 on average per person.  This isn’t profit, this is sales. The sellers will only have made a small percentage of that in commission.

Let’s say the average commission for sellers is 40% of the purchase price, each person in these schemes will have earned $733.20. A YEAR. And if some people earned more than that, it means others earned less because that is just the average figure. These numbers aren’t from an anti-MLM source, it is from your own industry.

Some companies produce reports of their own financial statistics. Find out if yours does, and have a look. If yours doesn’t, why doesn’t it?

Here is the one for It Works

Please note the above information shows that people in this scheme earn on average $189 a month GROSS. This is excluding expenses which  “can be several hundred or thousands of dollars annually”.

Here is the statement and link for World Ventures.

YEARLY average commission was $190.15. The median earned was just $40 A YEAR.

Please search for your MLM for their statement. Google your MLM, followed by the words ‘Annual Income Disclosure Statement’. If your MLM does not make this public, the amount earned by sellers must be very little indeed.

 

Here is a video where people who were in an MLM (in this instance, Herbalife) tell of how they lost money in the scheme. It is very sad viewing but worth it if you can watch it.

 

Expenses

Please keep a record of your expenses. Each spend may not seem much, but could all add up over time.  This is how people end up making a loss in MLM. They spend much more on their scheme than they make in profits. Have you taken into consideration the costs of-

Success days- travel, accommodation, childcare, food.

Holding information evenings/ product launches/ parties.

Postage and packaging.

Leaflets/ stickers/ bags/ business cards etc.

Samples.

Website costs.

Facebook advertising.

Cost of prizes given out as incentives/ raffles.

Training events.

Mindset training events/ books/DVDs/CDs.

Products that you buy to try out yourself so you can recommend them.

There are probably more items that could go on this list, please work out how much this is costing you.

 

Fake it until you make it.

Have you heard of this phrase? Do you see people in your scheme who seem to be doing really well financially? Do you think it is because of their MLM earnings? Or could they be pretending? You may have been told to pretend you are doing better than you really are doing, so that people think you are doing well and want to join you. After all, if you seem to be doing well, people will join up under you. Be aware of these claims and observe others. Is that house bought or rented? Do they have another income that could be financing their lifestyle? It is common for people in these schemes to be told to sell their lifestyle, make their life seem amazing on Facebook, and completely positive. It is hard to keep this up, it is draining and false. Look out for it in your team.  Are you happy with this?

 

The Law

Have you been given proper training so that you can operate within the law?  Are you confident you are not opening yourself up for a whole load of trouble? Your MLM may be telling you about the product and telling you how to market it, but are you being told about-

Tax liabilities

Data Protection Act

Advertising Standards Authority rules

Laws relating to selling products with heath claims

Insurance liabilities

Consumer laws.

You need to know about all of these so that you do not break the law.  Often, some of this is covered in your policy documents but not really backed up in any training. The law and your company will expect you to be following all of these rules so will not back you up if you break them.

 

All of the above are serious concerns, and we haven’t even touched on the obvious concern of MLMs being pyramid schemes.

You will have been told it is not a pyramid scheme. In fact, I bet someone has gone to great lengths to convince you it is not a pyramid scheme. This argument is too big for me to deal with in a few bullet points. Instead, I will leave you with this link to a short video that explains why some MLMs are considered to be pyramid schemes.

 

Do you feel that you need more information or support?

Please visit these sites-

Bot Watch on Face Book This Facebook page has links to useful sources of information. It also flags up where people have been breaking the law with their health claims and asks that they be removed.

Timeless Vie Blog and Facebook page These sites offer information and support through real life stories of people in MLMs and has articles and threads that use satire to illuminate the issues that may be affecting you.

A more in depth analysis of the issues can be found here in MLM The American Dream Made Nightmare.

 

If you are reeling from all this information or you need more help or information, drop in on the Mumsnet forum that is very active and join in the chat. Go to Mumsnet Money Matters page here. Look for the most recent thread with MLM in the title. The threads are numbered and usually have the phrase Bot Watch in them (hence the title of this blog).