Most people envision coffee in terms of fresh roast, aroma and mocha when thinking of it; yet when discussing Organo Gold it is the mushroom which comes to mind as being its hallmark feature. Yet that has helped its success immensely.

Established in 2008 and led by co-founder and CEO Bernardo Chua, this company offers coffee infused with Ganoderma Extract or Reishi, said to reduce cholesterol and fight cancer. They also produce tea, supplements and a Latte Blend which they claim is more nutritious than traditional coffee.

Product is sold not through stores but rather through an intricate network of distributors who pay an independent contractor fee in exchange for selling the product, with part of their earnings going back into commission payments with some going back to recruiter – this arrangement known as multi-level marketing (MLM) schemes has caused considerable debate and criticism over time.

MLM schemes have long been debated. Some assert they are fraudulent while others view them as legitimate ways for average people to make extra income. This debate has been further complicated by companies like Avon, Amway and Herbalife being accused of operating pyramid schemes; evidence exists of Organo Gold using pyramid business models as a tax avoidance strategy.

People often turn to multi-level marketing (MLM) schemes in an attempt to avoid taxes, but this one appears to have gone too far. Operating such an MLM without first registering is illegal in Guyana and could result in serious legal complications for its participants.

Direct Selling News will explore this company and its products more closely this week, discussing potential reasons it could fall under MLM definition as well as pyramid scheme status. For more information, read our full article here.