Analytical Tools, Research and Analysis


Analysis: Financial Crisis – a Mirror Image of MLM

The most frequently read Blog in the False Profits Blog series. This article shows how the multi-level marketing system of “endless chain” recruiting employs the same methods, uses the same deceptions and produces the same devastating results as the real estate/mortgage/banking/Wall Street crisis caused. A must-read for those who want to understand why so many lose in MLM and for others who also want to better understand how “money transfer”, rather the true growth, is driving the American economy and led to our current financial that affected only those at “the bottom” while those at the top were unaffected.


The Myth of MLM Income Opportunity

A comprehensive report on the MLM business that reveals and documents the actual losses of 99% of all recruits in major MLMs. Data is presented from eleven MLM schemes and analyzes it in a way that is understandable. The report also details the tricks used by the schemes to lure people. Shocking losses and extraordinary deception are exposed. Read before you invest. Read if a family member is in an MLM.

The Main Street Bubble: How the Federal Trade Commission (FTC) has Ignored and now Protects Business Opportunity Fraud on Main Street

An in-depth research into the insider connections and powerful lobbying of the Amway Corporation and the multi-level marketing industry have “de-regulated” business opportunity fraud. Millions of Americans are fleeced and deceived in home-based business scam, while the FTC closes its eyes. This report shows why. To obtain a free PDF copy of this report, send an email request to info@pyramidschemealert.org and include the words “FTC Report” in the subject area.


University-level Analysis of MLM in German Language

While MLM remains largely unstudied and undocumented by academia in the United States, one new website in the German language offers excellent materials for German readers/speakers. The site with the research is published by Dr. Claudia Groß, Nijmegen School of Management.


Do-It-Yourself Evaluation of Multi-Level Marketing* Programs and Suspected Pyramid Schemes

A Proactive Guide for Consumers, Regulators, and Consumer Advocates


Twelve Tests for Evaluating a Network Marketing “Opportunity”

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