CAI

Consumer Awareness Institute

Non-profit corporation

MLM* – the truth! *Includes multi-level marketing, network marketing, pyramid selling, chain selling, consumer direct marketing, Australian 2-ups, etc.

"I applaud the dead-on accuracy of your analysis."
- Manuel de Los Rios
More reader comments below.

You came to the right place for well-researched information and guides in making decisions about MLM participation and/or help with recovery.
                    ______________

     The author of these articles, Dr. Jon M. Taylor (MBA, PhD) has taught college classes on entrepreneurship, ethics, and communications – and founded over 40 home businesses, focusing on sales and marketing. His experience in MLM; communications with top MLM executives, law enforcement, and thousands of inquirers; consumer advocacy; and wide-ranging research on MLM/network marketing make him the premier consultant and expert witness on chain selling and product-based pyramid schemes.
     Read his bio and vita - and sample readers' comments.

Do MLM/network marketing companies sell directly to actual customers? Are they legitimate home-based businesses?

Doorstep salesman

– or are they thinly disguised pyramid or chain selling schemes? And if so, what harm do they do? Now you can know the answers!

OPINIONS AND QUESTIONS ABOUND. These questions are frequently asked: Who, if anyone, is making money in MLM? What percentage of people lose money?
Are most MLM's legal – or not? And is law enforcement equal to the task of regulating MLM? Are existing statutes adequate?

LEARN THE TRUTH ABOUT MLM/NETWORK MARKETING,
BASED ON OBJECTIVE RESEARCH
on success and loss rates, legality, ethics, etc. – for determining whether or not a particular MLM is a viable income option – or just another scam. Consumer protection agencies, attorneys, educators, and researchers will also benefit. Research includes:
- Surveys of tax professionals (those who handle the taxes of MLM participants)
- Court records for actions against MLM companies
- Surveys of consumers in areas of intense MLM participation
- Surveys of presidents of leading MLM's and communications with other top MLM officials
- MLM companies' published financial reports
- Marketing materials of MLM companies
- Correspondence & meetings with FTC & other federal & state law enforcement officials
- World-wide feedback from thousands of victims who have suffered losses from MLM participation
- Insider documents & actual income reports of MLM companies (compared with gambling and no-product pyramid schemes), etc.
- Surveys of current and past MLM distributors from dozens of MLM programs
- Reports of comparative analyses of alternative income opportunities
- Evaluations of over 250 MLM programs, based on analyses of their compensation plans and how they stack up against the "5 Red Flags" of a product-based pyramid scheme

DISCLAIMER: These reports are intended purely as a communication of information in accordance with the right of free speech. They do not constitute legal or tax advice. Anyone seeking such advice should consult a competent professional who has some expertise in endless chain or pyramid selling schemes. Readers are specifically advised to obey all applicable laws, whether or not enforced in their area. Neither the Consumer Awareness Institute nor the authors assume any responsibility for the consequences of anyone acting according to the information in these reports.

SAMPLE READERS' COMMENTS:

"I have found and read your excellent analysis of MLM and, (using many of your arguments), have managed to convince my wife that the 'opportunity' presented by one of our long-time friends, is in fact, a scam. Thank you for the moral and intellectual support your papers and articles have provided. Without them it would have been a close call"
—Stephen Pope

"I wanted to commend you on your articles - out of all the internet sites and reading I did on the subject, your articles were by far the most informative and well researched, and it really helped me understand the dangers of MLMs. Thank you!! "
– Amantha Imber, Ph.D., Melbourne, Australia

"I want to thank you so very much for your efforts and I applaud the dead-on accuracy of your analysis. Because I knew what to expect, I knew what to ask [when recruited by an MLM promoter]. The tactics and predictability would be comical if it weren't for the devious intent. Again, thank you for maintaining such an informative, and necessary website. It is appreciated."
– Manuel de Los Rios

"I've been approached many times to become involved in network marketing. It is good to finally have a resource available that puts forth the principles of network marketing in a clear, thought-provoking way so that decisions are made wisely."
– Dr. Alfred L. Pace III, Educator

"A fascinating look at the upside and downside of uplines and downlines."
– Carol Lynn Pearson, author, poet, playwright

CONSUMER GUIDES AND ACTIONS

MLM EVALUATIONS – Before joining an MLM, complete the 5-step do-it-yourself evaluation and compare it with our evaluations (over 250)
Frequently Asked QUESTIONS – Research-based answers about MLM
MLM PRODUCTS – Are they overpriced? Do the supplements really work?
MLM STATISTICS – the shocking odds of MLM success, compared with gambling and with clearly illegal no-product pyramid schemes.
Consumer GUIDES to protect yourself against harmful schemes. Be sure to read –
5 RED FLAGS for Identifying Exploitive Product-based Pyramid Schemes
30 Typical MISREPRESENTATIONS engaged in by MLM recruiters
1357 Ways to Make a LOT More Money than in MLM!
12-step Program for Deprogramming & Rehabilitating MLM Victims
13 ACTIONS you can take to recover MLM losses and to protect others

RESEARCH, LEGALITY, SPECIAL MARKETS, RESOURCES

MLM RESEARCH, – what tax studies show. Not mere opinions. To be informed, read the full report: "The 5 Red Flags of a Product-based Pyramid Scheme."
REGULATION & LAW ENFORCEMENT – challenges, definitions, new legislation related to MLM. How to detect the most predatory schemes. Check out 3 major MLM's posing regulatory problems - Amway/Quixtar, Nu Skin, & Usana
DSA (Direct Selling Association), works to weaken laws against pyramid schemes and prevent adequate disclosure by MLM's. Are MLM's direct sellers - or chain sellers?
STATEMENT to FTC on MLM as a business model. The DSA has been fighting a proposed rule to disclose information to combat unfair and deceptive practices.
Victims of NuSkin, Arbonne, Melaleuca, Usana, MLM in general speak out.
Worldwide WARNINGS – regulators & consumers in Asia, et al
UTAH – an MLM hotbed with very little consumer protection – and why
LDS members are very vulnerable. See how GENEALOGY & MLM relate.
TRANSLATIONS into foreign languages for some reports (more needed)
MLM HISTORY – how it all started, semantics, other developments
Power Point presentations on MLM by Dr. Jon Taylor for the Economic Crime Summit Conference and by the Association for Small Business and Entrepreneurship
PODCAST of Denver talk show with Jon Taylor on MLM. Title: "Vegas or MLM, you do the math!" (Dec. 29, 2007) Please be patient for download and introduction.
MLM HUMOR and satire Great cartoons, a parable about MLM, & more
SHORT ARTICLES on product-based pyramid schemes help legislatures, regulators, consumer advocates, and the media sort out the issues
MLM News – at Pyramid Scheme Alert web site.
Annotated list of other Recommended WEB SITES

SPONSOR AND CONTACT INFORMATION

Consumer Awarenss Institute – Top experts consulted
BIO of Jon M. Taylor, Ph.D. – unusually qualified to consult and to present on these issues – and to act as expert witness in MLM cases
Contact us. Please let us know how this information has helped you and if you have information to share about new MLM programs and abuses.

THE LIGHTER SIDE OF MLM

See more cartoons throughout the site,
or go to the humor and satire pages.

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