Xenu1 - From the American Dream Made Nightmare.
Any alleged 'income opportunity' which doesn't have a significant and sustainable source of revenue other than its own contibuting participants, is quite obviously a dissimulated closed-market swindle, or pyramid scam, in which participants have been deceived into buying infinite shares in their own finite money in the false-expectation of future reward.
Thus, when examining any so-called 'MLM income oportunity,' the products are a distracting smokescreen, the real purpose of which is to launder unlawful losing-investment payments; for the only common-sense question is:
What is the real motivation for 'MLM' participants to keep handing over their money and wasting their own time, and money, endlessy trying to recruit others to do the same?'
Lately, and only because they are under FBI, FTC and SEC investigation, the bosses of the 'Herbalife' racket have pretended that, for the overwhelming majority of participants, the motivation is only to obtain the products at discount prices, and they have even pointed to internal 'Amway' copy-cat 'retail sales' rules which makes this appear to be so, but clearly the motivation for the overwhelming majority has been the false expectation of a future reward, because (for more than 3 decades) effectively 100% of all 'Herbalife's' constantly-churning participants have failed to generate an overall net-profit, whilst the 'retail sales' rules are not independently enforced and commisions have been offered to participants on their own purchases and on the purchases of their own recruits and those of the recruits of their recruits, etc., ad infinitum.
For decades, every single transient 'MLM' adherent (and we are talking countless of millions of individuals around the globe) has been obliged to sign an annually renewable (take it or leave it) contracts which clearly identified them as 'distributors,' not 'customers.' Suddenly, when faced with federal investigation, closure and prosecution, the bosses of the 'Herbalife' racket have modified the wording of these contracts. Laughably, 'distributors' are now 'members.'
Thus, the final tragicomic defence of all 'MLM income opportunity' racketeers is:
Read the word 'seller' as 'buyer' stupid, and then our fraud is legal!