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  1. Negative Public Perception and Stigma: Despite the legitimate opportunities offered by some MLM businesses, the industry as a whole has a negative public perception and stigma. Many view MLM as a form of pyramid scheme, which can make it difficult to gain credibility and trust from potential customers or recruits.

    • Methodology
    • The Most Popular Multi-Level Marketing Companies in The U.S.
    • Americans’ Experience with Multi-Level Marketing
    • How Americans Feel About Mlms and Their Impact on Relationships
    • Mlms: Scams Or Legitimate Side Hustles?
    • The Risks of Joining An MLM
    • Final Thoughts

    Based on a list of multi-level marketing companies in the U.S., we collected Google Trends data from May 2020 to May 2021 over the course of a year to see which MLM companies were the most searched and where. Additionally, we conducted a survey of over 1,000 Americans over the age of 18 to find out their experiences and perceptions of MLMs. Our fin...

    First, we looked at the most popular MLMs in the U.S. overall and in each state. Have you encountered any of these companies in your day-to-day life? Vector Marketing was the top-searched MLM overall, ranking number 1 in 6 states and earning the title of America’s most popular MLM. This cutlery-based MLM received the most searches in Arkansas, Colo...

    Fascinatingly, over half of Americans have been recruited by a friend or family member to join an MLM, and close to half of American women have purchased an MLM product. These numbers show that MLMs are much more integrated into the life of the average American than you might expect. One thing is clear, however: MLM recruitment is not often well-re...

    Overall, Americans tend to have a negative perception of MLM companies. Around 61% of people gain a more negative perspective of someone after finding out they joined an MLM, and over half of respondents would not be friends with someone in an MLM. Friendships aren’t the only form of personal relationships that are sabotaged by MLMs. Romantic relat...

    We were able to draw 2 major takeaways from our study: MLMs are overwhelmingly popular in terms of number of members and pervasiveness in social groups, and yet overwhelmingly unpopular in terms of people’s experiences and opinions of them. We at Upgraded Points suggest that you exercise an abundance of caution when considering the possibility of j...

    We wouldn’t personally recommend joining the companies on this list, but if you do, make sure you remain aware of the practices of these companies. Here are some common pitfalls of joining an MLM company: 1. Many companies require you to invest your own money in order to start selling their products 2. Your relationships may become strained 3. You ...

    If you’re looking for a legitimate side hustle, look into different freelance opportunities around your own skills. Become a freelance writer, editor, consultant, or bookkeeper, or make money selling objects on Etsy or delivering food via DoorDash. One thing is for sure: the best side hustles let you answer only to yourself and your clients, and do...

    • Founder & CEO
  2. Aug 3, 2021 · With that said, let us return to income claims briefly. Most MLM companies need to make sweeping and significant changes in the way they handle income claims.The problem is – the vast majority of MLM companies are unimaginably smug in their erroneous beliefs regarding the propriety of their and their distributors’ income claims.

    • First, it's important to know the difference between an MLM and a pyramid scheme. There's a fine line between an MLM and a pyramid scheme. A pyramid scheme can look like a legitimate MLM in that you can earn money by selling things like makeup, clothing, vacations, and wellness products to your friends and family.
    • LuLaRoe was accused of being a pyramid scheme. In a pyramid scheme, the only people who actually make any money are at the top of the recruiting food chain.
    • Herbalife. Herbalife is a nutrition supplement company that has been around since the 1980s. In 2016, Herbalife settled an FTC lawsuit that accused it of being a pyramid scheme and agreed to pay a $200 million settlement to consumers.
    • Neora. Skincare and wellness MLM Neora, formerly known as Nerium International, LLC, was sued in 2019 by the FTC for operating as an illegal pyramid scheme.
  3. Apr 16, 2021 · According to the DSA, people involved in the MLM industry in the U.S. in 2019 produced far less in sales per person than in 2004. DSA U.S. data. 2004. 2019. People involved in direct selling (000 ...

    • William Keep
  4. Dec 14, 2020 · Summary. Relative to US Retail Sales, direct selling (i.e., multi-level marketing) in the United States is declining. MLM companies and their selling agents tell a different story. Recent DSA data ...

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  6. Apr 7, 2024 · And the way multilevel marketing companies differentiate themselves from straight-up pyramid schemes is that there’s some sort of product or service involved. It gets sold to people being ...