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Multi-Level Marketing Scams

Madeleine Ouellette

Posted on August 23, 2020 21:27

2 users

Distributors and "boss babes" are flooding social media in an attempt to sell you products and have you "join their team" ... don't fall for it!

Arbonne, BeachBody, Young Living, Monat and more. The list goes on and on! I’m sure you've heard of these multi-level marketing companies and maybe have even been reached out to on Instagram or Facebook by a distributor. Recently, I've been interested in watching videos and reading about these companies, and how they are scamming people out of money.

Multi-level marketing companies are different from pyramid schemes in only one aspect: they are actually selling products. The similarities, though, are numerous. It is highly unlikely that distributors will make any money in this business model if they do not recruit others. Money is made when a distributor recruits others, and then those people recruit more (we’re seeing the pyramid shape coming into view, right?) and then that original distributor makes a percentage of what their "downline" makes from sales.

Regardless of whether the products are good or not (most of the beauty and fitness products can be bought from regular stores for less money and are comparable in all aspects), the evidence shows time and again that distributors are barely encouraged to even be selling these products.

There are countless videos on Youtube showing "team calls" with groups of distributors, discussing tactics for how to sign up new people under them. These range from harmless things like sending a short message on Instagram, to some more harmful tactics. There are videos showing distributors making false claims about their products curing anything from arthritis to cancer to COVID-19.

Another problem with this business model is the claims that you can make a living from them. Unless you are at the very top of the pyramid, which is unlikely unless you got into the business years ago, you will make almost no money. There are public income disclosure statements for Arbonne, Young Living and BeachBody, among many others, that show this is true.

The extremely sad part about these companies is that people who were just looking to supplement their income or quit their current job, end up losing thousands of dollars or more in the scheme. Innocent people are taken in by the false claims of wealth and lifestyle, and end up on the losing end. If you've been a part of an MLM, there is no shame in leaving it or "failing" at it. It is designed for you to fail and only a handful to succeed.

No matter how many of these distributors take to their Instagram stories to say that people are "haters" and "don't understand MLMs," the evidence and statistics are clear. The income disclosure statements released by the companies themselves show that often less than 1% of distributors can make a livable income. To potentially make any money at all, it is likely that you will have to spend hours and hours of your day annoying friends and family on social media in an attempt to make sales and add to your team.

Avoid them at all costs, and that's coming from the FTC.

Madeleine Ouellette

Posted on August 23, 2020 21:27

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