theory @ BehindMLM

Why Dubai is the MLM scam capital of the world

Although it’s always had a reputation for harboring scammers, over the past year and a half Dubai cemented itself as the MLM scam capital of the world. This coincided with the spread of the COVID-19 pandemic. Whereas most countries effected some sort of border control, Dubai has remained open for visitors. This has seen practically [Continue reading…]

Plexus distributors told their business is an “assignment from God”

A key-note speaker at a Plexus corporate event has told attendees that building their business ‘is an assignment from God to help you build your faith‘.

BBC blows lid off Younique & Nu Skin UK recruitment schemes

BBC journalist Ellie Flynn has gone undercover as part of an investigation into Younique and Nu Skin. Flynn’s documentary, titled “Secrets of the Multi-Level Millionaires”, examines the success of both companies in the UK. In doing so, it is inadvertently revealed that retail sales appear to be virtually non-existent.

Genesis Mining indicate no challenge to securities fraud cease & desist

After receiving a securities fraud cease and desist last Sunday, Genesis Mining has finally issued a public response. Being the responsible company that they are, Genesis Mining have announced they’ll register their securities offering with the SEC and operate legally in the US. … Nah, this is crypto baby.

The most bizarre Ponzi marketing event you’ll ever see

Following the collapse of BitConnect, a common question on the mind of those who didn’t get sucked in is “how on Earth did this happen?” I’ve been wanting to cover BitConnect’s bizarre October event in the US for some time. I figure now is as good a time as any, and hopefully at the same [Continue reading…]

Ponzi and pyramid scams aren’t an American problem

Despite every Ponzi scheme professing to offer its own unique spin on the model, the underlying mechanics of the scam remain the same. New money enters the scheme, primarily through new investors, which is then used to pay off those who have already invested. With this a Ponzi scheme in its simplest form and easily [Continue reading…]

Cool Trader Pro collapses, Cool Trader Inc files for bankruptcy

MLM companies attached to robotic trading software make little sense. If you owned robotic trading software capable of generating legitimate and consistent returns year in year out, why would you share it? The normal thing to do would be to feed it seed money, let it do its thing and reap the profits. Opening your [Continue reading…]

Is Forever Living Products encouraging affiliate autoship recruitment?

Forever Living Products’ Leadership Bonus pays affiliates on sales volume generated down three Manager generations. To qualify for the bonus affiliates must meet sales volume requirements, which can be met entirely with self-purchase (no retail). The volume can of course be also generated via retail sales (or a combination of retail and personal purchase), and [Continue reading…]

The Moolenaar Amendment: Why is the DSA pushing pro-pyramid law?

Personally I think MLM regulation in the US is in a pretty good place. Other than the host of affiliate autoship recruitment scams that still need to be cleaned up (nutrition niche, I’m looking at you), there hasn’t been any major Ponzi or pyramid scheme launches in the US since the Vemma and Herbalife busts. [Continue reading…]

Documenting the collapse of a bitcoin doubler (GladiaCoin)

The MLM underbelly doubler business model is nothing new. Affiliates sign up and invest, with a 200% ROI offered either via a set timetable or open-ended. The only source of revenue to pay the ROI is subsequently invested funds, making every doubler a Ponzi scheme. HYIP scams have been using it with fiat currency for [Continue reading…]