Every factual sentence carries assertions checked against the recorded evidence: references must resolve, figures and quotations must be in the cited passage, arithmetic must reproduce, and an independent reviewer must approve the wording. Automated validation says whether the narration is ready for human editorial review; it does not establish truth.
Open a sentence to see its assertions, their status and the passages behind them. Sentences without a marker make no factual claim.
verified s03.a Network-marketing trainer Frazer Brookes promises to show viewers how to "finally create the leverage that you need inside of your network marketing business".
supported (approved): no direct support, 3 qualifying, 1 source statement.
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
verified s04.a AARP's survey, published in 2018, covered 601 current and former MLM participants, and 47% of them reported losing money.
supported (approved): 2 supporting (1 independent, strongest 0.65).
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
verified s05.a 25% of the surveyed MLM participants reported making a profit.
supported (approved): 1 supporting (1 independent, strongest 0.65).
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
verified s08.a FTC staff analysed 70 publicly available MLM income disclosure statements.
supported (approved): 2 supporting (1 independent, strongest 0.5).
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
info needs-human (review): 'Nationally representative' rests on the verdict's canonical claim; the cited passages (L135-L139, L376-L392) give the 601 and the percentages but not the sampling. The methods section at L105-L109 (GfK KnowledgePanel, probability-based, generalisable to the US population) establishes it and is in the committed source, but no verdict cites it. The same wording is in s27 and s60. Recording that passage through record-sources would close the gap; no script change.
verified s68.a AARP surveyed a nationally representative probability sample of 601 current and former MLM participants.
supported (approved): 2 supporting (1 independent, strongest 0.65).
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
verified s69.a Jon Taylor analysed the compensation plans and earnings data of 30 MLMs.
qualified (qualify): 1 supporting (1 independent, strongest 0.5), 1 qualifying.
warning needs-qualification: FTC MLM income disclosure report 2024: The report describes MLM pay as commissions for purchasing, inducing others to purchase, or recruiting participants who purchase, with retail resale income only 'in some cases'; it describes the structure but does not measure the split between downline and retail income. Add the qualification: the evidence supports a narrower or weaker statement.
verified s09.a Network-marketing coach Darin Kidd tells his audience that a growing team means "it starts to compound" and likens it to a snowball.
supported (approved): no direct support, 3 qualifying, 1 source statement.
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
verified s09.b Frazer Brookes says the person you bring in "might recruit 10 people themselves and have an organization of a thousand people".
supported (approved): no direct support, 3 qualifying, 1 source statement.
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
verified s10.a Network-marketing trainer Eric Worre says it is "better to have a smaller percentage of 100 people than 100 of yourself".
supported (approved): no direct support, 3 qualifying, 1 source statement.
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
verified s12.a In a clip played in John Oliver's MLM segment, a former Herbalife distributor says "You make money from signing people up."
supported (approved): no direct support, 1 qualifying, 1 source statement.
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
verified s13.a The FTC's Consumer Advice page states that "Most people who join legitimate MLMs make little or no money."
supported (approved): no direct support, 1 source statement.
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
warning figure-in-non-factual (deterministic): a transitional sentence carries a figure; the reviewer must confirm it is not a representative outcome
verified s15.a FTC staff analysed 70 publicly available income disclosure statements from a range of MLMs, from large and well-known companies to smaller ones.
supported (approved): 2 supporting (1 independent, strongest 0.5).
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
verified s16.a For the disclosures with enough data for FTC staff to calculate it, most participants had $1,000 or less in reported income for the year, which is less than $84 per month.
supported (approved): 2 supporting (1 independent, strongest 0.6).
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
verified s17.a In at least 17 of the 70 MLMs, most participants did not make any money.
supported (approved): 2 supporting (1 independent, strongest 0.6).
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
warning figure-in-non-factual (deterministic): a transitional sentence carries a figure; the reviewer must confirm it is not a representative outcome
verified s19.a Of the 70 disclosures, 29 exclude from their income distribution participants who earned no commissions, and another 24 exclude participants the MLM deems inactive.
supported (approved): 2 supporting (1 independent, strongest 0.5).
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
verified s21.a None of the 70 income disclosure statements provides income figures that take expenses into account in full, and 20 of them have no express statement about whether their figures account for expenses.
supported (approved): 1 supporting (1 independent, strongest 0.5).
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
verified s22.a The disclosed income figures are payments from the MLM and do not account for the expenses participants incurred.
supported (approved): 1 supporting (1 independent, strongest 0.5).
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
info missing-qualification (review): The FTC sentence reads 'the vast majority of participants are in one of the two or three lowest ranks ... or are omitted from the table entirely'. The narration drops the 'or are omitted' branch, so for the tables that leave non-earners out the 'vast majority' includes people who are not in the table at all. s19 states the omissions separately, so the viewer hears both; the figure does not mislead.
verified s23.a 44 of the 70 disclosures break out income only by rank, and in nearly each of them the vast majority of participants are in one of the two or three lowest ranks.
qualified (qualify): no direct support, 3 qualifying.
warning needs-qualification: FTC MLM income disclosure report 2024: In nearly every rank-based disclosure the vast majority of participants sit in the two or three lowest ranks (one example: 92.37% in the bottom rank averaging $41.69, top ranks fractions of a percent), confirming most are structurally at the bottom; the report does not test the exponential-exhaustion arithmetic. Add the qualification: the evidence supports a …
verified s24.a In one income disclosure table excerpted by the FTC, 92.37% of participants were in the lowest cohort, with average earnings of $41.69.
qualified (qualify): no direct support, 3 qualifying.
warning needs-qualification: FTC MLM income disclosure report 2024: Downline-based commissions and rank bonuses exist, but the rank tables show over 90% of participants in the lowest cohort averaging under $100 while six-figure incomes belong to hundredths of a percent; the leverage is real only for a tiny fraction. Add the qualification: the evidence supports a narrower or weaker statement.
verified s25.a In that table the top cohort, fewer than 0.01% of participants, had average earnings of $1,018,350.20.
qualified (qualify): no direct support, 3 qualifying.
warning needs-qualification: FTC MLM income disclosure report 2024: Downline-based commissions and rank bonuses exist, but the rank tables show over 90% of participants in the lowest cohort averaging under $100 while six-figure incomes belong to hundredths of a percent; the leverage is real only for a tiny fraction. Add the qualification: the evidence supports a narrower or weaker statement.
verified s25.b Half of the rows in that table pertain to half a percent of participants.
qualified (qualify): no direct support, 3 qualifying.
warning needs-qualification: FTC MLM income disclosure report 2024: Downline-based commissions and rank bonuses exist, but the rank tables show over 90% of participants in the lowest cohort averaging under $100 while six-figure incomes belong to hundredths of a percent; the leverage is real only for a tiny fraction. Add the qualification: the evidence supports a narrower or weaker statement.
verified s27.a AARP's survey, published in 2018, used a nationally representative probability sample of current and former MLM participants.
supported (approved): 2 supporting (1 independent, strongest 0.65).
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
verified s28.a Of 601 current and former MLM participants, 47% reported losing money, 27% reported breaking even and 25% reported making a profit over the entire time they worked for the MLM.
supported (approved): 2 supporting (1 independent, strongest 0.65).
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
verified s29.a Of the 601 participants, 14% made less than $5,000 in profit (of the 25% who profited) and 41% lost less than $5,000 (of the 47% who lost money).
supported (approved): 2 supporting (1 independent, strongest 0.65).
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
verified s30.a Only three individuals, half of one percent of the sample, reported profits of $100,000 or more; one of them reported founding the organization.
supported (approved): 1 supporting (1 independent, strongest 0.65).
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
verified s65.b The AARP profit and loss figures are self-reported by participants.
supported (approved): 1 supporting (1 independent, strongest 0.65).
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
verified s65.c The AARP figures measure profit or loss (total investment against total income), unlike the disclosures, which report payments from the MLM before expenses.
supported (approved): 2 supporting (2 independent, strongest 0.65).
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
verified s33.a The FTC report says MLMs often offer commissions for meeting benchmarks such as purchasing a set amount of product, inducing others to purchase it, or recruiting participants who make such purchases, with retail income from selling to other consumers "in some cases".
qualified (qualify): no direct support, 1 qualifying.
warning needs-qualification: FTC MLM income disclosure report 2024: The report describes MLM pay as commissions for purchasing, inducing others to purchase, or recruiting participants who purchase, with retail resale income only 'in some cases'; it describes the structure but does not measure the split between downline and retail income. Add the qualification: the evidence supports a narrower or weaker statement.
verified s34.a Taylor's analysis of the compensation plans of the 30 MLMs with earnings data, and of over 350 MLMs in total, concluded that each is recruitment-driven and top-weighted: rewards are paid primarily for recruiting a large downline, not for retailing products, and most of the money goes to participants at the highest levels.
qualified (qualify): 1 supporting (1 independent, strongest 0.5), 1 qualifying.
warning needs-qualification: FTC MLM income disclosure report 2024: The report describes MLM pay as commissions for purchasing, inducing others to purchase, or recruiting participants who purchase, with retail resale income only 'in some cases'; it describes the structure but does not measure the split between downline and retail income. Add the qualification: the evidence supports a narrower or weaker statement.
verified s35.a The FTC report describes the structure of MLM pay but does not measure the split between downline income and retail income.
qualified (qualify): no direct support, 1 qualifying.
warning needs-qualification: FTC MLM income disclosure report 2024: The report describes MLM pay as commissions for purchasing, inducing others to purchase, or recruiting participants who purchase, with retail resale income only 'in some cases'; it describes the structure but does not measure the split between downline and retail income. Add the qualification: the evidence supports a narrower or weaker statement.
info overgeneralization (review): 'The recruiters reject that framing' presents one trainer's line as the position of recruiters in general; the evidence is a single Eric Worre video. The sentence immediately narrows to 'the same trainer', so the viewer hears the source, but the opening clause is broader than it.
verified s36.a A prominent network-marketing trainer denies that income comes from recruiting: "you don't get paid for the act of building the team you only get paid when sales happen to a customer".
supported (approved): no direct support, 1 contradicting, 1 qualifying, 1 source statement.
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
verified s37.a In the pay plans the FTC describes, commissions can be paid for purchases by recruited participants who buy a set amount of product.
qualified (qualify): no direct support, 1 qualifying.
warning needs-qualification: FTC MLM income disclosure report 2024: The report describes MLM pay as commissions for purchasing, inducing others to purchase, or recruiting participants who purchase, with retail resale income only 'in some cases'; it describes the structure but does not measure the split between downline and retail income. Add the qualification: the evidence supports a narrower or weaker statement.
verified s39.a In the excerpted rank table, over 90% of participants were in a cohort with average reported income of less than $100.
qualified (qualify): no direct support, 3 qualifying.
warning needs-qualification: FTC MLM income disclosure report 2024: Downline-based commissions and rank bonuses exist, but the rank tables show over 90% of participants in the lowest cohort averaging under $100 while six-figure incomes belong to hundredths of a percent; the leverage is real only for a tiny fraction. Add the qualification: the evidence supports a narrower or weaker statement.
verified s40.a Taylor describes the MLM appeal of "time freedom or leveraged income" from the efforts of others and says that, because of MLM compensation systems, it requires success at recruiting a downline more than selling the products directly.
qualified (qualify): no direct support, 3 qualifying.
warning needs-qualification: Taylor, The Case against MLM: Taylor describes the 'leveraged income' pitch and agrees the pay plans route income from a downline, but his data show only about one in 238 participants profit at all and roughly one in 25,000 get the touted residual income. Add the qualification: the evidence supports a narrower or weaker statement.
info missing-qualification (review): 'After subtracting required purchases and modest expenses' paraphrases Taylor's footnote 44, which assumes 'all expenses (including incentivized purchases and minimum operating expenses)'. The cited passage itself says only 'after subtracting expenses'. 'Required' slightly hardens 'incentivized'; the 99.6% and one in 238 are exact. s47's 'once required purchases are counted as a cost' has the same wording.
verified s41.a Across the MLMs he analysed, after subtracting required purchases and modest expenses, Taylor calculates that an average of 99.6% of participants lost money and about one in 238 profited.
supported (approved): 1 supporting (1 independent, strongest 0.55).
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
verified s42.a Taylor's loss rate is calculated from company earnings reports under assumptions he states about participants' expenses, retention and the share of participants counted.
supported (approved): 1 supporting (1 independent, strongest 0.55).
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
verified s43.a John Oliver's segment says that with each level recruiting more, "you could only do that 13 cycles and you would exceed the population of the earth."
supported (approved): no direct support, 3 qualifying, 1 source statement.
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
verified s44.a Neither the FTC report nor Taylor tests the population-exhaustion arithmetic.
qualified (qualify): no direct support, 3 qualifying.
warning needs-qualification: FTC MLM income disclosure report 2024: In nearly every rank-based disclosure the vast majority of participants sit in the two or three lowest ranks (one example: 92.37% in the bottom rank averaging $41.69, top ranks fractions of a percent), confirming most are structurally at the bottom; the report does not test the exponential-exhaustion arithmetic. Taylor, The Case against MLM: Taylor says recru…
verified s66.a Taylor writes of pyramid schemes, a class in which he places MLMs, that recruitment eventually dries up as the market becomes saturated and that the vast majority of participants are then left in a losing position at the bottom.
qualified (qualify): no direct support, 3 qualifying.
warning needs-qualification: Taylor, The Case against MLM: Taylor says recruitment inevitably dries up as the market saturates and the vast majority of participants are then guaranteed to be at the bottom; he illustrates with an 8-ball pyramid reaching 8,191 people in 10 cycles but does not do the population-exhaustion arithmetic. Add the qualification: the evidence supports a narrower or weaker statement.
verified s67.a Among former participants in the AARP survey, 29% left because the commission structure mostly benefited those at the top and 25% because the market was too saturated.
qualified (qualify): no direct support, 3 qualifying.
warning needs-qualification: AARP MLM survey 2018: Among former participants, 29% left because the commission structure mostly benefited those at the top and 25% because the market was saturated with other sellers; self-reported reasons, not a structural test. Add the qualification: the evidence supports a narrower or weaker statement.
warning figure-in-non-factual (deterministic): a transitional sentence carries a figure; the reviewer must confirm it is not a representative outcome
info missing-qualification (review): The recap 'most participants received $1,000 or less in a year' drops the scope the FTC gives it: the 33 disclosures with enough data to calculate the share. s16 carries that limit; s46 and s60.b repeat the figure without it, as the FTC's own blog summary does. True and sourced; the limit is stated once, far from the recap.
verified s46.a The disclosures show most participants made $1,000 or less per year, and that may not account for expenses.
supported (approved): 2 supporting (1 independent, strongest 0.6).
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
verified s46.b Most of the 70 disclosures do not depict the full income distribution: 29 exclude those with no commissions and another 24 exclude participants deemed inactive.
supported (approved): 2 supporting (1 independent, strongest 0.5).
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
verified s47.a In the AARP survey 47% lost money, 27% broke even and 25% made a profit; 14% of participants made less than $5,000.
supported (approved): 2 supporting (1 independent, strongest 0.65).
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
verified s47.b Taylor calculates an average of 99.6% of participants losing money after subtracting required purchases and expenses.
supported (approved): 1 supporting (1 independent, strongest 0.55).
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
verified s50.a The AARP profit and loss figures are self-reported by current and former MLM participants.
supported (approved): 2 supporting (1 independent, strongest 0.65).
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
verified s51.a The FTC's figures come from 70 publicly available income disclosure statements and report payments before expenses.
supported (approved): 2 supporting (1 independent, strongest 0.5).
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
verified s52.a Taylor's 99.6% loss rate is calculated under stated assumptions from company earnings reports, not counted from participants' accounts.
supported (approved): 1 supporting (1 independent, strongest 0.55).
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
verified s53.a The FTC report describes the structure of MLM pay but does not measure the split between downline and retail income.
qualified (qualify): no direct support, 1 qualifying.
warning needs-qualification: FTC MLM income disclosure report 2024: The report describes MLM pay as commissions for purchasing, inducing others to purchase, or recruiting participants who purchase, with retail resale income only 'in some cases'; it describes the structure but does not measure the split between downline and retail income. Add the qualification: the evidence supports a narrower or weaker statement.
verified s54.a Neither the FTC report nor Taylor tests the population-exhaustion arithmetic; the rank tables show that most participants are at the bottom.
qualified (qualify): no direct support, 3 qualifying.
warning needs-qualification: FTC MLM income disclosure report 2024: In nearly every rank-based disclosure the vast majority of participants sit in the two or three lowest ranks (one example: 92.37% in the bottom rank averaging $41.69, top ranks fractions of a percent), confirming most are structurally at the bottom; the report does not test the exponential-exhaustion arithmetic. Taylor, The Case against MLM: Taylor says recru…
verified s56.a 74% of the surveyed participants lost money (47%) or broke even (27%).
supported (approved): 1 supporting (1 independent, strongest 0.65).
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
Calculation: 47 + 27 = 74
verified s57.a Of the 25% of surveyed participants who made a profit, the largest group, 14% of participants, made less than $5,000 over their entire time in the MLM.
supported (approved): 2 supporting (1 independent, strongest 0.65).
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
warning figure-in-non-factual (deterministic): a rhetorical sentence carries a figure; the reviewer must confirm it is not a representative outcome
verified s60.a In AARP's nationally representative survey, 47% of participants lost money and 27% broke even.
supported (approved): 1 supporting (1 independent, strongest 0.65).
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
verified s60.b The companies' income disclosure statements showed most participants made $1,000 or less per year before expenses.
supported (approved): 2 supporting (1 independent, strongest 0.6).
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
verified s61.a 25% of surveyed participants made a profit, 14% of participants making less than $5,000, and half of one percent reported profits of $100,000 or more.
supported (approved): 2 supporting (1 independent, strongest 0.65).
info wording: Wording differs from the canonical claim; the reviewer confirms the passages entail it.
verified s62.a In nearly each rank-based disclosure the FTC reviewed, the vast majority of participants are in the two or three lowest ranks.
qualified (qualify): no direct support, 3 qualifying.
warning needs-qualification: FTC MLM income disclosure report 2024: In nearly every rank-based disclosure the vast majority of participants sit in the two or three lowest ranks (one example: 92.37% in the bottom rank averaging $41.69, top ranks fractions of a percent), confirming most are structurally at the bottom; the report does not test the exponential-exhaustion arithmetic. Add the qualification: the evidence supports a …
verified s62.b In the plans Taylor analysed, most of the money paid by the company goes to participants at the highest levels.
qualified (qualify): 1 supporting (1 independent, strongest 0.5), 1 qualifying.
warning needs-qualification: FTC MLM income disclosure report 2024: The report describes MLM pay as commissions for purchasing, inducing others to purchase, or recruiting participants who purchase, with retail resale income only 'in some cases'; it describes the structure but does not measure the split between downline and retail income. Add the qualification: the evidence supports a narrower or weaker statement.
42 scenes, 12:11 at 150 words per minute including pauses. Narration is copied from the script; every chart value and on-screen citation is checked against a passage.
1. sc01 · 0:00 to 0:05 animation
Somewhere in your messages there is probably a pitch like this.
Visual. A phone on a dark table, screen off. It lights with one message notification; the sender's name and preview are soft-blurred so nothing is legible. Slow push-in. No on-screen text.
Assets. phone-ui (animation: Phone lock-screen animation (generic UI, blurred sender))
2. sc02 · 0:05 to 0:20 diagram
A friend you have not heard from in years has started a business, and she would love to have you on her team: you earn from what you sell, and from everyone you bring in after you.
Visual. The message opens into a chat bubble; from it a simple node diagram grows: a circle labelled YOU, an arrow in from 'what you sell', then a second tier of circles beneath you with arrows flowing up labelled 'what they sell'. The second tier draws in as the narration reaches 'everyone you bring in after you'.
On screen. what you sell / everyone you bring in
Assets. node-tree (component: Node-tree diagram component)
3. sc03 · 0:20 to 0:34 typography
The recruiters have a word for that second part: one trainer, Frazer Brookes, promises to show you how to "finally create the leverage that you need inside of your network marketing business".
Visual. Quote card: the quoted words type on in large serif over the dark field; the word 'leverage' holds and turns amber as the sentence ends. Beneath, small: 'recruiting training video'. No channel name or face.
On screen. "finally create the leverage that you need inside of your network marketing business"
Cite. Network-marketing recruiting video (YouTube)
4. sc04 · 0:34 to 0:51 data-chart
In a study published in 2018, AARP asked 601 Americans who had actually done this how it went, and 47 percent said they lost money. Only 25 percent said they made any profit at all.
Visual. Big-number reveal: '601' counts up in grotesque numerals with 'asked in 2018' beneath. Then a single horizontal bar splits left to right into three segments: 47% lost money (red), 27% broke even (slate), 25% made any profit (muted green). The 47% segment fills first, with the narration; the 25% segment fills last, on 'only 25 percent'.
On screen. 601 current and former participants / 47% lost money / 25% made any profit
| lost money | 47% | 47 | percent | AARP MLM survey 2018, lines 135-L139 |
| broke even | 27% | 27 | percent | AARP MLM survey 2018, lines 135-L139 |
| made a profit | 25% | 25 | percent | AARP MLM survey 2018, lines 135-L139 |
Cite. AARP, 2018 survey of 601 current and former MLM participants
5. sc05 · 0:51 to 1:01 typography
So where does the money go, and why does leverage that sounds so good on paper show up in almost nobody's bank account?
Visual. The bar from sc04 shrinks to a thin line at the top; the question types on in two lines: 'Where does the money go?' / 'Why does leverage show up in almost nobody's bank account?'. Amber cursor blinks.
On screen. Where does the money go?
6. sc06 · 1:01 to 1:08 typography
This video is about one question: how much money do people in multi-level marketing actually make?
Visual. Title card: 'How much money do MLM participants actually make?' set large; under it a thin rule and the word 'evidence' in the slate accent.
On screen. How much money do MLM participants actually make?
7. sc07 · 1:08 to 1:28 diagram
To answer it we have the companies' own numbers first: 70 income disclosure statements, read closely by Federal Trade Commission staff. Then a nationally representative survey of 601 participants by AARP. And an analysis of 30 companies by Jon Taylor, an independent analyst who argues against the industry.
Visual. Three cards slide in left to right as each is named: a stack of documents labelled 'income disclosures, 70 statements, read by FTC staff'; a grid of people icons labelled 'survey, 601 participants, AARP'; a spreadsheet icon labelled '30 companies, Jon Taylor (critic)'. The cards persist as a small legend in later scenes.
On screen. 70 income disclosure statements, FTC staff / 601 participants, AARP survey / 30 companies, Taylor (critic of the industry)
Assets. evidence-cards (component: Three evidence-source icons (documents, people grid, spreadsheet))
Cite. FTC staff report on MLM income disclosure statements (70 statements)AARP, 2018 survey of 601 current and former MLM participantsJ. M. Taylor, The Case (for and) against Multi-level Marketing, ch. 7
8. sc08 · 1:28 to 2:00 typography
First, the promise, in the recruiters' own words: one coach, Darin Kidd, tells his audience that once the team grows, "it starts to compound", like a snowball; Frazer Brookes says the person you bring in "might recruit 10 people themselves and have an organization of a thousand people". Another trainer, Eric Worre, puts the whole idea in one line: it would be "better to have a smaller percentage of 100 people than 100 of yourself".
Visual. Three quote cards in sequence, each sliding up and settling: 'it starts to compound' with a small snowball glyph rolling; 'might recruit 10 people themselves and have an organization of a thousand people' with the node tree growing one tier behind the text; 'better to have a smaller percentage of 100 people than 100 of yourself'. Attribution lines read 'recruiting coach', 'recruiting trainer', 'network-marketing trainer' in small type.
On screen. "it starts to compound" / "might recruit 10 people themselves and have an organization of a thousand people" / "better to have a smaller percentage of 100 people than 100 of yourself"
Cite. Recruiting coach video (YouTube)Recruiting trainer video (YouTube)Network-marketing trainer video (YouTube)
9. sc09 · 2:00 to 2:05 diagram
That is the pitch: income from the efforts of other people.
Visual. The node tree from sc02, three tiers, with small coin glyphs travelling up the arrows toward the top node. Caption in amber: 'income from the efforts of others'.
On screen. income from the efforts of others
10. sc10 · 2:05 to 2:24 typography
The critics have their own one-liner; in a clip John Oliver's show played, a former Herbalife distributor puts it this way: "You make money from signing people up." Even the FTC's own Consumer Advice page says, flatly, that "Most people who join legitimate MLMs make little or no money."
Visual. Two cards in the slate accent: 'You make money from signing people up.' attributed 'Last Week Tonight'; then a browser-window frame with the FTC consumer page's sentence set in its own plain type: 'Most people who join legitimate MLMs make little or no money.' with the URL path shown small.
On screen. "You make money from signing people up." / "Most people who join legitimate MLMs make little or no money."
Cite. Last Week Tonight, MLM segment (HBO)FTC consumer advice: Multi-Level Marketing Businesses and Pyramid Schemes
11. sc11 · 2:24 to 2:30 transition
Two confident stories, so let us see which one the numbers tell.
Visual. Split field: amber 'the pitch' left, slate 'the critics' right; both wipe to black from the centre as the data section begins.
12. sc12 · 2:30 to 2:40 document-excerpt
Start with the companies, because some of them publish an income disclosure statement, and FTC staff collected 70 of them, from household names to small firms.
Visual. A grid of 70 small document thumbnails (generic, no logos) tiles in, counting up in the corner to 70. One thumbnail enlarges into the FTC summary passage with the phrase highlighted.
Assets. disclosure-thumbnails (component: Generic disclosure-statement thumbnail (procedural, 70 variants))
Cite. FTC staff report on MLM income disclosure statements (70 statements)
13. sc13 · 2:40 to 3:01 data-chart
Once FTC staff worked through the fine print, the statements with enough data to tell showed most participants received $1,000 or less in a year: under $84 a month. In at least 17 of the 70 companies, most participants made nothing at all.
Visual. Three stat tiles, revealed in order with the narration: '$1,000 or less a year' (most participants), 'under $84 a month', '17 of 70: most participants made nothing'. The third tile turns red as it lands.
On screen. most participants: $1,000 or less a year / under $84 a month / 17 of 70 companies: most participants made nothing
| most participants made per year | $1,000 or less | lte 1000 | usd | FTC MLM report summary, lines 35-L35 |
| per month | less than $84 | lt 84 | usd | FTC MLM report summary, lines 35-L35 |
| MLMs where most participants made nothing | at least 17 of 70 | gte 17 | count | FTC MLM report summary, lines 35-L35 |
Cite. FTC staff report on MLM income disclosure statements (70 statements)FTC staff report, section X (27 disclosures giving the no-income share)
14. sc14 · 3:01 to 3:07 animation
And that is the generous reading, because of three things buried in the fine print.
Visual. Camera pushes into the bottom of a disclosure thumbnail until a block of tiny footnote text fills the frame, blurred just enough to be unreadable; the words 'three things' type over it in amber.
On screen. three things in the fine print
15. sc15 · 3:07 to 3:26 diagram
First, who gets counted: of the 70 statements, 29 leave out participants who earned no commission, and another 24 leave out anyone the company has labelled inactive. What happens to an average when you remove the zeros before you take it?
Visual. A 10 by 10 grid of person icons labelled 'participants'. A dotted frame labelled 'the table' encloses the grid. On '29 leave out', the icons marked with a '$0' tag fade and slide outside the frame; on 'another 24', icons tagged 'inactive' follow. A bar labelled 'average' at the right rises visibly as they leave, with no numeral on it. Counters: '29 of 70 statements exclude non-earners', '24 of 70 exclude "inactive" participants'.
On screen. 29 of 70 statements leave out participants with no commission / 24 of 70 leave out participants labelled "inactive"
Assets. person-grid (component: Person-icon grid with tag states ($0, inactive))
16. sc16 · 3:26 to 3:48 diagram
Second, what gets counted: not one of the 70 statements reports income with expenses taken out in full, and 20 of them never say whether expenses were taken out at all. So the dollar figures are what the company paid out, before most or all of whatever the participant spent to take part.
Visual. A waterfall sketch: one solid bar labelled 'paid by the company'. To its right a hatched block labelled 'expenses: not reported' drops from the top of the bar with a question mark for its height; the result bar is drawn as a dashed outline labelled 'what you keep: unknown'. Counters: 'none of 70 statements: income after all expenses', '20 of 70: expenses not mentioned'.
On screen. none of the 70 statements reports income after all expenses / 20 of 70 do not mention expenses
17. sc17 · 3:48 to 4:03 document-excerpt
Third, how it is presented: 44 of the 70 break the numbers out only by rank, and in those tables, nearly without exception, the vast majority of participants sit in the two or three lowest ranks.
Visual. The FTC passage on rank tables, set as a document page; the phrase highlights in slate as it is spoken, then the words 'two or three lowest ranks' highlight.
18. sc18 · 4:03 to 4:31 data-chart
One table the FTC excerpted shows the shape: 92.37 percent of participants in the bottom row, with average earnings of $41.69. The top row averages just over $1,018,350, and holds fewer than 0.01 percent of participants; as the FTC puts it, half the rows in that table describe half a percent of the people.
Visual. Left: the table 'as the company shows it', ten equal rows, average earnings in the right column. Right: 'as the people are distributed', the same ten rows but each row's height proportional to its share of participants, so the $41.69 row fills 92% of the height and the top five rows are hairlines. The right panel builds row by row from the bottom; the $1,018,350.20 row is marked with a magnifier callout because it is too thin to see. Final overlay: 'half the rows describe half of one percent of participants'.
On screen. 92.37% of participants: average $41.69 / <0.01% of participants: average $1,018,350.20 / half the rows describe half of one percent of the people
| 92.37% of participants | $41.69 | 41.69 | usd | FTC MLM income disclosure report 2024, lines 838-L866 |
| 3.63% | $844.43 | 844.43 | usd | FTC MLM income disclosure report 2024, lines 838-L866 |
| 1.33% | $2,414.11 | 2414.11 | usd | FTC MLM income disclosure report 2024, lines 838-L866 |
| 2.16% | $4,938.78 | 4938.78 | usd | FTC MLM income disclosure report 2024, lines 838-L866 |
| 0.35% | $27,898.89 | 27898.89 | usd | FTC MLM income disclosure report 2024, lines 838-L866 |
| 0.06% | $58,739.04 | 58739.04 | usd | FTC MLM income disclosure report 2024, lines 838-L866 |
| 0.06% | $137,351.18 | 137351.18 | usd | FTC MLM income disclosure report 2024, lines 838-L866 |
| 0.02% | $228,094.12 | 228094.12 | usd | FTC MLM income disclosure report 2024, lines 838-L866 |
| 0.01% | $452,579.28 | 452579.28 | usd | FTC MLM income disclosure report 2024, lines 838-L866 |
| <0.01% | $1,018,350.20 | 1018350.2 | usd | FTC MLM income disclosure report 2024, lines 838-L866 |
Cite. FTC staff report, Figure 6: excerpted data from one income disclosure table
19. sc19 · 4:31 to 4:39 typography
Disclosures count what companies paid, not whether anyone came out ahead; for that you have to ask the people.
Visual. Two words on the field: 'paid out' (slate, left) and 'came out ahead' (amber, right) with a thin arrow between; the left word dims as the narration says 'ask the people'.
On screen. paid out / came out ahead?
20. sc20 · 4:39 to 5:06 data-chart
AARP did, in a study published in 2018, using a probability-based national panel, the kind of sample that lets you generalise to the whole country. Among the 601 people it reached, 47 percent said they lost money, 27 percent said they broke even, and the rest, a quarter, said they made a profit, counting their entire time in the business.
Visual. A field of 601 small dots arranges into a rectangle labelled 'nationally representative sample, 2018'. The dots recolour by group with the narration: 47% red (lost money), 27% slate (broke even), 25% muted green (made a profit); a legend with the three percentages appears at the right.
On screen. 601 current and former participants / 47% lost money / 27% broke even / 25% made a profit
| lost money | 47% | 47 | percent | AARP MLM survey 2018, lines 135-L139 |
| broke even | 27% | 27 | percent | AARP MLM survey 2018, lines 135-L139 |
| made a profit | 25% | 25 | percent | AARP MLM survey 2018, lines 135-L139 |
Assets. dot-plot-601 (component: 601-dot plot component)
Cite. AARP, 2018 survey of 601 current and former MLM participants
21. sc21 · 5:06 to 5:29 data-chart
Profit, for most of that quarter, was small, and so were most of the losses: on both sides of the ledger the commonest outcome was under $5,000. Only three people in the whole sample reported profits of $100,000 or more, and one of them had founded the company.
Visual. Zoom into the green 25%: a horizontal bar chart of profit bands as a share of all 601 participants: under $5,000 (14%), $5,000 to $9,999 (6%), $10,000 to $24,999 (3%), $25,000 or more (3%). Then three single dots lift out of the last band with the caption '3 people (half of one percent): $100,000 or more; each more than five years in; one founded the company'.
On screen. under $5,000: 14% of participants / $25,000 or more: 3% / 3 people reported $100,000 or more
| less than $5,000 | fourteen percent | 14 | percent | AARP MLM survey 2018, lines 376-L392 |
| $5,000 to $9,999 | 6% | 6 | percent | AARP MLM survey 2018, lines 376-L392 |
| $10,000 to $24,999 | 3% | 3 | percent | AARP MLM survey 2018, lines 376-L392 |
| $25,000 or more | 3% | 3 | percent | AARP MLM survey 2018, lines 376-L392 |
| $100,000 or more | 3 people | 3 | count | AARP MLM survey 2018, lines 376-L392 |
Cite. AARP, 2018 survey of 601 current and former MLM participants
22. sc22 · 5:29 to 5:42 data-chart
These are people's own accounts of what they put in and took out, which is a limit; they are also the only figures so far that measure profit or loss rather than payout.
Visual. The same bar layout mirrored to the left in red: lost under $5,000 (41%), $5,000 to $9,999 (3%), more than $10,000 (1%). As s65 begins, a stamp reads 'self-reported' across both charts, and a small tag 'profit or loss, not payout' appears beneath.
On screen. lost under $5,000: 41% / lost $5,000 to $9,999: 3% / lost more than $10,000: 1% / self-reported
| lost less than $5,000 | 41% | 41 | percent | AARP MLM survey 2018, lines 376-L392 |
| lost $5,000 to $9,999 | 3% | 3 | percent | AARP MLM survey 2018, lines 376-L392 |
| lost more than $10,000 | 1% | 1 | percent | AARP MLM survey 2018, lines 376-L392 |
Cite. AARP, 2018 survey of 601 current and former MLM participants
23. sc23 · 5:42 to 5:53 typography
So most people lose or break even, and the few who profit mostly profit a little. The pitch said recruiting would compound, so why doesn't it?
Visual. The question 'why doesn't it compound?' types on; the snowball glyph from sc08 rolls in and stops.
On screen. why doesn't it compound?
24. sc24 · 5:53 to 6:13 diagram
The FTC describes how the pay plans typically work: commissions for hitting benchmarks such as buying a set amount of product, getting others to buy it, or recruiting people who then buy it; selling to an outside customer at a markup is mentioned as a source of income "in some cases".
Visual. Three solid icons appear in a row as named: 'buy a set amount of product', 'get others to buy it', 'recruit people who buy it', each with a coin arrow to a 'commission' node. A fourth icon, 'sell to an outside customer at a markup', is drawn dashed and labelled 'in some cases' in the FTC's words.
On screen. buy a set amount / get others to buy / recruit people who buy / retail to outsiders: "in some cases"
Assets. commission-icons (component: Four commission-trigger icons)
25. sc25 · 6:13 to 6:46 document-excerpt
Taylor went further: he read the compensation plans of the 30 companies with published earnings data, and of more than 350 in all, and concluded that each of them pays primarily for recruiting a large downline rather than for retailing product, with most of the payout going to the highest levels. That is one analyst's reading of the plans; the FTC's report describes the same structure but does not measure how much income actually comes from downlines versus retail customers.
Visual. Taylor's page, with the sentence highlighted in amber as it is read; then the page dims and a caption in slate: 'the FTC describes the structure; neither document measures the split between downline and retail income'.
On screen. 30 companies with earnings data; 350 plans reviewed / described, not measured
Cite. J. M. Taylor, The Case (for and) against Multi-level Marketing, ch. 7FTC staff report, section I
26. sc26 · 6:46 to 7:13 diagram
The recruiters reject that framing; the same trainer, Eric Worre, insists that "you don't get paid for the act of building the team you only get paid when sales happen to a customer". Both can be true at once, because in the plans the FTC describes, the "customer" can be the recruit, buying a set amount of product to qualify, and the plans pay commissions on those purchases.
Visual. Quote card in amber: the trainer's sentence. Then the node tree returns; a label 'customer' slides onto one of the recruit nodes, which is also holding a product box, and a coin arrow rises from it to the node above.
On screen. "you don't get paid for the act of building the team you only get paid when sales happen to a customer" / the customer is often the recruit
Cite. Network-marketing trainer video (YouTube)FTC staff report, section I
27. sc27 · 7:13 to 7:30 diagram
Which brings us back to leverage: if income flows up from a downline, somebody has to be the downline. In that rank table, over 90 percent of participants were in a cohort averaging under $100.
Visual. The node tree expands to many tiers; the bottom tier floods the frame and is tinted red with a label 'over 90% of participants, average under $100 (one excerpted table)'. The top node is a single amber point.
On screen. over 90% of participants / average under $100
Cite. FTC staff report, Figure 6 (one disclosure's rank table)
28. sc28 · 7:30 to 7:47 document-excerpt
Taylor's own summary of the pitch says the quiet part: the appeal is "time freedom or leveraged income", a flow from the efforts of others, and under these pay plans getting it depends on recruiting a downline more than on selling the product.
Visual. Taylor's two-column page; the right-hand column is lifted out and set cleanly, with 'time freedom or leveraged income' highlighted in amber.
Cite. J. M. Taylor, The Case (for and) against Multi-level Marketing, ch. 7
29. sc29 · 7:47 to 8:17 data-chart
His own estimate is blunter: across those companies, after subtracting required purchases and modest expenses, he puts the share losing money at 99.6 percent, about one in 238 profiting. That number depends on his assumptions about what participants had to spend, how many dropped out and how many were ever counted, which he states; it is an estimate built on the companies' tables, not a measurement of anyone's bank account.
Visual. A grid of 1,000 small squares fills the frame; 996 turn red one row at a time, 4 stay green. Labels: '99.6% lose money', '1 in 238 profit'. On s42 a slate caption prints across the top: 'estimate from company tables, under stated assumptions about required purchases and expenses'.
On screen. 99.6% lose money / 1 in 238 profit / estimate, under stated assumptions
| lost money (average across the MLMs analysed) | 99.6% | 99.6 | percent | Taylor, The Case against MLM, lines 1785-L1790 |
| profited | 1 in 238 | 238 | ratio | Taylor, The Case against MLM, lines 1785-L1790 |
| lost money, per thousand | 996 out of 1,000 | 996 | count | Taylor, The Case against MLM, lines 1785-L1790 |
Cite. J. M. Taylor, The Case (for and) against Multi-level Marketing, ch. 7, Appendix 7A
30. sc30 · 8:17 to 8:31 animation
Critics like to finish with arithmetic; in John Oliver's version, if each recruit brings in a handful more, "you could only do that 13 cycles and you would exceed the population of the earth."
Visual. A pyramid of dots grows level by level, each level several times the last, until it overflows a small outline of the globe at the bottom of the frame; a counter at the side ticks levels up to 13. Label in slate: 'the critics' arithmetic (Last Week Tonight)'.
On screen. 13 cycles / the critics' arithmetic
Cite. Last Week Tonight, MLM segment (HBO)
31. sc31 · 8:31 to 9:02 data-chart
None of the studies here tests that arithmetic directly; what they show is the shape it predicts. Taylor writes of pyramid schemes, a class in which he places MLMs, that recruitment eventually dries up as the market saturates, leaving the vast majority at the bottom. And among the former participants AARP surveyed, 29 percent said they left because the commission structure mostly benefited those at the top, and 25 percent because the market was saturated.
Visual. Caption first: 'not tested by any study here'. Then two bars from the survey's reasons for leaving: 'the commission structure mostly benefited those at the top' 29%, 'the market was too saturated' 25%. Taylor's phrase 'recruitment will dry up as the market becomes saturated' sits beneath in small serif.
On screen. 29%: left because the structure benefited those at the top / 25%: left because the market was saturated / not tested by any study here
| commission structure mostly benefited those at the top | 29% | 29 | percent | AARP MLM survey 2018, lines 463-L467 |
| market was too saturated | 25% | 25 | percent | AARP MLM survey 2018, lines 463-L467 |
Cite. AARP, 2018 survey of 601 current and former MLM participantsJ. M. Taylor, The Case (for and) against Multi-level Marketing, ch. 7
32. sc32 · 9:02 to 9:09 typography
Put the three side by side and they agree on the shape, though they measure different things.
Visual. Title: 'three measures, one shape'. The three evidence cards from sc07 line up beneath.
On screen. three measures, one shape
33. sc33 · 9:09 to 9:35 data-chart
The companies' own statements: most participants received $1,000 or less in a year, before expenses, and most of the tables leave some participants out entirely. The survey: 47 percent lost, 27 percent broke even, a quarter profited, mostly under $5,000; the analyst: 99.6 percent losing, once required purchases are counted as a cost.
Visual. Three panels. Left, 'company payouts': '$1,000 or less a year' with 'before expenses; non-earners often excluded' beneath. Middle, 'survey, profit or loss': the 47 / 27 / 25 stacked bar with '14% of participants made under $5,000'. Right, 'analyst's estimate': '99.6% lose' with 'required purchases counted as cost' beneath.
On screen. payouts: $1,000 or less a year, before expenses / survey: 47% lost, 27% broke even, 25% profited / estimate: 99.6% lose, required purchases counted
| most participants received per year (disclosures) | $1,000 or less | lte 1000 | usd | FTC MLM report summary, lines 35-L35 |
| lost money (survey) | 47% | 47 | percent | AARP MLM survey 2018, lines 135-L139 |
| broke even (survey) | 27% | 27 | percent | AARP MLM survey 2018, lines 135-L139 |
| made a profit (survey) | 25% | 25 | percent | AARP MLM survey 2018, lines 135-L139 |
| made less than $5,000 (survey) | fourteen percent | 14 | percent | AARP MLM survey 2018, lines 376-L392 |
| lost money (Taylor's estimate) | 99.6% | 99.6 | percent | Taylor, The Case against MLM, lines 1785-L1790 |
Cite. FTC staff report on MLM income disclosure statements (70 statements)AARP, 2018 survey of 601 current and former MLM participantsJ. M. Taylor, The Case (for and) against Multi-level Marketing, ch. 7
34. sc35 · 9:35 to 9:54 typography
Now the limits, because they matter: the AARP numbers are self-reported, by current and former participants, and nothing checks them against bank statements. The FTC's figures are company payouts, not profit, and they cover the 70 companies whose statements were publicly available, which is not the whole industry.
Visual. A plain list in slate builds one line per clause: 'self-reported'; 'current and former participants'; 'payouts, not profit'; '70 companies whose statements were public'. The three evidence cards sit faintly behind.
On screen. self-reported / payouts, not profit / 70 companies whose statements were public
Cite. AARP, 2018 survey of 601 current and former MLM participantsFTC staff report on MLM income disclosure statements (70 statements)
35. sc36 · 9:54 to 10:24 typography
Taylor is an independent analyst who argues against the industry, and his 99.6 percent is a calculation under assumptions he states, not a count of real accounts. The split between recruiting income and retail income has been described in these documents, and argued, but not measured. And the population arithmetic is a thought experiment that none of these studies tested; the rank tables show where people end up, not why.
Visual. The list continues: 'a critic's calculation under stated assumptions'; 'recruiting vs retail income: described, not measured'; 'the thirteen-cycles arithmetic: untested'. The last line gets a small pyramid glyph with a question mark.
On screen. 99.6%: a calculation under stated assumptions / recruiting vs retail income: described, not measured / the population arithmetic: untested
Cite. J. M. Taylor, The Case (for and) against Multi-level Marketing, ch. 7FTC staff report, section I
36. sc37 · 10:24 to 10:28 animation
So, back to that message from your friend; suppose you say yes.
Visual. The phone from sc01, now in hand; the reply box is open with a blinking cursor; nothing typed.
37. sc38 · 10:28 to 10:49 data-chart
The survey says the most likely outcome, by a wide margin, is that you lose money or break even: 74 percent of participants did. If you do profit, the same survey suggests it will most likely be under $5,000 over your whole time in the business.
Visual. The 47 and 27 segments from sc04 merge into one bar labelled '74%: lost money or broke even'; the remaining 25% segment opens to show 'most profits under $5,000'. The figure 74% is drawn as the sum of the two segments, with '47 + 27' faintly beneath.
On screen. 74% lost money or broke even / 47 + 27 / if you profit: most likely under $5,000
| lost money | 47% | 47 | percent | AARP MLM survey 2018, lines 135-L139 |
| broke even | 27% | 27 | percent | AARP MLM survey 2018, lines 135-L139 |
| made less than $5,000 | fourteen percent | 14 | percent | AARP MLM survey 2018, lines 376-L392 |
Cite. AARP, 2018 survey of 601 current and former MLM participantsAARP, 2018 survey of 601 current and former MLM participants
38. sc39 · 10:49 to 10:56 diagram
And the leverage? It exists, in the plan documents; the rank tables show who it works for.
Visual. The node tree, full height; the single top node pulses amber; the base stays red.
On screen. it exists; here is who it works for
39. sc40 · 10:56 to 11:12 typography
Before you answer, ask for the income disclosure statement, and then ask three questions of it: who is left out of the table, whether the figures are before expenses, and how many people are in the bottom row.
Visual. A disclosure-statement outline with three callouts appearing in turn: 'who is left out of the table?', 'are the figures before expenses?', 'how many people are in the bottom row?'. Bullets, no numerals.
On screen. who is left out of the table? / before expenses? / how many people are in the bottom row?
40. sc41 · 11:12 to 11:39 data-chart
How much money do MLM participants actually make? For most of them, nothing, or less than nothing: in the nationally representative survey, 47 percent lost money and 27 percent broke even, and in the companies' own statements most participants received $1,000 or less in a year before expenses. A quarter made some profit, mostly small, and half of one percent made a lot.
Visual. A closing composite: the 47 / 27 / 25 ring (survey) at left; '$1,000 or less a year, before expenses' (disclosures) at right; beneath, a line of three dots labelled 'half of one percent: $100,000 or more'.
On screen. 47% lost money / 27% broke even / 25% made a profit, mostly small / $1,000 or less a year, before expenses
| lost money | 47% | 47 | percent | AARP MLM survey 2018, lines 135-L139 |
| broke even | 27% | 27 | percent | AARP MLM survey 2018, lines 135-L139 |
| made a profit | 25% | 25 | percent | AARP MLM survey 2018, lines 135-L139 |
| most participants received per year (disclosures) | $1,000 or less | lte 1000 | usd | FTC MLM report summary, lines 35-L35 |
| reported $100,000 or more | 3 people | 3 | count | AARP MLM survey 2018, lines 376-L392 |
Cite. AARP, 2018 survey of 601 current and former MLM participantsFTC staff report on MLM income disclosure statements (70 statements)AARP, 2018 survey of 601 current and former MLM participants
41. sc42 · 11:39 to 11:55 diagram
The leverage the pitch sells is real for the fraction at the top; in the plans Taylor read, most of the payout goes to the highest levels, and in the FTC's rank tables the vast majority sit at the bottom.
Visual. The node tree one last time: the top point amber, the base red, a thin label 'more than 90%' along the base and 'the fraction at the top' by the point.
On screen. real for the fraction at the top / more than 90% below
Cite. FTC staff report, Figure 6 (one disclosure's rank table)J. M. Taylor, The Case (for and) against Multi-level Marketing, ch. 7
42. sc43 · 11:55 to 12:11 animation
None of that is a verdict on your friend. It is a description of the structure she has joined, written mostly by the companies themselves, and it is worth reading before you join it too.
Visual. The phone again; the reply box still empty; the screen dims to black on the last word. No end card text other than a small 'sources in the description'.
On screen. sources in the description