One of the things that many do not understand is why there are so few complaints filed against MLM scams. I want to take a few moments and explain to you why this is the case.

Since MLM scam recruits must recruit a large number of people to have any hope of earning enough in commissions to recover their initial investment, every major victim has to become a scam promoter. Recruits fear admitting to running a scam and the consequences from their friends and family they recruited. They are told to blame themselves for their “failure,” and  they simply drop out and accept their losses. They do not understand that the MLM scam they have joined has doomed them to failure by its very design.

One example is the TelexFREE scam. This scam has taken hundreds of millions of dollars from victims all around the world.

Here is the number of complaints that have been filed with the BBB for TelexFREE even after it was shutdown for being a scam: 20.

TelexFREE Complaints

Here is the number of complaints that have been filed with the BBB for a very reputable company Disney World: 156.

Disney World Complaints

MLM scams may be the most successful con game of all time. Many of the very people who are out recruiting to extend the amount of participants (their “downline”) are themselves victims until they run out of money and drop out of the scam.

Since victims in MLM scams almost never file complaints, law enforcement seldom acts. So the scam goes on, increasing the amount of victims from state to state and from country to country.  Then they start the cycle of recruitment all over again with new products, aliases, or divisions. Amway has done this with Quixtar and Nu Skin has done this with IDN. – Source Mlm-thetruth.com

In an MLM scam the compensation plan is setup for your failure and not your success.  They take the profits from your warm market and deliver them to the owners and top promoters of the scam.

Based on more recent data from the companies themselves, the loss rate for recruiting MLM’s is approximately 99.6%; i.e., 99.6% of ALL participants lose money after subtracting all expenses, including purchases from the company. – Source Mlm-thetruth.com

Ninety-nine percent don’t ever make a net profit in MLM. – Source CNBC

Conclusion

There are multiple reasons why MLM scam victims almost never file complaints. Recruits fear admitting to running a scam and the consequences from their friends and family they recruited. They are told to blame themselves for their “failure,” and  they simply drop out and accept their losses. They do not understand that the MLM scam they have joined has doomed them to failure by its very design.