I know that MLMs are less popular around here than the starting quarterback on a losing team and that I will be mocked for even considering the idea that there are any positive aspects. However, I read A LOT of misinformation on here, so I thought I would share a few things from my recent experience. DISCLAIMER - I am not employed by an MLM, nor do I participate in any MLM organizations. With that said, my employment includes the MLM industry.

A few years ago, I had many of the same concerns and criticisms that I read on here. I heard horror stories of lies and promises and pyramid schemes, and my initial reaction to any mention of an MLM was very negative. Over the last few years, I have seen how much the industry has changed. FTC regulations and lawsuits have helped identify and penalize many of the dishonest companies, and encourage/force others to higher standards. For example, it is now illegal to require Distributors to buy a large amount of inventory in order to become a Distributor. Many buy simply what they want to use themselves, and anything they sell is done through websites where the inventory goes directly from the company to the customer, the Distributor never buys or holds it. It is also now illegal to require that any customer who buys the product become a Distributor. The number of customers who simply use the products without any intention of starting a business has grown rapidly in the last decade. There are other changes, including efforts to prevent the "ground floor" members from effectively retiring after a few years and earning money without doing anything because of the work of people in their downline.

I am not here to say that the MLM or Direct Sales industry is perfect, of course it isn't. There are still companies out there that sell products with little-to-no value at prices that I would not consider paying. There are also Distributors and possibly even companies - though they are few and far between at this point - making illegal and false claims about their products or the business opportunities involved. I completely agree with the mentality of being cautious about joining an MLM, just as I would encourage caution about any purchase of product or potential investment. In my experience, every business model of marketing and sales has the potential for fraud and corruption, from door-to-door to late-night TV adds.

In recent years, many of the newer direct sales companies are quite different than those that I had heard about in the past. Many are selling relatively inexpensive items in jewelry, cosmetics, or clothing. Instead of trying to persuade people to quit jobs and sell these products full time, many companies are targeting Distributors who can work a few hours a week, sell some product, and make a couple hundred dollars doing something that they enjoy, as well as establishing a strong customer base without any promise or plan of compensation. Again, these opportunities are definitely not right for everybody, I understand that, but they are also not the guaranteed scam that many on here would have you believe.