I got an email from a fellow subscriber recently asking me about MLM's and their legality. Since I'm not an attorney, I don't like giving legal advice except that I know that MLM's are somewhat illegal. There is a fine line involved. There are specific laws regarding MLM's and I'm sure they differ from state to state.

Since I am talking about MLM's it got me thinking, I have been getting alot of emails about some of these Business Opps so I started doing some research on the ones I've been asked about. Here is what I found about just the ones I have looked up and researched.

 Nuskin
Recently I was asked to check out an MLM program called Nuskin and what I found out is VERY disturbing!

I contacted a friend of mine who does research with MLM opportunities and following is a story he told me about.

"I received a call from a woman who got involved with this company trying to recruit new reps. Supposedly you are supposed to be pushing programs that they now have called Photomax and Movie Magic DVD's. She told me that the products are very good, but the way they do business is down right underhanded.

This poor woman is suffering from Fibromyalgia (sorry about the spelling) and is surviving off a very meager amount of money each month. They HIGH PRESSURED her and every one else, to buy leads from them each week and call, call, call!

If you don't use their leads, they charge you because you DON'T use them! If you want to succeed they suggest that you buy at least $500 worth per WEEK. If any Program ENCOURAGES you to buy leads you are with the WRONG PROGRAM!

Now these programs are just off shoots of NuSkin and I don't believe that Nuskin itself is behind them. I call these programs "feeder" programs and EVERY MLM has a group of distributors that put something like this together. They want you to buy leads from them, but you will also have to join NuSkin and buy around $250/month from them too!

This poor woman was pressured into spending her life savings by being insulted and told that she wasn't trying hard enough and they did this on a conference call in front of other people!"

I would suggest that you stay away from NuSkin!

1 Step System
I have been receiving inquiries about the 1 Step System, so I thought I would do some research and tell you what it's all about.

This opportunity is similar to several others that are currently available, it is unique in several aspects, but the basic concept is not new. This program has many characteristics of MLM in that your income is derived from the recruitment of others. The money does not flow up through an organization like traditional MLM. Instead, the money only flows up one level to the person above you.

There are several programs that are very similar to this and they are called "2-Up" programs and here is how they typically work:

You come into the program by purchasing the "product," you are then able to bring in people yourself, but you must "qualify" before you can make any money. This step involves you finding others that will also join the program. The money or a portion of it from these two sales goes up to the person who brought you in, hence "2-Up."

Different opportunities have their own unique twist on this concept. Some allow you to avoid "qualifying" if you join at a much higher dollar level and others only have one level.

To join 1 Step System you will need to purchase the "Ultimate Marketers Tool Box" for $597, containing 1192 pages of information along with 55 hours of audio and marketing software. Once you are involved you will then need to make "qualifying" sales. $500 from each of these two sales flows up to the person responsible for bringing you in, you are then able to make money for yourself.

The idea is that you can use these "tools" to help you market more efficiently. If you get others to join, you then assist them in getting two people, so the money can flow up to you.

Several other opportunities similar to the 1 Step System have been successful for some people, but the reality is that not everyone makes money. I have been contacted by people who wanted help with marketing their marketing systems, which tells me that something is missing. In theory this type of turn-key marketing system should work, but the realities of internet marketing require that proven techniques also be utilized. If you really learn how internet marketing is done, you can be successful with this program or anything else.

Herbalife ™
Herbalife ™ has become a household name since it's inception back in 1980! At that time the idea was revolutionary and a lot of people have done very well with this company. The question is, can you?

Back (way back) when Herbalife ™ came along there were not the thousands of companies in the Health and Wellness Industry that there are today. There are so many companies going after that same market that it is a wonder how any of them make money.

This company also has a somewhat spotted past, in 1987, the company paid the state of California $850,000 for making false medical claims and the same year, removed two of it's top sellers from the market.

This company grew so fast because of it's zelous and AGGRESSIVE distributors and has been accused, on many occassions, of using somewhat unethical tactics. As with any MLM, you have certain individuals that go beyond what is acceptable and Herbalife ™ is near or at the top of that list!

If you are looking at this opportunity, the main thing you need to be aware of is the COMPETITION, it is a HUGE factor, to say the least! There are Thousands of companies offering dietary supplements and ten times that many offering weight loss products. Not to mention, the unbelievable amount of existing Herbalife ™ representatives.

There are SO many companies offering lotions, potions, powders, and pills that you truly would not believe it. And let us not forget all of the Drug Stores, Grocery Stores, Health Food Stores, and Wal-Marts that offer these products too!

These days some companies (not mentioning any names, wink,wink!) have stooped to very questionable tactics to recruit over the internet. Many times you do not even know what the opportunity is, until you have spent several hundred or even thousands of dollars and jumped through hoop after hoop!

There are several of what I call "Feeder" programs that entice you in with big promises, but don't tell you up front that it is Herbalife ™. These programs are not sponsored by the company, they are set up by distributors themselves. They promise you an "automated system" which basically boils down to you buying expensive leads and spending a lot of time on the phone. Some even claim that you don't have to do anything, but give them money and I think you know how that will turn out!

Global Online Systems
Global Online Systems makes some fantastical income claims on their website, insinuating that all you need to do is send them $39.95 and you will be rich. Unfortunately, it is not quite that simple as this couple who emailed me found out:

Hi Ed, I have been a victim of the global on line system. I wish I had read the testimonial about this company before I ordered. I was promised my money back if I decided not to go forward with it. After spending the $40 to get the initial package and still not knowing what the whole this is about I did have a phone conversation with a woman in Colorado and her "mentor." After deciding selling Herbalife wasn't for me I was assured that my money would be refunded. It was not. I send back the info that she had sent me and I still haven't received my money. Now she won't answer my phone calls or e mails. I've been screwed.

Jack& Michelle G.

There is no real explanation of what this is on the website, so you have to order the $39.95 package to find out and you still don't really know even after you get the package!

After you get the initial package you will need to come up with around $300.00 more to get the real story on how you can make money. Then they want you to spend around $2000.00 to put yourself in a "position" to make the big money!

Obviously, I do agree that internet marketing is the wave of the future, but to spend this much money to "position" yourself to make money, is not the most profitable course of action. I can think of 10 better ways to make money on the internet without that kind of expenditure.

The Global Online Systems approach is not original, I have seen numerous similar programs introduced by several different companies. This approach worked ok for some, but I have yet to talk to anyone who made the kind of money that they were promised.

The bottom line is that "Global Online Systems" is all about selling vitamins and there is an incredible amount of competition that you will run up against.

I hope this helps some of you. As with any Business opportunity, check it out before getting involved. If anything you want to get involved with costs alot of money, be suspicious. Never pay alot to join anything before doing your research or at least ask me first. I'll look into it for you

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