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SOME SHOCKING STATISTICS

Comparing Multi-Level Marketing* with Pyramid Schemes and Gambling

Based on careful analysis of published reports by Jon M. Taylor, Ph.D.,
Director, Pyramid Scheme Alert

The odds of profiting by investing in a classic, no-product pyramid scheme (with no re-investment by winners) is:

  • 1,181 times as great as the odds of profiting from enrolling as an Amway "distributor"
  • 197 times as great as the odds of profiting from enrolling as a Nu Skin "distributor"
  • 91 times as great is the odds of profiting from enrolling as a Melaleuca "distributor"

The odds of profiting by investing in a classic, no-product pyramid scheme (with all winners re-investing) is:

  • 667 times as great as the odds of profiting from enrolling as an Amway "distributor"
  • 111 times as great as the odds of profiting from enrolling as a Nu Skin "distributor"
  • 69 times as great as the odds of profiting from enrolling as a Melaleuca "distributor"

The odds of winning with a roll of snake eyes in a game of craps in Las Vegas** is:

  • 323 times as great as the odds of profiting from enrolling as an Amway "distributor"
  • 54 times as great as the odds of profiting from enrolling as a Nu Skin "distributor"
  • 25 times as great as the odds of profiting from enrolling as a Melaleuca "distributor"

The odds of winning from a single spin of the wheel in a game of roulette in Las Vegas** is:

  • 286 times as great as the odds of profiting from enrolling as an Amway "distributor"
  • 48 times as great as the odds of profiting from enrolling as a Nu Skin "distributor"
  • 22 times as great as the odds of profiting from enrolling as a Melaleuca "distributor"

*For references and public records used as bases for calculations, see author's Where's The Harm? which is available on the web site for consumers and agency investigators on this topic

**Statistics published for Caesar's Palace in Las Vegas, April 6, 2001

©2002 Jon M. Taylor

This page last updated on 10/11/2004