We tend to joke a lot about how multi-level- marketing schemes are annoying , but they can really have an effect on how people live their lives. Some people get into them, and it takes a great deal to get back out.
On Reddit, one person asked, ” Ex-MLM members and recruiters, what are your stories/red flags and how did you manage to out of the industry? ” A lot of people had some pretty insightful responses.
C/W: Mentions of suicide.
“I joined Primerica, I didn’t see any red flags at first but small ones started popping up.” – TransformingDinosaur
“Like my team leader telling me to basically live outside my means to make people think I was doing really good and then they’d join and then I’d do really good. Or finding out all the contests ran around recruitment and not sales numbers.”
Yeah… if any “business” is telling you to live above your means to make people think you’re making a lot of money, run.
“I left as soon as I realized, even put my name and number on the do not contact list.”
“Blew a lot of money trying to make that work only to realize I wasn’t going to make any money…”
Sure, when it comes to business you have to spend money to make money. But if all your money is going to someone else’s pocket, you’re just getting scammed.
“My mother did Amway years ago.” – [deleted]
“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.”
Speaking as part of the 99% of the population who’s been contacted by someone in an MLM, no one wants to have to deal with that. I can imagine it’s pretty tough to keep friends while in a pyramid scheme.
“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.” – StarBunnyBun
“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.”
That’s how they get you. They trick you into believing you’re a business owner.
“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.”
So basically, there’s no profit to be found…
“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.”
Well, it could’ve been worse. At least this person realized that trying to recruit others wasn’t worth it.
“My recruiter told me she made $400 at the party I was at. I later learned she made 25% of that.” – Trawhe
“I was told if I could get 2 people under me, I would make $400-$500 per month.”
See, this already doesn’t add up.
“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.”
Yeah, that math ain’t mathing. Being $2,000 in debt is awful, but at least they got out before it was too late.
“By not getting in.” – PM-ME-[redacted]
“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 husband’s mother, and both begin selling drugs to support the Amway habit.”
“They still think they are mere months away from being millionaires. It’s infuriating.”
It’s really sad seeing people act like that. But of course, the people who recruited them don’t care at all. That’s always how it goes with MLMs. The sunk cost fallacy is real.
“My SIL talked me into selling It Works!” – KoalaBear27
“Was a ‘seller’ for 6 months. They kept telling me to add all of these women I have in common with [and] people I’m already friends with. And to post about it 3 to 4 times a day on Facebook and Instagram.”
Yeah, this is a pretty terrible business model.
“I literally made an Instagram for it.”
“They said to message at least 30 people a day about [it]. 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.”
Messaging 30 people a day for a “side business…” sounds pretty shady, not gonna lie.
“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.”
To be honest, being bad at selling MLM stuff is probably a good thing. At least this person got a friend out of it!
“My red flag was that they would not share with me the company name when they brought me in.” – coleus
“At one point the recruiter left the use the restroom and I snooped around and saw a logo of the name. When he came back, I asked him what it stood for and immediately he got defensive.”
See, everything about this seems incredibly shady. I’d be running for the hills at this point.
“He also told me to do everything I can (sell my TV) to join.”
“Also, the teleconference was weird AF. They started using the term ‘untouchables’ for their higher ups. I noped my way out and they were pissed.”
Definitely worth getting out of there. I think it goes without saying that any business that wants you to sell your TV to get in is probably trying to scam you.
“My mom was caught up in the Market America scheme. They manipulated an already vulnerable, mentally unstable woman to sink $20k into her ‘business.'” – RayFinkle1984
“She took her own life less than a year later. If the company has washed up celebrities as spokespeople and asks you to spend more money than you typically make in your ‘business,’ you may want to reconsider your investment.”
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This is incredibly heartbreaking. It also shows how these people do not care about you or your wellbeing. They just want your money.
“I’ve been in sales almost all of my adult life.” – [deleted]
“Early on in my real career, Amway looked like an easy touch. I liked the challenge, I always hit target. It seemed simple.”
Legitimate business can be rewarding. Or, so I’ve heard.
“I was naïve. I got hooked on the tapes and books.”
“I was better at my day job, but I couldn’t make it work in Amway. Even after a couple of years with the seminars and books and tapes.”
Hmm… it’s almost like MLM business models aren’t like legitimate ones at all.
“I don’t know why it took me so long to do the damn simple math. I had an epiphany about how the real money was being made in the tools (books, tapes, seminars).”
“Then I started to critically think about where the money was coming from. And I realized I had been lied to. I drifted away from the group and then got a new job opportunity in a different city. I took that, changed my number, and haven’t looked back on it in 15 years.”
I love it when they have (somewhat) happy endings like this one.
