Multi-Level Marketing Victims Speak

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 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.

6 Comments

    1. TRACY

      Numbers have been shrinking in the U.S. for YEARS, which is why they no longer post the number of U.S. consultants or directors. THat number is worldwide, and their growth is totally overseas.

  1. Colleen

    A neighbor is pretty high up in Scentsy. She posted the other day that she was like #117 to sign up.

    About a year ago she got a regular job. Says it’s for insurance but I’m not so sure. They moved from a large home they built into a much smaller one.

    1. MLM Radar

      It doesn’t matter how early you sign up, or how low your participant number is. Those count for nothing. Your warm market isn’t any bigger for your early sign-up, and your cold market (everyone else) won’t be any more likely to join.

      Being an early recruiter just puts you in the first wave of victims.

      Do you think there’s something special about the new company now offering ground floor sign-ups? Think again. Whatever your new company is selling has been sold before, at a loss. You can put it in different packaging and slap a new logo on it, but I’m not wearing a G for Gullible sticker on my forehead. Underneathed it’s still just overpriced junk.

      The compensation plan may have more twists and tangles than a tree full of swamp moss. But it’s still wrapped on a pyramid frame, which means it just same story, different day. If you’re not one of the pyramid organizers, you lose.

      I already know the drill. And no, I’m not going to another home sales party where I can be offered the chance to sign up for a “discount.” If I need or want something like what’s being sold I’ll just go to someplace like Target where I can get it at a better price with no hassle.

      And if you’re pushing the MLM where I can buy Target merchandise at a discount through your on line “store” don’t call me. I can get the same discount or better buying directly from Target’s website, where I’ll have access to their full inventory and have the option for same-day pickup.

      So, no, being #117 on the sign up list doesn’t make you more likely to be a Big Winner. It just makes you sucker #117.

    2. Barbie

      Do they also tell people who signed up later what their position in the line is, so to speak? Like, if I’m #10558, do they want me to know that, or do they only tell it to people who signed up early?

      1. MLM Radar

        Telling you that you’re anywhere in the pyramid below the top 2% would be “negative.”

        So, the answer is no. You’re either in the elite group, or you’re “on target” for the elite group. (It’s the SD’s target and you’re in the crosshairs.). If you’re not either of those, you’re just another lazy loser.

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