I’ve talked quite a bit on here about how MLMs, also known as multi-level marketing schemes, or pyramid schemes, are a bad idea and not only should you not sign up for them, you shouldn’t buy products from them either.
But how should you handle when your friends ask you to support their “business” and buy from them or host a party for them? Let’s talk about saying no to an MLM.
Why are MLMs bad?
First let’s talk about why MLM companies are bad. MLM companies take advantage of people. The vast majority of people who join MLMs lose money. You have to pay to sign up, and to make any money, you not only have to sell, but you have to sign up people underneath you (creating the pyramid shape). And there are usually minimum sales requirements, which means that people will frequently buy products from themselves so that they can get their payouts.
There are a lot of different types of MLMs. Some sell products like clothing or bags or cosmetics, others sell what they call health products, things that they claim will cure various ailments, and let’s be frank – none of those cures actually work. These types of MLMs bother me the most. Not only are they preying on people’s financial situations, they’re also preying on health situations. At least a company trying to sell you a purse isn’t trying to convince you that the purse will cure your chronic pain.
So why shouldn’t you buy from MLMs?
It might seem harmless to buy some cute nail stickers from your friend to support their business. But all that does is continue to fund the business. If everyone just keeps buying one or two things from MLM parties, these companies will continue to grow and take advantage of other people. Plus the products are definitely overpriced.
I get it. I’ve seen cute stuff from MLMs. I’ve bought things from MLMs in the past before I realized how bad they are, and I still use a number of those things.
Saying No to an MLM
Recently, a friend was hosting an online “party” for an MLM selling nail art. And I won’t lie, some of the stuff this company sells is really cute. And the product isn’t expensive, and I’m sure I’d be happy enough if I bought some of the items. But because it’s an MLM, I’m not going to buy anything.
Initially, I just ignored the invite. Not the most productive way to go, but it was definitely the easy option, and honestly, if you’re struggling with saying no to an MLM, this is absolutely an option. Just don’t purchase anything. But what if your friend follows up? And they likely will, as that is one of the big instructions from MLM trainers – always follow up. Make sure you don’t get forgotten.
So when my friend sent a follow up message, I simply replied “The [insert item name] is definitely cute, but I don’t buy from MLM companies anymore. So many people lose money from these businesses and I don’t want to support companies like that.”
In my case, my friend said “Cool, I get it,” and that was that. She was hosting a party, not selling herself, so I didn’t feel like I had to make a harder push. I just wanted to plant the seed that maybe these companies aren’t worth it. But if she started to sell, I would make a harder push. I would point out the compensation charts and share with her that most people not only don’t make money, they lose money because of all the product they buy and the fees they pay.
It’s up to you how far you want to go in saying no to an MLM. And remember – “No.” is a complete sentence. You don’t have to give reasons if you don’t want to. And if your friend pressures you too much, maybe it’s time to reconsider that friendship.
Read More:
- Five Reasons That Make MLMs Attractive to Women
- Essential Oil MLMs: Why they’re even more dangerous
- LuLaRoe an Illegal Pyramid Scheme?
Megan is a 30-something government employee in the Washington, DC area. She got interested in Personal Finance when she got out of college and realized that her paycheck wasn’t going to go as far as she had hoped. Since starting this blog, she has managed to buy a house and make a solid start on her retirement goals, and hopes to help others do the same. Here is her story:
In 2007, I was a gainfully employed 20-something with no debt but not a lot of knowledge about personal finance. It was a co-worker’s comment about Roth IRAs that sent me to the internet, searching for information. It was then that I realized that I really didn’t know a whole lot about personal finance and that my current financial situation was due a lot to inherent frugal tendencies, generous family members, a fear of debt, and good luck. While that was working for me, clearly I needed a better plan.
While I had no debt, I was also pretty much living paycheck to paycheck and not worrying about going over budget (I say this as if I had a real budget) because I had an emergency fund set aside to cover any overages.
Except that’s not what an emergency fund is for.
So I did a lot of research, read a lot of blogs, and decided that I needed a plan. I needed to budget. I needed to know what I was spending my money on. I needed to prepare for the future.
I decided to create a blog not only to make myself accountable to others but also to share the knowledge that I gained along the way. I’ve learned so much from my fellow bloggers, and I hope that my readers can find something useful in what I have to share as well.
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