Is it ethical to recruit people into MLM during a recession?

With economic uncertainty, I have noticed MLM recruitment ramping up. Companies are using messaging like "recession-proof business" and "multiple income streams." But is it ethical to recruit financially vulnerable people into a business where most participants lose money? On one hand, people deserve to make their own choices. On the other hand, targeting people who are desperate for income feels predatory. Where do you stand on this?

I studied compensation plans from 20 different MLM companies for my MBA thesis. My conclusion: the companies that pay more for retail sales to actual customers consistently have higher distributor satisfaction and lower turnover than companies that emphasize recruitment. The model CAN work, but only when structured around genuine product demand.

I joined Amway in college because a senior student recruited me. Spent $2,000 I did not have on products and tools. Made $47 in commissions over 6 months. Dropped out of the business but the experience taught me to always research before investing in anything.

This is really helpful. Do you have a link to the income disclosure statement you mentioned? I have been trying to find it for my company but they make it surprisingly hard to locate.

I studied compensation plans from 20 different MLM companies for my MBA thesis. My conclusion: the companies that pay more for retail sales to actual customers consistently have higher distributor satisfaction and lower turnover than companies that emphasize recruitment. The model CAN work, but only when structured around genuine product demand.

I have a different perspective. Network marketing taught me sales skills, public speaking, leadership, and resilience. Even though I did not make much money, the personal development was worth more than any paycheck.