List of Known Multi-Level Marketing Organizations
Here is a list of known Multi-Level Marketing programs or MLM's. This is not
a complete list, just the most commonly encountered MLMs. Being on this
list does not mean that they are illegal or a scam; but it's CFR's opinion that
ALL MLM's should be avoided. There are better, more ethical and less risky ways
to earn a good living! Also see
this page for a list of convicted MLM scam organizations.
Warning about MLM's from the FTC
- Plans that promise profits mainly for recruiting new
members are illegal pyramid schemes. In legitimate multilevel marketing
plans, profits come primarily from selling goods and services to consumers.
- Be cautious about emails for money-making
opportunities. Many unsolicited emails are fraudulent.
- Be aware that some pyramids are disguised as
ďgifting clubs.Ē New recruits give money to current members with the
promise that they will receive money from future recruits.
- Know that all pyramids are doomed to collapse.
Thatís because itís impossible to keep on getting fresh recruits who will
pay to participate.
- Legitimate multilevel marketing plans only succeed
if they offer products or services that customers want. All successful
businesses depend on repeat sales. If there isnít constant demand for the
products or services, the business will fail.
- Sales to other distributors donít count.
Legitimate multilevel marketing plans arenít based on sales to distributors.
Profits should come from sales that you and any distributors under you make
to the end-users.
- Be wary of big earnings claims. No one can
guarantee how much youíll make. That depends on how hard you work and
whether consumers like your products or services. Many people who work in
multilevel marketing do it part-time to supplement their other income.
- Check it out before you commit. Print out all
the information, and contact your state or local consumer protection agency
for advice. In some states, multilevel marketing companies must register
with the government and comply with other requirements.
- Donít buy more supplies than you need. Some
fraudulent companies try to force distributors to pay for more products than
they can reasonably sell.