A one-stop-shop! Just how convenient would that be to do all of your shopping in one place, not to mention, with a discount. In my Market America, MLM Review, let’s find out if this company is better than other MLM business models.
Going to the local discount store to buy what we need is time-consuming. But with Market America, you can order it all online, coupled with a discount to boot.
In addition, they also have an affiliate program where you earn commissions by referring people to their site. The higher number of referrals you make, the higher you climb within the company.
Would you love to get all of your products in one place and not have to go anywhere, with that in mind, you can join the company and maybe make some money.
| Company | Market America |
| Cost To Start | $149.95 |
| Training Included | No |
| Trustpilot Rating | 4.5/5 |
| My Overall Rating | 2/5 |
| What Is Better | The Laura Method (Affiliate Marketing) |
Who Is Market America
Former Amway distributors James Howard Ridinger and his wife Loren Ridinger founded Market America in 1992 and adopted the MLM business model. Today Market America has grown into one of the largest direct sales companies in North America. The home company is in Greensboro, North Carolina.
JR Ridinger had a belief and a vision to change the world, and today Market America operates in 8 countries globally.
As early as 2010, Market America acquired Shop.com, which was an online shopping comparison service. The company combines its database technology with Market America’s cashback programs and network of Independent Shop Consultants.
What Products Does Market America Offer?
Market America themselves don’t manufacture any products or offer any in-house services.
Market America is a bit different than other MLM companies in that they develop a relationship with manufacturers and vendors and market their third-party products. Their company is known as a product brokerage business.
Here I will list Market America’s product categories and services :
- Health and nutrition
- Home and garden care
- Pet care
- Automotive care
- Weight management
- Personal care
- Cosmetics
- Jewelry
- Water filter systems
- Personal financial management
- Internet marketing services for small to medium-sized businesses
Market America appears to have it all; furthermore, they have a shop.com website with millions of additional products.
What Is MLM (Multilevel Marketing)?
An MLM, or Multi-Level Marketing company, is a type of business that relies on its sales force to recruit additional salespeople below them, thus creating a “downline.” They receive commissions on the sales of people they’ve recruited into the MLM.
AN MLM business model will often rely on their representatives to make money for the company, yet they will rarely make much money for their hard work.
Market America MLM Review
As I reviewed Market America I did run into some problems throughout the years which led to a few lawsuits; then again, the products and customer service have good ratings.
Market America had charges filed against them in 1999 by the Securities Exchange Commission (SEC). The charges were related to stock sales; nonetheless, they reached an agreement without admitting nor denying any wrongdoing. However, they did have to pay a fine of $100,000 and a payout of $235,498.
As early as 2011, Jon M. Taylor, Consumer Awareness Institute president, quoted a study stating that “99.6% of MLM distributors lose money.
According to an investigation conducted by Truth In Advertising, Market America’s claim that its top earners were typical was misleading. In addition, it stated that most Market America distributors would not earn enough to break even.
In one of the lawsuits against Market America, a 46-page court document stated that over 90% of Market America distributors average a net loss.
The year 2017 brought another issue with the Residents of California filing a federal lawsuit against Market America for allegedly operating an illegal pyramid scheme targeting Chinese-American immigrants. The company made Chinese immigrants believe that they had an unrealistic chance of success. The lawsuit alleged that representatives were encouraged to recruit relatives and close friends into the business; be that as it may, the new recruits were given preferential treatment not for selling products but for recruiting.
In 2020 Market America was under investigation by Truth In Advertising consequently, the study conducted against Market America revealed that during the first 9 months of 2020, they had posted nearly 500 misleading income claims on social media.
Changes
According to the rules set by truth in advertising laws, using misleading statements when recruiting distributors is both deceptive and illegal. As a result, Market America removed around 750 marketing claims from social media.
With all of these problems throughout the years, Market America appears to have changed a few things. Their pitch to get people to become an UnFranchise Business Owner is, Unfranchise business opportunity is a proven plan for your financial success. They also go so far as to say you can have a residual income if you do exactly what they say outlined in their business plan.
The point I am making here is, that they use the term residual income instead of making financial statements not to mention, the promise to make money comes with a stipulation. If you do what they say you can make money; consequently, if you don’t make money, they can tell you didn’t follow the plan.
Customer Reviews
Market America has a customer rating of 4.45 out of 5 on the Better Business Bureau, granted the MLM portion has had its issues, but customer satisfaction appears high. I have posted both a positive and a negative comment.
How Can You Become An UnFranchise® Owner
To become an UnFranchise Business Owner, all you have to do is head over to the website or join under someone who invited you, then pay the money, and you are on your way.
Price To Join
You may choose from several different ways to become an UnFranchise Business Owner at Market America. Initially, you will purchase a starter kit at $149.95, in addition, you’ll pay $99.95 for your annual membership plus a $21.95 monthly fee for the online back office service.
If you want to move faster, you can purchase a fast start kit which costs $429.95. There are four different kits based on the type of products you choose to promote; likewise, your choice of kits are:
- Isotonix kit (vitamins),
- Motives (makeup)
- TLS Weight Loss Solution (weight loss supplements)
- MA WebCenters (a selection of products, documents, and brochures)
In addition to the start-up kits and fees, you have training requirements which are an extra $60.
Market America Compensation Plan
The Market America Compensation Plan is complicated, to say the least. First, you have to jump through a few hoops to get a commission. Then again, after you invest your money in a starter kit, you have to keep a monthly BV or business volume (points each product holds.)
Each month you need to purchase 200 BV, or in other words, you need to buy enough products monthly to equal the point system of 200 points. See, it is really complicated.
In addition, you also need to buy 200 points worth of products; not only … but also, you need 2 recruits, and then you can start making money. Who is making money, you or the company, from everything you buy?
Video Of The Compensation Plan
Pros And Cons Of Market America MLM
So now that you have the most relevant information, let’s examine the Pros and Cons and determine what the potential truly is.
Pros
- There is a wide range of product types
- Longevity, in business for 30 years
- You can choose to sell many different products
Cons
- Numerous lawsuits for deceit and accusations of a pyramid scheme
- The price to join is costly
- Need to purchase monthly products to earn a commission
- Additional cost for required training
- You have to recruit and keep at least 2 downlines at all times to make a commission
- Overpriced Products
Market America Annual Income Disclosure Statement
With the information in this review, it appears you will spend approximately $3250 in the first year. Yet the income disclosure says that only 23% will ever make enough to recoup that money; however, I am very conservative. Many say they end up putting $30,000 into their Market America business and never make it back.
So in light of this information, only 3.71% of the 180,000 Market America distributors ever make enough money to pay their business expenses which means 96.29% lose their socks with Market America MLM.
Is Market America MLM A Scam?
A scam is a fraudulent business where a company is dishonest in what they offer; with this in mind, I don’t think the products produced by Market America are a scam. Although they are expensive and reviews are beginning to reveal a poor quality. In light of this statement, I do not believe Market America is a scam.
Is Market America MLM A Pyramid Scheme?
To answer this, I have to go off the definition of a pyramid scheme, and with this in mind, I have to say Market America is not a pyramid scheme.
The definition of a pyramid scheme, according to Wikipedia, is: In a pyramid scheme, an organization compels individuals who wish to join to make a payment. In exchange, the organization promises its new members a share of the money taken from every additional member that they recruit.
An MLM model does not take the money from the recruits to pay the top representative; therefore, it is not a pyramid scheme, be that as it may, it resembles one more closely than any I have run across.
Video Overview Of Market America MLM Review
The Problem With MLM Companies In General
According to an FTC Government file, an MLM operation does not have a clearly defined definition. It calls MLM’s “product-based pyramid schemes” not to mention it compares it to an illegal chain letter. You know the letters you receive in the mail, it says to put a dollar in an envelope with a copy of the letter and send one to 10 people. Then if you do this, you will make a ridiculous amount of money.
The FTC Government document also states that MLM “is inherently flawed, unfair, and deceptive.”
Only 25% of MLM participants turn a profit. Please note this says “turn a profit,” rather than, make money. After you take out expenses, very few make money.
My Recommendations Regarding Market America MLM
In all honesty, I can not recommend Market America to make money or a residual income. The customer service may be good, and the reviews may be wonderful, at the same time, the MLM business model is the same everywhere. You can not achieve financial independence with Market America.
To put it differently, I believe you will put a lot of money into your business only to come out on the underside of your financial future. It is important to realize that when you don’t make money, the company will say you didn’t follow the plan.
In addition, the company has had a lot of trouble over the years claiming false income and fighting lawsuits to prove they are not a pyramid scheme.
