IF ONE BELIEVES a recent report out of a U.S. watchdog organization, most of todayâ€™s most celebrated multi-level marketing organizations are actually thinly veiled pyramid schemes. In a study released by Pyramid Scheme Alert, pyramid schemes abound, unchecked by American regulators, and they are costing American investors billions in lost revenue.
Such statements are lofty and they are bound to raise the hackles of multi-level marketing enthusiasts. These organizations are seen by many as one of the greatest business innovations of our time. By utilizing hard work, a little investment of time and money, and the support of peers, millions have created what appear to be very profitable businesses. Mary Kay has created more female millionaires than any other business in history. But according to PSA, achieving success is the exception, rather than the rule.
One should look at all of the aspects of a business before signing on the dotted line, and a multi-level marketing organization is no exception. To that end, potential investors should check out the PSA report written by Robert L. Fitzpatrick. Fitzpatrick is president of PSA and co-author of False Profits: Seeking Financial and Spiritual Deliverance in Multi-Level Marketing and Pyramid Schemes. His report can be downloaded, along with many other interesting materials (at www.pyramidschemealert.org/PSAMain/resources/resources.html).
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