Side Hustle School Ep. 3062 - Q&A: “Are there any ‘good’ MLMs?”
May 20, 2025
The discussion tackles the controversial world of multi-level marketing (MLM). It examines the ethical issues and risks posed by MLM structures. Sobering statistics reveal how many participants lose money. The conversation advocates for seeking more empowering and sustainable entrepreneurial opportunities instead. Tune in for insights on making smarter side hustle choices!
AI Snips
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Transcript
Episode notes
Be Skeptical of MLMs
- Be cautious and skeptical when approached to join MLMs, as they have a bad reputation.
- Don't be swayed by claims that some MLMs are ethical or good opportunities because the industry is generally predatory.
MLMs Rarely Pay Off
- Multi-level marketing (MLM) structures make it extremely difficult for participants to make a profit.
- Studies show 99% of MLM participants lose money, making it a highly risky business model.
Recruitment Drives MLM Income
- MLMs reward recruitment over actual product sales, focusing more on getting new members than selling useful products.
- Income often comes from recruiting friends and family rather than real customers.