Discussion

FTC analyzed 70 MLM income disclosures - the results are shocking

The Federal Trade Commission released a report in September 2024 analyzing income disclosure statements from 70 different MLM companies. Key findings: Most participants received zero payments from their MLM. The vast majority who did receive payments got less than $1,000 per year - that is less than $84 per month. The disclosures often excluded people with low or no earnings, did not account for expenses, and emphasized the high earnings of a tiny percentage. What do you all think about this? Does this change how you view the industry? Link to FTC report for those interested.

2 Replies

The Federal Trade Commission released a report in September 2024 analyzing income disclosure statements from 70 different MLM companies. Key findings: Most participants received zero payments from their MLM. The vast majority who did receive payments got less than $1,000 per year - that is less than $84 per month. The disclosures often excluded people with low or no earnings, did not account for expenses, and emphasized the high earnings of a tiny percentage. What do you all think about this? Does this change how you view the industry? Link to FTC report for those interested.

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.

Let us look at this objectively. The Direct Selling Association reports $40 billion in annual US sales. That is real revenue from real products. The industry employs millions of people. To dismiss the entire model as a scam is intellectually dishonest. The problem is not the model - it is how some companies and distributors abuse it.

Want to join the discussion?

Create a free account to reply and participate in conversations.

Back to all discussions