Use Dr. Taylor’s 5-step do-it-yourself MLM evaluation quiz to predict whether or not you can expect to make any money from an MLM. It is based on 20 years’ research and analysis of the compensation plans of over 600 MLMs.
Before we share our evaluations, do your own evaluation here. Use with any MLM.*
We will not be responsible for the consequences of a decision that is ultimately yours to make. (See Disclaimer.) But we are confident that you will here receive the best advice available on how to make that decision. To begin, obtain the compensation plan of the MLM program you are considering. Then answer the questions for each step and follow the links to its conclusion. To be fully informed, read the background information for each of the “5 red flags.” When you have completed all five steps, see how your evaluation compares to ours.
Since it is based on solid research, it is much safer to use this “5-step Do-it-yourself Evaluation” as the basis for deciding on participation, than to accept the claims of MLM recruiters on potential income – especially since law enforcement seldom requires disclosure of information essential to making a good decision.
About this evaluation tool
After extensive research corroborated by MLM company reports, “5 Red Flags” have been identified which when found in a compensation plan lead to losses in excess of 99% – in at least four independent investigations. After completing this evaluation, you might want to read the full analysis in Chapter 2 of the book Multi-level Marketing Unmasked, which can be downloaded in full or in part from this web site.**
* MLM (“multi-level marketing”) programs are also called “network marketing,” “consumer direct marketing,” etc. The MLM industry would prefer to be called “direct selling,” even if little direct selling to retail customers is taking place. Regardless of what promoters call a program, this 5-step do-it-yourself analysis will help you evaluate their potential for income or loss. Avoid falling for the semantic trap of MLM promoters who say they are not MLM, or multi-level marketing. If the program pays on more than two levels of participants (and meets the other characteristics from this test), it is multi-level or MLM. If you get paid only for selling directly to customers and get no override commissions (other than a small referral fee) for recruiting more than one level of participants, it could be legitimate direct selling.
** A summary of this “5-step Do-it-yourself Evaluation” was also published in the newsletter for the National White Collar Crime Center and presented at an Economic Crime Summit Conference in Dallas.