The Truth about MLM Based on Research

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Based on 20 years’ research on over 600 MLMs (multi-level marketing programs). Click a topic:

News & DevelopmentsConnector.Vemma Shut Down, Herbalife Still Under InvestigationMay 6, 2016 Read Full Article

Connector.Donald Trump, MLM Scam Promoter for President?May 5, 2016 Read Full Article

Connector.Regulators Tacitly Agree That MLM Is Unfair & DeceptiveMay 4, 2016 Read Full Article

Extensive Research

What went into the research by Consumer Awareness Institute. The investigative research that formed the basis of these reports includes: Analysis of the compensation plans of over600 MLM programs Extensive comparative research on MLM compensation plans and alternative business models to clarify differences Worldwide feedback from thousands of MLM distributors and ex-distributors in a wide variety of MLM programs over a period of over 20 years Interviews with the top experts in the field Surveys of hundreds of tax professionals where MLM is concentrated – representing millions of tax returns of MLM participants IRS income tax records of top distributors in one state Public court records in MLM cases Household consumer surveys regarding MLM participation Surveys of leading MLM company presidents Private and public financial disclosures by MLM companies Communications with law enforcement officials at all levels Direct experience with prominent MLM companies.

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 how much to become an advocare distributor 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.

Welcome to the premier website for persons investigating MLMMLM-thetruth.com offers consumer guidance, based on the most extensive independent research on “MLM” as a business model and associated industry practices. Your questions about the advisability of MLM participation should all be answered here, as well as questions about recovery for victims and their families. MLM compensation plans and profitability are thoroughly analyzed, as are distinguishing characteristics separating legitimate direct selling from MLMs, and the deceptions used to promote MLMs, or product-based pyramid schemes.Dr. Jon M. TaylorNumerous research reports by top MLM expert Jon Taylor are posted on this site including analysis of profitability of over six hundred MLMs. Thousands of consumers have been guided to make more informed decisions about MLM participation.

Consumer Awareness InstituteOur mission is to seek and share the truth about MLM (multi-level marketing) through research and worldwide feedback.

Read MoreWatch this hilarious and insightful video on MLM.

Based on 20 years’ research on over 600 MLMs, multi-level marketing programs. Click a topic:

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Share The Info and Protect Friends

DISCLOSURE: Once an avid MLM enthusiast, I rose to the top 1% of distributors for Nu Skin. But after a challenge from my wife, I took a closer look and discovered I was losing over $1,200 a month. This was the beginning of 20 years of research, which has been used by law enforcement, attorneys, the media, universities, and consumers worldwide.

– Jon M. Taylor, MBA, Ph.D. Consumer Awareness Institute – – – – Opportunities that beat MLM…

Our mission is to seek and share the truth about MLM (multi-level marketing), through research, analysis, and worldwide feedback. Numerous research reports by top MLM expert Dr. Jon M. Taylor and Executive Assistant Jonathan Brand, are posted on this web site, including analysis of profitability of over 600 MLMs. (See menu selections above.) Thousands of consumers have thus been guided to make more informed decisions about MLM participation. More…

Connector.MLM HistoryWhen Charles Ponzi organized the Securities Exchange Company in Boston in 1919… READ MORE

Connector.MLM’s Smoking GunsCritics say MLM is inherently flawed, uneconomic, & deceptive. MLM promoters disagree… READ MORE

Connector.Summary of Key ConclusionsAfter analyzing the compensation plans and claims of over 400 MLMs, summarizing thousands of pages… READ MORE

News & Developments

Important ebook revised: MULTI-LEVEL MARKETING UNMASKED is available as a free download for consumers, law enforcement officials, attorneys, researchers, and educators. (See description below.)

A new report of COMPLAINTS FILED WITH THE FTC AGAINST MLMs shows a clear pattern of unfair and deceptive practices across the MLM industry. Note especially Exhibit 1 and the observations in Part III.

The evolving influence of the DSA/MLM lobby over the FTC is explained in detail in the report REGULATORY CAPTURE: The FTC’s Flawed Business Opportunity Rule. After a corrupt and irresponsible rulemaking proceeding, the Federal Trade Commission recently stepped away from its role as the nation’s consumer watchdog when it issued its final Business Opportunity Rule (BOR). It is actually a good rule except for one thing: MLM companies – by far the most prevalent (over 90%) of all business opportunity sellers – are exempt from having to disclose any information to prospects to protect them from MLM fraud, which (with its inherent flaw of unlimited recruitment of endless chains of participants) is endemic to the industry.

The International Coalition of Consumer Advocates (ICCA) was recently formed to stand up against MLM abuse. It has petitioned the FTC to protect consumers against unfair and deceptive practices in the MLM industry. The petition and an invitation to post your complaint is posted on the ICCA website at www.mlmpetition.com.

Be sure to watch this excellent video – “Pyramid Schemes: a Primer” in English – or Spanish.

Free eBookThe Case against MLM as an Unfair and Deceptive Practice

The Complete Guide to Understanding the Flaws – and Proving and Countering the Effects – of Endless Chain “Opportunity” Recruitment, or Product-based Pyramid Schemes.

Download the full text or just the chapters that interest you. Summaries and descriptive table of contents guide you through this imporant reference book.

This book is a summary of thousands of pages of research – and feedback from all over the world – on over 500 MLM programs. You will better be able to define and separate MLM from legitimate direct selling and “business opportunities.” You will learn what you need to know about market saturation, high prices of MLM products, costs to recruit a downline, high attrition rates, odds of profiting in MLM (versus other income options), typical misrepresentations used in recruitment, and who are the villains and victims in MLM. You will also discover critical information about the legality and ethics of MLM and why law enforcement is mostly silent on MLM fraud. You will discover what a “good MLM” would look like. You will also learn how to recover losses and what actions you can take to protect you and your loved ones from loss of money, family, and friends from MLM participation.Download eBookPlus – Download special report:FTC Regulatory CaptureThis report documents how the DSA (Direct Selling Association) lobby helped the MLM (multi-level marketing) industry gain an exemption from the FTC’s (Federal Trade Commission’s) Business Opportunity Rule, leaving consumers unprotected from the most unfair and deceptive of business practices, proving the need for a firewall between regulators and those they regulate – and for public officials with the skill, the will, and the resources to stand up to powerful special interests.DEFINITION

of MLMAbout Our Research20 years of research on over 500 MLMs formed the basis of these reports. It’s the most extensive research ever done on MLM as a business model, as well as on specific programs. You can download and read all or portions of the eBook described to the left, or you can read the summary linked from the button below.Summary of Research FindingsMake Your MLM Experience CountYour experience in an MLM is extremely important to the current research. It takes only a minute to be included in this important research project that adds to the most extensive and accurate database of MLM information to date.

Click the survey button below and help get the truth out to regulators and others who need it: MLM SurveyOn the Lighter Side INVITATION: Please send us your favorite joke or humorous story about multi-level marketing, and we will consider it for the next update of “On the Lighter Side.” Email them to me at jonmtaylor@juno.com – – – – Multilevel-marketing Unmasked…

Subscribe to Our NewsletterClick Here to SubscribeDisclaimer:These reports are intended purely to communicate 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 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.

What Is The Loss Rate in MLM?

I found the perfect picture for MLM promoters to use to show off the luxury enjoyed by those who make it big in MLM. Nothing like the “time freedom” to do what you want – even living the luxurious life of a boat owner. Go to – funnypicturesplus.com

MLMs

Shocking Stats

While some MLMs publish statistics on average income of participants, none of them subtract costs necessary to conduct a successful recruitment campaign, which is essential to rise to a level in the pyramid where profits are possible. Such expenses include purchases required to qualify for commissions and/or rank advancement, travel and registration fees for conventions, “sales tools” and lead generation systems sold by upliners, and a wide range of general business expenses.

Dr. Taylor tested the Nu Skin program for a full year in 1994-95 and kept track of the expenses necessary to conduct a successful recruitment campaign. While many of these expenses have increased because of intense competition, he used half of his expenses (adjusted for inflation) as a breakeven figure to establish loss rates for 50 MLMs that publish average income statistics. His statistics have remained unchallenged for over ten years.

Dr. Taylor was also able to get statistics on odds of winning at various games of chance at Las Vegas casinos. He found that the odds of profiting from “Roulette” or the game of “21” are about ten times as great as the odds of profiting from multi-level marketing.

While some MLMs publish statistics on average income of participants, none of them subtract costs necessary to conduct a successful recruitment campaign, which is essential to rise to a level in the pyramid where profits are possible. Such expenses include purchases required to qualify for commissions and/or rank advancement, travel and registration fees for conventions, “sales tools” and lead generation systems sold by upliners, and a wide range of general business expenses.</div>

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<div>Dr. Taylor tested the Nu Skin program for a full year in 1994-95 and kept track of the expenses necessary to conduct a successful recruitment campaign. While many of these expenses have increased because of intense competition, he used half of his expenses (adjusted for inflation) as a breakeven figure to establish loss rates for 50 MLMs that publish average income statistics. His statistics have remained unchallenged for over ten years.</div>

<div></div>

<div>Dr. Taylor was also able to get statistics on odds of winning at various games of chance at Las Vegas casinos. He found that the odds of profiting from “Roulette” or the game of “21” are about ten times as great as the odds of profiting from multi-level marketing.

http://mlm-thetruth.com/

By Skipping Insulin, Diabetics Find Dangerous Way to Drop Pounds

At age 14, Erin Williams was tired of medicine. Williams was diagnosed as a type 1 diabetic at age 11, and after three years of enduring a never-ending regimen of insulin shots and strict diet restrictions, she was frustrated.

Embarrassed by her disease, she kept it a secret from everyone but her closest family and friends. At birthday parties, she made up excuses about why she couldn’t have soda or cake. When a classmate saw her drinking juice boxes in the nurses office, she endured weeks of being called the “juice box thief” rather than just tell her classmates she had low blood sugar because of diabetes.

Eventually, Williams rebelled the only way she could, she decided not take her insulin. She just didn’t want to adhere to the strict diet and medical regimen even though it was vital to her health.

“It wasn’t this dramatic moment,” recalled Williams. “It was mostly like I want to be like everybody else.”

The next morning when Williams woke up, she felt fine.

“Well, nothing bad happened to me,” Williams remembered thinking. “It creeps up on you. That’s how it does it.”

Emboldened by her experiment, she continued to restrict her insulin. Without a regimented amount of insulin in her body to process glucose, Williams’ body started to burn through fat and muscle. She lost weight very quickly even as she ate all the same foods. Classmates started commenting on her weight loss and remarked that she looked great.

“You hear all these things and you’re like, ‘This is the greatest thing in the world,'” said Williams. “It takes a hold of your life like nothing else.”

After living with type 1 diabetes for three years, Williams was exhibiting the first signs of a disorder often called diabulimia. The term refers to the dual diagnosis of type 1 diabetes and an eating disorder.

Many type 1 diabetics with eating disorders will not take their prescribed insulin so they can lose weight. Deprived of insulin, the body cannot break down sugars from food to use as energy. Instead the body’s cells break down fat already stored and try to flush out the excess sugar through the urine.

While it leads to weight loss, it can also lead to nerve damage, damaged eyesight, kidney damage and osteoporosis, among a host of other ailments.

A study from 2007 that followed diabetics who restricted their insulin over 11 years found their mortality risk was three times higher than those who did not restrict their insulin.

While advocare 28 day challenge anorexia or bulimia are familiar terms, diabulimia is little known, even though it can affect a significant portion of the type 1 diabetic population. Studies and research into diabulimia are not comprehensive, but a 1994 study found that up to 30 percent of type 1 diabetic women will intentionally stop taking their insulin at some point in their lives to lose weight.

When Williams was diagnosed with type 1 diabetes at age 11, she became one of the approximately 3 million Americans to suffer from the autoimmune disorder in which the pancreas does not produce insulin. According to the Juvenile Diabetes Research Foundation, 30,000 Americans are diagnosed with the disease every year.

Her diagnosis also meant that her chances of developing an eating disorder more than doubled. A study from the University of Toronto found that adolescent girls with type 1 diabetes were 2.4 times more likely to suffer from an eating disorder than girls without diabetes.

Ann Goebel-Fabbri, a clinical psychologist and assistant professor in psychiatry at Harvard Medical School, has worked with many type 1 diabetic patients suffering from eating disorders at the Joslin Diabetes Center.

She said that there isn’t a clear reason why type 1 diabetics have an increased risk for having an eating disorder, but she suspects that part of the problem is the way diabetics have to focus on food intake, their carb level and calories.

“The treatment itself [means] paying close attention to food and time of eating,” said Goebel-Fabbri. “Oftentimes, that can mirror an eating disorder mindset.”

In high school, the effects of Williams’ diabulimia began to show.

She was constantly dehydrated because her body was trying to flush excess sugar through her urine. At night, she would go to the bathroom up to 20 times a night and was known for constantly carrying a two-liter bottle of soda with her at all times.

With her blood sugar running so high, Williams was also often sleepy and fell asleep in class. During her senior year, she was voted “Most Likely to Fall Asleep at Graduation.”

When she went to the doctor with high blood sugar levels, she made up excuses that she had forgotten to take her insulin or that she had injected it improperly.

“All I heard from doctors is ‘Why, can’t you manage this? … Is it that hard?” Williams said.

She said they never mentioned that she might be suffering from an eating disorder.

Diabulimia can be terrifyingly easy to hide. Williams could eat as much as she wanted and lose weight. Her other symptoms of fatigue and irritability could be explained as the normal behavior of a teenager.

Amy Criego, the chairwoman for pediatric endocrinology at the International Diabetes Center, said that the symptoms for diabulimia closely mimic poor diabetes control.

“Sometimes it gets hard to distinguish what’s going on,” said Criego, who added doctors can be wary of bringing up eating disorders with adolescent patients. “People get cautious of asking [about insulin restriction] because they don’t want to give them ideas either.”

Eventually, in her junior year of high school, Williams’ family recognized that she was suffering from an eating disorder and put her in an eating disorder treatment center.

However, Williams said, the counselors at the center weren’t used to treating a type 1 diabetic and never monitored her insulin intake.

Even in treatment, whenever she started to gain weight she would simply reduce her insulin intake again.

“People with this combined diagnosis [need a] team with eating disorder people and a diabetes education staff. That’s the ideal,” said Criego. “The treatment is very different.”

Another problem is that common eating disorder treatments can conflict with basic diabetes care. For example diabetic patients have to pay careful attention to what they eat and how their body reacts to food, while eating disorder patients are encouraged to ignore food labels.

“A lot of the eating disorder programs take the focus off of food, you have to ignore your body perception,” said Criego. “You can’t do that with type 1 diabetes. You have pay attention to numbers.”

Goebel-Fabbri said that some diabetics who have reduced their insulin intake can become fearful of taking the drug again.

“They have a lot of hunger signals because, on the cellular level, the cells can’t access sugar. So the cells are starving. The body is starving,” said Goebel-Fabbri. “That has further [unregulated] their appetite and eating behavior. I think that then adds to the fear that if they take this insulin, their hunger is going to be really high and [they’d lose control.]”

Williams spent her junior and senior years of high school in and out of eating disorder clinics.

When Williams would start to use her insulin consistently, her body would swell with water weight. The temporary swelling, which was the result of her body trying to hold on to water after being dehydrated, could mean that Williams gained as much as 20 pounds of water weight. Her legs swelled so much that the skin looked like “putty.”

“I couldn’t bend my leg,” said Williams. “I thought I was going to say like that forever.”

The swelling was temporary, but it made Williams too scared to stick with her insulin regimen for any length of time.

Dawn Taylor, a licensed psychiatrist at the Melrose Center who treats people suffering from eating disorders and is affiliated with the International Diabetes Center, said many patients with diabulimia initially feel worse when they retake their insulin.

“Once they start taking care of themselves, that’s when the complications can start,” said Taylor. “You can get over a lot of these complications [but] it’s not very rewarding.”

In college, Williams became so fatigued she spent most of her days asleep in bed.

“Nobody wanted to live with me,” said Williams. “My roommates were calling home to my family, [saying], ‘There’s something wrong with your daughter.'”

Now over 18, Williams’ parents couldn’t force her into treatment anymore.

“What could my parents do? I’m sitting there telling them I’m fine,” she said.

In 2007, Williams went to the doctor with a swollen ankle. After an x-ray showed no fracture, Williams was sent home with medication. Six months later, Williams fainted suddenly and was rushed to the hospital with her ankle sizably swollen again.

She was sent into the operating room to clear out the infection from her ankle. But after the doctor made the incision the medical team realized her ankle was not just infected but shattered.

Because of nerve damage from high blood sugar levels, Williams had been walking around on a broken ankle for months without even realizing it. Her ankle was so damaged she would have to remain in a cast for two years as it healed.

After a decade of insulin misuse, Williams, then 24, was suffering from osteoporosis. Sitting in the hospital bed, Williams finally decided she needed help.

She remembered thinking, “This has got to stop or I’m going to have medical issues for the rest of my life.”

But in order to get help, Williams had to fashion a makeshift treatment team, which included a psychiatrist specializing in anorexia and bulimia, another counselor and a diabetes expert, in addition to her primary care doctor.

“It was really hard,” said Williams, who also went online looking for information or support groups on diabulimia, but found little.

There has been little research on effective treatments for patients with diabulimia. An article published on the Juvenile Diabetes Research Foundation website last year called for a multi-disciplinary approach to treating diabulimia by creating a team that includes a medical doctor, therapist and registered dietitian, at minimum.

As Williams recovered, she was featured in a Self magazine article about diabulimia. After it was published, she started to hear from women across the country suffering from the same symptoms — including many who thought they were the only one restricting their insulin.

One reader was 22-year-old Asha Brown. The college student had been diabetic since age 5 and had struggled with diabulimia since she was 14.

“This article was talking about me,” said Brown, now 27. “I thought I was the only one.”

Brown kept the article in the back of her mind for years before finally seeking treatment for diabulimia at the Melrose Institute in 2009. When she told a nurse about the article, the nurse happened to know Williams’ contact information and gave it to Brown.

The pair quickly bonded over their experiences with the disorder and decided they wanted to help other type 1 diabetics find support.

Last year, they launched We Are Diabetes, an organization that works to publicize diabulimia and support those with the disorder.

Williams, now 29, has been out of treatment for five years and is working to get her registered nurses license and studying to be a diabetes educator.

But her past with diabulimia still affects her. She has had bleeding behind her eyes, holes in her kidneys and severe nerve damage. By talking to others about her experiences, she’s hoping to encourage people suffering from diabulimia to get help before they suffer lasting damage.

“For me, it’s a chance to help myself not feel so much regret,” said Williams. “By helping other people, I feel what I went through at least has a purpose.”

http://abcnews.go.com/Health/skipping-insulin-diabetics-find-dangerous-drop-pounds/story?id=18687005