Ways to earn / Other

Multi-level marketing and network marketing: why we say do not start

Do not start checked 2026-10-08

Promises flexible income by selling a company's products to friends and recruiting others to do the same, often with a starter kit, monthly purchases and team-building.

What the evidence says about money

Do not start. In its Herbalife case the FTC said a large majority of distributors made little or no money and a substantial percentage lost money (allegations; USD 200 million settlement, 2016), and a small minority made anything near what the company promised. An FTC business blog says very few MLM participants earn more than a small amount of supplemental income.

How sure are we: Backed by the platform's own pages or a regulator.

What can go wrong

• Starter kits, mandatory monthly purchases and event fees can exceed earnings
• Recruiting friends and family damages relationships and exposes you to false-earnings-claim liability
• Some schemes are illegal pyramid schemes; FTC actions have banned operators and required refunds
• Social-media selling posts can breach platform rules on spam and commercial content
• Income disclosure statements show averages dominated by a tiny top group

How it hooks people

Friends and family as the first customers, and income shown as a lifestyle.

Age, region and other limits

Minimum age 18. FTC cases are US; direct-selling rules and pyramid-scheme laws differ across the EU. Not legal advice.

Sources

• FTC public statement on the Herbalife settlement (15 Jul 2016): per the complaint, only a small minority of distributors made anything near what the company promised, and a large majority made little or no money while a substantial percentage lost money; no percentages given in the statement. [P]
• FTC business blog (10 Jan 2017) on Herbalife and Vemma: 'very few MLM participants earn more than a small amount of supplemental income'; USD 200 million Herbalife settlement; about 350,000 distributors expected partial refunds. [P]
• FTC business blog (June 2026): Wellington and Merritt (MLM income disclosures showed most people made little or no money) and Forever Living (most participants earned nothing or lost money, as alleged); International Markets Live generated more than USD 1.2 billion since 2018, nearly USD 800 million judgment partly suspended, about USD 90 million in assets surrendered. [P]
• BakerHostetler summary (30 Sep 2024) of an FTC staff report reviewing 70 MLM income disclosure statements: the vast majority of participants earned less than USD 84 a month, or USD 1,000 a year, on average (an average-based figure, not a median); one table shows the top ranks were only about half a percent of participants. [S]

Related

• AI trading bots, paid signals and 'copy my bot' communities (Do not start)
• AI income courses, coaching and business-in-a-box (Do not start)
• Buying 'aged' or 'warmed-up' social media and platform accounts (Do not start)
• Prediction markets and sports betting as an income (Do not start)
• 'Get paid to complete simple online tasks' offers (Do not start)