Don’t rush into multilevel marketing. Most consumers make little to no money. | Opinion
Published By admin with Comments 0
Multilevel marketing (MLM) programs are a legitimate way of selling products – think Amway, Tupperware and Mary Kay.
They become illegal pyramid schemes when the emphasis is on recruiting new distributors rather than actually selling products.
Most participants in pyramid schemes find that no matter how hard they work, they can’t recruit enough people to even cover their expenses.
A new Federal Trade Commission (FTC) study of 70 MLMs – big and well-known companies to smaller ones – found that most people who join even a legitimate MLM make little to no money; many lose money.
Most participants made $1,000 or less per year before expenses and participants in 17 MLMs didn’t make any money at all.
But people considering joining an MLM might have a hard time figuring that out. The
FTC analyzed publicly available MLM income disclosure statements and found that most of them employed these tactics:
Content retrieved from: https://www.commercialappeal.com/story/opinion/contributors/2024/12/17/multilevel-marketing-ftc-research/77032302007/.
