Are MLMs Empowering?

Do MLMs empower people?

The short answer is no.

The longer answer (but still short enough)...
While some people can get the “feeling” of empowerment by being part of an MLM (Multilevel Marketing), the reality is usually quite different.

Most MLMs will often lure people in with the idea of lavish lifestyles and financial freedom.  They show people in with flashy cars, big houses, travelling to exotic places, etc.  The truth of the matter is that in most MLMs distributors end up losing money (99%), and very very few make anything but a thousand a year or less.
https://www.ftc.gov/sites/default/files/documents/public_comments/trade-regulation-rule-disclosure-requirements-and-prohibitions-concerning-business-opportunities-ftc.r511993-00008%C2%A0/00008-57281.pdf
due.com/blog/3-mind-blowing-statistics-about-mlms/

Most MLMs are chalk full of inspirational quotes and speakers.  They push “guru” books that give very little real world advice on how to run a business.  Basically you are hiring a cheerleading squad that does little else but cheer.  It’s not much value to a “business owner.”

On that note, most MLMs would like to make you think you are a business owner.  Here’s the truth.  You are not.  For comparison, McDonald’s Franchise owner go to McUniversity to learn how to do everything, including finances.   Most MLMs don’t offer that type of support or advice. 

Most distributors (or whatever name the MLM wants to call them),  lack a registered business name.  The reality is that they are really working for the MLM, but because of a legal loophole they don’t have to pay you like a regular employee. 

Here’s just some of the things a real business owner has to consider:
*Business registration, business licence, vendor permit,  etc. (the basics to just starting your own business)
*Business Insurance (are you covered if something goes wrong at a party at someone’s house?)
*Vehicle Insurance (you are using you car for business purposes.  You need to let your insurance company know that you are because you can be denied a claim if you don’t)
*Health Insurance (most business owners are responsible for their own as they are not working for someone else)
*Office space/Home Office Insurance (again, make sure you are covered. If you are storing retail goods at your home, that needs to be covered)
*Accounting/Finances (most business owners learn how to run basic finances so the can know exactly how much they are making.  That includes all the licenses, insurance, gas/mileage, office supplies, business attire, miscellaneous supplies, advertising/marketing, internet, phone, rent, etc.    This is why most distributors don’t realize they are not making money.  They have no idea what costs they actually incur.)

Most distributors don’t consider the amount of time they put in and make sure their “income” reflects that.    They are making next to nothing while the company is raking in boatloads.  Doesn’t quite seem “empowering” now does it?

Most MLM products are over-priced.  They couldn't compete in the regular retail marketplace.  Their business model then focuses on selling to their distributors (and thus creating the down-line/up-line pyramid scheme type format) who have little hope of selling to regular consumers.  When little is going to end-users is where most MLMs get into legal trouble.  Distributors lose money as MLMs try to convince that if they only worked hard enough they could be wealthy.  If distributors fail, MLMs/Uplines will blame the distributor.  Is that empowering?   I don't think so.