Multilevel marketing (MLM) companies have been around since the mid-20th century and have continued to lure people in despite the low possibility of financial success. These companies often advertise a way for people to maintain their everyday lives and occupations while selling certain products to the people around them so they can earn some extra money on the side. Along with selling products, these “employees” of the company are encouraged to rope in others to sell products under their name.
Women are usually the targets of these companies. When they first began, these companies were a way for stay-at-home wives and mothers to socialize while making a small income as they sold products that appealed to fellow women, such as Avon, Tupperware, or Mary Kay. Currently, these companies still appeal largely to women for similar reasons.
From a first glance, it seems like a decent opportunity to jump in with these companies — all you have to do is sell some stuff from the comfort of your own home (now thanks to social media) and encourage your friends to do the same to get some extra cash. Why wouldn’t you join?
The American Association of Retired Persons (AARP) conducted a study on MLMs. Their findings showed that there is simply more risk than possibility of success when it comes to participating in MLM opportunities.
One reality of MLMs that many of the study’s participants viewed as a con was that they found it awkward pitching to family and friends. Maybe you have experienced this before: someone who was a friend in high school who you’ve lost touch with over the years sends you a little Facebook message saying hi and asking how you are. You haven’t heard from them in a long time but would like to catch up, so you reply with the usual pleasantries. After a few messages back and forth you realize they don’t actually have any interest in your life but would rather sell you essential oils and recruit you to sell them too.
You were just an old friend from high school but think about how that person came to approach you: they probably asked and tried to persuade all of their family members and close friends before they became desperate enough to reach out to someone they have not spoken to in a long time.
This is a very common example of someone involved in an MLM who is not only desperate to make money, but they’re desperate enough to jeopardize their relationships because the more people they recruit to the MLM, the more money they make. This is where we get the term “pyramid scheme” to describe MLMs that are mostly focused on recruiting.
The Washington Post analyzed how MLMs often ruin female friendships, stating that “Back in our moms’ era, women knew what they were in for when they were invited to a Tupperware party. Today, not all sellers are upfront about their MLM involvement. That coffee with a friend or girls night is — surprise! — not just for fun, it’s about making a sale or a recruitment.” Like your friend from highschool, they weren’t outright saying, “I want to recruit you.” Therefore you, and many of us all, have been fooled into believing that someone actually wanted to be friends with us. But when we realize the actual reason this person wants to spend time with us, we’re hurt. The potential friendship is done and over.
If someone you know is trying to drag you into this type of business, make sure to let them down easy. Don’t accuse them of horrible things; these people honestly believe at that moment that they’re going to make money from this and that this product they’re selling is of the utmost importance. (Hello Young Living Essential Oils!) Let them know you’re not interested in being part of it or purchasing anything, and that you’d be happy to help them find a real job with guaranteed pay so they don’t have to ruin friendships, go into debt, and waste time trying to sell a product that probably isn’t all it’s cracked up to be.
Illustration: Kayt Hine/The Cascade
