I Discovered the Hard Truth About How Exploitative MLMs Can Be

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Late one night, while feeding my newborn and feeling utterly fatigued, I scrolled through my phone and stumbled upon an enticing offer. It was marketed as the opportunity of a lifetime—a chance to start my own business from the comfort of my home, with limitless income potential. It sounded too good to be true, and I was immediately captivated.

Curiosity led me to investigate this new company that seemed ideal for a working mom like me, eager to spend more time with her kids. For a modest investment, I could run my own business without the hassle of inventory or hosting parties. It felt like a dream come true, and I couldn’t sign up quickly enough.

I was soon enchanted by videos showcasing the company’s top performers achieving incredible results with their products, convincing me of their greatness. The cost? Sure, it was significantly higher than similar items at Target, but this was “magic in a bottle,” and I had to have it.

I quickly thought of my family and friends as the perfect initial customers. They would undoubtedly support my “side hustle” and share in my journey towards financial independence. Plus, they should also seize this golden opportunity to become millionaires themselves. It seemed like a win for everyone involved!

I diligently followed the suggestions from my team and utilized social media to promote the products. I posted eye-catching photos and links to my website, eager to make sales. I even created a group and added everyone from my friends list—without asking for their consent. Why would I? Who wouldn’t want to join something so exhilarating? I was encouraged to send direct messages to everyone about the products and the opportunity, even if I hadn’t spoken to them in years. I was offering them a chance to become their own bosses and secure their families’ futures!

At first, I genuinely believed in what I was selling. I loved the products, even though they were pricey, but I enjoyed a discount. My sales were climbing, and I was building my own team. It was an exciting time, with trips to earn and rewards to win. Everything seemed to be going in the right direction.

However, reality soon hit me hard. The true beneficiaries were the people above me in the hierarchy, the top earners who profited as I struggled to make a few sales each day. I found myself feeling desperate, wishing to join those top earners, but I realized that achieving that meant exploiting others—selling overpriced products or recruiting them to sell and make money off their efforts. It all began to feel morally wrong.

Moreover, with countless people selling the same products, finding new customers became increasingly difficult. Though I initially climbed the ranks, I soon stalled at the point where significant earnings were possible. Only a few ever break through, while the majority scrape by, making little. It’s a predatory system that preys on young mothers, the unemployed, and those lacking education, selling them an almost impossible dream. In fact, most participants actually lose money.

The rise of MLMs has surged during the past year, fueled by the economic fallout from the COVID-19 pandemic. Many jobless individuals are seeking ways to earn money, and these companies appear to offer a solution. The FTC has begun to crack down on these organizations for misleading claims, especially those suggesting their products can prevent illness—claims that are simply false. It’s disheartening to see people exploiting fears of illness and hopes for financial security.

Despite my experience, I don’t regret trying to succeed in the MLM world. Without it, I wouldn’t have learned just how exploitative it can be. The fortunate ones at the top have made it, but I’ve realized that I’d prefer to live without that side hustle rather than ever send another “Hey girl!” message.

Further Reading

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Summary

The author recounts their challenging experience with a multi-level marketing (MLM) company, initially attracted by the promise of financial freedom and independence. However, they soon discovered the exploitative nature of MLMs, where only a few at the top benefit while the majority struggle. This experience opened their eyes to the predatory tactics used by these companies, particularly during economic downturns like the COVID-19 pandemic.