Why MLM Businesses Are Scams

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Multi-level marketing businesses may seem appealing at first glance. They offer you a dream that you could operate your own business, work your own hours and manage a team that supports you. They tell you that one day you too, can drive the pink Cadillac and be hailed by the company for your expertise and effort.

They’re selling you a pipe dream and they know it. The average person will participate in at least one of these schemes during their lifetime due to crafty, charismatic leaders who paint a picture of ready-made success.  “We have the business all carved out for you,” they’ll tell you. “All you have to do is talk to people.”

Don’t do it. Why?

5 Reasons Why MLM Business Opportunities Are A Bad Idea

MLM Scams


1. Your family and friends will turn against you.

When you start speaking that MLM gospel, when bringing salvation through recruitment is all you have on your mind, everyone you know will run when they see you and avoid your phone calls.

2. People rarely get back what they invest in these schemes.

You may as well donate to charity because it is unlikely that your “investment” in “your” business will net a profit. In fact, the products are a side business. The real business is signing people into your downline. That’s why the products are so expensive. Hardly anyone, other than the MLMers themselves, are buying them and that’s because they’re required to buy monthly cases.


3. It will appear that you are making money but you won’t be.

Anything you sell will be expended quickly by the products/marketing materials you must buy to maintain your own obligations.

4. It’s not really “your’ business.

You are not investing in yourself, you are investing in the person who started it. His purpose was to get a lot of people who were willing to do the work for him and you are essentially one of his workhorses. He’s painting a picture as though you will own a piece of the dream but you are building his dream. Even if you pay the start-up money and do nothing else, you are investing your money into someone else’s dream.

If you did not incorporate the business, it is not yours.

5. They are not your “family”, they are your cult leaders.

Family loves you and spends time with you whether you are into the same interests or not. If you ever decide to leave their business they will have limited to no social interaction or regard for you. This is the mentality of an cult leader if you are not a follower, you are unnecessary.


You can read another perspective on this topic by checking out Cathy Harris’s thoughts. 


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