MLM & Pyramid Schemes no image

Published on November 21st, 2010 | by Charlie Wright


Review: Healthy Chocolate MLM

A US company called Global Rewards is trying to spread the word about “healthy chocolate” using a classic multi-level marketing technique.

I’ve had a look into this. While the product may be okay, you’d need to have a serious list of health food buyers to make this work. Trying to recruit friends and family may not cut it.

I’ve been involved in a bit of health book marketing before, so I know a bit about what works and what doesn’t.

If it was me – and this product was tested on the market and found to be popular – I’d sell this product into a good health email newsletter list.

Even then I’d prefer to simply go to the source company and sell the product on on commission than get into this ‘downline’ malarkey.

One of my readers agrees:

“Seems to me you will have to get through an awful lot of chocolate and have many on your ‘downline’ to make any real money from this. “

Also, there’s another parallel story that may be worth considering…

I found an article in the Sydney Morning Herald called ‘The Great Chocolate Rip Off’. It was about a company called MXI Corp, which has been selling their ‘healthy Xocai chocolate range’…by offering it as a multi level marketing opportunity.

The article said that the company claimed that “Several of the 620 Australian distributors were ‘making six figures’ and there are big plans to expand.”

However, the article then says…

“But Jon Taylor, the Utah-based president of the Consumer Awareness Institute and an adviser to Pyramid Scheme Alert, who has analysed hundreds of similar schemes, warned that recruits were ‘having to spend money to qualify for commissions and advance in the scheme.'”

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