US weight-loss company Isagenix was slammed by Consumer group Choice this week for allowing unqualified operatives to spruik its products and provide diet advice while recruiting new sellers into the scheme.

Multi-level marketing, network marketing, direct selling, call it what you will. LYONESS TAKEN TO COURT BY CONSUMER WATCHDOG.

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MLM companies like Amway, Avon, Herbalife and Isagenix present themselves as legitimate business opportunities. Maybe, but that depends on your definition. Of all three words. Yes, multi-level marketing is technically legal.

The skinny on Isagenix

But as Robert L. Olympic athlete Jana Pittman promotes Isagenix. Divorces are a common outcome. Gerard Brody, chief executive of the Consumer Action Law Centre in Melbourne, warns consumers to be very wary of multi-level marketing schemes.

Many employ psychological techniques to encourage an in-group, out-group mentality, not unlike a cult. DSAA chief executive John Holloway is candid in acknowledging there have been problems in the past.

But the industry is changing. The old stereotypes no longer apply, and for every negative experience, there are many positive ones, Mr Holloway says. First and foremost, actual network marketing now represents just a part of a bigger picture for these companies. The entire channel is changing. Herbalife has been dogged by controversy in the US.

Of those, 32, worked nine hours per week, and 7, worked So what are the red flags? What representations are being made about earning potential? What, realistically, are the prospects of success? Direct selling is not unlike any other small business. You only get out what you put in.

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