The multilevel marketing (MLM) industry is a billion dollar industry, with one in 13 adults saying they have participated in multilevel marketing (most MLM participants are women). Wellness and cosmetics/personal care are the top direct selling categories.

However, only 25% of MLM participants turn a profit and at least 50% of MLM participants drop out after the first year, since the majority of those who join an MLM (73%) report losing money or breaking even (with 53% of participants making less than $5,000). More statistics here and here.

MLM companies financially incentivize to recruit and sell to additional salespeople. So, if I recruit you to sell products for the company I sell for, the company will reward me financially with money and/or their product and other incentives for not only promoting their products but also for recruiting others to do the same.

These companies are often called pyramid schemes, because they build up participants in a pyramid where multiple people make a little and it builds up to the top person leading the team who makes the most. To learn more about this and an example of a company that is being sued for running an illegal pyramid scheme, check out the LulaRoe documentary on Prime.

So, how should we as Christian women approach MLMs? Before we delve into that though, it is important to look at why MLMs are so appealing to women. Here are some of my observations and theories:

Why do women love MLM?

We want to contribute financially but still prioritize time with family

This is the big one - most MLM participants say they join because of money, and that is also the primary recruiting tactic used by MLM companies.

Many of the MLM participants that you know are likely stay at home moms. The promise of working flexible hours while being home with your family and making thousands of dollars off your phone is incredibly tempting. Trust me, I get it so well, especially since Levi was born.

According to Mark Stidham, the co-founder of the billion-dollar stretchy pants MLM empire LulaRoe, "There is an under-utilized resource of stay-at-home moms." In fact, this group of women is so driven and motivated for meaningful part-time work that approximately 80,000 women invested a minimum of $5,000 of their own money to jump-start their side hustles with LulaRoe. Many women took out lines of credit or maxed out credit cards to opt in.

As moms, we want to be present with our kids and stay home, but we also want to contribute financially, especially at the promise of potentially being able to have our spouse quit their job and then you can both potentially stay home, work minimal hours, and watch the money pour in as your spend time with your kids traveling or homesteading (depending on your family dream!).

It doesn’t help that it’s getting more expensive to live than ever before. You can budget, grow your own food, and live frugally, but lately, everything’s been more expensive and costs continue to rise.

According to a new poll by the University of Chicago, nearly 50% of American adults say it's hard for them to improve their standard of living, and more than half of young adults believe it’s unlikely younger people today will have better lives than their parents.

We like to share what we love with others

As women, we all do this: we tell our girlfriends about the great new mascara we discovered, or share a new recipe. We ask her where she got that cute dress, and ask our friends to recommend where to get a haircut, what pediatrician to take our kids to, and what book we should read next. So, it doesn’t feel like much of a stretch to get paid for the items we love and want to recommend to others.

We want the lifestyle they’re selling

It feels like every homestead account on Instagram is part of an MLM and/or regularly sharing affiliate codes. And many of them are really good at this because they make the products they sell part of their lifestyle. Since it feels like homesteading has become especially trendy lately, sometimes, we subconsciously think that if we buy the product she’s using, it will make us more like her and get us closer to that lifestyle too. Or maybe that’s just me :)

We crave community and a place to belong

An attraction of being part of an MLM is that you become part of a team. Many of these MLMs have educational retreats, zoom calls and trips for their top-performing salespeople, so you’re constantly seeing a group of happy women living their best lives and growing in friendship.

We all have seasons when we feel lonely - this often happens when you move or get married and lose track of your friend group, or when you’re a busy mom and don’t have the time for friendships like you used to. So, when you see all these women hanging out on social media and cheering each other on, you want in on that too.

Now, let’s talk about how we as Christian women should approach MLM as we determine whether we should shop at and/or sell through MLM companies.

Should we shop at MLM companies?

Some people have a firm stance against supporting MLM companies due to their predatory nature, as these companies know the desire for women to make money from home with minimum hours and so they make big promises to get women to join and buy into their programs.

If that is a stance you want to take for you and your family, I respect that, but I also see the value in supporting women who are trying to make a living this way, especially if the company’s products are good, quality products that you’d consider buying anyways.

In my opinion, this is one of those issues that each Christian woman has to decide for herself the stance she will take, because it is not a salvation issue. As women, we have a say in where we spend our money and how we make our money (if you’re married, you make these decisions with your husband).

Because we as women do have spending power, as we are often the ones who oversee family budgets and purchasing. Globally, women control about $20 trillion in annual consumer spending. In the U.S., we make up 85% of all consumer purchases and drive 70-80% of the spending among consumers.

So, yes, where we spend our money matters, and if you are particularly passionate about the recruiting and business practices of MLMs, you absolutely have the right to choose not to buy from those companies.

This also does not only apply to MLM companies, but where we shop in general and what brands we buy from.

For example, the company SheIn has a reputation for poor working conditions, high levels of toxic chemicals in its clothing, copying independent designers’ work, and mishandling customer data, yet it is one of the most popular places for women to buy clothes.

As keepers of our homes, where we spend our money as women, matters, so here are questions to consider as you make purchasing decisions:

What do you know about this company’s business practices? Are you comfortable supporting these practices with your money?
What materials or ingredients is this product made of?
What benefits will you or your family get from this product?
Are there any potentially harmful exposures or toxins from bringing this product into your home and using it?
Is there a company or brand alternative that you can buy from instead that has better business practices, ingredients and/or quality, even if it means spending a little more?

Should you sell through an MLM company?

For some women, MLMs are profitable and fulfilling work. But, here is the key: MLMs are not profitable for the majority of participants.

Whoever works his land will have plenty of bread, but he who follows worthless pursuits lacks sense. -Proverbs 12:11

If your motivation is to make money working from home, there are so many other ways with a higher chance of success and likely even more profit potential than you’d make from an MLM (we’ll talk about some alternatives next week!).

But, if you love products from an MLM company and you use them loyally yourself, so you want to get rewards by telling others about it, here are some considerations to keep in mind about participating in MLMs.

Make this decision prayerfully and with your family in mind

For which of you, desiring to build a tower, does not first sit down and count the cost, whether he has enough to complete it? -Luke 14:28

Like any major life decision or job, enter into any new work or business opportunity prayerfully to make sure this is the best use of your time and resources in this season.

If you do join an MLM company, make sure it has its rightful place in your life and that it doesn’t come at the expense of other more important things in your life, like your faith, health and family. To help you do that, here are a few questions to consider:

What is your family’s vision? How will this job opportunity fit into that vision? Will it advance your family’s goals and mission? If you’re single, consider how this could impact your future family and marriage.
What will you spend your time doing if you take up this work opportunity? Is this going to be the best use of your time, resources and talents?
Is there a better use of your time, talents and resources? Whether it is something that brings a higher rate of return or unpaid work that is more important in your current season.
If you’re married, do you have your husband’s full support and blessing to take on this work opportunity?
Will this opportunity help you grow smaller or quieter in order to cultivate a sustainable life and enjoy the Lord more fully? (1 Thess 4:11)

Download this checklist to help you determine if MLM is a good fit for you!

You love the product and use it for yourself

Genuine authenticity sells. If the company’s products are a common staple in your home, and you’re paying for the product(s) with your own money regardless of whether someone else buys based on your recommendation, then maybe becoming an affiliate or an MLM seller makes sense for you.

If you just want to make money but don’t really use the product for yourself (only if you can get it for free), then you likely won’t do well with an MLM because that lack of authenticity will come through in how you talk about the company and products. You can’t do it only for the money, no matter how many promises others make that you’ll be successful at it!

Keep your life free from love of money, and be content with what you have, for he has said, “I will never leave you nor forsake you.” -Hebrews 13:5

The buy-in to join the MLM or social marketing arrangement should be free or minimal

You should not be spending hundreds or thousands of dollars to buy up inventory to participate or going into debt to buy the products you want to sell (watch the LulaRoe documentary on Prime to learn about how that often becomes the worst case scenario!).

From my research, for example, Modere allows any subscription customer to get rewards through an affiliate link. There are packages of products you can buy and there is a small fee to become a full-fledged social marketer with them, but if you’re already buying a product on a regular basis, it’s easy (and free!) to also get a link and recommend the products you’re loving to friends.

For full disclosure, I’ve only tried one of Modere’s products thus far, Revitalize, which is a mineral supplement. I am on month three of almost daily use and have seen a difference in the days I take the supplement vs. when I don’t in terms of energy, so since I’m now planning on buying this monthly, I’ve been sharing my referral link for others to save $10 on their order. I love the product. I plan to buy it regardless if anyone uses my link and I get a reward for sharing. And I would recommend this product to my girlfriends in person even if I didn’t have a referral link or make anything from sharing the product.

You’re already sharing what you love, even without affiliate links or rewards

You can’t just fill your social media with your MLM products and links and that’s it. That feels spammy and is guaranteed to get people to unfollow and avoid you.

The most successful MLMers weave in their recommendations for products into a bigger narrative - they’re regularly showing up in their Instagram stories with behind the scenes of their lives and sharing things they’re loving that are not affiliate based with the occasional mention of the MLM company they work for.

From my observation, homesteaders are especially good at this. In between sharing their dairy cows and beautiful farms, they’ll pepper in how their MLM product makes their life better and provides an income for them to live the homestead life. Those regular drips of content influence us little by little, especially if you want that kind of homestead lifestyle someday too.

So, cultivate a generous spirit without an MLM - or in addition to your MLM recommendations - share other posts you are enjoying, recipes you’re trying and loving, snippets of your life and day, must have products without MLM affiliation, etc. An MLM shouldn’t be the primary thing in your life or social media feed.

This is a great podcast episode on how to start as an influencer.

As for the rich in this present age, charge them not to be haughty, nor to set their hopes on the uncertainty of riches, but on God, who richly provides us with everything to enjoy. They are to do good, to be rich in good works, to be generous and ready to share, thus storing up treasure for themselves as a good foundation for the future, so that they may take hold of that which is truly life. - 1 Timothy 6:17-19

Don’t put all your eggs in one basket and manage your expectations

A lot of people join an MLM expecting to make a ton of money with very little effort. The reality is, most MLM participants don’t make much, so an MLM venture can’t be your sole source of income that you’re building all your dreams on.

For example, according to Modere’s income disclosure statement for 2021, nearly 65% of participants made an average of $50 per month (which is only about $600 per year!). Less than a third of a percent of participants (0.28%!) made over $50,000 in commissions, and only half of a percent of participants made between $20,000 and $50,000.

Those are really small chances, y’all. You can make so much more money in other ways, so prayerfully consider how you can diversify your family’s income by investing in multiple streams of income and stewarding your time, resources and finances wisely!

Remember the Lord your God, for it is He who gives you power to get wealth (Deut. 8:18).

And God is able to make all grace abound to you, so that having all sufficiency in all things at all times, you may abound in every good work. -2 Corinthians 9:8

Do your research and be discerning

This one is so important. Don’t just join because the company or an influencer promises success. Go read about the company’s practice on the Better Business Bureau where consumers leave feedback on companies. Read reviews online from other MLM participants and product users.

Go over the company’s income disclosure statements to get an understanding of how much you can realistically make.

Use their products for a while before you sign up to sell to or refer others. Research the company’s business practices, mission and culture. Read up on their ingredients and how they make their products.

If you’re going to be selling and recommending their product, are you comfortable standing behind what the company believes in and what it sells? For example, some Christians have stepped away from Young Living in recent years because they believe the company is a bit too New Age focused.

Do not toil to acquire wealth; be discerning enough to desist. When your eyes light on it, it is gone, for suddenly it sprouts wings, flying like an eagle toward heaven. -Proverbs 23:4-5

All in all, personally, I don’t think all MLMs are evil and should be avoided at all costs, but even the good ones aren’t always the best opportunity for every woman.

In fact, in my opinion, there are a myriad of better ways to invest your time, resources and finances to make some extra money for yourself and your family without working a full-time job outside the home. Let’s talk about this next week!