Also avoid any that establish geographic “non-competition” regions. My wife got into one MLM (largely so that she could buy the products at dealer prices rather than customer prices, and not necessarily to make more money), only to later discover that the sellers were fiercely territorial.
Those higher up on the MLM chain didn’t care whether there were too many sellers in any given region, it was just up to the sellers to figure out whose toes they were stepping on. After all, it’s in the upper-ups’ best interests to overstuff the market, which earns more money for them. Territory data was not easy to discover, either. The kicker was, that the seller ran the risk of having to pay fines, or even losing their license to sell stuff, if the corporate HQ got complaints that the seller was in someone else’s territory or even selling to another seller’s customer, even if the customer willingly changed sellers.
My wife also couldn’t sell over the internet, and we had to be extra careful what information was (or, specifically, wasn’t) included in her website, for fear that HQ would find basis to accuse her of wrongful advertisement. (Example: you couldn’t use the company logo, or the company name, in any of the websites, even if you give full attributation. We broke that rule, but haven’t been called on it yet. Even if you want to give more sales-oriented information, like party times or contact info, it had to be protected with a password that only our current customers had. We broke that rule too. Yeah, like we’re really going to be inclined to follow rules set down by a group of ethically-challenged and greedy Utah soccer moms. Bite us, MLM overlords!)
My wife still has her license to sell, but it’s strictly so that she can buy materials that she wants to. As soon as her spending drops below the lower limits, they’ll likely drop her like a hot potato. After all, the only reason the MLM exists is to funnel the seller’s money upwards.
Make no mistake, the terms the MLMs use are quite often stacked well in favor of the corporation, at the expense of their sellers.