Several new Multi-Level Marketing companies have appeared on my radar, and I’ve added them to my Complete List of Direct Sales and MLM Companies Worldwide.

MLM in Health & Wellness

A bit of background:

Of the 10 varieties of business models, I believe Multi-Level Marketing (MLM) is the most dangerous (along with its cousin the Pyramid Scheme). That’s because MLMs can only succeed when there is a constant flow of new recruits, who both purchase products and convince others to sign up under them.

The vast majority of MLM companies exist in the Health and Wellness space, generating billions of dollars a year in revenue worldwide. In addition to being inherently dangerous, MLMs selling health & wellness products can easily cross into unethical and illegal practices… which often results in tremendous physical, emotional, and financial damage to consumers. Take a look at some examples.

Even after analyzing hundreds of MLM companies, I continue to be shocked at how brazenly they portray their products as magical and life-changing. Many MLMs are under federal investigation for false advertising. Unsubstantiated pseudoscience “facts” and misrepresentations are extremely common in the MLM world. Many companies encourage their reps to promote testimonials on social media with fake before & after photos, and to make exaggerated product claims in order to attract more buyers.

Unsuspecting consumers are frequently victimized by sub-par product quality, by ignoring medical needs in favor of hyped-up health claims, and by the loss of substantial sums of money in an attempt to recoup their initial investment. MLM products often have a purposely inflated price tag, which incentivizes buyers to join as a “representative” or “distributor” in order to get products at a more reasonable cost. You can read more about other promises here:

 

Fresh New MLMs

Although it’s no secret that Multi-Level Marketing companies can be very harmful, they continue to grow in popularity… especially in the health industry.

The newest Health & Wellness MLM companies to be added to my Complete List include:

1. Better Way Designs (skincare and coffee)
2. elevare360 (mental health items featuring the Pivot180™ supplement)
3. Emris (CBD products)
4. Juuva (healthcare products)
5. Nutrimetics (skincare, body care, home products, cosmetics & supplements)
6. Temple Spa (Mediterranean inspired luxury skincare)

You can find the full list here.

 

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Video on MLMs and Mormonism

Also, a fantastic new documentary called Secrets of the Multi-Level Millionaires has recently been released. BBC reporter Ellie Flynn (“Ellie Undercover”) provides a detailed analysis of the MLM business model, how it can be really harmful to the majority of people who join, and why it is tied to the Mormon faith.

Watch it here:

 

If you have questions about creating a more effective marketing strategy for your business, let’s talk. Find out more here.

 

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Grace LaConte is a business consultant, writer, workplace equity strategist, and the founder of LaConte Consulting. Her risk management tools are used around the globe, and she has successfully reversed toxic work environments for clients in the healthcare and non-profit fields. Grace specializes in lactation law compliance & policy development, reducing staff turnover after maternity leave, and creating a participatory work culture.

Find more at laconteconsulting.com, or connect with her on Instagram and Twitter @lacontestrategy.