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Chapter 7: MLM's Abysmal Numbers
7-1 The Case (for and) against Multi-level Marketing By Jon M. Taylor, MBA, Ph.D., Consumer Awareness Institute Chapter 7: MLM’s ABYSMAL NUMBERS Chapter summary a large enough downline to meet expenses, and therefore do not profit. Is MLM a profitable business These conclusions were confirmed in the opportunity? And if so, for whom? Just do the average earnings reports of all 30 MLMs for math – the numbers don't lie. In this and which we were able to obtain data published preceding chapters, you will find the most by the companies themselves. Such statistics rigorous and thorough analysis of MLM are invaluable for analysts to debunk the profitability ever done by an independent many misrepresentations that are told to research firm. Questions about the viability thousands of prospects every day. and profitability of MLM as a business model Failure and loss rates for MLMs are not and its many company manifestations are comparable with legitimate small answered in this and prior chapters – based businesses, which have been found to be on 15 years’ research, worldwide feedback, profitable for 39% over the lifetime of the and analysis of the compensation plans of business; whereas less than 1% of MLM over 350 of the leading MLMs, as well as participants profit. MLM makes even average earnings data, where available. The gambling look like a safe bet in comparison. answers are not pretty. MLM stocks are questionable Our studies, along with those done by investments at best. And like gambling, other independent analysts (not connected to losses from MLM participation should not be the MLM industry), clearly prove that MLM as a allowed as a tax deduction – beyond the business model – with its endless chain of amount of actual income. -
Show Magazineover 250 Exhibits Showcasing Fantastic Brands & Products
23 RD SHOW! SHOP ‘TIL YOU DROP AT SHOW MAGAZINEOVER 250 EXHIBITS SHOWCASING FANTASTIC BRANDS & PRODUCTS You won‘t find anywhere else! OTTAWA APRIL 16 & 17, 2016 GET BEAUTY, HEALTH Show Hours & WELLNESS TIPS Saturday: 10 am − 6 pm Sunday: 10 am − 5 pm FESTIVAL OF FASHION & CENTRE STAGE showcasing the latest collections! SAMPLE YOUR WAY THROUGH OUR DELICIOUS JOSHUA WORLD OF TASTE! MORROW See Joshua Morrow, who stars as “Nick Newman”, on NEW EXCITING THE YOUNG AND THE RESTLESS. EXHIBITORS! NationalWomenShow.com THANK YOU TO THE FOLLOWING COMPANIES FOR OUR GOODIE BAG & SAMPLES: French's 500 ml Ketchup Bottle Aero Milk Truffle Tablet Church & Dwight Coupon Booklet Canus Goat's Milk Soap Catelli SuperGreens Spaghetti Cetaphil Goodie Bag Provided By: Ace Bakery Nutri-Lawn Ottawa Néolia Shampoo Conditionner Packet with Coupon Gold Bond Ultimate Moisturizing Cream 28 ml / Gold Bond Ultimate Crème Hydratante 28 ml Trojan Lubricant Hummingbird MedSpa Special K Nourish Bars Welch's Fruit Snacks John Frieda Bleach Blond Tri-Packette Sunny Delight Sparkling Fruit 20 Arm & Hammer Truly Radiant Rejuvenating Toothpaste Kashi Seven Grain Quinoa Bars - Chocolate Chip Chia and Honey Oat Flax Bars Always Discreet Pads, Liners and Underwear Ottawa Parenting Magazine UPCOMING NATIONAL WOMEN’S SHOWS: Please call us for exhibitor inquiries: 1-800-891-4859 MONTRÉAL OTTAWA TORONTO QUÉBEC April 29 - May 1, 2016 October 22 & 23, 2016 November 4 - 6, 2016 November 12 & 13, 2016 Palais des congrès EY Centre Metro Toronto Centre de foires - ExpoCité Convention Centre 11:00 am 11:00 am Dancing Through Time! Dancing Through Time! Fred Astaire Dance Studios Fred Astaire Dance Studios 12:30 pm 11:45 am Breaking Down the It’s Not Just Pants.. -
Abby Eisenkraft NY - Melville Real Life Tax Advice Accredited Tax Advisor (347) 598-0111 [email protected]
Abby Eisenkraft NY - Melville Real Life Tax Advice Accredited Tax Advisor www.Choice-tax.com (347) 598-0111 [email protected] Adabelle Princz FL - Coconut Creek Target Excellence, Inc Holistic Practitioner www.mynsp.com/herbsfortoday (954) 994-4949 [email protected] Abigail Hunter FL - Tallahassee The ABnormal Life Style Consultant/Public Speaker www.etsy.com/shop/collarmefab (850) 264-5590 [email protected] Adrianna DeJesus NY - Freeport Licensed Massage Therapist (516) 697-4770 [email protected] Adrienne MacDonald GA – Marietta www.CPRinAtlanta.com (770) 592-5555 [email protected] Afrin Huq Khan FL - Windermere Strategic Event Planner Speaking /Coach www.Redelephantinc.com (516) 242-1264 [email protected] Aileen Castellano FL - Miami Center To I AM inspirational speaker, executive coach www.aileen.com (305) 525-0384 [email protected] Ainara Nieves FL - ALTAMONTE SPRINGS Ainara M Nieves PA Realtor www.AinaraNieves.com (407) 595-6903 [email protected] Aisha Abdul-Mumin FL - Parkland Auto Boutique Consulting, Inc. Business Sales Consultant www.AutoBoutiqueConsulting.com (561) 703-4257 [email protected] Alaine MacDougall NY - Levittown New York Life Ins Company http://www.newyorklife.com/ (516) 650-4463 [email protected] Alethia Snipes GA - Conyers doTerra Wellness Advocate (Essential Oils) (404) 433-0527 [email protected] Alexa Oliva FL - Miami BOWA Studios div of BOWA International, LLC http://bowastudios.com/ (716) 771-2692 [email protected] Alexandra Kaplan CA - Long Beach The Back Forty Movement -
A Study on Direct Selling Through Multi Level Marketing
International Journal of Advancements in Research & Technology, Volume 1, Issue 4, September-2012 1 ISSN 2278-7763 A Study On Direct Selling Through Multi Level Marketing F. MARY MERLIN Department of Management Studies, Manonmaniam Sundaranar University, Tirunelveli, India. Email: [email protected] ABSTRACT Direct selling is a multi-level marketing in which the sales force is compensated not only for the sales they make but also for the sales done through their recruit. This recruited sales force is referred to as the participants who can provide multiple levels of compensation. A person's job would be to recruit others to sell their product, and in return, receive a percentage of their sales. The next person's job then is to recruit people even more so below them, and receive a percentage of their sales. Other terms for Multi-level marketing include network marketing and referral marketing. Commonly, the salespeople are expected to sell products directly to consumers by means of relationship through referrals marketing. Some people use direct selling as a synonym for MLM, although MLM is only one type of direct selling Keywords : Multi-Level Marketing, Direct Selling, Traditional Marketing. 1 INTRODUCTION evolution of direct selling. According to Biggart, direct selling has grown to become a major form of commercial activity in Direct selling is marketing and transaction of consumer goods the US, despite encountering opposition from other sectors of directly to the consumer; it does not depend on direct mail, the business community during various stages in its product advertising or fixed retail outlets. Self-governing sales development. -
5M1b Ltr to FTC Re MLM Income and Health Claims FINAL
June 30, 2021 VIA EMAIL Samuel Levine Acting Director, Bureau of Consumer Protection Federal Trade Commission 600 Pennsylvania Ave. N.W. Washington, D.C. 20580 [email protected] Dear Mr. Levine: For far too long multilevel marketing (MLM) companies have used deceptive marketing to promote the business opportunity and sell their wares.1 In fact, the problem is so longstanding and pervasive that the MLM industry’s self-regulatory body, the Direct Selling Self-Regulatory Council (DSSRC), stated just last month that: Though the industry has made significant strides to curtail the dissemination of unsupported claims regarding income potential …, there is still a great deal of work ahead of us to assure that the product and earnings claims communicated to consumers and potential salesforce members are truthful and accurate.2 Moreover, industry trade group, the Direct Selling Association (DSA), published an article in its January 2021 journal that stated, “[d]irect sellers will never be able to wholly prevent distributors from making improper claims.”3 Such pessimism is cause for concern as improper health and income claims not only deceive consumers but also lead to social, emotional, and physical harms, and financial hardship.4 Given this backdrop, TINA.org urges the Commission to implement a penalty offense program targeting the direct selling industry and its market-wide practice of utilizing deceptive earnings representations and false health claims.5 For more than 40 years, the FTC has consistently pursued individual MLM companies making -
Multi-Level Marketing and “Direct Selling”
Multi-Level Marketing And “Direct Selling” Companies Received Over $100 Million in PPP Money Despite False Claims About COVID-19 Treatments And Charges Of Deceptive Marketing SUMMARY: An Accountable.US analysis found that while hundreds of thousands of small businesses have closed across the country, direct selling companies – which frequently utilize predatory multi-level marketing practices – received over $106.4 million in PPP loans. Several companies receiving these PPP loans have been warned by the Federal Trade Commission (FTC) about unlawful claims regarding the health benefits of their products in combatting COVID-19 and the amount of income participants could receive. These include: • Zurvita, Inc., which received $1.39 Million in forgivable PPP money just weeks after receiving an FTC warning letter regarding social media posts that "unlawfully advertise that certain products treat or prevent [COVID-19]." • Pruvit Ventures, Inc., which received $719,251 in forgivable PPP money just over a week before receiving an FTC warning letter regarding claims about its products effectiveness against COVID-19 and misrepresenting how much its business opportunity participants are likely to earn. • Total Life Changes, LLC, which received $977,200 in forgivable PPP money just over a week after receiving an FTC warning letter regarding claims about its products effectiveness against COVID-19 and misrepresenting how much its business opportunity participants are likely to earn. Two other companies receiving PPP loans have previously been cited for deceptive marketing and predatory business practices: • Vemma Nutrition Company, a direct seller that received $227,500 in PPP money, was ordered to pay a $238 million fine that would be partially suspended with a smaller payment and the surrender of certain assets, while also prohibiting business practices that created a pyramid scheme. -
Organization
Organization 22nd JDC Drug Court Program 22nd Judicial Court’s District Attorney’s Office 22nd Judicial District Court 3 Sided Media 360 Solutions, LLC A & M Container Sales and Rentals, LLC A & R Tarpaulins, Inc. A Victory Agency A. Bradley Berner, APLC A.R.E. LA, INC. A+ Corporation, LLC Aaron's, Inc. ABF Freight ABG Enterprises Abita Brewing Co. Academic Partnerships Academic Partnerships LLC Academy Sports and Outdoors Acadian Diagnostic Laboratories Acadian Diagnostic Laboratories LLC Accelerated Cost Recovery Solutions (A.C.R.S.) Adell Compounding ADMAX, LLC Advanced Marketing Promotions Advanced Telecom Advanta Advantage Financial Services Advantage Resourcing Adventure Eye Video Systems Advisors Ahead AECOM AEON CORPORATION Aeropostale Aerotek AEROTEK, INC. Affordable Home Furnishings AFLAC Aflac Worldwide Headquarters - Southeast Territory AGCO CORP Aguirre Consulting Services, LLC AHLSTEDT DRYWALL, LLC AIG AIM Group Air and Marine Operations Al Copeland Investments Alan M. Krilov Albany Woodworks Albemarle Corporation Alexander & Hamilton Inc Alexis Ducorbier State Farm Insurance Agency Alfred G. Rayner Learning Center Alive Credit Union All American Games LLC All American Healthcare All Star Automotive Group Allergan Pharmaceuticals Alliance Bus Group Alliance Safety Council Allied Sales & Service Co., Inc. Allpax Allpax Products Allpax Products LLC Allstate Insurance Company Almatis Burnside Altaquip LLC Altus GTS Altus Technologies Inc. Amazon AMBA Amedisys Amedisys Home Health Services American Bank & Trust Company, Inc. American Cancer Society American Factory Direct Furniture American General Life & Accident Insurance Company - AGLA American Healthtech, Inc American Income American Income Life American Landmaster American Mobile Medical American Red Cross American Red Cross of Southeast LA American SportWorks Americorps AMERISAFE Amerisafe Consulting & Safety Services Amerisafe, Inc. -
Hiring 500,000 Heroes Thank You to the Following Companies for Committing to the Hiring 500,000 Heroes Campaign! A
Hiring 500,000 Heroes Thank you to the following companies for committing to the Hiring 500,000 Heroes campaign! A A Better Way Wholesale Autos, Inc • A Caring Home Care Services • A Mothers Peace • A Suite Salon Franchise Company, LLC • A Superior Towing Company Inc • A-1 Amusement and Party Rentals • A-1 Restoration Inc. • A-Dave's Lock anD Safe • A. Molly Company Environmental & Restoration Services • A&A Lighting Co • AAA Labor • AAMCO Transmissions, Inc. • AarDvark Entertainment • Aaron's • Aaron's Inc • Aarrow Advertising • AB Cemetery Management • ABB • ABCO Technology • Ablak HolDings, LLC • Above GraDe Level, LLC • AbrakaDooDle Remarkable • Art EDucation • ACA International • AcaDemy MeDical Servcies • AcaDia Services LLC • Accessible Healthcare Solutions • Accounts Receivable Management, Inc. • Accurate Electrical Services • Acer Capital Recovery LLC • ACFN FranchiseD, Inc. • Acloch-Staffing • ActionCOACH USA, Inc. • Active Security Co • Acuity Specialty Hospital of NJ • Adecco Government Solutions • Admiral Fire Protection, LLC • Admiral Transfer & Rigging, Inc. • Adult Learning Systems - LM • AdvanceD Appliance Services, Inc • AdvanceD Chimney Techniques, Inc. • AdvantaClean Systems, Inc. • AdviCoach® • AdvoCare • Aei Gas Services • Aerotek • AFLAC • After Hours Auto Repair, Inc. • Aftermath Restoration • AGC Automotive • Americas Age Advantage Home Care Franchising, Inc. • Agilex Technologies • Agro Landscape Consultants, Inc. • AIM Mail Centers • Aire Rite • Aire Serv Heating & Air ConDitioning • Airstreams Renewables • AirTel Tower • AJ Telecom Group • AlaDDin Doors Franchising Inc. • Albaugh Masonry Stone & Tile • AlexanDria Police Department • Aljex Software Inc. • ALKU • All About People Franchise Services, LLC • All American Ice Cream & Frozen Yogurt Shops • All American Moving Services • All American Specialty Restaurants, Inc. • All Dogs Club • All Freight Systems, Inc. • All My Sons Moving anD Storage • All Star Water Trucks • All Team Franchise Corporation Home of Med Team & Food Team • All Weather, Inc. -
Multi-Level Marketing Unmasked*
CONSUMER AWARENESS INSTITUTE MULTI-LEVEL MARKETING UNMASKED* Prefatory pages, Introduction, and Chapters 1-2 By Jon M. Taylor, MBA, Ph.D. *Formerly titled THE CASE AGAINST MULTI-LEVEL MARKETING – AN UNFAIR AND DECEPTIVE PRACTICE The most thorough guide to understanding MLM (multi-level marketing) ever published – MLM’s appeal, its unique features and inherent flaws, its deceptions and devastating effects, its culpability to federal and state laws, and needed regulatory reforms. The book also explores key legal cases and answers the most frequently asked questions – all based on 20 years research, worldwide feedback, consultation with top experts, and analysis of over 500 MLMs by a qualified analyst. For federal and state regulators, legislators, attorneys, consumer advocates, financial advisors, researchers, educators, the media, and consumers. © 2014 Jon M. Taylor, Consumer Awareness Institute Earlier versions under similar titles: The Case Against Multi-level Marketing and Unfair and Deceptive Practice, copyrighted in 2013 and The Case (for and) Against Multi-level Marketing copyrighted in 2011 and 2012 Info-graphics by Alan Connell and Jon Taylor Cartoons by Cal Grondahl and Kristopher Taylor Printed in the USA How to obtain copies: Download digital copies from mlm-thetruth.com For hard copies, contact Jon Taylor directly: Email – [email protected] Telephone – (801) 671-1870 ACKNOWLEDGEMENTS My thanks go to scores of committed consumer advocates, government officials, attorneys, media representatives, investment advisors, educators, former MLM (multi-level marketing) victims and participants, web designers, and persons who have shared their experiences and feedback from countries all over the world. I want to give special recognition and thanks to my wife, JoAnn, who – after tolerating my MLM involvement for a year – challenged me to make a decision between her and a prominent MLM – which started me on this quest for the truth about MLMs, or product-based pyramid schemes. -
Counselor William Blumenthal Office of the General Counsel Federal Trade Commission 600 Pennsylvania Avenue, NW Washington, DC 20580
DEMAND LETTER TO: ,,-cbER': ........ Counselor William Blumenthal Office of the General Counsel Federal Trade Commission 600 Pennsylvania Avenue, NW Washington, DC 20580 DEMAND LETTER FROM: The MLM Distributor Rights Association (DRA) From: Cheryl Gonzalez, President DRA, & Rod Cook, Chairman of the Board DRA 407 Prinz Drive San Antonio, TX 78213; 2410 Cinco Woods San Antonio, TX 78259 ~f::v.: o: SUBJECT: Re:FTC Proposed Business Opportunity Rule, R511993 ~ " Dear Madam Majoras: WHAT IS THE MLM DISTRIBUTOR RIGHTS ASSOCIATION? The Distributor Rights Association is the only non-profit organization in the MLM- Network Marketing category of the Direct Sales Industry. The DRA represents approximately 1.2 million MLM Distributors through the "downlines" represented. It consists of work-from-home distributors in the Network Marketing Industry. This distributor force is comprised of single morns who get to stay at home with their children, retirees, disabled people who find it difficult to leave the house, entrepreneurs with big dreams to take their lives to the next level and others who simply need an easy way to supplement their income in order to support their families. It was founded because of injustices to MLM distributors by immoral MLM companies who put profits in front of their promises of residual income to distributors. These companies however are in the minority as most are legitimate businesses that offer fair and just entrepreneurial ways for their distributors to make extra money. The DRA promotes communication between MLM Distributors and the companies, which is our way of policing the industry and giving the distributors a place where they feel their voice can be heard and they will have people in their corner. -
1-800-Partyshop F.A.I.T.H. Company Maakoa Tag Team Marketing International, Inc
1-800-PartyShop F.A.I.T.H. Company Maakoa Tag Team Marketing International, Inc. Tahitian Noni International / TNI 10KWEB Family Health Network M2CGlobal (formerly Morinda) 12DailyPro / 12dailypro.com Family of Eagles Magic Learning Systems Take Shape for Life | Medifast Inc. Family Vacation Network (FVN) – new, 1CellNet ‘prelaunching February, 2013′ Magic Power Coffee Talk Fusion 1StepSystem / 1StepSystem2Freedom.com FantasyFootballCash.com Magnus Enterprises TamPogo Mama’s Direct, Inc. (MDI) – pre- 21stNetwork.com Fifth Avenue Collection, Ltd. launch in 2012 TARRAH Cosmetics, Inc. 21Ten Financial Destination Inc / FDI Man Cave Taste of Gourmet 2by2.net / Mall Ventures, Inc. – closed by FTC 2004 First Fitness International Mandura Tastefully Simple, Inc. 2Xtreme Performance International First Marketing Group Manna Life International Team Effort International / MyVideoTalk Team National / National Companies 3 To Freedom First3cycle Mannatech, Incorporated Inc. / BigN 30fold (VSTR.PK) Fit For Business Inc. MannaZo Global TeamVinh International 4 the Good Life Five Star Auto Club Market America, Inc. Tel-a-Nation.com 4-E Corporation – Now Ecomates, a division of Ethos Environmental Inc. Five x 5 MarketClub Telehop 4Life Research / 4HealthDirect – Telephone Information Systems founded in 1998 FKC International Marpé International (Pleasure Time) 5LINX Flantech Mary Kay, Inc. TeleVerus 888.biz Flying Frog Incorporated Matol Botanical International TeleWrx / Converge Global, Inc. 8Point Communications FM Group Matrix Management Group Terra-bioTech AA-Turbo Charge Marketing Forever Freedom International / FFI Max International, MaxGXL The Art of Better Living The Balance Company / TBC Abunza Forever Living, L.L.C / FLP. Maxous Network Worldwide, Inc. MAXXIS Group, Inc. / MAXXIS 2000 Acai Plus / TriUnity International ForeverGreen / Frequensea – in Chapt. -
Multi Level Marketing
HISTORY OF MLM- MULTI LEVEL MARKETING The history of network marketing originates back to the 1940‟s where a company trading under the name of “California Vitamins” discovered they could make more sales when they had a lot of sales representatives selling a small amount of product each, compared to the traditional business model, of trying to have a few sales representatives selling a lot. California Vitamins also discovered that most of their growing customer base was made up of the friends and family of their existing sales representatives who had essentially referred them to the company as they were impressed with their product line. New sales representatives were then created from existing satisfied customers and a commission based system was developed. Both teams and individuals were rewarded according to their sales efforts and as a result network marketing was born. The same company later changed their trading name to Nutrilite Food Supplement Corporation. In 1959 Richard DeVos and Jay Van Andel founded the company Amway which was an abbreviation for the term “the American way”. Amway from day one was based on the same network marketing concept. Almost 50 years later Amway is a well established network marketing company operating in more than 80 countries around the world and with more than 3 million business operators. Jay Van Andel and Richard DeVos Currently it is estimated that there are more than 50 million people worldwide involved in network marketing with almost 100 billion in annual wholesale revenue. Given the history of network marketing and it‟s rapidly growing popularity, the network marketing industry is recognized as one of the fastest growing industries in the world today and is predicted to have significant growth well into the future as more and more companies are choosing to capitalize on this networking trend and choose to sell their products direct to the consumer.