Are Multilevel Marketing Companies a Total Scam? A Look at the Billion-Dollar Industry Targeting Moms

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If it seems too good to be true, it's because it is.

or are just looking for a way to boost their family's income, multilevel marketing — also known as referral selling or network marketing — seems like a sound way to make money without having to go to an office or find consistent childcare. On the surface, signing on to distribute products from these groups seems like a brilliant idea.Americans have been involved with an MLM at one point or another. And why not? All you need is an active profile on social media and a little bit of hope.

Although multilevel marketing has been an attractive option for moms for decades — think Tupperware, Mary Kay, Pampered Chef, and Avon —, according to a study completed by the AARP in 2018. So it's easy to see why MLMs have such a questionable reputation. For women who have multiple mouths to feed or are on a limited income, signing up to take part in a MLM can potentially be a huge, costly mistake.

"MLMs prey on new mothers," said Claudia*, a mom who has been contacted by a number of MLM distributors over the years."They write to me saying things like, 'Hey, you finally had a baby! It's time to get back into shape right now, drink this coffee, and take these all-natural pills, and you'll lose 20 pounds!' I felt targeted by multiple people during my immediate postpartum phase.

Tara*, a stay-at-home mom, was skeptical of MLMs at first. After losing her third pregnancy, she was approached by a friend who suggested becoming a LuLaRoe distributor. She jumped at the chance."I was told so many stories of other moms in similar positions who made tens of thousands per month," Tara told POPSUGAR.

But when she discovered that she was expecting again and underwent a difficult pregnancy, the support system she thought she had disappeared from under her feet."After the baby came, I struggled even harder," said Tara."I reached up and asked my leadership for help. The advice I got? Something has to be sacrificed. Housework, time with kids, sleep. Pick one and sacrifice it in order to make the sale.

 

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