When a friend says that they're excited to "launch their own business," you have reason to worry. While many self-starting business are legit — like a shop on Etsy or a storefront that sells homemade merchandise — many fall into the realm of MLM.
What's an MLM? MLM stands for multilevel marketing. Pretend you had a friend who sold you perfume. They told you that they're making a ton doing this side hustle, and they think you'd also be great at selling. This friend really talks you up, and then you learn the structure of the arrangement. They profit based on money you're selling. You are then part of their downline and encouraged to recruit other members so that you can earn money off of them. It's much like a pyramid scheme, despite the fact that many MLMs are told to tell their future downline that pyramid schemes are "illegal." Really, it's just a loophole.
These situations can, unfortunately, ruin friendships. And they can also make people lose a lot of money. Some of the most popular MLMS include Arbonne, It Works!, AdvoCare, Amway, Beachbody, and Color Street — but there are dozens more.
1. Be Kind
Is this someone you love and respect? Then obviously you want the best for them. MLMs seem to target a certain demographic. Many stay-at-home moms feel as if the business will be a good, easy way to earn extra cash. They're also told that the only people who fail just didn't work hard enough to eventually retire at 30. These dreams can be fun — like envisioning what it'd be like if you won the lottery. But the problem is, people very much believe these claims are possible.
Find trusted income reports that representatives make, and send it to them. Tell them that you truly wish them the best but can't support any sort of business that preys upon people looking for a legitimate second income. It's also important to ask them how much they spend on products from the company itself. They may be encouraged to hold an inventory or always have samples on hand — and that's something they have to pay for. So if they present a check of $100 in earnings, but they spent $150 that month on inventory, it's still a net loss.
2. Ask If You Can Help in Any Other Way
It's possible they're severely in debt and are trying to find fast ways to earn money. Or it's possible that they just haven't been able to land an actual job that pays them for the time spent working, and not just on a commission. If you happen to have any legitimate leads, you can send them their way. Your friend may ignore it, or say that they prefer the flexibility of the MLM. That's on them, but it's still worth trying.
3. Strike Up a Conversation About Something Else
It's almost a joyful feeling when your old high school bully suddenly pretends that the two of you were friends. There's no reconciliation on their mind — they just want you to buy their products. This happens constantly with MLMs. You can test this theory by trying to talk about something else.
Real friends will gladly change the topic — and maybe even apologize for approaching you with a pitch. Others will keep redirecting you back to the product or give scripted responses even after you say you're not interested. They'll tell you their company is different, and that they're happy. Don't put too much emotion into the "friends" who do this. Stand tall and proud, and remind yourself that you don't owe them anything.
4. Ask for Follow-Up If Necessary
A lot of people who join MLMs post about contests and chances to win prizes on Facebook. Usually, there's no contest to be had. If anything, they'll "draw" the name of someone else in their organization. You have no chance of winning.
That said, if they keep bugging you to participate, it's OK to ask follow-up questions. Just be prepared for a scripted response that's not particularly honest. Anyone who participates in any way will only get a sales pitch in return.
Ask them who won the past contests. And ask why it was never mentioned on their Facebook post. Surely everyone would be invested to figure out the winner, especially if they participated on a post that already has low engagement. Don't be afraid to ask questions.
5. Understand That They May Choose the MLM Over Your Friendship
This is unfortunately quite common. Think about it this way — they're interacting with their upline, who are constantly positive about the products and the lifestyle of the MLM. Then you come along with facts that aren't as cheery. Most people would prefer the former over the latter.
Friendships also easily end since the art of "reconnecting" with someone often turns into nothing more than a sales pitch. "The pressure to sell and recruit has led to underhanded tactics that strain, fracture and sometimes end friendships and family relationships," writes The Washington Post. "Is dinner with an old college roommate just about reconnecting, or is something else afoot? Increasingly, it’s the latter, and that leaves women on the receiving end feeling duped, angry and not sure how to respond."
6. State Your Rates If They Ask You To 'Promote' Them
If they are a real business and consider themselves to be actual bosses, then surely they have a budget for promotion. Many people in MLMs like to reach out and connect to people with opportunities like modeling and product testing. These opportunities are never paid and may actually end up costing you money — but they'll never tell you that right off the bat.
You should never work for free. Nor should you involve yourself in any type of "before and after" product reveal that's not completely honest. A good way to kindly shut down someone in an MLM is to state your rates. Tell them how much you charge for modeling fees or what your rate is for promotional posts on Instagram. And product discounts don't count — because those don't pay the bills.
7. Provide Resources
If your friend seems like they're on the fence about their decision, they might rely on you to provide some examples on why multilevel marketing isn't a profitable business model. John Oliver did a great segment on it that really spells it out. Reddit also has a wonderful community at r/AntiMLM, filled with well-researched individuals and those looking for help in trying to escape the MLM they accidentally fell into.
That said, many people who are deep into their MLM business may reject all of these attempts. At that point, they've learned how to respond to people telling them their business is set out to make them lose money and destroy friendships. Remember, it's their choice to stay in. And it's also your choice to block them if their recruiting attempts start to become a lot to handle.
8. Don't Be Afraid To Cut Them Off
It sounds severe, but what is a friendship if it's turned into one big sales pitch? People can very easily get lost in both MLMs and the lifestyle that MLMs sell. The truth is, if your friend keeps sending out copied and pasted messages that aren't personal in nature, they're likely not doing as well as they want you to believe. Otherwise, why would they keep begging?
It's hard to let go of friends, but you need to worry about your own mental health as well. If you feel bullied into buying or selling a product you don't want, your friend is taking advantage of you. A break may be necessary — both for your health and your wallet.
These stories are based on posts found on Reddit. Reddit is a user-generated social news aggregation, web content rating, and discussion website where registered members submit content to the site and can up- or down-vote the content. The accuracy and authenticity of each story cannot be confirmed by our staff.