List of multi-level marketing companies

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This is a list of companies which use multi-level marketing (also known as network marketing, [1] [2] [3] [4] [5] direct selling, [3] [6] referral marketing, [7] and pyramid selling) [8] [9] [10] [11] [12] for most of their sales.

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Defunct

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<span class="mw-page-title-main">Amway</span> American multi-level marketing company

Amway is an American multi-level marketing (MLM) company that sells health, beauty, and home care products. The company was founded in 1959 by Jay Van Andel and Richard DeVos and is based in Ada, Michigan. Amway and its sister companies under Alticor reported sales of $8.9 billion in 2019. It is the largest multi-level marketing company in the world by revenue. It conducts business through a number of affiliated companies in more than a hundred countries and territories.

<span class="mw-page-title-main">Pyramid scheme</span> Type of unsustainable business model

A pyramid scheme is a business model which earns primarily by enrolling others into the scheme, however rather than earning income by sale of legitimate products to an end consumer, it mainly earns by recruiting new members with the promise of payments. As recruiting multiplies, the process quickly becomes increasingly difficult until it is impossible, and most members are unable to profit; as such, pyramid schemes are unsustainable and often illegal.

<span class="mw-page-title-main">Amway North America</span> American multi-level marketing company

Amway North America is an American worldwide multi-level marketing (MLM) company, founded 1959 in Ada, Michigan, United States. It is privately owned by the families of Richard DeVos and Jay Van Andel through Alticor which is the holding company for businesses including Amway, Amway Global, Fulton Innovation, Amway Hotel Corporation, Hatteras Yachts, and manufacturing and logistics company Access Business Group. After the launch of Amway Global, it replaced the Amway business in the United States, Canada and the Caribbean, with the Amway business continuing to operate in other countries around the world. On May 1, 2009, Quixtar made the name change to Amway Global and fused the various different entities of the parent company.

Herbalife Nutrition Ltd., also called Herbalife International, Inc. or simply Herbalife, is an American multinational multi-level marketing (MLM) corporation that develops and sells dietary supplements. The company has been alleged to have fraudulently operated a pyramid scheme. Some products sold by Herbalife have caused acute hepatitis. The business is incorporated in the Cayman Islands, a tax haven, with its corporate headquarters located in Los Angeles, California.

Holiday Magic was a multi-level marketing organization, founded in 1964, by William Penn Patrick (1930–1973) in the United States. Originally the organization distributed goods such as home-care products and cosmetics. Company distributors were encouraged to recruit other distributors in a multilevel marketing structure, which was later characterized as a pyramid scheme.

Mary Kay Inc. is an American privately owned multi-level marketing company. Mary Kay is based in Addison, Texas. The company was founded by Mary Kay Ash in 1963. Richard Rogers, Ash's son, is the chairman, and Ryan Rogers, Ash's grandson, was named CEO in 2022.

<span class="mw-page-title-main">Nu Skin Enterprises</span> American multi-level marketing company

Nu Skin Enterprises, Inc. is an American multilevel marketing company that develops and sells personal care products and dietary and nutritional supplements. Under the Nu Skin and Pharmanex brands, the company sells its products in 54 markets through a network of approximately 1.2 million independent distributors.

In re Amway Corp. is a 1979 ruling by the United States Federal Trade Commission concerning the business practices of Amway, a multi-level marketing (MLM) company. The FTC ruled that Amway was not an illegal pyramid scheme according strictly to the statutory definition of a pyramid scheme, but ordered Amway to cease price fixing and cease misrepresenting to its distributors (participants) the average participant's likelihood of financial security and material success.

<span class="mw-page-title-main">BurnLounge</span> American multi-level marketing company

BurnLounge, Inc. was a multi-level marketing online music store founded in 2004 and based in New York City. By 2006, the company reported 30,000 members using the site to sell music through its network. In 2007, the company was sued by the Federal Trade Commission for being an illegal pyramid scheme. The company lost the suit in 2012, and lost appeal in June 2014. In June 2015, the FTC began returning $1.9 million to people who had lost money in the scheme. The company is dormant pending additional appeals.

BioPerformance is a multi-level marketing company that sells fuel additives, often in the form of "gas pills", which are claimed to increase fuel efficiency in automobiles. The company was founded in 2005 by Gus Romero.

<span class="mw-page-title-main">Direct Selling Association</span> U.S.-based national trade association

The Direct Selling Association (DSA) is a trade association in the United States that represents direct selling companies, primarily those that use multi-level marketing compensation plans. On behalf of its members' companies, the DSA engages in public relations and lobbying efforts against regulation of the multi-level marketing industry, and it funds political candidates through a political action committee.

Multi-level marketing (MLM), also called network marketing or pyramid selling, is a controversial marketing strategy for the sale of products or services in which the revenue of the MLM company is derived from a non-salaried workforce selling the company's products or services, while the earnings of the participants are derived from a pyramid-shaped or binary compensation commission system.

<span class="mw-page-title-main">MonaVie</span> Multi-level marketing company

MonaVie is a defunct, American multi-level marketing company that manufactured and distributed products made from blended fruit juice concentrates, powders, and purées. The company was the subject of several controversies. Health claims for its products had not been scientifically confirmed or approved by regulatory authorities, and its chairman had been previously involved in false health claims concerning another beverage company. According to Forbes, MonaVie's business plan resembled a pyramid scheme. In 2015, the company defaulted on a US$182 million loan and went into foreclosure. Florida-based Jeunesse Global took over MonaVie’s assets when it purchased the note for $15 million.

<span class="mw-page-title-main">AdvoCare</span> American dietary supplement company

AdvoCare International, LLC is an American dietary supplement company. They are a direct sales company and a former multi-level marketing company that was charged with operating a pyramid scheme. The company, headquartered in Richardson, TX, was founded in 1993 by Charles Ragus.

Market America is a multi-level marketing company founded in 1992 by JR and Loren Ridinger. Headquartered in Greensboro, North Carolina, the company employed around 800 people as of 2016. The products offered by the company include household cleaning supplies, jewelry, personal care products, auto care, cosmetics, dietary supplements, custom websites, water purifiers, and weight management products. A 2017 lawsuit accused the company of being an illegal pyramid scheme.

Grupo Omnilife is a Guadalajara-based multi-level marketing company that distributed dietary supplements. The corporation is owned by Amaury Vergara, who also owns the football club CD Guadalajara.

VemmaNutrition Company was a privately held multi-level marketing company that sold dietary supplements. The company was shut down in 2015 by the FTC for engaging in deceptive practices and being a pyramid scheme.

Solavei was a social commerce network offering contract-free mobile service in the United States, known for its use of incentivized referral plans and its social network advertising program. In addition to its mobile phone services, Solavei operated a social commerce network for its users. Ryan Wuerch founded the company in 2012. As of 2013, Solavei had 140 employees and was valued by investors at $120 million. The company has been described as a multi-level marketing (MLM) company, or of being very similar to a MLM company.

<span class="mw-page-title-main">Fortune Hi-Tech Marketing</span> American pyramid scheme which was shut down in 2013

Fortune Hi-Tech Marketing (FHTM) was a Lexington, Kentucky based company which used multi-level marketing to sell consumer goods and services. The company was founded in January 2001. In January 2013, the Federal Trade Commission (FTC) and regulators for three states shut down FHTM for being a pyramid scheme.

WakeUpNow was a multi-level marketing company based in Provo, Utah, that sold products and services focused on health and financial management. It was founded in 2009 by Troy Muhlestein. The company ceased operations in the United States on February 16, 2015.

References

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  2. ↑ Vander Nat, Peter J.; Keep, William W. (2002). "Marketing Fraud: An Approach for Differentiating Multilevel Marketing from Pyramid Schemes". Journal of Public Policy & Marketing. 21 (1): 139–15. doi:10.1509/jppm.21.1.139.17603. S2CID   154490614.
  3. 1 2 Merrilees, Bill; Miller, Dale (1999). "Direct Selling in the West and East: The Relative Roles of Product and Relationship (Guanxi) Drivers". Journal of Business Research. 45 (3): 267–273. doi:10.1016/S0148-2963(97)00238-5.
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  5. ↑ Marcason, Wendy (2006). "What Are the Facts and Myths about Mangosteen?". Journal of the American Dietetic Association. 106 (6): 986. doi:10.1016/j.jada.2006.04.008. PMID   16720137.
  6. ↑ Valentine, Debra A. (May 13, 1998). "Pyramid Schemes". FTC. Retrieved July 30, 2015.
  7. ↑ "multi-level marketing (a.k.a. network marketing & referral marketing) – The Skeptic's Dictionary". Skepdic.com. 1991-12-09. Retrieved 2010-02-04.
  8. ↑ Edwards, Paul (1997). Franchising & licensing: two powerful ways to grow your business in any economy. Tarcher. p. 356. ISBN   0-87477-898-0.
  9. ↑ Clegg, Brian (2000). The invisible customer: strategies for successive customer service down the wire. Kogan Page. p. 112. ISBN   0-7494-3144-X.
  10. ↑ Higgs, Philip; Smith, Jane (2007). Rethinking Our World. Juta Academic. p. 30. ISBN   978-0-7021-7255-7.
  11. ↑ Kitching, Trevor (2001). Purchasing scams and how to avoid them. Gower Publishing Company. p. 4. ISBN   0-566-08281-0.
  12. ↑ Mendelsohn, Martin (2004). The guide to franchising. Cengage Learning Business Press. p. 36. ISBN   1-84480-162-4.
  13. 1 2 3 4 5 6 7 8 9 Roha, Ronaleen R. (November 1991). The Ups and Downs of "Downlines". p. 66.{{cite book}}: |newspaper= ignored (help)
  14. ↑ Tatum, Megan (28 November 2019). "Easy money and exploitation: should grocery brands explore multi-level marketing?". The Grocer . Retrieved 10 April 2020.
  15. ↑ Lacey, Hester (30 January 2014). "Success Story: 8 Hints From The Publisher Who Said No To Amazon". Forbes . Archived from the original on 10 April 2020. Retrieved 10 April 2020.
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  17. ↑ Harvey, Tom (October 23, 2014). "Judge dismisses much of lawsuit between rival Utah 'oils' companies". The Salt Lake Tribune. Retrieved July 22, 2015.
  18. ↑ Berman, Phyllis (October 11, 2004). "If You Believe". Forbes.
  19. ↑ "DSN Global 100: The Top Direct Selling Companies in the World". Direct Selling News. June 2010. Archived from the original on December 4, 2010. Retrieved 2010-11-15.
  20. 1 2 Ressner, Jeffrey (2006-10-01). "Industries: State of Reliefs". Time. Archived from the original on November 1, 2007.
  21. ↑ Jones, Rupert (7 December 2019). "Utility Warehouse: is its 'life-changing' scheme really ab fab?". The Guardian. Retrieved 5 January 2024.
  22. ↑ Celarier, Michelle (29 September 2013). "Verve energy drink turning college students into sales force". New York Post. Retrieved 2015-03-28.
  23. ↑ Dalling, Robert (2018-04-30). "Spoon rest and egg separator catalogue company Betterware has folded". walesonline. Retrieved 2020-02-20.
  24. ↑ "'Magic dirt': How the internet fueled, and defeated, the pandemic's weirdest company". NBC News. Retrieved 4 December 2021.
  25. ↑ Crouch, Gregory (18 August 1990). "FundAmerica Files for Bankruptcy, Cites 2 Overseas Creditors". Los Angeles Times.
  26. ↑ Penke, Patty. "The Iconic Longaberger Company Shuts Down: Will Those Collectible Baskets Be Worthless Now?" . Retrieved 8 October 2019.
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  29. ↑ Soper, Taylor. "Multi-level marketing mobile service provider Solavei shuts down due to 'competitive landscape'". GeekWire. Retrieved 31 December 2015.
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