Source: Trading Markets
Pre-Paid Legal Services Inc. (PPD) (NYSE:PPD) third-quarter numbers reveal 85 percent of PPD's sales force quits or fails to make even one sale annually; 2 percent of the sales force makes 10 or more sales annually, reports Fraud Discovery Institute Inc. (FDI).
According to FDI co-founder Barry Minkow, "The 2009 third-quarter data released today by Pre-Paid Legal Services further confirm the analyses our expert Robert Fitzpatrick has presented over a two-year period - that of a pyramid selling scheme in ultimate decline."
Fitzpatrick observes the two key indicators, declining retail sales and a growing proportion of revenue sourced directly and only from salespeople (investors) - not retail customers - are prominent in third-quarter 2009 figures, as they have been in previous quarters.
For the last two years, these analyses of Pre-Paid Legal Services revealed and examined the driver of PPD's revenue, which has been affirmed as a deceptive "endless chain" business opportunity - not market-based product sales. Fitzpatrick affirmed PPD data as manifesting classic signs of pyramid collapse.
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Robert Fitzpatrick is a self serving idiot – but I would point out that those numbers are fairly reflective of the entire MLM industry, not just pre paid legal.
I was talking to Chris Kent the other day, and what he told me is that in companies that are several hundred million dollars, the highest number of distributors that sponsor 2 people is about 20%.
(WAYYYY better than most companies)
so I would say that although PPL was at the low end, they are still ‘average’.
-dave