The telltale signs of a pyramid scheme

What’s the difference between a multilevel marketing program and a pyramid scheme? Pyramid schemes are illegal.

If the money you earn is based on your sales to the public, the company may be a legitimate multilevel marketing plan. Here are some signs that the company is operating a pyramid scheme:

  • Your income is based mainly on the number of people you recruit, and the money those new recruits pay to join the company — not on the sales of products to consumers
  • You’re required to buy lots of inventory
  • You’re forced to buy other things you don’t want or need just to stay in good standing with the company

One other key difference: You’re likely to lose money if you sign up for a pyramid scheme.

Today, the FTC announced a settlement with Fortune Hi-Tech Marketing (FHTM), a company that operated an illegal pyramid scheme disguised as a multilevel marketing program. Over 350,000 people were scammed out of a total of at least $169 million. The settlement bans FHTM from the multilevel marketing business and from deceiving consumers. FHTM will fork over at least $7.7 million, which will be returned to consumers.

If you’re planning to buy into a multilevel marketing plan, get the details. 

  • Ask these questions to learn if it’s a pyramid scheme. Make sure your income is based on sales to the public, not on what you have to buy yourself or the number of people you recruit.
  • Be skeptical of rags-to-riches stories or portrayals of lavish lifestyles made possible by participating in the program. These stories may not represent the experiences of most members.
  • Exercise doubt. Even if a company sells products or services you’re familiar with — or boasts celebrity members — it may not be legitimate.

If you’re in the market for a job, investment, or work-at-home business, check out our tips to avoid other business opportunities scams.

Blog Topics: 
Jobs & Making Money


Nice to know FTC is looking out for the little guy. Now what about them Herbalife?

Not to mention Amway and most other MLMs.

Our own personal experience with the Amway products convinced us to continue to buy from the salesperson. When a housewife or cleaning person bought their products, we received products that worked as well as when demonstrated to us. What the salesperson bought for stock, he or she sold it unless they never knocked on a door.

Herbalife and Amway might look legal and proper on paper but are often run as illegal pyramids. These MLM products are not sold to consumers. The vast majority ae self consumed by distrubtors who have stars in their eyes hoping to get rich and live off resdiaul income.

Some friends of mine are into Amway & are showing it to me. I am skeptical, but as I look into it things are looking good. There's some points in one of the first books you read that appear to contradict what the uppers are saying, but that's where that "Ask Questions" part comes in. Anyone can make a company look bad, either by accident or for lolz. Those that only buy their own product aren't necessarily doing it wrong, but they won't make as much as thewy would 'hiring' a 'team'. Essentially the distributor gets points for product sold, then paid on total point value (PV). Anyone can surpass their mentors, so not shaped like a pyramid :)

Anytime a business proposal requires you to set a piece down on a board and move it through the squares with the promise that you'll be passing "Go" and collecting your money, don't do it.

All you'll be doing is selling this idea to many people, more than likely your friends and family. If you're just going to be selling anyway, you might as well either really start your own business (without a scammy system), or just sell at a B2B organization or car lot.

You'll get much more profit to show for all of your hustling.

Dont forget the yearly membership dues of 100+. THAT was never brought up in the kool aid swilling Amway meetings. In fact, it was dressed up as totally obligation free.

No offense to your logic, but your information is lacking.

It's kind of like you said Apples and oranges are the same. Well sure, are both fruits but you shouldn't feed one of those to an infant. They are different.

I'm not saying anyone should join either of those enterprises, I'm just saying while your logical reasoning doesn't have an issue, the information you have is flawed

Herbalife distributors from www.seekingalpha a investments forum keep saying that FTC has been instructing HLF on how to make changes so that the company will get out of the CID with only a small fine and that Herbalife will be able to continue it's endless recruiting chain business practice that's prohibited by FTC in writing? Also there are lots of postings that FTC will never be adversarial with HLF due to the influence of Alan Hoffman, Pamela jones, and other HLF political lobbyist?

If the FTC does anything but shut Herbalife down it will be a travesty and a breach of Justice. The horror stories abound and the fact that the Enterprise is is clearly based on recruitment and has nothing to do with retail sales is enough to Warrant action from the FTC. FTC, the world will be watching.

Can anyone name a MLM company that was shutdown by the FTC for being an illegal pyramid scheme, if they had - 1) NO inventory loading 2) No profit for recruiting members 3) An excellent product return policy

The FTC has traditionally taken on the "easy" cases. HLF could make history! Why? Because only a very small amount of the products are sold to legitimate customers, and if you read the article, this is a primary sign of an illegal pyramid. Throw in the lead generation and other tool scams, and HLF will be fully disgorged.

1, no inventory loading? Hebalife distributors are re-evaluated for their qualifications every January. Based solely on how much products they purchased. Distributors can claim the products are for their own personal consumption any time they need to make up the volume points they needed for the qualification. 2, way over priced products : 2-10 times of equivalent products in the market. Why would a real consumer pay such premium for products that are available everywhere? 3, the refund policy. Herbalife distributors make purchase through their uplines. Uplines get rolty override payment on every purchase their downline made. This policy only encourage focus on recruiting, push unwanted purchase, and in factual denied refund.

Thanks for the information on these company. I have been scam by a company Named Creative Stream or AKA Private Community Creative Enterprises, or AKA CEP Community. They promise to give you money if you recruit people into the company. Get 6 to 8 people get 6 figure salary. They claim an investor was placing the money in a money market account that increase our income. The conference calls had over a thousand people on the line waiting for their return of investment. They even came to the state I live in and did a meeting to confirm they were legit. People took picture of them and with them. I join in September of 2012. The money they took was over $700,000 to $800,000 maybe more. that amount I'm aware of. There were policemen and other people with degrees that got scammed. BE Aware of this company. You can contact me if you have any additional questions.

Do you know any thing about (Swiss golden)I am trying to get in to, but it's like a pyramid scam, because .........yes! you have to recruit people

Amway is a scam

Amway is THE number one multi-level marketing business. Its not an opinion, its a fact. Look it up. Its a legit business.

Actually, Avon is the number 1mlm company and has been for years.

Not since 2012

Diana, if you think Amway is legit, you need to google "stop the amway tool scam wordpress" and get yourself edge-a-mu-cated.

Tex, Amway is legit, instead of listening to people who fail when utilizing Amway as a platform to build their asset, why don't you talk to people who were successful when signing up in Amway, it's like you and I getting gym memberships and I go to the gym everyday and you go once a week and you don't get results and I do and you tell everyone that the gym doesn't work when in actuality it was you who didn't put in the work.. Then you talk to people that utilized the same gym as you and all the people who didn't get results becomes the people you listen to the most because you have the same thinking they do. Which is small minded small business get something for nothing get results quick type mindset. Instead of listening to the long term delayed gratification hard working individuals who actually did what it took to make it work!

The successful ones? You mean those that are already on the top of the pyramid? 99% of IBOs lose money. The average income is only around $150 a month, IF that, and I believe I'm overstating. I almost fell for this trap back in the early spring. Buying almost $300 of overpriced stuff just for $9 back...? I don't think so! That's not a profit or even savings. That's a complete loss

U go girl ur right about that ppl need 2 recondition there minds

Well, then tell that to the attorneys of Apple and the CEO's of more than 500 major corporations who partnered with Amway. Tell them to hire you cause you must be smarter than a of them.

Its easier for people to say amway is a scam cause they don't want to put the work and the effort to build their business and also unfortunately the person that got them involve don't set good examples. That's cause a bad image on the company

I agree wigh you Caroline

Haha. The standard line of "someone didn't put in the work and gave up." How come 99% of people lose money in an MLM business? The same goes for Amway. They are all the same. Period.

Try to understand something before classifying it in a general stigma. "They are all the same." That's how you justify racism, sexism, and many other means of unfair judgment.

I agree 100% with you Caroline!

Sounds like someone couldn't cut it as a distributor.

Amway can't be a scam if the FTC uses it as a benchmark for all network marketing companies. It was probably a person that you had an experience with that wasn't a good person. I have encountered some myself outside of working with amway. Some were my friends, some were my coworkers, and some were even my family. Be careful about some of the people you work with!

It's actually not. It was even investigated in 1979, an investigation initiated by Amway to disprove those claiming they were fraudulent. I'm guessing you may have joined and didn't put in the work and didn't see a good return and are now upset. Well, it's just like going to college, if you don't do the work and do well in college and fail out and have to quit, you will claim college is stupid and doesn't work just because you weren't successful. Shame.

I'm so sorry you feel that way. My guess is you had a negative experience with a person and not the company.

Really? How so?

Call the FTC if you want ti be proven wrong. It has what it calls th Amway rule. Any new multilevel wanting to be verified will have to live up to Amway's standards.

U are definitely living in a box or a cubicle.but don't worry we are the cure for the common cubicle.

Wow!!! Love your reply to that guy haha!! Amway rocks!

lol,YES YES YES!!! How can a "scam" partner with Apple and Forever 21 lol. we are the cure :)

In what way? A+ rating from the BBB.

If Amway is scam why it has been in the market for 80 and over 100 countries?

FIY, religions have been around much longer promising salvation, heaven and paradise. Look at all the suckers.

Using the religion card isn't cool. First, your still living in this world (obviously haven't made it to salvation because your comments, and cannot see the "heaven & promiseland" until afterlife or after the rappture AND you are a christian. No one except for Zealots name a particular date for Christ to return. Get a life....with God (not just religion) and you might be surprised.

how? Its Been Around Since 1959 & Was Looked Over By The FTC For Many Years In The 70S As A legitimate Business.

How is that if you get paid on valume not by recruiting you don't get paid by someone joining in.they are backed by the Better Business Bureau and get a A in the companycompany even the FTC back them up so scam I think not.Get your facts.

If that were true, why would the lawyers of such companies like Best Buy, Best Pro, Sears, Under Armour, etc. Want to partner with them? Why would tge, Amway name now be on the college Football National Title?
Seems that people always throw rocks at things that shine.

Why did the lawyers of WorldCom and Enron partner with Amway? Scams of a feather flock together?

They are hardly "partnered." Amway simply sells products by these companies through their IBO web pages and their Ribbon Gift Catalogs- but at inflated prices. Compare the prices in these catalogs with retail distributors and there is typically a markup of 10, 20 percent or more.

I am no fan of Amway. It is not a scam. You are a moron.

Amway is a SCAM...

The only way it is not shut down is that they hire very powerful lawyers and lobbyists to keep them one step ahead of a complete shutdown.
Their scamming business practices and recruiting has worn out its welcome in much of the US...Now, they rely on overseas sales of uneducated, usophisticated persons for much of their revenues..

I have no comment do you know about LTD another scam company

I assume this is a question because the FTC has deemed Amway a strong and viable business that is highly desired among the masses.

Where did you go Tex? Can you present any facts with that claim?

We have to categorize it as a profession scam.. 90% of the people joining this scam will be leaving the chain within couple of months by losing full money and with the useless items they get with that money.. collecting money for membership is scam and its a pyramid scheme of fraud

Every item except food and over-counter drugs have a 4-6 month refund policy. If they lose all their money within 4 months, they can just send the items back. The other fees are for the business license, usage of the online store, and training in business, or 'mentorship'.

You never paid for a magazine subscription? Maybe all anti-virus companies are fraudulent as their keys only work for 1-3 years. Xbox Live, Playstation online, all non-F2P MMO's.. membership=scam apparently...

Tex, looks like you just got an education by those who are knowledgeable regarding Amway. Do your homework friend before spouting off.

Yes, I agree with Tex, it is a pyramid scheme because you have to shell out $181.00 for initiation fees which they call investing. I also looked at the products, and I've never seen these brands before and they cost 5-500 times more than the famous brands we see at any store. Amway is a scam in my opinion.

When you write "not on the sales of products to consumers," can you be more specific? There's a lot of uncertainty now about the FTC's stance on the practice of paying commissions on internal consumption (when distributors purchase product for personal use). Are distributors considered "consumers" for purposes of understanding the quote above? Any insight would be appreciated.

Hi, Kevin,

The FTC's article about Multilevel Marketing has detailed information that can help you evaluate a specific opportunity. Generally, the advice suggests that one sign of a pyramid scheme is if distributors sell more product to other distributors than to the public — or if they make more money from recruiting than they do from selling.

Got a call tonight about 10pm - what nerve calling after 9 about a great business opportunity. I called them back 845-367-7647, told them - there is a NOT TO CALL after 9pm law & I am reporting them to the FTC. Then they called my other home line - so I reported them to the FTC and again, put myself on the DO-NOT-Call registry. Everyone who gets a call & has a number should call back & give them a where-to-fore consequence - calling the FTC - what people won't do to make money & think to call after 9pm - & quite frankly, my husband & I don't want any of this at all! Really! Really!

Well how did they get your number then? Was it automated?

I would like know if there ever was a MLM company that was shut down by the FTC that had 1) No inventory loading 2) No recruiting payment and 3) Excellent Return Policy.

Well, free enterprise have it's price in the our blossoming world of materialism, but all the same, it demands constant healthy checks. I give you a big thumb up for the great works.

FTC cant protect you from a pyramid scheme. You only can do that.

If you dont want to be a customer of the company, if you would not buy its product at its retail price, who do you think would? DONT join, DONT invest in such a company!

Tex - According to Amway's Facebook: After an extensive 1979 investigation, an FTC Administrative Law Judge, supported by the entire FTC Commission, stated that “The Amway system is based on retail sales to customers ... Amway is not in business to sell distributorships and is not a pyramid distribution scheme.” Amway fully supports solid anti-pyramid scheme efforts, including legislation, that draw a clear line of distinction between legitimate companies and illegal pyramid schemes.

MLM is not your average income generator and not for average, lazy people. If you want money to just come to you every week, without doing much thinking, or planning, then keep your 9-5 cubicle job. MLM is growing because more and more companies are realizing that it is cheaper to give out payments for performance and bonuses then it is to pay for advertising their product. There is a skill to learn to be good at this. There are many books written by successful MLM'ers on the subject.

What about wakeupnow? What are your opinions?

Amway is not number one MLM company in the world and is not a scam either. Yes, it has over 80 years but its not the most successful company either. There are many companies out there that have been in the market for. A few years and are already making almost the same amount as Amway and are open in 35 countries. Most of the time people fail in MLM companies not because it's a scam just because they don't do what they are suppose to or weren't taught well. MLM is an industry where a lot of personal growth and studying to prepare yourself and take action. Many people don't take action and that's when they mess up, don't succeed and state it's a "scam".

Amway is the #1 MLM now,it is in over 100 countries and territories now, check your sources. It is 54 years old, check that one out, too. There is no MLM close to #2.

That is a fact. I think people should put their emotions on the table before they start typing.. Do your research FROM REPUTABLE places. When you talk you expose yourself, might want to make sure the facts are in place.

Amway is #1... And as far as other companies, the key is not to make a lot of money the first year, but to be stable and have consistent growth. Amway grows about a billion every year and has been for the past 5+ years regardless of the economy.

I agree that Amway is not a scam - it just involves work and many people are not willing to work - period.

Yes Amway is number 1 in the world you can look the information at the WDSA ( WORLD DIRECT SELLING ASSOCIATION.)Many new companies do some lying so too convinece new people!

Companies like Amway/Herbalife, etc.are being investigated. Some shareholders are filing lawsuits. WakeUpNow out of Utah and at present has 46 complaints filed against them, public record.
People need to do background checks. If one gets in own the ground, may make money. Sooner or later, you have start recruiting as you have already gotten your family and friends signed up. If all MLM worked, no one would have to go to a regular job. Just wise.

Amway to my knowledge is not being investigated by any legit entity or agency of the United States, and they don't have shareholders as they are a private company that actually own everything they have. Unlike other MLM companies, such as Herbalife like you mentioned, which is a Publicly traded company, is being investigated by the FBI/FTC for allegations of possible Pyramid schemes.

What about that new company called Wake Up Now? Anyone have any informationa as to it being a legit MLM company?

Is Advocare considered a legit business?

STAY AWAY from Cindy Clark's and Kim Schultz's "as seen on TV" Online Profit Stream!! I called the 1-800# on her website, and was directed to "IMPACT KI," an online "education" scheme. Cindy Clark's site sells you online access to "making money" at home for $221, while Impact KI claims they can teach you how to set-up your business online. FOR AN ADDITIONAL$8,700!! I Never received an email confirmation OR receipt from Online Profit Stream, and NEVER received another bit of information from them. I've emailed them numerous times, and left innumerable phone messages - no response STILL ! I called to cancel, and "customer service" informed me they "could not refund my $97 because I had not made an effort to succeed!" On to IMPACT KI: they sold my cell # to numerous website creators who continue to call me EVERY SINGLE DAY (1200 minutes used in one month!) I've emailed the "Senior Supervisor," and the Student Manager; customer care development services; training coaches, etc - THEY HAVE NOT FIGURES OUT HOW TO REMOVE ME FROM THEIR DATABASE, so I keep getting phone calls every day. And, they were going to "coach" and "educate" me on computers! I've gotten no responses from Impact KI, but, at least they have refunded my money - unlike Online Profit Stream. I sent copies of receipts and all correspondences to/from both "companies" to the FTC and BBB. IF AN ONLINE COMPANY IS MAKING MONEY, SHOULDN'T THEY BE REGULATED...? Please see the Better Business Bureau website for ratings of these 2 companies...

Thanks for sharing your experience and for filing a complaint with the FTC. It's important to submit a complaint because investigators from all over the country access the FTC's complaint database. Watch this video to learn more about how to file a complaint with the FTC and why it matters.

Wakeupnow has had complaints, but mostly because their refund policy for their most popular suite of products and services is not very user friendly. I've read the complaints on the BBB website and most are frustrated that they weren't able to get a refund on their initial $99.95 investment because they weren't able to turn in their refund request within the timeframe required. While this is a valid complaint, I also noticed on the BBB website that Wakeupnow has resolved all 51 complaints.

I haven't seen any complaints on the BBB site about this being a pyramid scheme. I know the FTC handles issues with pyramid schemes so I'm writing here to figure it out. According to the article above, it's a pyramid scheme if "Your income is based mainly on the number of people you recruit, and the money those new recruits pay to join the company — not on the sales of products to consumers". According to WUN, there is no fee to join as a customer or IBO. I know another sign of a pyramid scheme is selling to other distributors in your downline. But what if those distributors are actually using the product or service? Shouldn't it be allowable to sell to these people whether or not they decide to become distributors themselves. Any comments would be greatly appreciated

MLM is the business of yesterday
Join now on one no matter witch one
Do the work
Live a happy life no matter what the outcome will be
Start your hown small/big business so you can start employing others that are looking for a job
Because working for someone else is not the future you wanted or dreamed when you were a child.

God bless those who put others on their dreams.

Just learned of the judgment against Fortune High Tech Marketing! Should I have been contacted regarding the refunds? I payed $1500 to enroll and became aware that it was all based on recruiting instead of selling and became discouraged and bowed out.. How to I get my fee returned? Or do I?


There will be a press announcement in the near future once refunds are available for consumers who lost money to FHTM. Learn more about the FTC’s refund program, and recent FTC cases that have resulted in refunds.

Is World Ventures a scam because it seem really legit to me. It hasn't been around that long but from my experience with them.... everything is legal

I was scammed by FHTM back then. I joined and paid for a some money and monthly service however i was rarely earned anything. All web services and products are bs. I didnt know that FTC is finally looking into and do a thorough investigation. Is there anyway that I can file or report the claim re fhtm at this time?

Hi Jess,

Yes, please file a complaint about your experience at

It seems Herbalife perfectly fits the description provided here of what an illegal "pyramid scheme" is. How can this be if Herbalife is a long-standing publicly traded company? Why hasn't the FTC shut down Herbalife if by it's own definition it is a "pyramid scheme?" Does it get a pass because they have hired former FTC officials?

It's well past time that both herbalife and amway get shut down by the FTC. They're very thinly veiled pyramid schemes that require an endless-chain of new distributors to invest-and-leave.

Herbalife will tell you on their own disclosures that the churn rate is very high for distributors with the majority staying on for less than a year. These people buy in, load up, lose out and quit. Some look into product returns, but due to certain herbalife rules (such as rule 10-d) you cannot return product if you'd been buying without 70% retail sales or 10 customers per month and have been inventory loading. (the 10-d requirement is right on the repurchase form).

This means that by letter, herbalife says, "you cannot inventory load" but all of their top distributors will tell you (and even say on video) that you need to get those 2500VPs up front so you can get the bigger discount, then you're in business.

Herbalife will tell you it's not their fault what individual distributors do because they're effectively contractors with the company and herbalife cannot force compliance. But without that endless chain, herbalife would just be an overpriced shake company.

I'm so thankful for this FTC dialogue. It's simple folks. We must stop trying to complicate this. I will explain based on my personal experience.

I have an MLM business. I have 36 "customers" who utilize my company's MLM services every month. NONE of these "customers" are in my MLM business as a TEAM MEMBER...NONE OF THEM. They simply "buy" through my MLM business each month. The same way people "buy" from a McDonalds franchise owner each day/week/month.

My wife is on my MLM Team. She has 15 "Customers" that utilize our company services every month. Once again...NONE OF HER CUSTOMERS are on/in her MLM Team.

Last example.
Our two son's are also on my MLM Team. Between them they have 48 "Customers" that utilize the company services through them each month. NONE OF THEIR CUSTOMERS ARE ON/IN their MLM team.

Whenever someone tries to show me their MLM opportunity I simply asked them - How many "Customers" bought your products directly through you this month - last month? The most common answer I get is "one, two or none". Then they tell me they made $3000, $5000 or $9000 last month.

They didn't sell anything - but they made money.


I am also part of a MLM company. In our company there is a very definite product that we all want to use. That being the case it makes no sense for me to pay for retail price when I can simply have a wholesale membership and purchase at a discount each month, just as I might get a discount at Costco or another warehouse type club. As a wholesale member, it is also my option to share what I use and help others get their own accounts. They are never required to make additional purchases unless they earn a commission check, nor do I pressure them to build a business. They are helped to achieve whatever their goals may be. I personally do not make many retail sales because the people I know want more product than one or two bottles. Financially it makes more sense to get a full set. There is nothing wrong with making money from such a set up - and we have people who make a lot of money doing so each month, but those people truly work hard to teach and support others in their use of our product. Overall though I'd rather support my group in something I know benefits them than give my money to a corporate entity that sells products I hated using but did not always know there was an alternative option for

Nice to see someone doing it right. I'd be pressed to ask what it is you're selling that has such a high interest in the consumer market? Keep it up. That's how MLM can work, without all the hype and fluff.

is primitive development a scheme?

Your post very informative

I have a hard time understand why there is no sense of urgency in closing down these MLM frauds. The endless chain of recruiting, FTC take your responsibility and make it end. It's a disgrace.

"FTC announced a settlement with Fortune Hi-Tech Marketing, a company that operated an illegal pyramid scheme disguised as a multilevel marketing program".

Aditi – thank you! I am so sick of hearing this referred to as "The FTC has shut down the multilevel marketing company Fortune Hi-Tech Marketing for operating an illegal pyramid scheme." Finally, somebody gets this right!

Many MLM's are pyramid schemes disguised as a MLM program. Herbalife is a good example.

Hey let's all use this mediocre soap so we can get paid all the cash that would have gone to the local store for carrying the item. Free monies everywaaaaaaaaare.

PLEASE look into "Nerium"! Biggest Pyramid scheme going and are recruiting morons at an alarming rate with "rags to riches" promises! It is VERY impressive how they manipulate their sales people but sad when they realize a year later they never really get the bonus or the car or the commission! They need to be shut down! It's Capitalism at it's worst!

AGREE.. Its a scam. They encourage people to recriut other people in order to "earn" (its just a leasing contract) a Lexus car instead of encouraging people to sell their products as retail.

Seriously - do something about these MLM rackets. I read on a comments board from an Herbalife troll that literally said she makes great residual income renting a conference room, getting a few of her insider friends to give fake income testimonials to distributor attendees that pay to hear these garbage lies because due to Freedom of Speech it is not illegal and the complainers just need to "suck it up". How is it that most of the general public knows these are scams aimed at the unsophisticated but yet our own government bends over backwards and frontwards to allow them to keep it up - great job (not)!

So all MLM's have distributorships and you get paid based on volume on a downline. So here is my question, when the FTC says:

"Your income is based mainly on the number of people you recruit, and the money those new recruits pay to join the company — not on the sales of products to consumers"

How do we interpret this? For example, with some MLM's, you don't get paid directly on the people you recruit, but you do make money based on your recruit's sales, which are mostly to the public?

taken this from the previous comment - "Some MLM's, you don't get paid directly on the people you recruit, but you do make money based on your recruit's sales" the recruits sale is mostly a self purchase than the sales to the public. which in turn is nothing but pyramid scheme. eventually you are forced to consume more goods for yourself that you really do not want.

If it seems to good to be true it probably is........the rich are always looking for new ways to take the working class money.....and you all are only to eager to give it to them!!!!!!

All MLM companies have the same basic true formula. Only 1-3 % actually make money. The rest are collateral damage in a war for leveraged team efforts. Those who are bitter, need to be honest, did u change yourself to become a leader, or did u quit within 7 days of trying, so now your bitterness comes out. I personally know three people earning over $30 000 pm, for over 5 years. but they crunched numbers, and breeze thru rejection after rejection. MLM makes normal sales look like a piece of cake. You can take the best car salesman, and he will fail at MLM, unless hes coached properly. I was a victim of ZEEK rewards. I lost $4000. the claim is still pending 3 years on. I learned from it. I moved on. Dont hate just cos you ignorant. Be honest, MLM is about learning to love being in a discomfort zone. It should also be one of your income streams, not your only method of making money. I suggest business as well, or full time job until your passive income equals your fixed expenses. If you have kids and a wife, then keep both incomes.

There is a principle in writing circles called Yog's Law. It states that in legitimate publishing all money flows towards the author. If an author must pay a publisher to be "published", it's a scam.

Same with any home business. If YOU pay THEM for your job, you're being scammed.

People, please don't waste your time and money. ALL MLM's are pyramids disguised in companies. They will ALL eventually fail.
They feed off of uneducated people until it implodes.

Can any body tell me about Amway?

Sure can. Why do you ask?

So if you exchange money for products you want at a discount for self consumption or resale its a pyramid scheme. No that is not true.

This is any company like Herbalife or Isagenix: You’re forced to buy other things you don’t want or need just to stay in good standing with the company

If you want to test a MLM company just compare it to Social Security. If it's identical then it's a pyramid. If the people who are collecting are dependent upon the people paying into it... Pyramid! Social Security isn't illegal is it?

The problem with this logic Is that ALL businesses Would be considered pyramids. EVERY business has people on the inside relying on people who pay into it (customers). In fact, the common "Guy at bottom does all the work / Guy at top makes all the money" Comment applies to any business with more than 5 employees - not just Mcm companies. The clerks and factory workers handle most of the work while the CEO makes most of the money. If that is the standard for whether a business is legitimate or not, then no business would be legal or legitimate.

A friend of mine told me she lost almost $3000 on Herbalife. She was lured into the scam when she first came to America. She was very ashamed of this experience when she admitted that. I believe the majority Herbalife victims are ashamed to mention it after they lose money.

Has anyone looked into Stream/Ignite? I recently watched one of their training videos where the instructor specifically said the goal was not to get customers, but to get more people buying into the business? How is this company allowed to operate?

Does anyone know anything about LIFE Leadership and if it is a pyramid or true MLM company?

Does anyone know anything about LIFE Leadership?

Does anyone know anything about Nerium?

Its a scam. They encourage people to recriut other people in order to "earn" (its just a leasing contract) a Lexus car instead of encouraging people to sell their products as retail.

Pls some one should run a check on divine-partners for me. Its a mlm that network tablet pc for as low as 6000# in Nigeria

If you want to report a scam, go to You can provide information about the company, what it promised, and what you got. The information you give goes into a database that law enforcement uses for investigations.

I went to a HLF nutrition club training event in September 2015. The whole process was on how to recruit more downlines under you and work for you, that HLF opportunity is a generation to generation business opportunity that one can pass his HLF royalty override payment to his next generation. It used a few HLF chairman clubs success stories to explain how HLF opportunity can lead you to a luxury life style that one can only imagine. The coach and three ladies there claim they each made between $70k to $100k income from HLF last year.

People there also said HLF products only make your disease symptoms go away, because HLF shake give you cellular level nutrition therefore one can achieve maximum health and living free of any kind of disease. I have a recorded video for the event.

Is HLF a pyramid scheme?

You have made this comment on a lot of message boards where you are known as a proven liar with a short position in the stock.

Yes it is and why they are still allowed to operate is a crime.

Ummm. Isn't any business passable to your children? Does that make me royalty by your definition since my mom owns a glass shop? Sir, I'm not sure, but you may be an manipulation artist.

Appreciation for this posting and also sharing them.

I was wondering if anyone has ever heard of the Motor Club of America(MCA)? Supposedly it's a motor club membership u pay, plus a low monthly fee, and the more referrals supposedly= the more residual income, and so on and so forth. Help me please.

It looked scammy as hell when I looked at it.

How did it look Scammy?

What about the National Wealth Center(NWC)?

Does anyone know anything about L-dara?

Is FES (Financial Education Services) a scam

Please stop looking to others for your answers. Find what a credible source has to say, such as, the Federal Trade Commission. Ask questions of the opportunity, and cross reference the information. Don't allow your biased to cloud your judgement, and don't allow others to make decisions for you. MLM can be a fruitful endeavor for some, but please do your homework and keep in mind sales is a tough business. Also there is no such thing as a get rich quick method to life. Anyone selling that idea is a liar.

In that case, all these Amway Diamonds and other recruiters ARE liars. Telling people they can retire in as little as 2-5 years IS a get rich quick scheme. Only 5% of products sold are to outside customers. The distributors/IBOs ARE the customers. They're the ones constantly buying products in order to stay active. Almost nobody outside of Amway wants their ridiculously overpriced goods. In fact, that's how pyramid schemes like Amway, Herbalife, and Mary Kay stay legal. They hide their pyramid structure behind the sale of products knowing full well none of the distributors are making money. Only those on the top see any money, and even they've been known to lie about how much they're really bringing in. Plus they hide all the costs that's out of their pocket. Seminars, gas, plane tickets, hotels, all non reimbursable

Tell me what you know about Binary Options that get people to join and then they never get their earnings.

At least the big MLM's like HerbaLife and Amway typically don't leave individual's bankrupt. Online companies like Digital Altitude's Aspire System fleece individuals for up to more than $55 thousand at a time and have almost zero sales outside of distributors. The constant pressure to "go all in" and the price tag are outrageous.

Stay away from wealthyaffiliate. com -- huge pyramid scheme that ticks all the boxes.

1) No product, your money only derived through getting other people to subscribe to wealthy affiliate pyramid scheme scam

2) The wealthy affiliate pyramid scam requires to purchase ongoing subscriptions yourself, and other extras.

3) The entire "program" to educate you is only how to sell others on subscriptions to the wealthy affiliate scam.

3) Plenty of people posting rags to riches stories about the wealthy affiliate pyramid scam -- lots of images of "people" reused all over the web. Same stories, etc.

Is anyone familiar with Kyani? Im having a hard time gettig people to even try it because of fear of pyramids.

Is MCA/FVT a pyramid scheme?

Does anyone know about the Prime My Body? Looks like another pyramid scheme scam..

Keep in mind that just because something isn't a pyramid scheme doesn't necessarily mean it's a good idea.

yes prime my body appears to be a pyramid scam. I would stay far away.

hello sir i have invested my 20000 Rs in click intensity in the hope of i can get money with work now 9 months have over they not paying for my money and now they have made another new one named adscash please i kindly request you please help me in getting back my all money....

If you want to report a scam, go to You can provide information about the company, what it promised, and what you got. The information you give goes into a database that law enforcement uses for investigations.

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