attorney Heather BanksDo you hear commercials or see ads everywhere that say, “Need some extra cash?”  “Want to work from home?”  It is everywhere.  Have you ever heard the term Multilevel-marketing companies?  They are also called MLMs or are doing “direct-sales.”  They are very similar or arguably could be called a pyramid scheme.

Are any of you familiar with Amway, Herbalife, Roden & Fields, LulaRoe, Young Living, DoTerra, Pampered Chef, Jamberry, Mary Kay, or Avon?  I am.  My Facebook news feed is full of these names whether it is an invitation to a party or someone hailing the accolades of the products.  I write this blog, because I too have fallen victim to these adds and purchased products. I, also, want to warn those who see this as a business opportunity to tread very carefully.  Many of us have.  I found two very enlightening articles on this topic.  More on Personal Debt and Multilevel Marketing Companies and Multilevel-marketing companies like LuLaRoe are forcing people into debt and psychological crisis

Success and more money are often sought after, and these MLMs seem to target women in rural and suburban areas by promising a camaraderie with others, financial gains and independence.   This is not to say that some individuals have not succeeded in these MLMs.  The often overlooked aspect of them is that it really does not seem to be how much of the product you can sell but how many people you can sign up under your “team” to sell and you get part of their commissions.  The second article I referenced followed several LuLaRoe consultants to see who had success and who did not and why.  It also cited an FTC study which said that 99% of people who join MLMs lose money.

Before you make a business decision that will affect your family, it may be wise to investigate with whom you want to associate.  There are many articles out there about the good and bad of MLMs.  Our law firm offers free, no obligation consultations.  If you are in a financial crisis, contact us today to help.

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