Think MaryKay or Tupperware, these companies hire independent consultants to sell a product to their friends and family. This "pay to play" business model promises financial freedom with a flexible lifestyle.
According to the FTC you would actually loose LESS money in a pyramid scheme (90% lost money) in an MLM 99.6% of consultants loose money.
MLM companies thrive on selling a "dream" to vulnerable people. They
purposley mislead and promise unrealistic outcomes when joining the
"opportunity".
Compaines like YOUNGLIVING , MONAT , BEACHBODY or
ITWORKS boast that selling products from your home is easy and all you
have to do is sell to your friends.
However soon you are pressured to try and recruit all your friends and
family to your "downline". Putting strain on close friendships.
Consultants are also required to purchase products monthly to stay "active
" in the company, causing 99.7% of people to LOOSE money.