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MLM stands for multi-level marketing and works by creating a web connection of salespeople promoting a particular product.
Why are MLMs often referred to as pyramid schemes?
Many people refer to MLMs as pyramid schemes because they follow a very similar framework.
What are the popular MLMs?
Other MLM brands you may have heard of includeHerbalifewith their dietary supplements andMary Kay’smakeup and cosmetics.
However, the vast majority of participants will never make money.
Unfortunately, a typical occurrence with MLMs is that the products themselves aren’t very good.
What they care about is expanding their “downline” because more recruits equal more money for them.
You won’t be the priority of those in your “upline.”
“Paulson believes MLMs are “pyramid schemes with products.”
Oftentimes, it’s work that those who are convinced to join simply don’t have time for.
Most people who join an MLM have no experience in marketing or sales.
Hosting parties to showcase their garage full of unsold products is a lot of work for a side hustle.
Ultimately, MLMs prey primarily on inexperienced women.
Plus, it’s less about the products being sold and more about continuing to recruit.
