How regulation changes are affecting the MLM industry

The FTC seems to be cracking down on MLM companies more than ever. How are these regulatory changes affecting the industry? Should distributors be concerned?

Great post. I have been saying this for years but nobody wants to listen. The people making money in MLM are the exception, not the rule. The income disclosure statements prove this but recruiters conveniently forget to mention them.

Here is what bothers me most about the MLM industry: the blame-the-victim mentality. When someone fails, they are told they did not work hard enough, did not believe enough, or did not attend enough events. It is never the company fault or the model fault. This is textbook manipulation.

Former Herbalife nutrition club owner here. I invested $25,000 to set up my club. First year was brutal - barely covered rent. Second year I started making about $3,000 per month. Third year I was at $6,000 per month. Then COVID hit and I lost everything. The business model worked but it was fragile.

If you are going to do MLM, track EVERY expense from day one. Most people have no idea how much they are actually spending versus earning. Create a spreadsheet with every product purchase, sample, event ticket, gas, and tool subscription. The numbers will tell you the truth.

My mom has been in the same MLM for 22 years. She never made much money from it but she genuinely loves the products and the community. She treats it as a hobby, not a business. I think that is the healthiest approach to MLM.