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You've almost certainly come across at least one multi-level-marketing company in your life- maybe you have an aunt who sells Avon or Amway, a cousin who sells Herbalife, or a co-worker who is into Color Street or Tupperware. Maybe you even sell MLM products yourself, or used to. This article is not an attack on anyone who wants to make money selling MLM products. It totally makes sense to want to try and get ahead and make money for yourself, especially with the rising cost of living. However, I would like to point out some of the drawbacks of supporting these companies.
These companies target people, especially women, in need of money. Stay at home mothers are a common target. They promise that if you join them and work hard enough you can achieve financial independence. However, they fail to disclose that usually people who join these schemes make very little money, and in fact often end up losing a lot by buying inventory they are unable to sell.
What are MLMs?
Multi-Level-Marketing Schemes, or MLMs, (also sometimes called 'network marketing', 'pyramid selling' or 'relationship marketing') are companies that use a strategy for making money where the company's revenue comes from a non-salaried employee. The idea is that you make money either by selling products or services purchased from the company, or from commission earned by recruiting other people to sell the products. However, the market can become rapidly saturated, so people further down the chain can't sell on the products they buy and only the people at the top end up making actual profits. It's like an old fashioned pyramid scheme, except that it's legal.
Downsides to selling MLM products
*Your friends and family will get sick of hearing you talking about the MLM and asking them to buy things.
*Very low odds of success. Regular businesses do fail or lose money sometimes, but MLMs do so at a much higher rate. In fact, the odds of success are lower than that of playing a Roulette wheel at Las Vegas. 3 out of 5 people who join an MLM make no sales at all. The majority (57%) make no profit. Those who do make sales make an average of $411 a year, or $34 a month before expenses (eg. buying inventory).
*Losing money, and being stuck with useless inventory. Facebook Marketplace is full of people trying to sell off tonnes of cheap MLM jewellery, desperately trying to make back some of what they spent. I know a Herbalife seller with a garage full of expired weight loss products.
How To Spot an MLM Scam Some red flags to look for that might indicate that a something is an MLM:
*Being pressured to buy stock/inventory. While MLM reps often say that what they do is "no different from selling things in a store", store employees don't have to buy their own inventory, and get stuck with it if they can't sell it. Small business owners do, but working for an MLM is not the same as owning a small business. You don't set the prices, or control what the products are, and more importantly you don't get a salary.
*Messages out of the blue from an old acquaintance (eg. someone you went to high school with) who suddenly offers you a free trial of a product, or wants to promote an "exciting business opportunity" where you can "be your own boss"
*Low quality products. Not all MLMs have low quality products, but it is a common issue. Examples include when women selling a certain brand of leggings were sent boxes of leggings that were moldy from being stored in boxes in the rain, or a haircare MLM where customers complained that the shampoo literally made their hair fall out.
*Pressure to recruit friends and family to sell products.
*Poor communication from the company (emails and messages not returned, or very late replies, lack of information about the average income people earn selling the product).
*A poor rating with the Better Business Bureau. You can check the rating a company has online.
While MLMs make some pretty big promises they fail to deliver. It's better not to get involved in them in the first place, because the odds are you will only lose money and annoy your friends and family. However, if you already joined one, don't despair. You are not alone, and should not be embarrassed, as many, many people all over the world made the same mistake as you. Get out while you can and cut your losses. You might find solace in online communities for former MLM reps, or in listening to podcasts like The Dream, which has interviews with people who were deeply involved with MLMs like Lularoe and Tupperware. Maybe you can share your own experiences to help others.
You've almost certainly come across at least one multi-level-marketing company in your life- maybe you have an aunt who sells Avon or Amway, a cousin who sells Herbalife, or a co-worker who is into Color Street or Tupperware. Maybe you even sell MLM products yourself, or used to. This article is not an attack on anyone who wants to make money selling MLM products. It totally makes sense to want to try and get ahead and make money for yourself, especially with the rising cost of living. However, I would like to point out some of the drawbacks of supporting these companies.
These companies target people, especially women, in need of money. Stay at home mothers are a common target. They promise that if you join them and work hard enough you can achieve financial independence. However, they fail to disclose that usually people who join these schemes make very little money, and in fact often end up losing a lot by buying inventory they are unable to sell.
[b]What are MLMs?[/b]
Multi-Level-Marketing Schemes, or MLMs, (also sometimes called 'network marketing', 'pyramid selling' or 'relationship marketing') are companies that use a strategy for making money where the company's revenue comes from a non-salaried employee. The idea is that you make money either by selling products or services purchased from the company, or from commission earned by recruiting other people to sell the products. However, the market can become rapidly saturated, so people further down the chain can't sell on the products they buy and only the people at the top end up making actual profits. It's like an old fashioned pyramid scheme, except that it's legal.
[b]Downsides to selling MLM products[/b]
*Your friends and family will get sick of hearing you talking about the MLM and asking them to buy things.
*Very low odds of success. Regular businesses do fail or lose money sometimes, but MLMs do so at a much higher rate. In fact, the odds of success are lower than that of playing a Roulette wheel at Las Vegas. [b]3 out of 5 people who join an MLM make no sales at all.[/b] The majority (57%) make no profit. Those who do make sales make an average of $411 a year, or $34 a month before expenses (eg. buying inventory).
*Losing money, and being stuck with useless inventory. Facebook Marketplace is full of people trying to sell off tonnes of cheap MLM jewellery, desperately trying to make back some of what they spent. I know a Herbalife seller with a garage full of expired weight loss products.
[b]How To Spot an MLM Scam[/b] Some red flags to look for that might indicate that a something is an MLM:
*Being pressured to buy stock/inventory. While MLM reps often say that what they do is "no different from selling things in a store", store employees don't have to buy their own inventory, and get stuck with it if they can't sell it. Small business owners do, but working for an MLM is not the same as owning a small business. You don't set the prices, or control what the products are, and more importantly you don't get a salary.
*Messages out of the blue from an old acquaintance (eg. someone you went to high school with) who suddenly offers you a free trial of a product, or wants to promote an "exciting business opportunity" where you can "be your own boss"
*Low quality products. Not all MLMs have low quality products, but it is a common issue. Examples include when women selling a certain brand of leggings were sent boxes of leggings that were moldy from being stored in boxes in the rain, or a haircare MLM where customers complained that the shampoo literally made their hair fall out.
*Pressure to recruit friends and family to sell products.
*Poor communication from the company (emails and messages not returned, or very late replies, lack of information about the average income people earn selling the product).
*A poor rating with the Better Business Bureau. You can check the rating a company has online.
*Over the top claims about products. I've seen MLMs that claimed that their products could cure autism or prevent Covid. [url]https://www.thebalancemoney.com/business-is-an-mlm-scam-1794756[/url]
While MLMs make some pretty big promises they fail to deliver. It's better not to get involved in them in the first place, because the odds are you will only lose money and annoy your friends and family. However, if you already joined one, don't despair. You are not alone, and should not be embarrassed, as many, many people all over the world made the same mistake as you. Get out while you can and cut your losses. You might find solace in online communities for former MLM reps, or in listening to podcasts like The Dream, which has interviews with people who were deeply involved with MLMs like Lularoe and Tupperware. Maybe you can share your own experiences to help others.
[b]Further reading:[/b] List of MLM companies: https://en.wikipedia.org/wiki/List_of_multi-level_marketing_companies This isn't all of them of course, but it's a lot.
'Multi-Level-Marketing Schemes are Scams: How To Avoid Them' [url]https://mashable.com/article/multi-level-marketing-mlm-scam-avoid[/url]
'Shocking Statistics' MLMs and gambling [url]https://web.archive.org/web/20180827065417/http://www.mlm-thetruth.com/shocking-statistics-mlm-vs-classic-pyramid-schemes-gambling/[/url]
'How Much Money is Really Made in an MLM? Global Report' [url]https://www.oceanfinance.co.uk/blog/how-much-money-is-really-made-in-mlms-read-our-global-report[/url]
Podcasts: [url]https://lifeaftermlmpod.com/about[/url] [url]https://www.pushkin.fm/podcasts/the-dream[/url] - I really like this one. It covers a lot.
Kalayla wrote:I know of some people that have succeeded with multi level marketing and it is good for them. I know it won't work for me.
It doesn't work out for most people. More than half of the people who try it don't make any profit at all.
Sometimes the people who sell MLM products also lie or exaggerate their earnings to try and entice people to join. There are so many posts on Facebook where they have copy/pasted the exact same wording to brag about their supposed earnings. Then there are the ones bragging about the 'rewards' they got from the company like holidays (which it turns out they have to pay for themselves) or cars (which they actually have to lease).
[quote="Kalayla"]I know of some people that have succeeded with multi level marketing and it is good for them. I know it won't work for me.[/quote]
It doesn't work out for most people. More than half of the people who try it don't make any profit at all.
Sometimes the people who sell MLM products also lie or exaggerate their earnings to try and entice people to join. There are so many posts on Facebook where they have copy/pasted the exact same wording to brag about their supposed earnings. Then there are the ones bragging about the 'rewards' they got from the company like holidays (which it turns out they have to pay for themselves) or cars (which they actually have to lease).
I swear, they are like ponzi schemes even though they insist they aren't. I remember one being banned in the UK. The 'agents' can also sell you lies. There's this one called Table Charm. One day a lady who sold the products, which were EXTORTIONATE, looked me in the eye and told me that my doctor was wrong, I didn't need surgery for my fibroids AND only her products could make them disappear. Plus she claimed the products cured cancer. Needless to say, I swiftly ended that discussion, didn't buy anything and went for surgery.
I swear, they are like ponzi schemes even though they insist they aren't. I remember one being banned in the UK. The 'agents' can also sell you lies. There's this one called Table Charm. One day a lady who sold the products, which were EXTORTIONATE, looked me in the eye and told me that my doctor was wrong, I didn't need surgery for my fibroids AND only her products could make them disappear. Plus she claimed the products cured cancer. Needless to say, I swiftly ended that discussion, didn't buy anything and went for surgery.
Angie10 wrote:I swear, they are like ponzi schemes even though they insist they aren't. I remember one being banned in the UK. The 'agents' can also sell you lies. There's this one called Table Charm. One day a lady who sold the products, which were EXTORTIONATE, looked me in the eye and told me that my doctor was wrong, I didn't need surgery for my fibroids AND only her products could make them disappear. Plus she claimed the products cured cancer. Needless to say, I swiftly ended that discussion, didn't buy anything and went for surgery.
Good for you!
The health related scams bother me the most. I'm a teacher, and I often come across people trying to sell essential oils to parents and teachers claiming that they can prevent flu and covid, or will magically 'fix' ADHD and autism etc. Parents are sometimes desperate enough to fall for it.
-- 22 Dec 2024, 10:45 --
Netherrealmer wrote:I remember innocent young me trying to get referrals form gdi and no one is interested.
What's GDI?
[quote="Angie10"]I swear, they are like ponzi schemes even though they insist they aren't. I remember one being banned in the UK. The 'agents' can also sell you lies. There's this one called Table Charm. One day a lady who sold the products, which were EXTORTIONATE, looked me in the eye and told me that my doctor was wrong, I didn't need surgery for my fibroids AND only her products could make them disappear. Plus she claimed the products cured cancer. Needless to say, I swiftly ended that discussion, didn't buy anything and went for surgery.[/quote]
Good for you!
The health related scams bother me the most. I'm a teacher, and I often come across people trying to sell essential oils to parents and teachers claiming that they can prevent flu and covid, or will magically 'fix' ADHD and autism etc. Parents are sometimes desperate enough to fall for it.
-- 22 Dec 2024, 10:45 --
[quote="Netherrealmer"]I remember innocent young me trying to get referrals form gdi and no one is interested. :lol:[/quote]
Fidelia wrote:I carefully told myself that I would not get myself involved in any earning venture that doesn't have a unique value proposition.
Could you explain what a unique value proposition is please?
[quote="Fidelia"]I carefully told myself that I would not get myself involved in any earning venture that doesn't have a unique value proposition.[/quote]
Could you explain what a unique value proposition is please?
GDI is basically a website creating survey. The website they create uses .wf instead of .com. From what I remember, he promised that every time you can pitch someone to make a website from them, you earn $10. But getting referrals is not my strong suit. It's hard for me to convince someone to buy a service. Especially I was like 14 years old when I discovered GDI. The moment I failed in GDI, that's when I realized trying to get referrals is not for me.
GDI is basically a website creating survey. The website they create uses .wf instead of .com. From what I remember, he promised that every time you can pitch someone to make a website from them, you earn $10. But getting referrals is not my strong suit. It's hard for me to convince someone to buy a service. Especially I was like 14 years old when I discovered GDI. The moment I failed in GDI, that's when I realized trying to get referrals is not for me.
Netherrealmer wrote:GDI is basically a website creating survey. The website they create uses .wf instead of .com. From what I remember, he promised that every time you can pitch someone to make a website from them, you earn $10. But getting referrals is not my strong suit. It's hard for me to convince someone to buy a service. Especially I was like 14 years old when I discovered GDI. The moment I failed in GDI, that's when I realized trying to get referrals is not for me.
Thanks for explaining. I suppose you have to be quite assertive, even pushy to get referrals. It's not my cup of tea either.
[quote="Netherrealmer"]GDI is basically a website creating survey. The website they create uses .wf instead of .com. From what I remember, he promised that every time you can pitch someone to make a website from them, you earn $10. But getting referrals is not my strong suit. It's hard for me to convince someone to buy a service. Especially I was like 14 years old when I discovered GDI. The moment I failed in GDI, that's when I realized trying to get referrals is not for me.[/quote]
Thanks for explaining. I suppose you have to be quite assertive, even pushy to get referrals. It's not my cup of tea either.
I wouldn’t recommend anyone to join an MLM without doing some research first. I read here that many people end up stuck with inventory they can’t sell and with friends tired of all the pressure. Better check out that site before you decide.
I wouldn’t recommend anyone to join an MLM without doing some research first. I read [url=https://federal-lawyer.com/business-litigation/mlm-company/]here[/url] that many people end up stuck with inventory they can’t sell and with friends tired of all the pressure. Better check out that site before you decide.
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Last edited by millie998 on 23 May 2025, 23:11, edited 2 times in total.
millie998 wrote:I wouldn’t recommend anyone to join an MLM without doing some research first. I read here that many people end up stuck with inventory they can’t sell and with friends tired of all the pressure.
I wouldn't recommend anyone join one full stop.
[quote="millie998"]I wouldn’t recommend anyone to join an MLM without doing some research first. I read here that many people end up stuck with inventory they can’t sell and with friends tired of all the pressure.[/quote]
When in high school, I was on the dance line. When we were at summer camp at first, the girls had never seen myself without make-up. Our beauty adviser wanted we girls to wear special make-up. So, the beauty advisor asked myself to take my make-up off and let the girls watch myself apply my make-up in front of them.
After high school years, I attended private schooling that I could not afford and neither could my loved ones. I should have just gotten a job right after high school. But I had dreams, not to mention in love and stupid. Anyway, a girl threw a Mary Kay party in the dorm. The Mary Kay lady asked myself for my telephone number and name. I did not even buy a product! She called myself frequently to sell and I should have. I had a vehicle too. I could have done Mary Kay and attended beauty school too. But by then too late as was in debt to schooling.
I could have made a living, yes?
I agree to a point.
I was always good with make-up and hair styling.
A couple of examples...
When in high school, I was on the dance line. When we were at summer camp at first, the girls had never seen myself without make-up. Our beauty adviser wanted we girls to wear special make-up. So, the beauty advisor asked myself to take my make-up off and let the girls watch myself apply my make-up in front of them.
After high school years, I attended private schooling that I could not afford and neither could my loved ones. I should have just gotten a job right after high school. But I had dreams, not to mention in love and stupid. Anyway, a girl threw a Mary Kay party in the dorm. The Mary Kay lady asked myself for my telephone number and name. I did not even buy a product! She called myself frequently to sell and I should have. I had a vehicle too. I could have done Mary Kay and attended beauty school too. But by then too late as was in debt to schooling.
I could have made a living, yes?
0
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When in high school, I was on the dance line. When we were at summer camp at first, the girls had never seen myself without make-up. Our beauty adviser wanted we girls to wear special make-up. So, the beauty advisor asked myself to take my make-up off and let the girls watch myself apply my make-up in front of them.
After high school years, I attended private schooling that I could not afford and neither could my loved ones. I should have just gotten a job right after high school. But I had dreams, not to mention in love and stupid. Anyway, a girl threw a Mary Kay party in the dorm. The Mary Kay lady asked myself for my telephone number and name. I did not even buy a product! She called myself frequently to sell and I should have. I had a vehicle too. I could have done Mary Kay and attended beauty school too. But by then too late as was in debt to schooling.
I could have made a living, yes?
You probably could not have made a living selling Mary Kay. Almost nobody makes a living out of an MLM, pretty much just those at the very top of the organisation. If you were lucky you might have broken even, or perhaps made a little bit of money.
-- 21 May 2025, 16:32 --
Jem Smith wrote:
Spontaneo wrote:I agree to a point.
I was always good with make-up and hair styling.
A couple of examples...
When in high school, I was on the dance line. When we were at summer camp at first, the girls had never seen myself without make-up. Our beauty adviser wanted we girls to wear special make-up. So, the beauty advisor asked myself to take my make-up off and let the girls watch myself apply my make-up in front of them.
After high school years, I attended private schooling that I could not afford and neither could my loved ones. I should have just gotten a job right after high school. But I had dreams, not to mention in love and stupid. Anyway, a girl threw a Mary Kay party in the dorm. The Mary Kay lady asked myself for my telephone number and name. I did not even buy a product! She called myself frequently to sell and I should have. I had a vehicle too. I could have done Mary Kay and attended beauty school too. But by then too late as was in debt to schooling.
I could have made a living, yes?
You probably could not have made a living selling Mary Kay. Almost nobody makes a living out of an MLM, pretty much just those at the very top of the organisation. If you were lucky you might have broken even, or perhaps made a little bit of money.
If you went to beauty school you might have been able to work as a makeup artist. Maybe you still could if you want to.
[quote="Spontaneo"]I agree to a point.
I was always good with make-up and hair styling.
A couple of examples...
When in high school, I was on the dance line. When we were at summer camp at first, the girls had never seen myself without make-up. Our beauty adviser wanted we girls to wear special make-up. So, the beauty advisor asked myself to take my make-up off and let the girls watch myself apply my make-up in front of them.
After high school years, I attended private schooling that I could not afford and neither could my loved ones. I should have just gotten a job right after high school. But I had dreams, not to mention in love and stupid. Anyway, a girl threw a Mary Kay party in the dorm. The Mary Kay lady asked myself for my telephone number and name. I did not even buy a product! She called myself frequently to sell and I should have. I had a vehicle too. I could have done Mary Kay and attended beauty school too. But by then too late as was in debt to schooling.
I could have made a living, yes?[/quote]
You probably could not have made a living selling Mary Kay. Almost nobody makes a living out of an MLM, pretty much just those at the very top of the organisation. If you were lucky you might have broken even, or perhaps made a little bit of money.
-- 21 May 2025, 16:32 --
[quote="Jem Smith"][quote="Spontaneo"]I agree to a point.
I was always good with make-up and hair styling.
A couple of examples...
When in high school, I was on the dance line. When we were at summer camp at first, the girls had never seen myself without make-up. Our beauty adviser wanted we girls to wear special make-up. So, the beauty advisor asked myself to take my make-up off and let the girls watch myself apply my make-up in front of them.
After high school years, I attended private schooling that I could not afford and neither could my loved ones. I should have just gotten a job right after high school. But I had dreams, not to mention in love and stupid. Anyway, a girl threw a Mary Kay party in the dorm. The Mary Kay lady asked myself for my telephone number and name. I did not even buy a product! She called myself frequently to sell and I should have. I had a vehicle too. I could have done Mary Kay and attended beauty school too. But by then too late as was in debt to schooling.
I could have made a living, yes?[/quote][/quote]
You probably could not have made a living selling Mary Kay. Almost nobody makes a living out of an MLM, pretty much just those at the very top of the organisation. If you were lucky you might have broken even, or perhaps made a little bit of money.
If you went to beauty school you might have been able to work as a makeup artist. Maybe you still could if you want to.
When in high school, I was on the dance line. When we were at summer camp at first, the girls had never seen myself without make-up. Our beauty adviser wanted we girls to wear special make-up. So, the beauty advisor asked myself to take my make-up off and let the girls watch myself apply my make-up in front of them.
After high school years, I attended private schooling that I could not afford and neither could my loved ones. I should have just gotten a job right after high school. But I had dreams, not to mention in love and stupid. Anyway, a girl threw a Mary Kay party in the dorm. The Mary Kay lady asked myself for my telephone number and name. I did not even buy a product! She called myself frequently to sell and I should have. I had a vehicle too. I could have done Mary Kay and attended beauty school too. But by then too late as was in debt to schooling.
I could have made a living, yes?
You probably could not have made a living selling Mary Kay. Almost nobody makes a living out of an MLM, pretty much just those at the very top of the organisation. If you were lucky you might have broken even, or perhaps made a little bit of money.
-- 21 May 2025, 16:32 --
Jem Smith wrote:
Spontaneo wrote:I agree to a point.
I was always good with make-up and hair styling.
A couple of examples...
When in high school, I was on the dance line. When we were at summer camp at first, the girls had never seen myself without make-up. Our beauty adviser wanted we girls to wear special make-up. So, the beauty advisor asked myself to take my make-up off and let the girls watch myself apply my make-up in front of them.
After high school years, I attended private schooling that I could not afford and neither could my loved ones. I should have just gotten a job right after high school. But I had dreams, not to mention in love and stupid. Anyway, a girl threw a Mary Kay party in the dorm. The Mary Kay lady asked myself for my telephone number and name. I did not even buy a product! She called myself frequently to sell and I should have. I had a vehicle too. I could have done Mary Kay and attended beauty school too. But by then too late as was in debt to schooling.
I could have made a living, yes?
You probably could not have made a living selling Mary Kay. Almost nobody makes a living out of an MLM, pretty much just those at the very top of the organisation. If you were lucky you might have broken even, or perhaps made a little bit of money.
If you went to beauty school you might have been able to work as a makeup artist. Maybe you still could if you want to.
Thank you for the input.
[quote="Jem Smith"][quote="Spontaneo"]I agree to a point.
I was always good with make-up and hair styling.
A couple of examples...
When in high school, I was on the dance line. When we were at summer camp at first, the girls had never seen myself without make-up. Our beauty adviser wanted we girls to wear special make-up. So, the beauty advisor asked myself to take my make-up off and let the girls watch myself apply my make-up in front of them.
After high school years, I attended private schooling that I could not afford and neither could my loved ones. I should have just gotten a job right after high school. But I had dreams, not to mention in love and stupid. Anyway, a girl threw a Mary Kay party in the dorm. The Mary Kay lady asked myself for my telephone number and name. I did not even buy a product! She called myself frequently to sell and I should have. I had a vehicle too. I could have done Mary Kay and attended beauty school too. But by then too late as was in debt to schooling.
I could have made a living, yes?[/quote]
You probably could not have made a living selling Mary Kay. Almost nobody makes a living out of an MLM, pretty much just those at the very top of the organisation. If you were lucky you might have broken even, or perhaps made a little bit of money.
-- 21 May 2025, 16:32 --
[quote="Jem Smith"][quote="Spontaneo"]I agree to a point.
I was always good with make-up and hair styling.
A couple of examples...
When in high school, I was on the dance line. When we were at summer camp at first, the girls had never seen myself without make-up. Our beauty adviser wanted we girls to wear special make-up. So, the beauty advisor asked myself to take my make-up off and let the girls watch myself apply my make-up in front of them.
After high school years, I attended private schooling that I could not afford and neither could my loved ones. I should have just gotten a job right after high school. But I had dreams, not to mention in love and stupid. Anyway, a girl threw a Mary Kay party in the dorm. The Mary Kay lady asked myself for my telephone number and name. I did not even buy a product! She called myself frequently to sell and I should have. I had a vehicle too. I could have done Mary Kay and attended beauty school too. But by then too late as was in debt to schooling.
I could have made a living, yes?[/quote][/quote]
You probably could not have made a living selling Mary Kay. Almost nobody makes a living out of an MLM, pretty much just those at the very top of the organisation. If you were lucky you might have broken even, or perhaps made a little bit of money.
If you went to beauty school you might have been able to work as a makeup artist. Maybe you still could if you want to.[/quote]
Thank you for the input.
0
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