# Multi Level Marketing, should I?

**URL:** <https://boards.straightdope.com/t/multi-level-marketing-should-i/686012>\
**Category:** In My Humble Opinion\
**Created:** [April 13, 2014, 12:21pm UTC](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012 "2014-04-13T12:21:08Z")\
**Posts on this page:** 13\
**Page:** 3

<div class="post-metadata">

**Author:** ![Kent\_Clark](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/kent_clark/32/105_2.png) [@Kent\_Clark](https://boards.straightdope.com/u/Kent_Clark)\
**Post date:** [April 14, 2014, 3:07pm UTC](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012/41 "2014-04-14T15:07:41Z")

</div>

I have a few acquaintances (I wouldn’t call them “friends”) in multi-level marketing. The ones who enjoy it do it as a hobby. They throw a couple of parties each year, don’t do any other solicitation, and fill orders for a relatively small list of family/friends.

I also have a few acquaintances who are really serious about MLM. I can’t tell you how well they’re doing because whenever they get near, they have their order book out and I spend my time trying to avoid them.

---

<div class="post-metadata">

**Author:** ![nearwildheaven](https://avatars.discourse-cdn.com/v4/letter/n/90db22/32.png) [@nearwildheaven](https://boards.straightdope.com/u/nearwildheaven)\
**Post date:** [April 14, 2014, 3:58pm UTC](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012/42 "2014-04-14T15:58:17Z")

</div>

> [@Ottoerotic](#):
>
> Many recruits simply stay in long enough to pressure their friends and family into buying crap. I’ve heard this referred to as “relationship rape” and its a huge reason why MLM’s have a bad reputation.

Or they do it to get a discount on the products.

---

<div class="post-metadata">

**Author:** ![Czarcasm](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/czarcasm/32/4050_2.png) [@Czarcasm](https://boards.straightdope.com/u/Czarcasm)\
**Post date:** [April 14, 2014, 4:25pm UTC](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012/43 "2014-04-14T16:25:48Z")

</div>

> [@miamihuricanzgrl](#):
>
> Talked to my friend about the compensation plan… Depending on your level in the business, it is 16-25% on retail sales. 10-15% on your downline. THEN, there are incentives for certain levels or achievements. (like the Lexus). It sounds awfully dreamy.

Why do I get the feeling that you are ignoring all the pitfalls we’ve laid out before you? Doesn’t anything we’ve told you make you question getting into this business?

---

<div class="post-metadata">

**Author:** ![Sir\_T-Cups](https://avatars.discourse-cdn.com/v4/letter/s/ed655f/32.png) [@Sir\_T-Cups](https://boards.straightdope.com/u/Sir_T-Cups)\
**Post date:** [April 14, 2014, 4:34pm UTC](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012/44 "2014-04-14T16:34:08Z")

</div>

> [@Czarcasm](#):
>
> Why do I get the feeling that you are ignoring all the pitfalls we’ve laid out before you? Doesn’t anything we’ve told you make you question getting into this business?

Because eventually once they’re joined up, we get to hear what they’re selling…

---

<div class="post-metadata">

**Author:** ![robert\_columbia](https://avatars.discourse-cdn.com/v4/letter/r/e79b87/32.png) [@robert\_columbia](https://boards.straightdope.com/u/robert_columbia)\
**Post date:** [April 14, 2014, 5:59pm UTC](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012/45 "2014-04-14T17:59:10Z")

</div>

MLM is really hard to make money off of nowadays. In days of yore, before the internet, yea, before the Sears catalog, you could make a good living selling tools, cosmetics, guns, etc. in small farming communities. Nowadays, why should people buy from you when [Amazon.com](http://Amazon.com) has it for the same amount? Why should they trust _you_ and your small business with no reviews?

---

<div class="post-metadata">

**Author:** ![dracoi](https://avatars.discourse-cdn.com/v4/letter/d/90db22/32.png) [@dracoi](https://boards.straightdope.com/u/dracoi)\
**Post date:** [April 14, 2014, 9:31pm UTC](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012/46 "2014-04-14T21:31:00Z")

</div>

> [@miamihuricanzgrl](#):
>
> Talked to my friend about the compensation plan… Depending on your level in the business, it is 16-25% on retail sales. 10-15% on your downline. THEN, there are incentives for certain levels or achievements. (like the Lexus). It sounds awfully dreamy.

So how did the tax return look?

Or are you still trying to make a decision by looking only at the sales brochure? If so, boy do I have the used car for you. Only $1000 as a special to you, but the blue book is at least $5000. Nothing wrong with it at all, trust me. Um, no, you can’t have your own mechanic look at it first. I would never steer you wrong, though.

---

<div class="post-metadata">

**Author:** ![Frazzled](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/frazzled/32/3368_2.png) [@Frazzled](https://boards.straightdope.com/u/Frazzled)\
**Post date:** [April 14, 2014, 10:58pm UTC](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012/47 "2014-04-14T22:58:55Z")

</div>

This is a great article about Amway, and by extension most other MLM’s.

> **[Latest Posts](https://thebaffler.com/latest)**
>
> Daily broadsides from The Baffler’s just-in-time corps of knowledge workers

The article is long but fascinating. It describes the type of MLM that sells dreams. Please read it and watch for the troubling signs that your friends business is using the same practices.

The best way to know if this is a legitimate opportunity is to listen to what your friends are trying to sell. If the primary focus is on building a down line of people then run away as fast as you can. People in these MLM’s are HEAVILY encouraged to show signs of wealth which they cannot afford. They’re told that you have to “think rich to be rich”, and “fake it until you make it”. Neither of these are mantras you should hear from your “boss”.

Of particular note - you mentioned the word “dreamy” which is a major catch phrase and red flag. Just read the first couple paragraphs of the article above to see why.

---

<div class="post-metadata">

**Author:** ![Typo\_Negative](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/typo_negative/32/484_2.png) [@Typo\_Negative](https://boards.straightdope.com/u/Typo_Negative)\
**Post date:** [April 14, 2014, 11:16pm UTC](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012/48 "2014-04-14T23:16:55Z")

</div>

> [@miamihuricanzgrl](#):
>
> Thanks everyone, I had to laugh at the $500-$400 for the MLM secrets. How about I try the secrets for free?? Money back guarantee?? Sales pitch worthy??
> 
> Talked to my friend about the compensation plan… Depending on your level in the business, it is 16-25% on retail sales. 10-15% on your downline. THEN, there are incentives for certain levels or achievements. (like the Lexus). It sounds awfully dreamy.

This has been on Penn & Teller’s Bullshit

https://www.youtube.com/embed/LgcZyhfU0FA?feature=oembed&wmode=opaque

Their lawyers warned them against using the term ‘Ponzi Scheme’ but that’s what it is.

Bottom line, everyone but those at the very top get screwed.

---

<div class="post-metadata">

**Author:** ![kaylasdad99](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/kaylasdad99/32/3398_2.png) [@kaylasdad99](https://boards.straightdope.com/u/kaylasdad99)\
**Post date:** [April 15, 2014, 12:34am UTC](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012/49 "2014-04-15T00:34:26Z")

</div>

> [@miamihuricanzgrl](#):
>
> It sounds awfully dreamy.

> [@Telemark](#):
>
> It’s not.

Correct. It’s more _day_dreamy.

---

<div class="post-metadata">

**Author:** ![miamihuricanzgrl](https://avatars.discourse-cdn.com/v4/letter/m/ea666f/32.png) [@miamihuricanzgrl](https://boards.straightdope.com/u/miamihuricanzgrl)\
**Post date:** [April 15, 2014, 7:26am UTC](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012/50 "2014-04-15T07:26:50Z")

</div>

I work over seas so the time difference is off but I am reading all the suggestions.

I’ve decided to hold off on the “business opportunity.” Thanks for all the opinions!!

---

<div class="post-metadata">

**Author:** ![kaylasdad99](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/kaylasdad99/32/3398_2.png) [@kaylasdad99](https://boards.straightdope.com/u/kaylasdad99)\
**Post date:** [April 15, 2014, 1:58pm UTC](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012/51 "2014-04-15T13:58:55Z")

</div>

Well done, you.

High five to all the posters who laid out the reasons this was a spectacularly bad idea!

---

<div class="post-metadata">

**Author:** ![Telemark](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/telemark/32/372_2.png) [@Telemark](https://boards.straightdope.com/u/Telemark)\
**Post date:** [April 17, 2014, 11:42am UTC](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012/53 "2014-04-17T11:42:06Z")

</div>

Reported as spam

---

<div class="post-metadata">

**Author:** ![Smeghead](https://avatars.discourse-cdn.com/v4/letter/s/f1d935/32.png) [@Smeghead](https://boards.straightdope.com/u/Smeghead)\
**Post date:** [April 17, 2014, 1:38pm UTC](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012/54 "2014-04-17T13:38:37Z")

</div>

Seems legit.

[Previous page](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012.md?page=2)
