MLM - No, Please Not Another One!

Having grown up outside of Utah, I feel that I lack an understanding in a foundational Mormon Institution: multi-level marketing, or MLM. In nearly a quarter of the interviews I have with adults, some form of an offer to join an MLM comes up. I've even received Christmas cards with MLM pitches making up the majority of the card's text. Christmas cards! I know that most Mormons likely believe that Jesus was a Republican capitalist, but this is ridiculous.

From an outsider looking in, I've observed the following commonalities in most of these MLM schemes:

Smooth-talking salespeople with products who's actual value defy common sense (mystical berry juice from the Pacific Islands, over-priced commodities like vitamins, and many health-related creams and lotions).

The requirement that all participants themselves spend hundreds of dollars a month on these products of dubious value, ensuring that the founders have a steady income, regardless of any actual sales to non-members. I'm positive that these required-purchases by the sellers themselves make up 90% of total products ever sold.

Pressure for these recruits to constantly harass friends, neighbors and family about 'getting in at the top level,' of one of the hundred new MLM pyramids introduced every month in Utah.

I know members that have jumped from one scheme to another for years. They've paid thousands of dollars for boxes of junk that still sit in a garage, or pile up in the Utah County landfill. Yet, as soon as the next-new-thing comes out, it's full-steam cycling through the friends again.

After many years of counseling people in financial matters, here's my advice - avoid MLMs like the plague. The only people making any money are the shady founders at the very top that quickly move on to the next scam. If you want to become financially secure, try the proven method of spending less than you make, paying off debt quickly, building a savings and retirement account, and investing in long-term value. And as a bonus, you'll still have some friends and family left that don't avoid you like a leper.