Tag Archives | MLM

Harsh realities of multi-level marketing exposed

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Posted 14 June 2021

A recent exposé of multi-level marketing (MLM) by Good Housekeeping includes:

  • stories of former distributors with links to their videos in which they criticize how MLM companies operate
  • links to videos describing how distributors use their pregnancies or infertility to recruit women facing similar struggles to become distributors
  • discussion of cultism in the MLM industry
  • discussion of the popularity of anti-MLM content on TikTok, which has banned content promoting MLMs.
  • descriptions of MLM companies’ responses to recent warnings by the Federal Trade Commission
  • evidence suggesting financial success for distributors is rare
  • discussion of findings from the 2018 “AARP Study of Multilevel Marketing: Profiling Participants and the Experiences in Direct Sales”
  • psychological support resources offered by the anti-MLM community

Reference: Garrity A. Inside the “toxic” world of women selling you everything from supplements to skincare on social media. Good Housekeeping, May 24, 2021

Source: Consumer … Read the rest

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Multilevel-marketing company pitches scrutinized

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Posted 20 March 2021

A management consulting firm has characterized multilevel marketing (MLM) companies as using “fraud, deceit, and outright lies in a flawed business model.” The firm refutes an MLM promoter’s twelve reasons that people should pursue direct-sales opportunities in MLM companies. It characterizes each of those reasons as a false promise.

The twelve false promises are:

  • “You can work from anywhere!”
  • “You decide how much effort you put in.”
  • “It rewards those who work hard.”
  • “You get to be your own boss!”
  • “The hours are flexible.”
  • “Startup costs are lower than for other businesses.”
  • “It provides you with extra income.”
  • “You will save money on childcare expenses.”
  • “It gives you goals to work toward.”
  • “You’ll feel supported and make lifelong friends.”
  • “You can buy high-quality products at a discount.”
  • “MLMs are fun!”

An superb article on the MLM market.

Quotes:

“The average MLM rep earns around $400 per Read the rest

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Book blasts multilevel marketing industry

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Posted 10 February 2021

Robert L. Fitzpatrick, who operates Pyramid Scheme Alert, has penned the strongest attack on multilevel marketing (MLM) ever published in book form. His book, Ponzinomics: The Untold Story of Multi-Level Marketing, explains in vivid detail why the vast majority of people who become MLM “distributors” will lose money. Even worse, those who become too enthusiastic may act as though they belong to a cult. The book also spotlights how and why the Federal Trade Commission has failed to protect the public against deceptive MLM claims.

Ponzinomics: The Untold Story of Multi-Level Marketing Paperback – November 30, 2020

Ponzinomics by Robert L. FitzPatrick, author of False Profits, is the first comprehensive account of how “multi-level marketing” was created in America, escaped criminal and civil prosecution and spread all over the world. It is the first book to deeply investigate the multi-level marketing phenomenon and to Read the rest

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Multilevel Marketing: The day job that doesn’t pay

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Posted 19 December 2017

From TruthinAdvertising.org

When then FTC Chairwoman Edith Ramirez took the stage at the Direct Selling Association’s Business & Policy Conference in Washington, D.C. in October 2016, she did not mince words when it came to the widespread use of inappropriate earnings claims as a means of recruitment in the MLM industry. More than a year later, it appears few if any of the DSA members in attendance that day took the warning to heart.

A TINA.org investigation found more than 97 percent of DSA member companies are (or have been) engaged in marketing schemes that peddle false and unsubstantiated earnings claims to try to convince prospective distributors to join their MLM network.

​​​​​​​TINA.org has amassed more than 3,000 examples of companies and/or their distributors making inappropriate earnings claims on their websites and social media platforms. These claims range from assurances of achieving financial freedom, to making Read the rest

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Comedian John Oliver blasts Multilevel Marketing (MLM) , e.g., Herbalife

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Posted 14 November 2016

Multilevel marketing companies claim to be legitimate businesses, but some seem awfully…pyramid shaped. John Oliver and Jaime Camil demonstrate how they work.  

In a 30-minute satire, John Oliver explains why multilevel marketing should be regarded as an “endless chain pyramid” and exposes the gamut of ploys used to trick prospective distributors and minimize government regulation.

The video, which has had more than 5 million YouTube views, ends with the promise that if each viewer sends it to five other people who do the same, it will reach every person on earth in just 14 referral cycles.

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