A bit harsh, but John Oliver raises some interesting points in his video on Multilevel Marketing. He point out correctly that if a company relies on recruiting and sales to distributors for the majority of its income, rather than sales to end customers, it is a pyramid scheme. The video talks specifically about Herbal Life, Youngevity (the parent company of Heritage Makers), and some other companies. Note: the language is relatively frank so do not watch this if you are easily offended.
DisclaimerAll opinions on this blog are mine, not HID Global's.
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Om my goodness! I laughed way to much but it is sad how these companies sucker people!
I finally had to quit, but this was really well done.
So, do you think that Forever falls into the MLM category?
Forever uses a multilevel compensation plan but does not fall under the pyramid scheme umbrella because a significant part of compensation comes from sales of actual products to end customers. The companies that are MLM pyramid schemes are the ones, like Herbal Life, where the only way to succeed is to recruit others and then to rely on those recruits for income.