Research

Book Review: False Profits

Book Review: False Profits

False Profits: Seeking Financial and Spiritual Deliverance in Multi-Level Marketing and Pyramid Schemes, by Robert L. Fitzpatrick and Joyce Reynolds, explores the history and cultural context of MLMs and pyramid schemes. It isn’t a great book for understanding the intricacies of today’s multi-level marketing companies. It explains why […]

MLM or Pyramid Scheme?

MLM or Pyramid Scheme?

Probably the most common question we hear: “Is this MLM actually a Pyramid Scheme?” Unfortunately, there usually isn’t a straight forward answer. What is a pyramid scheme? “A pyramid scheme is a business model that recruits members via a promise of payments or services for […]

FTC Guidance: MLM Compensation Structures

FTC Guidance: MLM Compensation Structures

In January of 2018, the FTC released business practice guidance to multi-level marketing companies. As part of this guidance, the FTC described illegal mlm compensation structures. “Pyramid scheme” is another term for this type of illegal MLM. The “unlawful MLM structure” description comes from court […]

Debt and Multi-level Marketing

Debt and Multi-level Marketing

Stories about participants in MLMs getting into debt are pretty common. We took a look and found lots of information. We learned how common debt is for MLM participants, why people turn to borrowing, and that it’s not a good idea. In a survey of […]

FTC Guidance on Business Opportunity Claims

FTC Guidance on Business Opportunity Claims

In January of 2018, the Federal Trade Commission of the United States released guidance on how multi-level marketing companies and participants should talk about business opportunities. The FTC is one of the government agencies which regulates all kinds of businesses, including multi-level marketing companies. Why […]

Safety and Dangers of Essential Oils

Safety and Dangers of Essential Oils

Essential Oils can be dangerous. People selling the essential oils for companies create articles and guides in order to sell more oils. This can make it difficult to find good truthful information about safe ways to use oils. Additionally, members selling dōTERRA and Young Living […]

LuLaRoe Return Policy Updates and Hidden Costs

LuLaRoe Return Policy Updates and Hidden Costs

BuzzFeed and Inc Magazine reported changes to LuLaRoe’s  return policies which is bad for consultants. People must buy lots of inventory to get started selling with LuLaRoe (see: Getting Started with LuLaRoe). This seems okay because the company had a return policy which claimed to cover […]

Last Week Tonight: Multi Level Marketing

Last Week Tonight: Multi Level Marketing

Check out this great video from John Oliver about Multi Level Marketing

MLMs Break the Internet

MLMs Break the Internet

If you heard about something that seemed like it might be too good to be true, your first reaction would probably be to Google it. Maybe if you’re really suspicious, you might add “reviews” or “does it work?” to your search. We trust the internet […]