Three years have passed since we first delved into the intricate world of Multi-Level Marketing (MLM) and its notorious counterpart, pyramiding schemes.
Time has only deepened the complexities of these business models. While MLMs boast tangible products and a legitimate sales structure, pyramid schemes thrive on recruitment and investments, lacking a real product base.
Yet, this distinction doesn’t absolve MLMs from their fair share of controversies.
Businesses under the MLM umbrella often walk a fine line, with some genuinely aiding members in financial growth, while others disproportionately enrich a select few at the expense of many.
Amidst this murky landscape, Market America stands out as a contentious player.
Does its ability to generate payouts signify legitimacy, or do the lawsuits and accusations it faces paint a different picture of this MLM giant?
Market America Review Summary
Product Name: Market America
Product Type: Multi-Level Marketing
Creator: JR Ridinger
Summary: Market America also known as “Shop.com” is a Multi Level Marketing business. However for the company they call it, “Unfranchise”. Just like any other businesses that operate in this business model, they simply have distributors to sell their products and recruit other distributors.
Price: Initial payment of $399 and a monthly payment of $129; $20 to $200 for each training
Best For: Multi-Level Marketing
Rating: 2 out of 10
Not Recommended
What is Market America?
Market America also known as “Shop.com” is a Multi Level Marketing business. However for the company they call it, “Unfranchise”.
Just like any other businesses that operate in this business model, they simply have distributors to sell their products and recruit other distributors.
This is founded by JR Ridinger, a former Amway distributor.
This company has been in the industry for more than 27 years. And they are in partnership with different companies for their products. Examples are Hudson’s Bay, Ebay, Bed Bath, and many more.
They also have an A+ rating from BBB.
Products
Market America says that its products are from third-party firms and manufacturers and are exclusively marketed and distributed by them.
The distributors can choose from a variety of products that they buy from the company and resell.
The products cover health care like nutritional supplements and weight loss; cosmetics like anti-aging and skin care products; and home cleaning supplies.
Since they are catered by third-party manufacturers you might want to check out their brands:
- Health and nutrition – Isotonix (they have 20 varied products under this line alone)
- Home and garden care – Snap
- Pet care- Pet Health
- Automotive care- Autowork
- Weight management TLS
- Personal care- Royal Spa, Fixx, Skintelligence
- Cosmetics- Motives by Loren Ridinger
- Jewelry- Loren Jewels, Yours by Loren Ridinger
- Water filter systems- Pure H20
Services
- Personal financial management- maCapital Resources
- Internet marketing services- maWebCenters
In addition to that, there are also for sale apparel, food, and other electronic products that you can check and access through Shop.Com. Shop.com are set of third parties that supply these products to the company.
The products are bought wholesale which is cheaper as compared to per piece.
What is Market America UnFranchise?
Market America UnFranchise business, presents a unique twist in the multi-level marketing arena.
Claiming to blend the structure of franchising with the flexibility of a home-based business, it promises a path to financial empowerment for its independent distributors.
These UnFranchise Owners (UFOs) engage in selling products and recruiting more distributors, supposedly benefiting from a pre-established system and a track record of financial success.
However, this model raises eyebrows, drawing parallels to pyramid schemes where earnings heavily depend on recruitment, often favoring those at the top hierarchy.
In my assessment, Market America’s UnFranchise model seems to echo these pyramid-like attributes, potentially benefiting early entrants while leaving others grappling for gains.
How does it work?
To start with Market America, you will have to spend an initial payment of $399 and a monthly payment of $129.
If you are an independent contractor, you are still required to spend $130 up to $300 on products of Market America that is available on Shop.com.
Once you become a memberYou are also required to do the following tasks every month:
- buy a minimum order per month as a member
- Complete all paper works for the company
- Attend weekly meetings and training
- Teach your downlines regularly
Sales are done through one-on-one marketing or selling.
Each training, seminar, and event that they require you to attend actually costs you $20 to $200. Yup, these are not for free so you have to spend for all of it.
In addition, the company calls their members independent distributors or “Unfranchise Business Owners”.
Whether you are operating as an individual distributor or as a business entity, you sell them online as a retail website and you will be referred to as their “Partner Stores”
What Do Customer Reviews Reveal About Market America’s Shop.com?
Operating under the banner of “Shop.com,” Market America’s foray into the MLM world involves a platform where distributors sell products.
Reviews from platforms like Trustpilot and BBB shed light on customer experiences with Shop.com.
A mixed bag of feedback emerges, with a 3.8-star rating on Trustpilot and varied customer opinions.
One user, “mtngal,” warns against trust issues, sharing a scam experience involving a high-value purchase.
Complaints on BBB echo concerns about the company’s cancellation and refund policies, highlighting issues like unauthorized charges and difficulties in terminating accounts.
My take? Market America, or Shop.com, needs to ramp up its vetting process for retailers, ensuring a safer and more reliable shopping experience.
Moreover, strengthening its policies on cancellations and refunds could significantly improve customer trust and satisfaction.
What Went Wrong with Market America?
They have a good reputation at first. Their ratings were high and they have been running the business for almost three decades now. So what went wrong with Market America?
Federal Suits
There are several suits filed against them and the most recent one is a lawsuit brought by Chuanjie Yang and Ollie Lan accusing Greensboro, who are California residents.
They accused the company of violating the Racketeering Influenced and Corrupt Organizations Act and California state law.
They claim that they are being taken advantage of because of their Nationality. Furthermore, they explained that the company targets Chinese-American immigrants for the reason that they have limited access to the channels that will help them exercise their legal rights.
And to quote, “they don’t “have regularly available legal channels to vindicate their legal rights.”
Market America denied these accusations and settled the case privately. However, another incident happened earlier than these which they neither admitted nor denied.
They faced allegations that were related to stock sales. This crime was committed by someone on behalf of one of the Ridinger family trusts.
They settled the case by paying $235, 498 and a fine of $100,000. They also paid an interest to the Securities and Exchange Commission.
There are more cases filed against them which you can check online and through the news sites. Overall, they faced around 5 filed cases and allegations and they only denied one of those.
Same Ole Strokes
Some reviews claim that Market America is not an MLM but seeks to start a new brand that will serve as a substitute or an improvement on the MLM model.
However, critics would argue that nothing is not an MLM in their current model.
They term it an “incarnation of Multi Level Marketing”. This is because they still uphold the foundational characteristic of an MLM Business Model.
- The quality of the products they sell is interchangeable with products outside their company at a more affordable price.
- What the distributors do is to introduce to their customers Market America Products and the same thing is done by their downlines.
- There’s this promise that MLM says to their downlines, that they can be as rich as the owner of the company when they become a member or when they continue to invest in it.
Is Market America Still in Business?
Despite controversies, Market America, also known as Shop.com, continues its operations, reportedly reaching annual sales close to $1 billion across various countries.
Insights from Reddit suggest that the company is actively expanding, targeting the Asia Pacific region and Asian communities in the United States.
This expansion strategy, coupled with promises of financial freedom, raises questions about its actual intent and business practices.
From my perspective, Market America seems to be vigorously pursuing growth, potentially exploiting the allure of financial independence to attract a diverse range of participants.
This approach warrants scrutiny, as it could be indicative of a business model more focused on expansion and recruitment than on the sale of legitimate products and services.
Is Market America a Scam?
So you might be thinking, that some of their distributors are successful but some are not. So is it a scam?
Well, I think there is a more relevant question other than that. Is it safe? Is it worth the risk? Can I trust the company? Like I always in my reviews, there are always risks when you start a business so pick the one that you can trust.
Scam does not only mean they do not pay at all. Scam could be paying less to have more, and still taking advantage of other people. I wouldn’t trust a company that has a bad record regardless of whether they pay or not.
If you are going to look at it, these are not simply complaints but lawsuits were filed. I bet these are serious matters and all of them involve mishandling of money.
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