Wednesday 8 March 2017

'MLM' rackets and the UK Enterprise Allowance scheme

Image result for new enterprise allowance

Since 2011, a UK government Ministry, the Dept for Work and Pensions (DWP), has offered unemployed people a means of financing their own business start ups.This initiative is known as the New Enterprise Allowance (NEA) scheme. Although the DWP proclaims that tens of thousands of businesses have been set up under NEA, the actual nature and profitability/sustainability rate of these new businesses has not been fully-disclosed.

The DWP has set out a list of general rules for applicants and explains that certain jobs offered on a self-employed basis are excluded from the NEA scheme. Business plans which might bring the DWP into 'disrepute' have also been excluded.

Unemployed people can apply for NEA at one of a national chain of offices known as 'Job Centres.' Although it is not obligatory, the applicants' idea is then assessed by a 'business mentor' who can help decide its viability based on a classic plan of projected income and expenditure.

NEA 'business mentors' have been supplied by a number of private companies under contract to the DWP. Certain representatives of these companies have lately stated that applications for NEA from persons involved in various 'MLM' schemes, have been numerous, but that these numerous applications are systematically refused on the grounds that 'MLM' companies offer jobs on an self-employed basis, rather than businesses. To date the DWP itself has never stated any clear policy towards 'MLM' companies in regards to the NEA scheme.
If the NEA applicant is accepted, then he/she must stop claiming all other unemployed benefits. UK Job seeker’s allowance is currently up to £57.90 per week for 19-24 year olds and up to £79.10 for 25 and over
The NEA recipient starts trading and must register his/her new business with the tax authorities.
NEA comprises a weekly allowance of £65 (paid for 13 weeks). This is then reduced to £33 per week for the next 13 weeks.
NEA recipients can finally apply for government business development loan of up to £2 500 to be paid back over a period 1-5 years at an annual interest rate of 6%.


your JSA can pay for mascara!

I'm not the only person to have noticed that social media has been infested with British 'MLM' recruiters all boasting that it is possible for unemployed persons to obtain NEA for the purpose of starting 'MLM businesses.'

Yet the hidden overall churn/loss rates in so-called 'MLM income-opportunities' has always been effectively 100%. In fact, more than half a century of quantifiable evidence, proves beyond all reasonable doubt that what has become popularly known as 'Multi-Level Marketing' is nothing more than an absurd, cultic, economic pseudo-science, and that the impressive-sounding made-up term 'MLM,' is, therefore, part of an extensive, thought-stopping, non-traditional jargon which has been developed, and constantly-repeated, by the instigators, and associates, of various, copy-cat, major, and minor, ongoing organised crime groups (hiding behind labyrinths of legally-registered corporate structures) to shut-down the critical, and evaluative, faculties of victims, and of casual observers, in order to perpetrate, and dissimulate, a series of blame-the-victim closed-market swindles or pyramid scams (dressed up as 'legitimate direct selling income opportunites'), and related advance-fee frauds (dressed up as 'legitimate training and motivation, self-betterment, programs, recruitment leads, lead generation systems,' etc.).

David Brear (copyright 2017)


  1. David, this comment is probably a bit off topic, but I was wondering if you saw yesterdays CNN report that the same server linked to Russian banks has also been linked to servers ran by Dick Devos? Just what this all means, I can only guess. There's a scandal brewing and I am left to wonder if somehow, Devos has been involved in facilitating communications between Russian and Trump? Could it be that Richard and Betty Devos are going to be brought into the middle of a potential scandal which might lead to the impeachment of a President. Supposedly 99% of the communications that the Trump server were with a Russian bank and the health care agency run by Richard Devos. Could it be that if the FBI follows the money, they might find out that Devos is involved in what could become an even bigger scandal?

    1. Thanks quixtarisacult - The list of known links between the Putin regime and Donald Trump and his entourage, is getting longer each day.

      In this case, a Russian bank and a DeVos company appear to have been involved in a series of private communications with the Trump organisation, but it's not clear what the explanation of this talkative threesome is. It could have an innocent explanation, but I very much doubt it.

      Many observers already understand that Trump has been involved in various unlawful activities which can be traced to goons associated with Putin (the world's richest racketeer and de facto Tsar of Russia).

      Although he's denied it, Trump has already behaved in a way favourable to the Putin regime, and the Putin regime is known to have tried to have influenced the US election in favour of Trump. This can't just be a coincidence.

      Just imagine the size of the Russian security services' dossier which contains Donald Trump's, and his family's, psychological profiles.

      Putin would appear to have the goods on Donald Trump - a child-like man with an ego the size of Florida and who would quite literally do anything rather than be held to account and publicly humiliated.

    2. quixtarisacult - here's more media coverage.

  2. Some MLM recruits have been getting money from the NEA and not all NEA mentors exclude them.

    1. Thanks for that Info. Anonymous, but might I ask: how do you know this?

      I can be contacted privately via e-mail.

      BTW. I have received exactly the same Info. from other sources.

      What we still don't know is the exact numbers of unemployed 'MLM' recruits who have obtained NEA payments and loans, and the exact sum of tax-payers money involved.

  3. David do you know who decides if NEA is granted to MLM recruits - the mentors or the DWP ?

    1. A Botwatcher - I'm not sure who has ultimately been responsible for this tragicomic situation. That said, anyone connected with the DWP who sincerely believes 'MLM' front-companies to have been offering the unemployed a viable, and lawful, 'business opportunity' is probably far too stupid to be held to account.

  4. Is MLM legal in the UK yes or no?

    1. Anonymous - Fraud, no matter how cleverly it has been disguised, is a form of theft which is unlawful in the UK.

      'Multi Level Marketing' is an effectively-meaningless term which was coined by 3 narcissistic American charlatans back in the 1940s to hide fraud. Since that time, the 'MLM income opportunity' fairy story has been repeated so often, that many people believe it to be true.

  5. Please explain in a short format what makes these MLM companies a fraud?

    1. Anonymous - I would advise you to read the UK Fraud Act 2006 (particularly section 3).


      3. Fraud by failing to disclose information

      A person is in breach of this section if he—
      (a)dishonestly fails to disclose to another person information which he is under a legal duty to disclose, and

      (b)intends, by failing to disclose the information—

      (i)to make a gain for himself or another, or

      (ii)to cause loss to another or to expose another to a risk of loss.


      In 'MLM' rackets, the innocent looking products/sevices' function is to hide what is really occurring - i.e The operation of an unlawful rigged closed-market where effectively no (transient) participant can generate an overall net-profit, because the market is in a permanent state of collapse and requires its (transient) participants to keep finding further (transient) participants.

      Meanwhile only a tiny (permanent) minority rake in vast profits by selling into the closed-market and by controlling all key-information concerning the closed-market's actual catastrophic, ever-shifting results.

      It is possible to use any product or service to dissimulate a closed-market swindle aka pyramid scheme. There are even some 'MLM' rackets which have hidden behind well-known traditional brands (albeit offered at controlled high prices).

      In 'MLM' rackets, there has been no significant or sustainable source of revenue other than never-ending chains of transient losing contractees of the 'MLM' front companies. These front-companies always pretend that their products services are high quality, reasonably-priced and that they can be sold on by their contractees for a profit based on value and demand. In reality, the underlying reason why it's mainly only been 'MLM' contractees who buy the products /services (and not the general public) is because they have been led to believe that by doing so, and by recruiting others to do the same etc. ad infinitum, they will receive a future (unlimited) reward.

      I've been examining the 'MLM' phenomenon for around 20 years. During this time, I've yet to find one so-called 'MLM' company which has voluntarily made key-information available to the public concerning the quantifiable results of its so-called 'income opportunity'.

      The key-information which all 'MLM' bosses seek to hide concerns the overall number of persons who have signed contracts since the front companies were instigated and the retention rates of these contractees.

      When rigorously investigated, the overall hidden net-loss churn rates for 'MLM' income opportunites has turned out to have been effectively 100%. Thus, anyone claiming (or implying) that it is possible make a living in an 'MLM,' cannot be telling the truth and will not provide quantifiable evidence to back up his/her anecdotal claims.

      Some of the biggest 'MLM' rackets (like 'Amway' and 'Herbalife') have secretly churned tens of millions of losing participants over decades. Until recently, these people were all arbitarily defined in their take-it-or-leave-it contracts as 'Distributors/ Businessess Owners, etc.,' but now, since the 'herbalife' racket has come under FTC scruntiny, 'MLM' bosses pretend that all these losing 'MLM' participants weren't 'Distributors/ Business Owners' at all - they were 'members/customers' who were only interested in buying 'MLM' products at a discount