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14 People Share How They Escaped Multi-Level Marketing Schemes That Sucked Them In
Article created by: Justinas Keturka
Multi-level marketing (also known as network marketing) is a controversial direct-sales business strategy where individuals sell products to others in their network. It follows a pyramid structure where people that make the most are at the top, and those who find themselves at the bottom usually don’t make any money at all.
Pyramid schemes are considered illegal because they’re paying distributors to recruit other participants. MLMs claim that they're different since you don't have to recruit but sell their products. However, without your network, you wouldn't be able to sell anything at all. People often get involved without even knowing that it’s a total scam and lose a lot of money along the way. Fortunately, some of them do escape.
One user asked the r/AskReddit community to share what red flags made them quit this industry and how did they do it. More than 3.7K brave former MLM members told their stories and Bored Panda collected some of the most terrifying comments from this post. Make sure to check them out below and if you have a bad MLM experience yourself, don’t be afraid to open up about it below.
This post may include affiliate links.
#1
My recruiter told me she made $400 at the party I was at. I later learned she made 25% of that.
I was told if I could get 2 people under me, I would make $400-$500 per month.
Then I was told I needed 4 people instead of 2.
Then I was $2,000 in debt with nothing to show for it.
Deleted them all and changed my phone number.
Edit:
I am an owner of 2 businesses, so I thought adding a small side hustle would be an easy transition, but it turned out that as a legitimate business owner, I couldn’t bring myself to use the toxic business practices that were expected of me (cold messaging, hounding people for orders, constantly reminding people about deals, etc.).
When I left, I helped the two girls who were under me get out as well, and apologized for roping them into something I thought was a good deal.
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#2
My mother did Amway years ago. She told me she quit when she realized she approached every new acquaintance with an aim to make a sale instead of making a friend.
#3
By not getting in, I’ve seen a friend and his wife get into Amway, and in 3 years, they sold most of what they had, moved back in with the husbands mother, and both begin selling drugs to support the Amway habit.
They still think they are mere months away from being millionaires. its infuriating.
#4
Woman I know who sells Younique and recruits HARD, pivots between bragging about her boss babe lifestyle, and selling random used household stuff on eBay and Facebook marketplace for £1.50.
#5
Joined a jewelry-based MLM thinking it would be cute to sell jewelry as a side hustle in July after I relocated across the country. I got roped in to the “be your own boss” and “make money while you sleep” mentality, and for a while, it boosted my confidence because I truly thought I was doing a great job running my own business.
On paper, I brought in good money (about $100 per live show, which was one hour a week), but I had to ship out the jewelry to them, which ate about 20% of the profit, then the money earned went back into ordering more jewelry.
By September, once the glitz and excitement of it all wore off and I realized nothing was coming back to me, my boyfriend told me the only way to earn money in the business was to add new “business partners.” I told him I wasn’t interested in doing that, but that was part of the scheme. I was so hurt by the people who had roped me in to the business. So I quit that same day. Luckily, I made it out with only like $30 lost, but I still have a ton of jewelry and packing materials taking up space in my house.
#6
MLMs deliberately prey on the vulnerable. When you start staying home with your kids, especially after having a career, there are a lot of things (potentially) going on at once: social isolation, loss of income leading to feelings of inadequacy or not doing your part, ambivalence about the worth of unpaid labor in the home, guilt and insecurity about your parenting decisions... the list goes on. MLMs promise mothers what seems like the perfect solution: being able to earn money and spend time with their children and connect with an instant community of women just like you and feel worthy and important again. Those promises are lies, but sadly, they are very effectively aimed at those who are, because of their vulnerable state, most likely to believe them.
#7
I know a girl who got sucked into Arbonne. She constantly makes videos on FB and instagram acting like she has this perfect life and last I heard, her boyfriend (that she claims in her husband on social media) had to call her from a gas station to see if they had any cash in the house because both their credit cards were declined and he needed gas to go to a friend’s birthday party. Needless to say, he didn’t go. It literally says “boss babe” on her Instagram.
#8
Used to sell younique. It was easy to get out. I wasn’t making any money, I couldn’t be fake to sell my product and I learned about quality makeup and younique ain’t it lol.
You can buy colourpop for literally 1/4 of the price and 10x the pigment and blendability.
#9
I had a friend who got into Herbalife. Ended up with a bunch of expired products in his garage and everyone except me unfriended him on Facebook for constantly pestering them. Herbalife is a pyramid scheme and a scam.
#10
When my upline, in training, was explaining how you always had to be "on." If anyone asks how you're going, you always say, "Fantastic!". The fakeness made my skin crawl. I got out of there asap.
#11
My SIL talked me into selling It Works! I was hesitant, didn’t quite need the money, but figured extra income couldn’t hurt. Was a “seller” for 6 months. They kept telling me to add all of these women I have in common with people I’m already friends with. And to post about it 3 to 4 times a day on Facebook and Instagram. I literally made an Instagram for it. They said to message at least 30 people a day about. And twice a week there was a group video chat they kept insisting I join. I couldn’t join due to me being at my normal job.
All in all. I hated it. I’m awkward and a terrible salesperson. And I made nothing from it. Never made a sale. They kept saying “try and get your mom or aunts to support you”. It was a waste of money and all. But, made out with 1 new friend.
#12
The people were horribly mean under the veil of being “good Christians”. They used the f word to describe gay people, made fun of a deaf person at a conference and the whole crowd roared with laughter. Made you feel like an idiot for wanting anything other than “the business”.
I had to completely cut them all out of my life at once, stopped responding completely to all calls/texts/e-mails.
I lost so much money but thankfully I have the most patient friends and family so I didn’t lose any of them.
Do NOT waste your time or energy on MLM’s. If you’re looking for a sense of community, join a co-ed sports league, book club, small church group, volunteer, ANYTHING but a MLM.
#13
Man I joined a wrap company. I'm sure you can guess which one. This was 5 years ago.The first thing they said was to start making posts. Take pictures at the gas pump or of your grocery receipts and say "look what (insert company name) has paid for!" Even if you haven't made any money yet, it's okay because eventually they will be paying for it. Write sappy stories, or steal them from the big consultants and just change the names to fit your own. Oh and be sure to say you only have 3 spots left" or whatever to make people think their isnt much time to get in. Even though it's not a limited thing. It was all crazy.
#14
I was a call agent for Tahitian noni for the USA and Germany (now called Morinda). It was horrible fielding calls near when people’s $120 monthly auto payment was due for 4 one liter bottles of juice. I couldn’t cancel their subscription on late notice without a fax with their signature at least a week in advance, unless they claimed “financial hardship.” Eventually I learned that I would just need to feed them what to say and then gladly cancel for them on the phone. Total scam. Only people who made money were the early people to sign up and the founders, who are multi millionaires.
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