Why Multi-Level Marketing is a Scam (How It Can Turn You Into a Slave)

In this article, you will learn why multi-level marketing is a scam and you will also know what made a scam a scam! (i.e. what online scam is all about?). You will learn what scam is all about and how to avoid them.

You will also watch a YouTube video of an insider of an MLM program that has been scammed before and has been involved in various MLMs and now concluded that all MLM is a scam.

And finally, I will offer you the best alternative to MLM schemes, and why you need to be promoting your own business online instead of other people's business which could have been a scam.

I will also offer you how to come up with your own business online and show you how you can participate in training that will help you discover a business that you love.

The step by step training will help turn your passion into a thriving business online.

You will learn the following in this article:

  • What MLM Marketing is all about
  • How MLM turns people into a slave
  • Why MLM will never reward you without over-charging you
  • Why MLM Companies always pays the rating agency to remain relevant
  • Why MLM will always make you make money off your friends and relative
  • YouTube | Signs that show your job/program is an MLM
  • Why MLM will always make you promote other people's business and not yours
  • YouTube of why all MLM is a scam
  • A program that is NOT an MLM that will Earn You $20k Monthly


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What is MLM About, Exactly?

We've all heard of MLM, but have you actually wondered what is multi-level marketing about?

Well, to give a definition of MLM, it is a controversial marketing strategy where the people that generate sales are not only compensated for them, but also for the sales that other people under them (in the MLM hierarchy) generate.

The recruited salespeople are called “downlines”; there can be multiple levels of compensation in Multiple Level Marketing.

Other Terminology used in MLM includes pyramid selling, network marketing, and referral marketing; many pyramid schemes make efforts to present themselves as legitimate MLM business.

MLM is classified as illegal in Mainland China. According to the US Federal Trade Commission (FTC), a lot of MLM companies are made up of illegal pyramid schemes that exploit its members.

Most MLM involve in direct selling, the salespeople sell products to a consumer through relationship referral and word of mouth method of marketing, MLM salesmen and women not only sell the company ‘s products but they also motivate others to join the company as a distributor. These are why multi-level marketing is a Scam

Unfortunately, MLM is usually associated with scams (See what is a scam and how to avoid them) and since this is a very sensitive topic for some, below I am going to take a closer look at this and explain why MLM is a rip off scheme.


#14  Latest Online Scam and How to Avoid Them


MLM Turns You Into A Slave

Who is a slave, according to Thesaurus Dictionary “a person who is the property of and wholly subject to

another; a bond servant”. If a condition makes you work like a slave or makes you work in a routine, unimaginative ways then you can be classified as a slave or drudge.

Since all MLM is all about making cold calls and convincing others of how great the product or products you sell are and why they should buy as many of them as possible.

So basically, you are hustling and at the same time, you put your reputation at risk.

After all, there are few things in this world that are as annoying as having to listen to someone's MLM pitch about products that you may not be interested in and have never heard of.

Unfortunately, if you don't hustle in MLM, you don't get to make money and if you don't make money, then you're not going to hang around for too long.

Is Multi Level Marketing Is Just A Scam | YouTube

MLM Will Never Reward You Without Over Charging You

If those already in the MLM wouldn't overcharge others to buy their products, then they wouldn't be able to make any money. What this means is that in order for you to make money, you have to always sell

overpriced junk to people. In many situations, what you're selling may be poor quality or downright useless for the buyer.

You are always required to sell the product to remain relevant to such MLM program, most of this time this is usually a must. Otherwise, you are not moving forward.

In order to join an MLM scheme, you usually need to pay a fee and purchase some products as well.

The modern MLM scheme may even entice you to join free but after you either pay some little amount to go forward or you remain dormant in that system.

Unfortunately, MLM programs usually make money by selling poor quality products and by forcing those who are already in the scheme to keep selling the products to other people.

It's a never-ending chain, this is why multi-level marketing is a Scam.


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MLM Always Pays Rating Agency To Remain Relevant

Getting “credentials” that they can eventually flaunt to their potential customers is something that most MLM companies consider.

In fact, there are so many awards out there that they can pay for (such as the Stevie Award) that it's a piece of cake for them to gain people's trust, even if most individuals have never heard of those awards or know what they mean.

In fact, many of these schemes even pay good money to the BBB in order to go up the ranks and clear their name, regardless if they're a legitimate company or not.

So if you're still asking yourself “is multi-level marketing a rip off scheme?” then the answer is a resounding yes.

MLM Make You Make Money Off Your Friends And Family Members

In order for people to make money after they join an MLM scheme, they need to consider recruiting as many people as possible, this is why I classified multilevel marketing a scam

In fact, there are some MLM programs, you can only join the program only if you can promote and win people under you before you can join.

Most of the time your family is easy reached on,  you tend to reach out to or engage people that trust you because they are the first point of your calls and since they trust you they effectually buy into the so-called product.

An instance is  MMM Global, all MLM work with a similar structure and objective to scam its victims.

It's not only the fact that in most cases your friends and family will continue buying the products just so that you don't feel bad but in the end, you actually get tired of it all.

You get tired of having to recruit new people every week, of trying to sell poor quality products and of the perception that others have concerning your so-called job.

Is Multi Level Marketing A Scam | YouTube


 Be a Great Affiliate Marketer In Wealthy Affiliate

In Wealthy Affiliate, you will learn how to identify your niche. Your niche will depend on what drives you in life. What do you like?

Do you love traveling? Or skating? Or Food? Is there any game you like playing?

The Wealthy Affiliate program will help you identify what you love doing. You will learn how to transform your hobbies into a moneymaking machine.

You will be taught how to develop your own very website and how to use your website to make money for a living.

Wealthy Affiliate is a community of learners, we learn from each other’s every day.

The platform has more than 100 videos and text training on various topics on the step-by-step method to turn your passion driven hobbies into making money online.

You can also join free with a gift of two websites hosting forever without any condition; so what are you doing about your career?

Turn your hobbies into making money online today and start working from home. If I can do it you can do even better.

Do you have any opinion on the MLM program? Are you doing great as an MLM program? Do you think I am wrong?

Please drop your comment and let me know about your program, maybe it may change my thought about it all.

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7 thoughts on “Why Multi-Level Marketing is a Scam (How It Can Turn You Into a Slave)”

  1. Dear John,

    Great work on. And I am impressed with your article on MLM and scam. But do you really think all MLM is a scam? Are you saying that there is no legit MLM program that is not scammed?

    I knew great people making money promoting Multi-Level Marketing products, are you saying they are making money via scamming process?

    Please clarify.



    • Dear Trickyviews,

      Thanks for reading my article on Why Multi-Level Marketing is a Scam. To be straightforward with you. I will declare here that 95% of all MLM products are a scam. It is tough to swallow!

      Any product that you will need to solicit other members to embrace is a scam. Most especially if such product is not generally needed by everybody.
      I am having one or more online program that is MLM but is not a scam. They really added value to the members and populate of their regions. A very good example of such MLM product that is not a scam is Recharge And Get Paid. You can read that article up.

      Thanks for visiting my site.



  2. While I don’t agree with some of your ideas here, there are points that I am with you. Like for example, when you said that MLM makes you a slave, that’s true. I have friends in the industry they are so successful that they no longer have time for other activities except for hosting meetings, appearing in gatherings, and speaking in conferences. Although they look like they’re enjoying what they’re doing, to me I don’t like that set up. It’s really like the MLM company has already owned you! lol

    Another thing that I agree with you is, when you said that MLM distributors don’t really own a business, but rather promoting other the MLM company which they never own. Contrast with affiliate marketing, especially the one being taught by Wealthy Affiliate, people are being trained to really start own businesses.

    • Hi Gomer,

      Thanks for those my point you agree with. We are no meant to agree on all stuff. 

      The best job online is to have your own business that can run with or without you. Can you imagine making over $25k monthly without disturbing your family or friends about referrer. that is what a legitimate business online that is not a MLM will earn you, Wealthy Affiliate is the best example of this. 



  3. Hello John,

    You make me scare of working online, most especially on social media platform.

    Are you saying that people bait friends on face book to be friend them so as to get access to their system?

    Please revert.


    • Hi Isreal,

      Yes, we have a lot of fake people online. This is so very common on Facebook these days. You can easily identify the fraudulent individual by the profile pictures they use (most naked and beautiful girls ); you accept them as your friends at your own Perry.

      Then they will be the first to chat you starting a conversion. They may send a link to you via FB chat. If you click on it that may introduce malware to your system.

      The malware will help them gain access to your system.



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