Is Your MLM A Ponzi Scheme?


I just wrapped a Google Hangout interview with MLM Attorney, Kevin Thompson.

Watch the video and you’ll learn:

  • What to look for in a legitimate company.
  • The red flags of Pyramids, Ponzi Schemes and Scams.
  • Is it OK to make income claims?
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"Ty Tribble is an Internet entrepreneur, author and Work At Home Dad who lives in Seattle, Washington with his wife, Richelle and two children, Emma and Tyler. Ty has been featured in Entrepreneur and Success From Home magazine and is considered by many as the # 1 blogger in the world on the subject of Network Marketing. Author of the book, ‘Double Your Income with Network Marketing’, Ty teaches lead generation strategies through social media and blogging to tens of thousands of Network Marketers around the world."


  1. Thanks for sharing this valuable information. Kevin gave some great points on what’s good and what to look for to avoid a bad company.

    The question about signing up to get the “wholesale” price still is a puzzle. And although it was not discussed, what about the third layer where you can get your customers to sign up as a “preferred customer” for that in-between price break? Where does that fall? How are these customers counted by the FTC?

    Also, non MLM companies such as Sam’s Club make you join to get their lower prices (or to shop at all for that matter). It’s hard to see much of a difference between their model and the “preferred customer” model.

  2. I like this post.There is a lot of misinformation about the legality of MLM due to the difficult wording of the laws. I am involved in network marketing and find the best results are from authorities in the field. Eric Worre is a good one for example, which has helped me and others with whom I work with tips. Of course not all network marketing businesses are created equally.

  3. I like this post because it really legitimizes the MLM industry as a whole. On top of being informative its also necessary information to know, because regardless what people think, network marketing is a business. And if viewed, with that perspective in mind more people would take their time to thoroughly do operational due diligence.

  4. I agree with Nathan and Charles. I have Been in the MLM industry full time, primarily one company ( Nature's Sunshine Products) since 1981. It has been a wonderful ride. This year our TAC trip is a Danube River Cruise paid for by NSP.They send us over seas each year, last year it was Florence Italy and before that Zuric , Geneva Switzerland. all in all some 30 countries through the years.
    We have thousands in our personal "Success line" many whom are like family to us. Our offices is in an extended portion of our home. Very convenient. See photo of same on Look for article from Success Magazine.

  5. I appreciate informational articles like this. Because of a few bad apples, the general public’s perception of MLM has been negative. But if done correctly and legally, your hard work pays off exponentially. And you can build something that you can be proud of.

    Brian McCormick


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