Almost everyone loses money in multi-level marketing. Sure, you hear people say “I know several people who have made a lot of money in MLM.” This is nonsense for three reasons: 1. People rarely see proof for this “making a lot of money.” 2. These claims are almost always false based on the figures that MLM companies themselves release about their distributors. 3. Even if someone you know is “making a lot of money,” that money comes from an unethical business model that victimizes hundreds or thousands of consumers in order for that one person to profit.
Check out this new video featuring victims of the Herbalife “business opportunity.” They put lots of money, time, and effort into their “businesses” and ended up losing money.
Imagine what this video would look like if Mary Kay victims were interviewed. There are millions of women who lost a few hundred dollars each. There are tens or hundreds of thousands of women who lost thousands of dollars each. And then there is the time lost to the scheme and the damaged relationships with family and friends. No matter the name of the MLM, this video could be replicated in the same way for each of them.
Companies like Mary Kay Cosmetics promote the “income opportunity,” but when the vast majority of MLM distributors say they lost money, the story changes to “they didn’t really want to make money,” or “they just did it for fun,” or “they didn’t try hard enough.”
Multi-level marketing is not a business. Almost everyone who participates is guaranteed to lose money. You can follow all the instructions, talk to everyone you know, invest money in the scam, and you will still lose money. Why? Because MLM is nothing but a pyramid scheme in which all the people at the bottom of the pyramid will lose money.