Liberty League and MLM Facts:

MLM WatchDog Reports: Watch Out

Liberty League is a company that sells and markets products in the personal growth and development market for educational and training purposes via the MLM/Network Marketing style.  There are materials and services included in their product line.

Product costs to become involved with this opportunity approach $1500 which is significantly higher than the market value for comparable personal growth and development products.  As an example many folks have pointed out that one can purchase personal growth and development products from numerous and historically proven experts in personal growth for the price of a normal book and in some instances up to $500.  As an example I will use Anthony Robbins The Edge or Personal Power II series both of which are in the $250 range and offered by a personality that is widely recognized as an innovator and true expert in the industry.  Mr Robbins has helped thousands of people from the average to the professional athelete, politician, and even teams of business executives and professionals for nearly 20 years.  His track record is remarkable, his accomplishments and innovations astounding, and his products reasonably priced at true market value.  In fact you will even find his older worn out books, tapes, etc... for sale on ebay and maintaining a reasonable market value.

On the other hand, when a representative enrolls in Liberty League and pays the $1500 (possibly exorbitant) fee for products and enrollment, a whopping $1000 goes directly to enrolling or sometimes the upline enrolling representatives in the form of commissions.  Many feel this is further indication that the true market value of the product itself is significantly less than $1500 and may in fact be in the neighborhood of $250 - $500 (Note: Market value of a product is independent of the actual value someone derives from the product)  They are of course then paying for recruiting (see Fraud.org).

Commissions on the first two (2) sales made by a new representative of this $1500 product/opportunity so that they can make their $1000 are not even paid to them because the first two sales a new representative makes are paid to the upline representative and not to the actual representative that made the sale.

As far as making big money with any opportunity it is largely dependent on the individual but there have been many more folks that have failed to make money than actually make money in the Liberty League opportunity (although it must be said that this is in fact true with most MLM style opportunities). 

Further, when it comes to making big money (The $200,000 annual income dream touted by Liberty League) there is only a small percentage of folks that actually make this kind of money in this opportunity (As is the case with many mlm opportunities due to their commission structures).  For more about a commission structure that is reasonable and allows a representative to generate ongoing residual income almost from the very start and bodes extremely well for retention see this article.

BOCOnline.com has received numerous complaints from folks that have purchased or otherwise become involved with the Liberty League opportunity, I know because I do some work for the BOCOnline.com owner on occasion.  Most complaints are folks that have spent their $1500 only to never make any money and who may have even made a sale or two.  Therefore BOCOnline.com will no longer accept advertisements for this opportunity as they will not jeopardize their reputation for ANY single opportunity.

The FTC and Direct Selling Association frown upon companies that pay for enrollment rather than commissions on the market value and sales of a product.  (See Is it MLM or a Pyramid Scheme?)

Masking a large up front $1500 purchase with a product whose market value maybe significantly less and then proving its lesser market value by paying a WHOPPING $1000 of the $1500 cost directly to enrollers for bringing on board new members this company shows that its commissions are largely paid for enrollment and not based on the products or services value.  This would be akin to charging $500 per month for web hosting when we know the true market value is between $10 and $50.  Then offering a $450 commission on the web hosting for bringing on new customers.  Therefore the commission is largely based on bringing new members on board and not on the value of the web hosting.  This scenario is considered pyramiding PERIOD!  There is NO WAY AROUND THIS FACT!

Thousands of companies operating in this manner have come and gone and generally speaking it will take between 3 and 7 years but in almost all cases they eventually get shut down.  Many times before or sometime after these types of operations are shut down the principles have either absconded the money to another country, they may even leave the US and gain citizenship in another country, some form offshore corporations as protective entities, and still others declare bankruptcy as a way to protect their personal assets and the money they have scammed.

For a viable network marketing or MLM business to continue to pay individuals an ongoing monthly residual income there needs to be a consumable reusable product or service that representatives and customers continue to purchase on an ongoing basis thereby generating sales and monthly residual commissions.  Be wary of any opportunity that offers a one time purchase of a product or service for a significant sum of money and still touts itself as a viable residual income generating opportunity.

Marketing any opportunity based on exaggerated or income claims or money making hype is illegal.  There is a fine line when actually selling an opportunity and making claims that have no basis in reality or that are not typical for most participants.  Making such claims is devious and illegal (e.g. Income guarantees and false claims). FTC Closes Internet Mall for False Claims!

Many folks can, do, and will likely make hundreds of thousands even millions of dollars with illegal operations, including top performing representatives.  That does not make it right to participate in them nor does it speak well about ones ethics or values when participating in these types of opportunities.  In addition, even while some may make money, and in fact a small percentage may make big money, the fact remains that in the end many more folks are left out in the cold and more importantly out of their $1500 or more.

Even though there are significantly more people that have lost or not recouped their money/investment with Liberty League (Either finding value in the product and thier implementation or use thereof, or else recouping in the form of making money with the opportunity) there will be many that make their money back and a few that actually make huge incomes.  However, the majority are not and likely will not.  The opportunity exists and as with any opportunity it is largely dependent on the individual to earn, but whether it is legal, ethical, viable, or if it will be there in 3 to 5 years or not is subjective at best.  It is the strong and expert opinion at this point of this author that this business without radical modification will be out of business or shut down within 2 to 4 years.  Thats at the very latest by end of 2008, but my hunch is sooner.

That said, MLM is still a very viable business model and companies that operate it on a reasonable, ethical, and legitimate/legal basis by selling products or services at or near their market value and basing their commissions on product sales and not on enrollment do present what is likely the fairest compensation available in the world today.  Therefore, if you are considering an MLM opportunity of any kind please do your homework.

MLM companies that operate largely on what the regulators consider a pyramid scheme NEVER last.

In summary, please for your own good, be cautious, do your homework, and read so that you understand the subtle differences between a true viable MLM and a pyramid scheme.  There are some great articles and web sites listed below for starters and for more information Google IT!

Is it MLM or a Pyramid Scheme?

Selecting a Business Opportunity