Multi-level marketing

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cosmetics, health food, sanitary products, bodybuilding equipment and kitchen utensils, and they require Chinese or foreign companies ("FIEs") who intend to engage into direct sale business in mainland China to apply for and obtain direct selling license from the Ministry of Commerce ("MOFCOM"). In 2016, there are 73 companies, including domestic and foreign companies, that have obtained the direct selling license. Some multi-level marketing sellers have circumvented this ban by establishing addresses and bank accounts in

659:. In jurisdictions where MLM companies have not been made illegal, many illegal pyramid schemes attempt to present themselves as MLM businesses. Given that the overwhelming majority of MLM participants cannot realistically make a net profit, let alone a significant net profit, but instead overwhelmingly operate at net losses, some sources have defined all MLM companies as a type of pyramid scheme, even if they have not been made illegal like traditional pyramid schemes through 854: 555: 1226:(by effectively requiring "independent" distributors to sell at the same fixed price) and making exaggerated income claims. The FTC advises that multi-level marketing organizations with greater incentives for recruitment than product sales are to be viewed skeptically. The FTC also warns that the practice of getting commissions from recruiting new members is outlawed in most states as "pyramiding". 906: 684: 1238:

majority of MLM companies are recruiting MLM companies, in which participants must recruit aggressively to profit. Based on available data from the companies themselves, the loss rate for recruiting MLM companies is approximately 99.9%; i.e., 99.9% of participants lose money after subtracting all expenses, including purchases from the company." (By comparison, skeptic

570:", etc.), are authorized to distribute the company's products or services. They are awarded their own immediate retail profit from customers plus commission from the company, not downlines, through a multi-level marketing compensation plan, which is based upon the volume of products sold through their own sales efforts as well as that of their downline organization. 618:

that it can become the revenue and profit of the MLM company, of which the MLM company shares only a small proportion with a few individuals at the top of the MLM participant pyramid. Other than the few at the top, participants provide nothing more than their own financial loss for the company's own profit and the profit of the top few individual participants.

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Based on the results of a 2018 poll conducted with 1,049 MLM sellers, the majority (60%) earned an average of less than $ 100 in sales over a five-year period, and 20% never made a single sale. The majority of sellers made less than 70 cents per hour. Nearly 32 percent of those polled acquired credit

1021:"Roland Whitsell, a former business professor who spent 40 years researching and teaching the pitfalls of multilevel marketing": "You'd be hard-pressed to find anyone making over $ 1.50 an hour, (t)he primary product is opportunity. The strongest, most powerful motivational force today is false hope." 840:

were all originally single-level marketing companies, using that traditional and uncontroversial direct selling business model (distinct from MLM) to sell their goods. However, they later introduced multi-level compensation plans, becoming MLM companies. The DSA has approximately 200 members while it

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Many MLM companies generate billions of dollars in annual revenue and hundreds of millions of dollars in annual profit. However, profits accrue to the detriment of most of the company's constituent workforce (the MLM participants). Only some of the profits are then shared with individual participants

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MLM companies are also criticized for being unable to fulfill their promises for the majority of participants due to basic conflicts with Western cultural norms. There are even claims that the success rate for breaking even or even making money are far worse than other types of businesses: "The vast

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Not all multilevel marketing plans are legitimate. Some are pyramid schemes. It's best not to get involved in plans where the money you make is based primarily on the number of distributors you recruit and your sales to them, rather than on your sales to people outside the plan who intend to use the

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Much has been made of the personal, or internal, consumption issue in recent years. In fact, the amount of internal consumption in any multi-level compensation business does not determine whether or not the FTC will consider the plan a pyramid scheme. The critical question for the FTC is whether the

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reveal that 30 percent of its representatives make no money and that 54 percent of the remaining 70 percent only make $ 93 a month, before costs. Fortune was under investigation by the Attorneys General of Texas, Kentucky, North Dakota, and North Carolina with Missouri, South Carolina, Illinois, and

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Although the emphasis is always made on the potential of success and the positive life change that "might" or "could" (not "will" or "can") result, disclosure statements include disclaimers that they, as participants, should not rely on the earning results of other participants in the highest levels

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article that "MLM organizations have been described by some as cults (Butterfield, 1985), pyramid schemes (Fitzpatrick & Reynolds, 1997), or organizations rife with misleading, deceptive, and unethical behavior (Carter, 1999), such as the questionable use of evangelical discourse to promote the

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The main sales pitch of MLM companies to their participants and prospective participants is not the MLM company's products or services. The products or services are largely peripheral to the MLM model. Rather, the true sales pitch and emphasis is on a confidence given to participants of potential

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Although an MLM company holds out those few top individual participants as evidence of how participation in the MLM could lead to success, the MLM business model depends on the failure of the overwhelming majority of all other participants, through the injecting of money from their own pockets, so

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The overwhelming majority of MLM participants participate at either an insignificant or nil net profit. A study of 27 MLM schemes found that on average, 99.6% of participants lost money. Indeed, the largest proportion of participants must operate at a net loss (after expenses are deducted) so that

614:, thus creating the illusion that participants in the MLM can become financially successful. This is then advertised by the MLM company to recruit more distributors in the MLM with an unrealistic anticipation of earning margins which are in reality merely theoretical and statistically improbable. 1242:

points out that "only 97.14% of Las Vegas gamblers lose money .... .") In part, this is because encouraging recruits to further "recruit people to compete with " leads to "market saturation." It has also been claimed "(b)y its very nature, MLM is completely devoid of any scientific foundations."

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with one stating "Multi-level marketing companies have become an accepted and legally sanctioned form of pyramid scheme in the United States" while another states "Multi-Level Marketing, a form of Pyramid Scheme, is not necessarily fraudulent." In October 2010 it was reported that multi-level

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and as disruptive to social and economic order. MLM companies have been trying to find ways around China's prohibitions, or have been developing other methods, such as direct sales, to take their products to China through retail operations. The Direct Sales Regulations limit direct selling to

1105:" (where MLM is a type of Chuanxiao was enacted in 2005, clause 3 of Chapter 2 of the regulation states having downlines is illegal). O'Regan wrote 'With this regulation China makes clear that while Direct Sales is permitted in the mainland, Multi-Level Marketing is not'. 2603: 525:, published on the Federal Trade Commission's website, at least 99% of people who join MLM companies lose money. Nonetheless, MLM companies function because downline participants are encouraged to hold onto the belief that they can achieve large returns, while the 967:

Eric Scheibeler, a high level "Emerald" Amway member: "UK Justice Norris found in 2008 that out of an IBO population of 33,000, 'only about 90 made sufficient incomes to cover the costs of actively building their business.' That's a 99.7 percent loss rate for

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the few individuals in the uppermost level of the MLM pyramid can derive their significant earnings. Said earnings are then emphasized by the MLM company to all other participants to encourage their continued participation at a continuing financial loss.

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dangerous? Because plans that pay commissions for recruiting new distributors inevitably collapse when no new distributors can be recruited. And when a plan collapses, most people—except perhaps those at the very top of the pyramid—end up empty-handed."

498:. The first is based on a sales commission from directly selling the product or service; the second is paid out from commissions based upon the wholesale purchases made by other sellers whom the participant has recruited to also sell product. In the 1251:

marketing companies were being investigated by a number of state attorneys general amid allegations that salespeople were primarily paid for recruiting and that more recent recruits cannot earn anything near what early entrants do. Industry critic

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for the MLM industry, reported that in 1990 only 25% of DSA members used the MLM business model. By 1999, this had grown to 77.3%. By 2009, 94.2% of DSA members were using MLM, accounting for 99.6% of sellers, and 97.1% of sales. Companies such as

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It was not until August 23, 2005, that the State Council promulgated rules that dealt specifically with direct sale operation- Administration of Direct Sales (entered into effect on December 1, 2005) and the Regulations for the Prohibition of

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business (Höpfl & Maddrell, 1996), and the exploitation of personal relationships for financial gain (Fitzpatrick & Reynolds, 1997)". In China, volunteers working to rescue people from the schemes have been physically attacked.

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A February 10, 2011, article stated "It can be very difficult, if not impossible, for most individuals to make a lot of money through the direct sale of products to consumers. And big money is what recruiters often allude to in their

1125:(entered into effect on November 1, 2005). When direct selling is allowed, it will only be permitted under the most stringent requirements, in order to ensure the operations are not pyramid schemes, MLM, or fly-by-night operations. 1193:

revenues that primarily support the commissions paid to all participants are generated from purchases of goods and services that are not simply incidental to the purchase of the right to participate in a money-making venture.

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of the MLM participant pyramid as an indication of what they should expect to earn. MLM companies rarely emphasize the extreme likelihood of failure, or the extreme likelihood of financial loss, from participation in MLM.

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Florida following up complaints against the company. The FTC eventually stated that Fortune Hi-Tech Marketing was a pyramid scheme and that checks totaling more than $ 3.7 million were being mailed to the victims.

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Business Students Focus on Ethics: "In the USA, the average annual income from MLM for 90% MLM members is no more than US $ 5,000, which is far from being a sufficient means of making a living (

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MLM companies are designed to make profit for the owners/shareholders of the company and a few individual participants at the top levels of the MLM pyramid of participants. According to the

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The origin of multi-level marketing is often disputed, but multi-level marketing style businesses existed in the 1920s and the 1930s, such as the California Vitamin Company (later named

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Carl, Walter J. (2004). "The Interactional Business of Doing Business: Managing Legitimacy and Co-constructing Entrepreneurial Identities in E-Commerce Multilevel Marketing Discourse".

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Because of the encouraging of recruits to further recruit their competitors, some people have even gone so far as to say at best modern MLM companies are nothing more than legalized

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Companies that use the MLM business model have been a frequent subject of criticism and lawsuits. Legal claims against MLM companies have included the following, among other things:

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has been named the "unofficial world capital of multi-level marketing and direct sales companies" and is home to at least 15 major MLMs, more MLMs per capita than any other state.

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improbability of this is de-emphasized. MLM companies have been made illegal or otherwise strictly regulated in some jurisdictions as merely variations of the traditional

2577: 2900:"The Mess Called Multi-Level Marketing With celebrities etting the bait, hundreds of pyramid-style sales companies are raking in millions, often taking in the gullible" 3129: 627:

financial independence through participation in the MLM, luring with phrases like "the lifestyle you deserve" or "independent distributor". Erik German's memoir

1180:(FTC) states: "Steer clear of multilevel marketing plans that pay commissions for recruiting new distributors. They're actually illegal pyramid schemes. Why is 1101:. Multi-level marketing was banned on the mainland by the government in 1998, citing social, economic, and taxation issues. Further regulation "Prohibition of 3150:"A System Dynamics Model for Studying the Structure of Network Marketing Organizations [Peer reviewed paper that refers uses Taylor as references]" 800:

direct selling. Other terms that are sometimes used to describe multi-level marketing include "word-of-mouth marketing", "interactive distribution", and "

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Independent non-salaried participants, referred to as distributors (variously called "associates", "independent business owners", "independent agents", "

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as fellow salespeople so that these can become downline distributors. According to a report that studied the business models of 350 MLM companies in the

670:(FTC), some MLM companies already constitute illegal pyramid schemes even by the narrower existing legislation, exploiting members of the organization. 752:

in backroom deals where secret compensation packages are created between the MLM company and a few individual participants, to the detriment of others

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The company or leading distributors making major money off participant-attended conventions, training events and materials, and advertising materials

2345: 980:'s own 2007 income disclosure statement "fewer than 1 percent qualified for commissions and of those, only 10 percent made more than $ 100 a week." 2719: 2506: 3446: 2816: 2729: 1462: 1347:

Vander Nat, Peter J.; Keep, William W. (2002). "Marketing Fraud: An Approach for Differentiating Multilevel Marketing from Pyramid Schemes".

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selling the company's products or services, while the earnings of the participants are derived from a pyramid-shaped or binary compensation

3868: 3380: 2841: 1169:" or "home-based business franchising". Some sources say that all MLM companies are essentially pyramid schemes, even if they are legal. 3359: 606:

at the top of the MLM distributorship pyramid. The earnings of those top few participants are emphasized and championed at company

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The combined number of recruits from these cycles is the sales force, called the salesperson's "downline". This "downline" is the

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of 1978. This rise in multi-level marketing's popularity coincided with economic uncertainty and a new shift towards individual

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Pareja, Sergio (2008). "Sales Gone Wild: Will the FTC's Business Opportunity Rule Put an End to Pyramid Marketing Schemes?".

2110: 2051: 1960: 1670: 1567: 1530: 1491: 3269: 3133: 2689: 1847: 3439: 1282:). They argue that MLM trade involves deceiving others into participating, and the transaction bears resemblance to both 509:

MLM salespeople are, therefore, expected to sell products directly to end-user retail consumers by means of relationship

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Business Students Focus on Ethics (Praxiology): The international Annual of Practical Philosophy and Methodology

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of independent distributors who also build a consumer network base, thereby expanding the overall organization.

3994: 3432: 1066: 964:'s agents in Britain make any profit, with less than one in ten selling a single item of the group's products." 562:

structure. The blue individual at the top will receive compensation from the sales of the downline red members.

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of MLM companies, recruited participants (as well as those whom the recruit recruits) are referred to as one's

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H. Höpfl & J. Maddrell, "Can You Resist a Dream? Evangelical Metaphors and the Appropriation of Emotion",

3797: 1056: 667: 865: 3543: 3360:"Federal Trade Commission article - Lotions and Potions: The Bottom Line About Multilevel Marketing Plans" 2303:

Attri, Rekha (2011). "A Study of Consumer Perceptions of the Products Sold Through Multilevel Marketing".

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Several sources have commented on the income level of specific MLM companies or MLM companies in general:

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Multi-level marketing is also known as "pyramid selling", "network marketing", and "referral marketing".

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False Profits: Seeking Financial and Spiritual Deliverance in Multi-Level Marketing and Pyramid Schemes

2733: 2237: 1003: 820: 367: 2550:"Multilevel marketing companies say they can make you rich. Here's how much 7 sellers actually earned" 1744:

The Skeptic's Dictionary: A Collection of Strange Beliefs, Amusing Deceptions, and Dangerous Delusions

796:. Some sources emphasize that multi-level marketing is merely one form of direct selling, rather than 4004: 3883: 2384:(in reference to BERR vs Amway (Case No:2651, 2652 and 2653 of 2007) in point of objectionability"c") 1522: 1010: 488: 3071: 1635: 494:

In multi-level marketing, the compensation plan usually pays out to participants from two potential

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MLM companies have been made illegal in some jurisdictions as a mere variation of the traditional

4009: 3923: 3787: 3777: 3653: 3603: 3563: 2127:"'Person to person' sales plans... "dream" opportunity or business nightmare? [Amway Ad]" 1094: 639:. The memoir illustrates the multi-level marketing sales principle known as "selling the dream". 436: 382: 362: 347: 161: 136: 111: 51: 3408: 3331:"The provisions of network marketing in Islamic jurisprudence – Bengali – Muhammad Manjur Elahi" 1922: 841:

is estimated there are over 1,000 firms using multi-level marketing in the United States alone.

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marketing, but more importantly they are incentivized to recruit others to join the company's

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Islamic Marketing: Understanding the Socio-Economic, Cultural, and Politico-Legal Environment

2631: 2126: 1252: 632: 357: 209: 121: 106: 1583: 1515: 3878: 3873: 3658: 3363: 2842:"FTC Consumer Alert; Lotions and Potions: The Bottom Line About Multilevel Marketing Plans" 1983: 1748: 1559: 372: 302: 264: 176: 156: 71: 35: 3329:

Manjur Elahi, Muhammad; Tajul Islam, Muhammad; Muhammad Zakaria, Abu Bakr (May 18, 2011).

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Emphasis on recruitment of others over actual sales (especially sales to non-participants)

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Islam: Questions and Answers – Jurisprudence and Islamic Rulings: Transactions – Part 7

3052: 1795:"WorldVentures multi-level marketing business claims to have 10,000 Australian members" 1364: 585: 518: 510: 472: 429: 405: 342: 332: 327: 279: 131: 96: 2697: 1701: 1255:

has called multi-level marketing "the Main Street bubble" that will eventually burst.

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MLM companies have been made illegal in China as a mere variation of the traditional

415: 284: 259: 254: 229: 146: 141: 2817:"Follow the Profit: How Mormon Culture Made Utah a Hotbed for Multi-Level Marketers" 788:"Network marketing" and "multi-level marketing" (MLM) have been described by author 3743: 3638: 3538: 3107: 3044: 2141: 1899: 1551: 1356: 789: 779:

techniques, which some groups use to enhance their members' enthusiasm and devotion

574: 410: 307: 244: 234: 214: 199: 166: 151: 116: 101: 81: 3424: 2881: 1211:(1979), the Federal Trade Commission indicated that multi-level marketing was not 1188:

In a 2004 Staff Advisory letter to the Direct Selling Association, the FTC states:

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Independent distributors develop their organizations by either building an active

3938: 3688: 3381:"Index of multi-level marketing articles on the Federal Trade Commission website" 2131: 1466: 734: 400: 274: 76: 1556:

The Direct Selling Revolution. Understanding the Growth of the Amway Corporation

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The invisible customer: strategies for successive customer service down the wire

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MLM businesses operate in all 50 U.S. states. Businesses may use terms such as "

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Encouraging if not requiring members to purchase and use the company's products

652: 530: 495: 317: 3130:"Comparing Recruiting MLMs with No-product Pyramid Schemes, and with Gambling" 3111: 3048: 1009:

In an October 15, 2010, article, it was stated that documents of a MLM called

808:" is an effort to draw distinctions between multi-level marketing and illegal 3988: 3888: 3863: 3848: 3792: 3718: 3673: 3663: 3523: 2554: 1308: 1303: 1117:, where the practice is legal, while selling and recruiting on the mainland. 889: 837: 522: 514: 352: 239: 3330: 2422: 2039:

Not all multilevel marketing plans are legitimate. Some are pyramid schemes.

1777:"Public Comments regarding proposed Trade Regulation Rule (16 CFR Part 436)" 804:". Critics have argued that the use of these and other different terms and " 3822: 3728: 3503: 3221:"Multilevel marketing or 'pyramid?' Sales people find it hard to earn much" 3025:, eds. D. Grant & C. Oswick (Thousand Oaks, Cal.: Sage, 1996), 200–212. 2524:"Multilevel marketing or 'pyramid?' Sales people find it hard to earn much" 2409: 1273: 1223: 931: 813: 809: 764:

Exploitation of personal relationships as both sales and recruiting targets

749: 739: 709: 3963: 3733: 3598: 3533: 3076: 2608: 2100: 1799: 1639: 1098: 960:: "The Government investigation claims to have revealed that just 10% of 611: 559: 219: 194: 86: 853: 3908: 3858: 3648: 3328: 833: 567: 526: 377: 2632:"Placing Practices: Transnational Network Marketing in Mainland China" 2507:

FTC Returns More Than $ 3.7 Million to People Harmed by Pyramid Scheme

2017:"The Bottom Line About Multilevel Marketing Plans and Pyramid Schemes" 3968: 3943: 3807: 3703: 3678: 3623: 3583: 3170: 2664: 1150: 1114: 991: 956: 920: 885: 745: 698: 484: 337: 269: 26: 3414:

Selling the Dream: The Billion Dollar Industry Bankrupting Americans

3247: 2756:"Hong Kong multi-level marketing plan needs closer look (editorial)" 1822: 1346: 1006:

says the median annual income for those in direct sales is $ 2,400."

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banned all types of domestic and foreign MLM trade in Bangladesh.

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Bloch, Brian (1996). "Multilevel marketing: what's the catch?".

2202:(citing Neil Offen, president of the Direct Selling Association) 2159: 2139:

Brown, Caryne (December 1992). "Door-to-door Selling Grows Up".

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Ryan, Leo; Wojciech, Gasparski; Georges, Enderle, eds. (2000).

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High initial entry costs (for marketing kit and first products)

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Amway Motivational Organizations: Behind the Smoke and Mirrors

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MLM marketing is banned in Saudi Arabia by imposing religious

1002:"While earning potential varies by company and sales ability, 3973: 3958: 3918: 3643: 3548: 3513: 3488: 3147: 2258: 2187:"Comp Plan Conversion:Direct Sales to MLM Compensation Plans" 1323: 1278: 1219: 1138: 1134: 1093:

by American, Taiwanese, and Japanese companies following the

961: 656: 636: 476: 224: 204: 1636:"Legging company, LuLaRoe accused of misleading consultants" 3769: 3683: 3248:"Multi-Level Marketing Critic: Beware 'Main Street Bubble'" 2820: 2601: 2394:

Dokoupil, Tony (August 2, 2008). "A Drink's Purple Reign".

1826: 1284: 1170: 776: 2135:. Vol. 68, no. 7. February 27, 1970. p. 51. 1823:"From High Energy Clubs to Dashed Dreams: Herbalife Tales" 816:, and consumer fraud scams—where none meaningfully exist. 783: 2903: 3072:"Going against the slippery slope of a pyramid scheme" 2875:"RE: Staff Advisory Opinion – Pyramid Scheme Analysis" 2101:

Edwards, Paul; Edwards, Sarah; Economy, Peter (2009).

1492:"Multi-Level Marketing Businesses and Pyramid Schemes" 577:, who buy direct from the company, or by recruiting a 2184: 2054:. FTC, Bureau of Consumer Protection. January 4, 2018 1982: 1494:. FTC, Bureau of Consumer Protection. January 4, 2018 1268:

Many Islamic jurists and religious bodies, including

2521: 2481:"Fortune Hi-Tech: American dream or pyramid scheme?" 2478: 1737: 1668: 3454: 2661:

Red Tourism in China: Commodification of Propaganda

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Permanent Committee for Scholarly Research and Ifta

588:in MLM's multiple-level structure of compensation. 2897: 2636:China Urban: Ethnographies of Contemporary Culture 1989:Encyclopedia of White-Collar & Corporate Crime 1514: 1512: 1432: 1089:'spread selling') was first introduced to 631:documents the author's father's failures through " 483:of the MLM company is derived from a non-salaried 3199:"Brain Typing: The Pseudoscience of Cold Reading" 3012:(Winter Park, Fla.: Backstreet Publishing, 1999). 2995:; Robert L. FitzPatrick & Joyce K. Reynolds, 1874:"Lewis: Herbalife selling 'dreams' and 'stories'" 1664: 1662: 1660: 1658: 1656: 1550: 1456: 1454: 646: 3986: 2451: 1969: 1953:Expert Fraud Investigation: A Step-by-Step Guide 1937: 1696: 1694: 1692: 1414: 1410: 1408: 1406: 3245: 3132:. Consumers Awareness Institute. Archived from 3034: 2977: 2975: 2866: 2369: 1848:"Amway: Selling the Dream of Financial Freedom" 1820: 1437:. Cengage Learning Business Press. p. 36. 1137:nationally, for this reason MLM companies like 888:) and the California Perfume Company (renamed " 2872: 2730:State Administration for Industry and Commerce 2602:ফখরুল ইসলাম (Fakhrul Islam) (April 11, 2015). 2578:"Why multilevel marketing won't make you rich" 2393: 2283: 2096: 2094: 1671:"Multi-Level Marketing: China Isn't Buying It" 1653: 1584:"The Perils Of Multi-Level Marketing Programs" 1451: 1276:, have considered MLM trade to be prohibited ( 3440: 3123: 3121: 2454:"What kind of business do you want to start?" 2185:Sheffield, Michael L. (February–March 1999). 2138: 1992:. Vol. 2. Sage Publishing. p. 880. 1950: 1702:"MLM law of China 'Prohibition of Chuanxiao'" 1689: 1517:The Law (in Plain English) for Small Business 1403: 792:as being synonymous, with it being a type of 437: 3869:European Grouping of Marketing Professionals 3294: 3097: 2972: 2629: 2343: 2302: 1914: 1792: 1384: 767:Complex and exaggerated compensation schemes 2160:Charles W. King; James W. Robinson (2000). 2091: 2071: 2069: 1342: 1340: 1338: 1084: 1029:card debt to finance their MLM involvement. 471:, is a controversial and sometimes illegal 3447: 3433: 3196: 3118: 2880:. Federal Trade Commission. Archived from 2780: 2687: 2517: 2515: 2346:"Marketing group merely 'selling a dream'" 2325:. network-experience.net. January 24, 2014 2077:"What's Wrong With Multi-Level Marketing?" 1774: 1733: 1731: 1729: 1727: 1725: 1723: 1628: 1033: 444: 430: 3649:Juice Plus AKA National Safety Associates 3388:Roberts, Alexandra J. (January 7, 2024). 3069: 2917: 2638:. Duke University Press. pp. 23–42. 2547: 2541: 2372:"Republican Benefactor Launches Comeback" 1506: 621: 3148:Cruz, Joan Paola; Camilo, Olaya (2008). 2604:"সব এমএলএম অবৈধ (All MLMs are illegal.)" 2259:Ziglar, Zig; Hayes, John P. PhD (2001). 2238:"Direct Selling Organization Membership" 2066: 1546: 1544: 1542: 1349:Journal of Public Policy & Marketing 1335: 733:Their similarity to traditional illegal 553: 3387: 3165: 2814: 2512: 2452:Peterecca, Laura (September 14, 2009). 2311:(83). Prabandhan & Taqniki: 97–103. 2205: 2153: 2105:(3rd ed.). Wiley. pp. 38–39. 1770: 1768: 1720: 1419:. Gower Publishing Company. p. 4. 1314:List of multi-level marketing companies 784:Direct selling versus network marketing 3987: 3127: 2575: 2522:O'Donnell, Jayne (February 10, 2011). 2252: 2011: 2009: 1417:Purchasing scams and how to avoid them 3428: 3396:. (Social Science Research Network). 2479:O'Donnell, Jayne (October 15, 2010). 1586:. Texas Public Radio. October 4, 2017 1539: 479:of products or services in which the 3295:Abdul-Rahman, Muhammad Saed (2004). 3201:. American Board of Sport Psychology 2815:Lindsey, Daryl (September 8, 2016). 2548:Del Valle, Gaby (October 15, 2018). 2370:Berkowitz, Bill (January 28, 2009). 2022:. FTC. December 2012. Archived from 1921:Valentine, Debra A. (May 13, 1998). 1821:Herb, Greenberg (January 17, 2013). 1765: 1460: 1380: 1378: 899: 848: 677: 3246:Greenberg, Herb (January 9, 2013). 2947:. FTC Consumer Alert. November 1996 2937: 2898:Eisenberg, Richard (June 1, 1987). 2873:Kohm, James A. (January 14, 2004). 2847:. FTC. January 2000. Archived from 2658: 2230: 2006: 1576: 1197:The Federal Trade Commission warns 832:, Aerus (formerly Electrolux USA), 13: 3171:"Skeptoid #176: Network Marketing" 2967:Amway, the Cult of Free Enterprise 2690:"Chinese Law | China: Direct Sale" 2652: 2344:Brown, David (November 27, 2007). 2218:. Direct Selling Association. 2010 1669:O'Regan, Stephen (July 16, 2015). 1607:"Chapter 7: MLM's Abysmal Numbers" 1604: 1473:from the original on May 10, 2024. 1461:Karp, Gregory (August 24, 2021) . 1258: 14: 4026: 3352: 1375: 544: 3037:Western Journal of Communication 2969:(Boston: South End Press, 1985). 2164:. Prima Publishing. p. 80. 1231:Western Journal of Communication 1229:Walter J. Carl stated in a 2004 1160: 904: 895: 852: 682: 558:A typical multi-level marketing 18:Controversial marketing strategy 3322: 3288: 3262: 3239: 3213: 3190: 3159: 3091: 3063: 3028: 3015: 3002: 2959: 2891: 2834: 2808: 2774: 2748: 2712: 2681: 2630:Jeffery, Lyn (March 21, 2001). 2623: 2595: 2569: 2499: 2472: 2445: 2416: 2387: 2363: 2337: 2315: 2296: 2277: 2178: 2119: 2103:Home-Based Business for Dummies 1892: 1866: 1840: 1814: 1786: 1782:. Consumer Awareness Institute. 1319:Saradha Group financial scandal 1218:in the United States. However, 1128: 591: 3362:. January 2000. Archived from 1793:Chung, Frank (March 1, 2017). 1677:. Dezan Shira & Associates 1598: 1477: 1079: 1070: 1060: 919:format but may read better as 697:format but may read better as 647:Comparisons to pyramid schemes 536: 1: 3412:interview with Jane Marie on 3100:Journal of Consumer Marketing 2261:Network Marketing for Dummies 1329: 1178:U.S. Federal Trade Commission 1038: 668:U.S. Federal Trade Commission 3554:Discount Home Shoppers' Club 3544:Crowd Sourcing International 2945:"Multilevel Marketing Plans" 2781:Nestorović, Čedomir (2016). 2240:. Direct Selling Association 1900:"Selling the American Dream" 600: 7: 3894:International Heritage Inc. 3301:. MSA Publication Limited. 3070:Hu Yongqi (July 29, 2010). 2634:. In Chen, Nancy N. (ed.). 2427:. Vol. 8. New Jersey: 2305:Management Research Journal 2213:"US Direct Selling in 2009" 1513:DuBoff, Leonard D. (2004). 1433:Mendelsohn, Martin (2004). 1389:. Kogan Page. p. 112. 1361:10.1509/jppm.21.1.139.17603 1297: 673: 10: 4031: 3954:United Sciences of America 3798:Nature's Sunshine Products 3574:Fuel Freedom International 3023:Metaphor and Organizations 844: 821:Direct Selling Association 368:Promotional representative 3884:Fortune Hi-Tech Marketing 3836: 3767: 3481: 3463: 3112:10.1108/07363769610124519 3049:10.1080/10570310409374790 2787:. Springer. p. 242. 1415:Kitching, Trevor (2001). 1011:Fortune Hi-Tech Marketing 995:has had several articles: 2760:South China Morning Post 2720: 2505:FTC (November 8, 2016) " 1435:The guide to franchising 1263: 1050: 1045:Government of Bangladesh 549: 500:organizational hierarchy 3788:LifeVantage Corporation 3604:The Longaberger Company 3564:Forever Living Products 3128:Taylor, Jon M. (2002). 1521:. Sphinx Pub. pp. 1157:method instead of MLM. 1153:sell their products by 1095:Chinese economic reform 1055:Multi-level marketing ( 1034:Legality and legitimacy 928:converting this section 742:of products or services 706:converting this section 363:Promotional merchandise 348:Out-of-home advertising 137:Account-based marketing 3714:Southwestern Advantage 2983:"FalseProfitsHomePage" 2659:Lin, Chunfeng (2023). 2576:Singletary, Michelle. 2429:Transaction Publishers 2052:"Multilevel Marketing" 2045:"Multilevel Marketing" 1955:. Wiley. p. 168. 1951:Coenen, Tracy (2009). 1485:"Multilevel Marketing" 1204: 1195: 802:relationship marketing 633:get-rich-quick schemes 622:Financial independence 563: 172:Horizontal integration 3995:Multi-level marketing 3904:Koscot Interplanetary 3854:Black Oxygen Organics 3818:Usana Health Sciences 3754:World Financial Group 3519:Arbonne International 3456:Multi-level marketing 2965:Stephen Butterfield, 2374:. Inter press service 2162:The New Professionals 2029:on September 20, 2018 1984:Salinger, Lawrence M. 1749:John Wiley & Sons 1385:Clegg, Brian (2000). 1253:Robert L. FitzPatrick 1199: 1190: 557: 457:Multi-level marketing 358:Product demonstration 210:Corporate anniversary 3879:Excel Communications 3874:European Home Retail 3659:North American Power 3654:Neal's Yard Remedies 3169:(October 20, 2009). 2191:Direct Sales Journal 2047:. FTC. May 18, 2021. 1751:. pp. 235–236. 1739:Carroll, Robert Todd 1560:Blackwell Publishing 1487:. FTC. May 18, 2021. 1222:was found guilty of 985:San Lian Life Weekly 770:False product claims 661:legislative statutes 373:Visual merchandising 303:Behavioral targeting 177:Vertical integration 157:Influencer marketing 3803:Nu Skin Enterprises 3366:on January 18, 2009 3227:. February 10, 2011 2854:on October 19, 2004 2700:on January 21, 2015 2582:The Washington Post 2286:McGeorge Law Review 1708:. September 3, 2005 1167:affiliate marketing 1067:traditional Chinese 323:In-game advertising 313:Display advertising 189:Promotional content 4015:Types of marketing 3844:Aman Futures Group 3739:Usborne Publishing 3724:Success University 3390:"Multi-Level Lies" 3376:(archived version) 3136:on August 27, 2018 2999:(Herald Pr, 1997). 2985:. Falseprofits.com 2762:. October 31, 2013 1057:simplified Chinese 930:, if appropriate. 864:. You can help by 708:, if appropriate. 564: 519:distribution chain 473:marketing strategy 406:Marketing research 343:Online advertising 333:Native advertising 328:Mobile advertising 280:Sex in advertising 97:Consumer behaviour 3982: 3981: 3949:The Trump Network 3929:Royal Tongan Limu 3759:YTB International 3383:. March 18, 2024. 3308:978-1-86179-461-1 2926:In re Amway Corp. 2794:978-3-319-32754-9 2736:on April 28, 2016 2694:www.lehmanlaw.com 2112:978-0-470-53805-0 1962:978-0-470-38796-2 1923:"Pyramid Schemes" 1880:. January 8, 2013 1852:Knowledge@Wharton 1569:978-0-631-19229-9 1552:Xardel, Dominique 1532:978-1-57248-377-4 1208:In re Amway Corp. 1087: 949: 948: 882: 881: 727: 726: 629:My Father's Dream 465:network marketing 454: 453: 416:Consumer research 297:Promotional media 285:Underwriting spot 260:Product placement 240:On-hold messaging 230:Loyalty marketing 147:Product marketing 142:Digital marketing 4022: 4005:Direct marketing 3744:Vector Marketing 3639:Modi Enterprises 3449: 3442: 3435: 3426: 3425: 3416:, March 15, 2024 3405: 3384: 3375: 3373: 3371: 3347: 3346: 3344: 3342: 3326: 3320: 3319: 3317: 3315: 3292: 3286: 3285: 3283: 3281: 3274:www.islamweb.net 3266: 3260: 3259: 3257: 3255: 3243: 3237: 3236: 3234: 3232: 3217: 3211: 3210: 3208: 3206: 3197:Sandbek, Terry. 3194: 3188: 3187: 3185: 3183: 3163: 3157: 3156: 3154: 3145: 3143: 3141: 3125: 3116: 3115: 3095: 3089: 3088: 3086: 3084: 3067: 3061: 3060: 3032: 3026: 3019: 3013: 3006: 3000: 2994: 2992: 2990: 2979: 2970: 2963: 2957: 2956: 2954: 2952: 2941: 2935: 2929: 2921: 2915: 2914: 2912: 2910: 2895: 2889: 2888: 2887:on July 3, 2017. 2886: 2879: 2870: 2864: 2863: 2861: 2859: 2853: 2846: 2838: 2832: 2831: 2829: 2827: 2812: 2806: 2805: 2803: 2801: 2778: 2772: 2771: 2769: 2767: 2752: 2746: 2745: 2743: 2741: 2732:. Archived from 2726:zxjg.saic.gov.cn 2716: 2710: 2709: 2707: 2705: 2696:. Archived from 2688:Xu, Lehman Lee. 2685: 2679: 2678: 2656: 2650: 2649: 2627: 2621: 2620: 2618: 2616: 2599: 2593: 2592: 2590: 2588: 2573: 2567: 2566: 2564: 2562: 2545: 2539: 2538: 2536: 2534: 2519: 2510: 2503: 2497: 2496: 2494: 2492: 2476: 2470: 2469: 2467: 2465: 2449: 2443: 2442: 2420: 2414: 2413: 2391: 2385: 2383: 2381: 2379: 2367: 2361: 2360: 2358: 2356: 2341: 2335: 2334: 2332: 2330: 2319: 2313: 2312: 2300: 2294: 2293: 2281: 2275: 2274: 2263:. Hungry Minds. 2256: 2250: 2249: 2247: 2245: 2234: 2228: 2227: 2225: 2223: 2217: 2209: 2203: 2201: 2199: 2197: 2182: 2176: 2175: 2157: 2151: 2150: 2142:Black Enterprise 2136: 2123: 2117: 2116: 2098: 2089: 2088: 2086: 2084: 2073: 2064: 2063: 2061: 2059: 2048: 2041: 2036: 2034: 2028: 2021: 2013: 2004: 2003: 1980: 1967: 1966: 1948: 1935: 1934: 1932: 1930: 1918: 1912: 1911: 1909: 1907: 1896: 1890: 1889: 1887: 1885: 1870: 1864: 1863: 1861: 1859: 1844: 1838: 1837: 1835: 1833: 1818: 1812: 1811: 1809: 1807: 1790: 1784: 1783: 1781: 1772: 1763: 1762: 1735: 1718: 1717: 1715: 1713: 1698: 1687: 1686: 1684: 1682: 1666: 1651: 1650: 1648: 1646: 1632: 1626: 1625: 1623: 1621: 1611: 1602: 1596: 1595: 1593: 1591: 1580: 1574: 1573: 1562:. pp. 1–4. 1548: 1537: 1536: 1520: 1510: 1504: 1503: 1501: 1499: 1488: 1481: 1475: 1474: 1458: 1449: 1448: 1430: 1412: 1401: 1400: 1382: 1373: 1372: 1344: 1088: 1085: 1081: 1072: 1064: 944: 941: 935: 926:You can help by 908: 907: 900: 877: 874: 856: 849: 790:Dominique Xardel 722: 719: 713: 704:You can help by 686: 685: 678: 575:consumer network 446: 439: 432: 411:Mystery shopping 308:Brand ambassador 245:Personal selling 235:Mobile marketing 215:Direct marketing 200:Ambush marketing 167:Annoyance factor 152:Social marketing 102:Consumer culture 82:Brand management 23: 22: 4030: 4029: 4025: 4024: 4023: 4021: 4020: 4019: 4000:Business models 3985: 3984: 3983: 3978: 3939:Sunshine Empire 3832: 3763: 3477: 3459: 3453: 3379: 3369: 3367: 3358: 3355: 3350: 3340: 3338: 3327: 3323: 3313: 3311: 3309: 3293: 3289: 3279: 3277: 3268: 3267: 3263: 3253: 3251: 3244: 3240: 3230: 3228: 3219: 3218: 3214: 3204: 3202: 3195: 3191: 3181: 3179: 3164: 3160: 3152: 3146: 3139: 3137: 3126: 3119: 3096: 3092: 3082: 3080: 3068: 3064: 3033: 3029: 3020: 3016: 3007: 3003: 2988: 2986: 2981: 2980: 2973: 2964: 2960: 2950: 2948: 2943: 2942: 2938: 2923: 2922: 2918: 2908: 2906: 2896: 2892: 2884: 2877: 2871: 2867: 2857: 2855: 2851: 2844: 2840: 2839: 2835: 2825: 2823: 2813: 2809: 2799: 2797: 2795: 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(2005). 1968: 1961: 1936: 1913: 1891: 1865: 1839: 1813: 1785: 1764: 1757: 1719: 1688: 1675:China Briefing 1652: 1627: 1597: 1575: 1568: 1538: 1531: 1505: 1476: 1450: 1443: 1425: 1402: 1395: 1374: 1355:(1): 139–151. 1333: 1331: 1328: 1327: 1326: 1321: 1316: 1311: 1306: 1299: 1296: 1265: 1262: 1260: 1257: 1162: 1159: 1155:online selling 1130: 1127: 1110:pyramid scheme 1091:mainland China 1052: 1049: 1040: 1037: 1035: 1032: 1031: 1030: 1025: 1024: 1023: 1022: 1019: 1015: 1007: 997: 996: 988: 981: 969: 965: 947: 946: 912: 910: 903: 897: 894: 880: 879: 859: 857: 846: 843: 825:lobbying group 794:direct selling 785: 782: 781: 780: 774: 771: 768: 765: 762: 759: 756: 753: 743: 737: 725: 724: 690: 688: 681: 675: 672: 653:pyramid scheme 648: 645: 623: 620: 602: 599: 593: 590: 551: 548: 546: 545:Business model 543: 538: 535: 531:pyramid scheme 506:distributors. 452: 451: 449: 448: 441: 434: 426: 423: 422: 419: 418: 413: 408: 403: 397: 394: 393: 390: 389: 386: 385: 380: 375: 370: 365: 360: 355: 350: 345: 340: 335: 330: 325: 320: 318:Drip marketing 315: 310: 305: 299: 296: 295: 292: 291: 288: 287: 282: 277: 272: 267: 262: 257: 252: 247: 242: 237: 232: 227: 222: 217: 212: 207: 202: 197: 191: 188: 187: 184: 183: 180: 179: 174: 169: 164: 159: 154: 149: 144: 139: 134: 129: 124: 119: 114: 109: 104: 99: 94: 92:Communications 89: 84: 79: 74: 69: 64: 59: 54: 48: 45: 44: 41: 40: 39: 38: 30: 29: 17: 9: 6: 4: 3: 2: 4027: 4016: 4013: 4011: 4008: 4006: 4003: 4001: 3998: 3996: 3993: 3992: 3990: 3975: 3972: 3970: 3967: 3965: 3962: 3960: 3957: 3955: 3952: 3950: 3947: 3945: 3942: 3940: 3937: 3935: 3932: 3930: 3927: 3925: 3924:Nouveau Riche 3922: 3920: 3917: 3915: 3912: 3910: 3907: 3905: 3902: 3900: 3897: 3895: 3892: 3890: 3889:Holiday Magic 3887: 3885: 3882: 3880: 3877: 3875: 3872: 3870: 3867: 3865: 3862: 3860: 3857: 3855: 3852: 3850: 3849:Beautycounter 3847: 3845: 3842: 3841: 3839: 3835: 3829: 3826: 3824: 3821: 3819: 3816: 3814: 3811: 3809: 3806: 3804: 3801: 3799: 3796: 3794: 3793:Morinda, Inc. 3791: 3789: 3786: 3784: 3781: 3779: 3776: 3775: 3773: 3771: 3766: 3760: 3757: 3755: 3752: 3750: 3747: 3745: 3742: 3740: 3737: 3735: 3732: 3730: 3727: 3725: 3722: 3720: 3719:Stream Energy 3717: 3715: 3712: 3710: 3707: 3705: 3702: 3700: 3697: 3695: 3692: 3690: 3687: 3685: 3682: 3680: 3677: 3675: 3674:Pampered Chef 3672: 3670: 3667: 3665: 3664:Ong Kean Swan 3662: 3660: 3657: 3655: 3652: 3650: 3647: 3645: 3642: 3640: 3637: 3635: 3632: 3630: 3627: 3625: 3622: 3620: 3617: 3615: 3612: 3610: 3607: 3605: 3602: 3600: 3597: 3595: 3592: 3590: 3587: 3585: 3582: 3580: 3577: 3575: 3572: 3570: 3567: 3565: 3562: 3560: 3557: 3555: 3552: 3550: 3547: 3545: 3542: 3540: 3537: 3535: 3532: 3530: 3527: 3525: 3524:Avon Products 3522: 3520: 3517: 3515: 3512: 3510: 3507: 3505: 3502: 3500: 3497: 3495: 3492: 3490: 3487: 3486: 3484: 3480: 3474: 3471: 3469: 3466: 3465: 3462: 3457: 3450: 3445: 3443: 3438: 3436: 3431: 3430: 3427: 3421: 3417: 3415: 3411: 3407: 3403: 3399: 3395: 3391: 3386: 3382: 3378: 3365: 3361: 3357: 3356: 3336: 3332: 3325: 3310: 3304: 3300: 3299: 3291: 3275: 3271: 3265: 3254:September 19, 3249: 3242: 3231:September 19, 3226: 3222: 3216: 3205:September 19, 3200: 3193: 3178: 3177: 3172: 3168: 3162: 3151: 3135: 3131: 3124: 3122: 3113: 3109: 3105: 3101: 3094: 3083:September 19, 3079: 3078: 3073: 3066: 3058: 3054: 3050: 3046: 3043:(1): 92–119. 3042: 3038: 3031: 3024: 3018: 3011: 3008:Ruth Carter, 3005: 2998: 2989:September 19, 2984: 2978: 2976: 2968: 2962: 2951:September 19, 2946: 2940: 2933: 2928: 2927: 2920: 2909:September 19, 2905: 2901: 2894: 2883: 2876: 2869: 2858:September 19, 2850: 2843: 2837: 2822: 2818: 2811: 2796: 2790: 2786: 2785: 2777: 2766:September 19, 2761: 2757: 2751: 2740:September 19, 2735: 2731: 2727: 2723: 2715: 2704:September 19, 2699: 2695: 2691: 2684: 2676: 2674:9781032139609 2670: 2666: 2662: 2655: 2647: 2641: 2637: 2633: 2626: 2611: 2610: 2605: 2598: 2583: 2579: 2572: 2557: 2556: 2551: 2544: 2533:September 19, 2529: 2525: 2518: 2516: 2508: 2502: 2491:September 19, 2487:. pp. 6B 2486: 2482: 2475: 2464:September 19, 2460:. pp. 4B 2459: 2455: 2448: 2440: 2438:0-7658-0037-3 2434: 2430: 2426: 2419: 2411: 2407: 2403: 2399: 2398: 2390: 2378:September 19, 2373: 2366: 2355:September 19, 2351: 2347: 2340: 2329:September 19, 2324: 2323:"MLM History" 2318: 2310: 2306: 2299: 2291: 2287: 2280: 2272: 2270:0-7645-5292-9 2266: 2262: 2255: 2244:September 19, 2239: 2233: 2222:September 19, 2214: 2208: 2196:September 19, 2192: 2188: 2181: 2173: 2171:0-7615-1966-1 2167: 2163: 2156: 2148: 2144: 2143: 2134: 2133: 2128: 2122: 2114: 2108: 2104: 2097: 2095: 2083:September 19, 2078: 2072: 2070: 2058:September 19, 2053: 2046: 2040: 2033:September 19, 2025: 2018: 2012: 2010: 2001: 1999:0-7619-3004-3 1995: 1991: 1990: 1985: 1979: 1977: 1975: 1973: 1964: 1958: 1954: 1947: 1945: 1943: 1941: 1929:September 19, 1924: 1917: 1906:September 19, 1901: 1895: 1884:September 19, 1879: 1875: 1869: 1858:September 19, 1854:. 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