MLM - Multi-Level Marketing

  • Pyramid Scheme
  • FTC - Business Opportunity Rule - [link]

  • 2022 0310 - FTC - Proposed - Deceptive or Unfair Earnings Claims, Federal Trade Commission

  • Earnings Scam
  • Leads Scam
  • Tool Scam
  • Airplane Game
  • Chain Letter
  • Churches
  • Dime
  • Friend
  • Social Group
  • L. David Blair (Ohio) suggested that the charge be separated into four elements:
    • 1) evaluation of sales and marketing in nontraditional and alternative distribution systems including the Internet;
    • 2) evaluation of issues related to commission structures in multilevel marketing hierarchical organizations; (p269)

1996-2, NAIC Proceedings - Internet Marketing Issues Working Group of the Market Conduct and Consumer Affairs (EX3) Subcommittee

  • Warren Buffett - Pampered Chef is based on selling to the end user.  If I was a regulator ... selling millions and millions of people on a dream that was not fulfilled. 
  • Charlie Munger - I think there is more likely to be more flim-flam and selling magic potions than pots and pans.

2022 0819 - [2013] - Warren Buffett: Pampered Chef is not a pyramid scheme - [VIDEO-YouTube-03:19]

  • Insurance MLM's
    • insurance-forums.com/community/threads/beginners-guide-to-insurance-mlm.11797/
    • International Marketing Group www.img-corp.com - WFG
      • Description: Marketing group owned by World Financial Group's Xuan Nguyen, although you will find no mention of Xuan or WFG on the website. This is Xuan's marketing company for the Philippines, still under the WFG umbrella. Also known as "World System Builder" or WSB.
    • Capital Choice www.capitalchoice.com
      • Description: Started by Art Williams' brother-in-law DIck Kinnard. Basically the same thing as Primerica without the corporate owner, and on a much smaller scale.
      • Primary Marketing Angle: Replace all permanent life policies with the "Buy Term and Invest the Difference" philosophy.
      • Companies: ING, Fidelity, others
    • HBW Insurance www.hbwinc.com

      • Description: More of a General Agency type of MLM. Allows agents to sell a variety of products and build a network of subagents. While MLM, seems to be a bit more toned down.
      • Primary Marketing Angle: Sell a variety of products part time, build a team
      • Companies: ING, Old Mutual, others
    • The Alliance Group www.anallianceforlife.com

      • Description: Started by a former Amerishare agent, their main focus is mortgage term and a term insurance product with "Living Benefits".
      • Primary Marketing Angle: Mortgage Life and Proprietary Term Life w/Living Benefits
      • Companies: Western Reserve Life, Transamerica, others
    • The Alliance (formerly National Agents Alliance) www.naaleads.com

      • Description: Yet another "alliance" pushing non-medical term to everyone. Their system is mortgage leads from their direct mail program. Agents actually buy these leads from the company.
      • Primary Marketing Angle: Non-medical mortgage life insurance
      • Companies: Presidential, American General, others
    • U and I Win (United Independent)
    • Freedom Equity Group
      • www.freedomequitygroup.com
      • Description: Founded by ex-A.L. Williams agent Ron Bloomingkemper, along with Ronald Petrinovich and Bill St. Clair. Mr. Bloomingkemper was also the founder of National Marketing Alliance (RIP). This company is very similar to WFG in structure and products.
      • Primary Marketing Angle: Indexed Universal Life is the primary product.
      • Companies: AIG, Phoenix, Life of the Southwest, American National and others
    • People Helping People www.thephpagency.com

      • Description: Founded by ex-WFG CEO MD Patrick Bet-David. They seem to focus on recruiting a younger crowd and focus on being a life insurance agent entrepreneur.
      • Primary Marketing Angle: Indexed Universal Life, Return of Premium, Term Life.
      • Companies: AIG, Nationwide, Foresters, F&G Life and others
    • DEFUNCT COMPANIES:
    • Life Agent Alliance www.lifeagentalliance.com

      • Description: New company started in 2007. From the website, it seems to be fly-by night. No corporate address. I can't even be 100% sure if it is MLM, but the word "Alliance" in the title indicates that it is.
      • Primary Marketing Angle: Non-medical life insurance, voicemail leads
      • Companies: United Home Life, American Amicable, etc..
    • And for history's sake, we can't forget
      • National Marketing Alliance (RIP) 
      • Amerishare (RIP).
      • And not life insurance related, but Hubert Humphrey's World Leadership Group WLGI has Ceased Business Operations (formerly WMA Mortgage Services) which was MLM mortgage and real estate, closed it's doors in December 2008 due to the banking and real estate collapse (RIP).
  • mlmconf2023.org/conference-videos/
    • College of New Jersey
    • Marco Moukhaiber (Social Media Activist) - AlwaysMarco
      • Marco Moukhaiber is a social media activist for the Anti-MLM movement with 60k subscribers on YouTube. His first exposure to MLM was through his high school best friend, who unsuccessfully attempted to recruit Marco to his downline, leading to the breakdown of their friendship.
      • Marco routinely attends the virtual and in-person meetings of MLM companies anonymously, using hidden cameras to record the true nature of what happens on the inside.
      • His series “Infiltrating A Pyramid Scheme” examines MLM companies from every conceivable angle and his interview series “Multi-Level Misery” offers a platform to victims of MLM companies to share their stories.
      • His YouTube channel is Always Marco.

1980s

  • 1985 - AP - Organizational Deviance in the Direct Selling Industry: A Case Study of the Amway Corporation, by Carol Lynn Juth-Gavasso - 331p
    • On June 4, 1973 Senator Mondale proposed a bill to prohibit pyramid sale transactions. Senate hearings on the bill were held on July 10, 1974

2000s

  • 2004 0425 - NYT - The Multilevel Marketing of the President, By Matt Bai - [link-Free]

2010s

  • 2016 - AP - An Economic Model of Multi-Level Marketing, by Yaniv Reingewertz, University of Haifa - 32p
  • 2017 - Consumer Awareness Institute - Multi-Level Marketing Unmasked – Why Multilevel Marketing Is Unfair and Deceptive, By Jon M. Taylor, MBA, Ph.D. - 476p
  • 2019 - LR - Apostles for Capitalism: Amway, Movement Conservatism, and the Remaking of the American Economy, 1959-2009, by Davor Mondom - 389p
  • 2019 - AP - Participation and losses in multilevel marketing: Evidence from an FTC settlement, SAFE Working Paper, No. 207, Goethe University Frankfurt, SAFE - Sustainable Architecture for Finance in Europe, Bäckman, Claes; Hanspal, Tobin - 31p
    • Table A.1: The 20 largest global MLM firms, This table lists the top global MLM firms by 2017 revenue. Information comes Direct Selling News (2017) and the authors own research.
  • 2019 1203 - FTC - The Alchemy of a Pyramid: Transmutating business opportunity into a negative sum wealth transfer, by Andrew Stivers, Federal Trade Commission - 33p

2020s

  • 2020 0323 - The Brattle Group - A Look Into FTC's Thinking On Pyramid Scheme Potential, By Branko Jovanovic, Pablo Robles and Jeremy Smith - 7p
  • 2021 - LR - Regulating The Reluctant: Policies That Benefit Vulnerable Participants In Multi-Level Marketing, By Annie Blackman - 32p
  • 2022 - LR - Pyramid Schemes and The American Dream: The Many Problems With Multi-Level Marketing And Why New Legislation Is Needed To Constrain The Industry, by Caroline Leuer - 50p
  • 2023 - LR - Artful Deception: The Multilevel Marketing Industry’s Use Of Smoke And Mirrors To Hide Their Pyramid-Shaped Truths, by Hailey Stauffer-Person - 40p
  • 2023 - AP - Multilevel marketing: Pyramid-shaped schemes or
    exploitative scams?, by Yair Antler, Coller School of Management, Tel Aviv University - 36p
  • 2017 0801 - The Rich Dad Channel - Why Network Marketing is the Right Choice - Robert Kiyosaki - [VIDEO-YouTube-20:30]
    • Kim - Fitness Clubs, Territory, Saturation, 
    • Joyce - Start - Gas Station - Telecommunications - [Bonk: ACN-?] - 
    • 6 - Robert - MLM vs Corporate America - Corporate America is a Pyramid Scheme
    • Robert - MLM = Business of the 21st Century
    • 8
    • -----------------------------------------------------
  • 2023 1119 - AlwaysMarco - My 2 Biggest Haters Have Finally Cracked - [VIDEO-YouTube]
    • 24:00 - How to get paid, What do you guys think, Guide, Pay what you want, minimum $1 with Options.
    • 35:00 - Books
      • Ponzinomics, by Robert Fitzpatrick
      • Direct Selling, by Robert Fitzpatrick
      • Combating Cult Mind Control: The #1 Best-Selling Guide to Protection, Rescue, and Recovery from Destructive Cults, by Steven Hassan
      • Freedom of Mind: Helping Loved Ones Leave Controlling People, Cults, and Beliefs, by Steven Hassan
      • False prophets and Merchants of Deception
      • Merchants of Deception: An Insider's Chilling Look at the Worldwide, Multi Billion dollar Conspiracy of lies that is Amway and its Motivational Organizations Paperback – October 23, 2009
        by Eric Scheibeler
    • 38 - Death Threats, in Hiding, still get the message out
    • It would take a long time to gather the information that I have
    • 41 - Some MLM company is going to get shut down at some time, Mayor - WFG.
    • 44 - some people are here for content, but some people have been really hurt.