Anti MLM Mondays Post 8: How to spot an MLM from a mile away

HOW TO SPOT AN MLM FROM A MILE AWAY INTRODUCTION

It’s time for anti MLM Monday, and today we’re going over how to spot an MLM from a mile away. A lot of us have gotten the “hey girl” or “hey hun” messages. That’s actually where the term hunbot originated from when it comes to talking about MLM reps. It’s because they sound like robots constantly just saying “hey hun.” If you’re unfamiliar with what an MLM is, it stands for multi level marketing. This post goes over a great introduction to multi level marketing and the anti multi level marketing movement.

With the rise of social media, MLM companies have become way more of a norm than ever before. However, with that said, there have also been new strategies these companies and representatives have come up with. Because of this, sometimes it’s incredibly obvious as to if your friend, family member, or even favorite Influencer has become a victim to these, in some people’s eyes; commercial cults.

On the other hand, there are marketing tactics taught to these MLM reps to be very vague. Don’t post the company name in your bio, and try not to put it in your posts. This raises a question though. If you really stood behind this company and swore by the products, why aren’t you shouting the name of it from the rooftops? When I recommend something to friends or family whether it be a new restaurant or a products I’m using, I’ll give them all the information they need to try it. This isn’t monetarily motivated either. I just recommend things because I enjoyed it and I think my friends or family might enjoy it as well.

The reason why some reps use this approach is only to be able to DM you for details and then get you on their radar. Whether you consider yourself part of the anti MLM movement or not, you may have seen the typical post “if I told you that you could lose 10lbs in X amount of days would you do it?” After this post goes up, whatever comments are left, those people have officially become targets. This is a gateway for the MLM rep to slide into your DMs because any engagement with their posts means you’re showing interest. Let’s go over how to spot an MLM from a mile away.

HOW TO SPOT AN MLM: PART 1 BUILDING RAPPORT/FRIENDSHIPS

Before we proceed, I do have to give a shoutout to antimlmbossbabe on Instagram, because I got the idea for this post from her Instagram post, which I have left below for y’all to read. This post will be split up into parts. It’s going to go over different ways to spot an MLM by categories. Category number one is when it comes to the reps building rapport and attempting to be authentic with their audience. The reasoning behind splitting this up into parts is because there is a lot of information to go over with this topic.

https://www.instagram.com/p/CR1l-whHwXQ/

DM ME FOR DETAILS/I’LL DM YOU

As I just mentioned, this is a common marketing tactic amongst these MLM companies and a great way on how to spot an MLM. It’s taught to these reps in their sorry excuse for training when they first join. This was taught to me when I was in the multi level marketing industry. You’re trained not to give out a bunch if information. Make a very enticing post where it’ll get engagement, but instead of giving anyone answers in the comments section, DM them and start building a rapport with them.

On my Youtube channel, I have shown examples of MLM reps showing their downlines how to keep track of these DMs. Meaning, how to keep track with following up, when to follow up, etc. That would be very helpful advice in the real world, with real jobs, but of course, it’s being used for an MLM. This brings me to the next topic.

THE “FRIENDSHIP” OR INTERACTION FEELS FAKE

Another way to spot an MLM from a mile away, is when the interaction you have with the rep feels fake. Of course, this is more of a follow your gut type of thing. However, there is a Paparazzi rep that I reacted to on my channel who goes over how to fake friendships just to recruit. She goes over how to seem authentic and build a relationship with someone while being deceiving at the same time. The reason why this is deceiving is because the person on the other end may think this rep is actually their friend.

However, they are only befriending people to eventually pitch them the opportunity, or in some cases, the products. This way to spot an MLM is, like I said, a little more of a gut feeling, so you’ll have to gauge it on your own. Unfortunately, in some situations, you might be blind sighted with the fake friendship.

SOMEONE YOU HAVEN’T TALKED TO IN A WHILE CONTACTS YOU

This is the most obvious way to spot an MLM pitch. Usually the message starts off with saying it’s been a while, and I think you’d be great for this business opportunity. If you follow the anti MLM reddit, there have been so many screenshots of conversations where the last time these people talked they were arguing over one of them sleeping with the other one’s significant other. Now, all of the sudden they think you’d be great for this opportunity.

Whenever I see a message from someone I haven’t talked to in a while, I always get nervous because the majority of the time it’s an MLM pitch. Some have even gone as far as to go out to lunch or to grab a coffee to catch up and then they sneak the pitch in there. It’s wrong, but it happens a lot.

MLM COLD MESSAGING

Cold messaging is probably the worst, for both the person cold calling/messaging and the receiving end. It’s always awkward no matter how confident the initiator is and it just comes off as gross and annoying for lack of better terms. A lot of the typical messages start off with “I love your feed and think you’d be great at what I do.” The thing that gets me is they say they love your feed, but they don’t actually do their research on you.

When you’re looking to recruit someone onto your team, wouldn’t you think to research them to see if they even have what it takes so to speak? You don’t want to have just anyone join because then you’ll end up losing that person and have to find another one to replace them. Having a revolving door is never a good sign. However, these reps will sign up anyone with a pulse in most cases because they either receive a commission off of that sign up, or they receive a commission when the the recruit purchases/sells something after they sign up. It’s a win win for them.

In a recent anti MLM post here on my blog, I spoke about being targeted for my hair thinning by a Monat rep. You can read that entire post here, but that rep clearly did not research my feed at all. She even liked a photo that was of anti MLM stickers I received from the creator behind the account Actually, no Karen, I’m not interested in your pyramid scheme, ok? The rep definitely didn’t do her research, even though reps are always telling the anti MLM movement to do their research, which we do, and we have facts that back up what we are saying.

PART 2 DECEPTIVE STRATEGIES

When talking about how to spot an MLM, deceptive marketing tactics and manipulation will almost always arise. Unfortunately, this is just part of the MLM industry, and always has been. It wasn’t as bad when MLMs first started many decades ago, but it was still present. How else can you get someone to sign up for an opportunity where it’s not guaranteed and you promise them the dream?

VERY VAGUE ON THE COMPANY AND PRODUCTS

I already kind of went over this topic, but I wanted to mention it again. This is a way these MLM reps deceive their friends, family, and followers on social media. As stated earlier, this raises the question of why are these reps being taught to be vague? If this opportunity and products are so amazing and groundbreaking, why are we hiding the name? It could possibly be because MLMs have a bad reputation, or it could be just another tactic. MLM reps are creating suspense around something, and people want to know what it is so it entices them to message the rep. Now, the rep has the potential customer or recruit right where they want them.

I am very well aware that when you work in sales whether it’s MLM or not, there are going to be sleezy sales people. A good example of this type of sales people is Danny Devito in Matilda. That’s the stereotypical used car sales person people think of. They’re not all like that, some of them are actually really honest and still do very well. There are tactics that are used, but in my opinion, MLMs have some of the most manipulative ones. Especially because they prey on people when they’re most vulnerable.

In addition, what other sales job do you hear the rep talking about why they joined the business? Or how much this opportunity has changed their life. This brings me to the next topic on how to spot an MLM.

THE MLM REP’S WHY IS A CONSTANT DISCUSSION

No other job or company that I’ve ever worked for, besides the MLM ever encouraged me to talk about why I joined the company. These reps are taught to be vulnerable because when you’re vulnerable, you’re relatable. When you’re relatable, a friend, family member, or follower may think “if he/she can do this, so can I!” Someone watching might also be in the same exact position as the rep and it makes them think they can achieve the dream too.

When I was in Beachbody, I was constantly encouraged to tell my story and my why. Why did I join, and why did I even start using the products to begin with? I had never been that vulnerable on social media before and giving out very personal information. For an MLM rep, talking about their why is a way for them to market the opportunity. This segues into them being able to sell the lifestyle; the dream.

SOCIAL SELLING/ATTRACTION MARKETING/SELLING THE LIFESTYLE

It seems like every day there is a new term for multi level marketing. This is due to (well at least in my opinion), the negative connotations surrounding the words multi level marketing. There is an entire movement called the anti multi level marketing movement that is made up of hundreds of thousands of people from all over the world. I’ve heard it be called Multi Level Marketing, Network Marketing, Direct Sales (which they almost the same but also have a few differences), Social Selling, Attraction Marketing, and they’ve even tried to call it Influencer/Affiliate Marketing.

Influencer/Affiliate Marketing, or being an Influencer/Content Creator is incredibly different from MLM. That is a post that I’m saving for another day, but be careful if you hear any of these types of marketing. Of course, some of these types of pitches may be legitimate Influencer or Affiliate marketing. However, be wary that MLM reps are trying to deceive the masses by trying to put a pretty pink bow on a bag of poo.

EMPHASIS ON PERSONAL DEVELOPMENT/MINDSET=TOXIC POSITIVITY

After being in an MLM company, I cannot read or listen to personal development anymore. The MLM industry ruined it by using it as toxic positivity. There are many people who do benefit from personal development and I do think it helps a lot of people. However, within the MLM industry they have a large emphasis on personal development and keeping a positive mindset. If you just stay positive and don’t allow any negativity in your life or “biz” you’ll succeed.

Unfortunately, that’s just not how running a business works. While I do agree that it’s great to be optimistic, and if you work in a setting where customer service is involved, you should have a positive attitude. However, it takes more than a positive attitude and a smile to run a business. Personal Development is just a way to indoctrinate these reps into the commercial cult.

FOMO STRATEGY

If you are unfamiliar with what FOMO stands for it means Fear of Missing Out. This is a strategy that a lot of non MLM companies use, this isn’t just exclusive to MLM companies. We see it all the time in advertising. Have you ever bought something that was limited edition, or while supplies last? That’s part of the FOMO strategy. MLM companies use this all the time. Why is it different for MLM companies? Well, because they are constantly shoving these things down our throats. We’re constantly bombarded with flash sales or for this week only the starter kit is less money. Monat is infamous for their flash sales. It feels like they always have them now.

Posts on social media might have the phrases “I only have X amount of spots available.” I hate to break it to you, but they have infinite spots available. You’re not special, nor are you part of the 5 spots that the rep had available. This is to create FOMO so that you actually join. I was taught to do this in my MLM “career” as well and I always had infinite spots on my team or in my challenge groups for Beachbody. Because MLM companies most likely don’t want you to do your own independent research, they want you to join their MLM yesterday.

MARKETING THE COMMUNITY

I’m sure if you’re well versed with MLMs and the culture as a whole, you probably know about the “sisterhood.” I put sisterhood in quotes because it’s not a real thing. MLM companies also capitalized off of the women empowerment movement by using this in their pitches. Which is quite ironic given the fact that so many MLMs are actually run by men. Not all of them, but a good portion of them. It is very disheartening to know that there are people using women empowerment to benefit their businesses that only hurt women.

In 2018, AARP released a study about multi level marketing and within that study they state that 60% of MLM participants were women. According to this very same study, 25% of participants made a profit, but we don’t know how large or small that profit is. Whereas Jon M Taylor’s study that was published to the FTC’s website, 99.6% of reps lost money. What we can do is say that 75%-99.6% of MLM participants don’t make money or lose money. That’s quite a large percentage, especially given what some Income Disclosure Statements show us. Each MLM is going to be different, so these percentages can vary from MLM to MLM, but even the 75% number is worrisome.

ANYONE AGAINST MLM IS JUST A HATER WHO DIDN’T WORK HARD ENOUGH

Sadly, another way to spot an MLM from a mile away is when you see indoctrination. I’ve talked about this in previous anti MLM posts, but there is a reason why people consider MLM companies commercial cults. Unfortunately, because these types of companies and some uplines don’t allow for critical thinking, they are able to mold these new recruits into what they want them to be.

Which means, they are able to get that new recruit to believe that anyone who is against them is just a hater, jealous, or failed at MLM themselves because they just didn’t work hard enough. What I find interesting is that the people who say this have no statistics or facts to back up these types of statements. Do they have data that shows the 75%-99.6% just didn’t work hard enough? MLM is set up for a very small amount of people to win.

PART 3: BUZZ WORDS

Buzz words are very prevalent within MLM companies and their culture. These same buzz words are also super cringey to some because it just makes it so obvious that they’re trying to shill an “amazing business opportunity.”

1. Be your own boss! Boss Babe, Mom Boss, Girl Boss.

Prior to joining an MLM, I actually did use the term boss babe and girl boss. Especially after buying the book #GIRLBOSS by Sophia Amoruso, the founder and prior owner of Nasty Gal. However, I did read that book, and I did find inspiration from it. MLM companies kind of took the phrases girl boss and boss babe and made them cringey now. Now, whenever I hear that, my mind immediately goes to “oh no, this is an MLM.”

2. Business Opportunity/Work from your phone

If someone approaches you about an “amazing business opportunity,” it’s an MLM pitch. Especially if the person pitching adds that you can work from your phone or you can work from anywhere. What this truly means is you can work from everywhere. Even when you’re on vacation! It’s just that convenient (note my sarcasm here).

3. I have X amount of spots available!

This was already discussed in part 2 of this post, but it needed to be added into the buzz words category as well. As mentioned earlier, they don’t have exclusive spots available, they have infinite spots available.

4. Financial and Time Freedom

Financial and Time Freedom will be discussed more thoroughly in Part 4. However, whenever these words are said, I hate to be the bearer of bad news, but you’re probably being pitched an MLM or even a pyramid scheme. Reps aren’t allowed to make income or health claims, so if you see a rep doing this, please report them to the FTC.

5. It’s not a pyramid scheme, those are illegal!

MLM reps like to use this sorry excuse for a rebuttal, a lot. There is a video I made over a year ago on my channel (click here to watch it) where I go over every single way to combat this narrative. Just because something is illegal, doesn’t mean everyone is abiding by the law. A few great examples of this are substances, murder, and just crime in general. Even if you go over the speed limit, you’re breaking the law. Don’t take this out of context though, because I’m not calling every single MLM a pyramid scheme.

What I’m trying to point out is just because something is illegal does not mean it isn’t happening. In addition, how many MLMs have been accused/deemed of being a pyramid scheme and have either had to shut down or restructure? A significant amount. Which means, it does and can happen. What breaks my heart when I hear about an MLM shutting down whether it be because the MLM chose to do so, or because it was deemed a pyramid scheme is all of the people who lost their money.

6. You already recommend things to your friends and family, why not get paid for it!

Something that is very common with MLM companies/reps is they are very money motivated. For whatever reason, some of them believe that we should be compensated for pretty much everything. Why can’t some people just have hobbies they enjoy doing without monetary gain (although, if you can make money from a hobby and it doesn’t feel like work that’s awesome)? It’s so odd that these reps want to get compensated for making a recommendation. I have done sponsorships in the past and have given an honest review of the product/service.

However, I also recommend places such as restaurants, stores, even skincare routines without monetary gain. Will I use affiliate marketing in some instances if I’m posting things on my blog or my LTK page? Yes, but I won’t get upset if someone chooses not to use my affiliate link. If my sister in law likes a dress I have I’ll just tell her where I got it. It’s not expected for her to purchase through my affiliate link. When my husband and I try a restaurant and end up loving it, I have no issue leaving a Google review and then also talking about it with friends and family. Why can’t we just recommend things without getting paid for it?

7. Sisterhood/Empowering Women

Another way to spot an MLM is something that was discussed within part 2. That is, the community, or what they call the sisterhood. It’s common to hear empowered women, empower women. As already discussed, while it’s great that women empowerment is being spoken about, it’s being used in the wrong way when it comes to MLMs.

8. Watch me or join me!

As mentioned within this post, MLM reps will more times than not try to recruit anyone with a pulse. This phrase of watch me or join me, in my humble opinion, sounds very entitled. To some, that might seem like a bit of a reach, but try and hear me out. It gives this perception that this is black and white. Joining the team is clearly the more positive aspect of this phrase. Watching the rep almost makes it seem like the audience is less than.

9. I’m a business owner!

No, you are not. Just because you bought a starter pack does not make you a business owner. My family and I own a small business, and as an ex MLM rep, it’s not the same. Nor is being an MLM rep like owning a franchise. At best, these reps are independent contractors for a company, and really they’re sales people at the end of the day. You’re still making someone else filthy rich, whereas at our family owned business we’re truly working for ourselves.

PART 4: THE FINANCIAL ASPECT

Going over the financial aspects of MLM companies is another way this post might teach you how to spot an MLM. That’s what we’re going over in part 4.

FINANCIAL & TIME FREEDOM

Yes, this was covered in the buzz words category as well, but it needs to be discussed a little bit further. Of course making income claims goes against the FTC, and I went over that a little bit within this post. During the pandemic, there has been a significant rise in MLM participants which also means, an increase in claims. There were MLM companies that were sent warning letters by the FTC themselves. When it comes to MLM companies, financial and time freedom is non existent. This is seen within reaction videos on Youtube. You may have even seen evidence of this by your own friends and family members trapped in these companies.

We don’t see these reps taxes and what they take home at the end of the year after taxes and expenses. Which means it’s unsure as to what these reps are actually making and if their financial freedom isn’t just a false claim. There was a rep that I reacted to on my channel who admitted in a live video that in her previous MLM company she made false income claims. She stated that she said she had financial freedom, when she was really struggling.

In addition, what kind of time freedom are these MLM reps actually getting? They are constantly on their phones. Yes, they might be able to work from anywhere, which really translates to working from everywhere. However, are they present with their children? Some reps even send their children to daycare while they run their “biz.” Doesn’t that defeat the whole purpose of having time freedom to be with your children?

THERE ARE NO REAL QUALIFICATIONS

Another way on how to spot an MLM is that there are no real qualifications. I’m not saying that you need qualifications for every job or business, but you need at least a basic understanding. With MLM companies, it doesn’t matter what your qualifications are. You’re just another recruit to your upline, and you’re just another customer to the MLM company. The only qualifications you need, in my opinion, are knowing how to spend money and waste time.

COMPENSATION PLAN IS CONFUSING AND THERE ARE X AMOUNT OF WAYS TO EARN

The only way to make money should be by getting a paycheck. Anything else is just an extra incentive. However these MLM companies make it seem like these extra incentives are another way the reps can earn money. Getting a hotel paid for on a “free” trip (it’s not actually free) where you have to pay for everything else, is not a way to earn money. In addition, if the compensation plan of the company is confusing, it’s done that way on purpose.

The goal of these companies is to *hopefully* sell the products they offer and to recruit, it’s that simple. Recently, while I was researching the MLM Crunchi for a video, they didn’t have their comp plan available on their website, unless you joined the company. That seems highly suspicious. Shouldn’t the company want to be transparent and show their reps what is expected of them when it comes to the comp plan?

IN ORDER TO LAND A PROMOTION YOU HAVE TO RECRUIT

Over the last almost two years of researching more about MLM companies, I’ve seen reps talking about how no other company promotes the same way MLMs do. While yes that’s true, but it’s not the same. It’s not a real promotion. You’re ranking up by the amount of people you signed up and how much PV (personal volume) you have to keep. The “promotion” isn’t reflective of actual work. In a traditional job, you receive promotions by your work. You’re being judged by the projects you finish. Along with how well you do your job, not by how many people you get to sign up and purchase a starter kit. This is yet another way on how to spot an MLM.

PART 5: HOW TO FURTHER FIND OUT IF SOMETHING IS AN MLM

By now, you may have a good grasp of some common things to look for when it comes to how to spot an MLM. It is important to go over a few more things before we wrap this up. The following are other ways to identify if something is an MLM.

GOOGLE IS YOUR BEST FRIEND

Figuring out how to spot an MLM goes hand in hand with Google. Google is your best friend. You can easily type the question, is X company an MLM, and you’ll see a bunch of results. Most of the research I’ve done within the past almost two years has been thanks to Google. Sometimes I’ll even start off by looking for a Youtube video as well. Most of the time (as long as the creator doesn’t forget) there will be sources in their description box. I read those sources because I’m just a curious cat. However, Google is your best friend in helping you identify if something is truly an MLM.

THE DIRECT SELLING ASSOCIATION

The Direct Selling Association (DSA) is a lobbying group and of course they are pro MLM. The DSA represents direct selling companies, including those that have MLM models. The DSA website does have a list of MLM companies that you can look through. I have used the DSA’s website a few times actually. When I first learned of the MLM Melaleuca, I had so many people commenting on the video I made stating it’s not an MLM and the reps swear by that.

Even the CEO has stated that Melaleuca isn’t an MLM, so it’s not just the reps saying it, their own CEO is saying this nonsense. The funny thing is, Melaleuca is listed on the DSA’s website, and the FTC sent them a warning letter last year, with the rest of the MLM warning letters. So tell me again how it’s not an MLM?

MLM MASTER LIST

I’ll be making a master list, and once that is all set up I’ll update this post. In the mean time, to help you be more proactive in learning how to spot an MLM, this master list by The anti MLM Coalition is a great one to reference.

FINAL THOUGHTS

I truly hope that this post was helpful on how to spot an MLM. Hopefully, this post was able to teach you how to identify an MLM, their tactics, and maybe even if an MLM is operating more like a pyramid scheme. I will forever recommend everyone to report to the FTC when it comes to these MLM companies. You can report your own experience in an MLM, or you can report medical and income claims.

Disclaimer: This is all based on my opinion and research I have done. Please do your own research and fact checking. Section 107 of the Copyright Act provides the statutory framework for determining whether something is a fair use and identifies certain types of uses—such as criticism, comment, news reporting, teaching, scholarship, and research—as examples of activities that may qualify as fair use. Second Disclaimer: Anything said in this post is for entertainment purposes, and my opinions.

Great resources to further your research and education:

Jon M Taylor’s (MBA, PhD) Study: The Case for and against Multi Level Marketing

AARP’s Study of Multi Level Marketing: Profiling Participants and their Experiences in Direct Sales

Steven Hassan’s BITE Model

FTC’s article of a Pyramid Scheme vs MLM

The rest of my anti MLM Mondays posts can be found by clicking this link.

Anti MLM Mondays Post 8: How to spot an MLM from a mile away

HOW TO SPOT AN MLM FROM A MILE AWAY INTRODUCTION