One of the older MLMs out there, Herbalife was founded in 1980. This “company,” if you can even call it that, sells nutrition drinks and supplements. The company has faced several robust legal scandals, but none officially pegged Herbalife as a pyramid scheme. Although, the Federal Trade Commission did force the company to mail 350,000 checks to individuals who lost money with Herbalife.
If you’re involved in Herbalife, the majority of your profits will come from recruiting new sellers of Herbalife products, not from selling Herbalife products. While this is the quintessential example of a pyramid scheme, they still managed to dodge the official verdict. Welcome to America.
We all remember those awful commercials on cable praising the “dermatologist recommended” Rodan + Fields skincare line. Well, we hate to break it to you but Rodan + Fields was one of the biggest MLMs to date. They promise stay-at-home moms free vacations, flexible careers, and massive incomes.
The only thing they deliver? A bulk shipment of sub-par skincare products that you had to buy yourself. The company was founded in 2007, but they’re currently facing a massive class-action lawsuit involving its Lash Boost eye serum. They marketed this product as a miracle, but what they didn’t tell you is that it could change the color of your eyes!
Founded in 2012, LuLaRoe is probably one of the most hated MLMs to date. With more than a dozen lawsuits filed against the company, this scam of a business forces new recruits to buy a minimum of $6,000 worth of cheap clothes. If you noticed a friend start wearing tacky patterned leggings overnight…they were a victim of LuLaRoe!
The worst part about the harsh start-up cost of your own “small business” with LuLaRoe is that you don’t get to pick the styles your $6,000 dollars are buying. People who bought into this sham were truly victims of unfair business practices. If you don’t believe us, just check out the Netflix documentary that outs LuLaRoe as an MLM.
During the peak low-rise jeans era, 2001, It Works! was conniving people that losing weight was as simple as wrapping your midsection with a specialized “wrap” and drinking this shake. Marketing their product with manipulative before and after pictures, showing unbelievable results, people fell for this scam hook, line, and sinker!
This MLM took the market by storm because everyone is looking to shed a few pounds…however, what they failed to tell you is that the dietary supplements It Works! sold were not regulated by the FDA…so results were never official. Besides, the whole concept behind the business just seems a little tacky.
Do you remember in around 2008 when essential oils took over the American Healthcare scene? Well, if you were unfortunate enough to fall for this new-age “Natural” medicinal approach, you probably are familiar with a company called doTerra. doTerra is an essential oil MLM.
Direct sales of essential oils is a big business…but it’s pretty unnecessary. You can get essential oils at several stores without paying a mark-up. doTerra claims their oils are “certified therapeutic grade.” We’re not sure what that means, or if that’s just a made-up marketing term, but rest assured…essential oils don’t do anything other than smell good.
