The Allure of MLMs
If you’ve ever received a message from an old friend that says, “Hey! I’ve been thinking of you and have an amazing opportunity I want to share,” you’ve likely brushed up against the world of multi-level marketing, often called MLM. Maybe you’ve attended a living-room business presentation, hopped onto a late-night Zoom, or watched a Facebook Live full of testimonials promising life-changing income. MLMs are designed to spark hope. They often tell people, “You don’t have to work a regular 9-to-5. You can be your own boss. You can live a life of freedom, wealth, and abundance.” These offers strike a nerve with many believers who long for something more.
But as Christians, we need to pause and ask some critical questions. Why are so many believers drawn to MLMs? What does Scripture say about money, work, and promises of financial gain? How can we walk in wisdom and protect ourselves and others from potential harm? These are not just financial questions; they are spiritual ones. MLMs appeal to our hopes, fears, and desires. Unless we evaluate them in light of God’s Word, we risk stepping into something that damages not only our wallets but also our witness and walk with Christ. In this blog, we’ll take a deep dive into MLMs through two lenses: the reality of what MLMs are, how they function, and what the statistical odds of success look like, and the biblical perspective of what God’s Word says about money, work, stewardship, and the desires of our hearts.
What MLMs Really Are
An MLM is a business model where independent representatives sell products or services, often supplements, skincare, or financial products, while also recruiting others to do the same. Representatives earn money in two ways: through their own personal sales and through commissions from the people they recruit, often called their “downline.” Those recruits then recruit others, and so on, creating multiple “levels.” This is why MLMs are sometimes called network marketing or direct sales. On the surface, this structure sounds straightforward. But when we look deeper at the numbers, a more sobering picture emerges.
The Statistical Reality
The statistical reality is harsh. According to the Federal Trade Commission (FTC), most participants in MLMs make little or no money, and many actually lose money. A widely cited 2018 AARP study found that among 601 current or former U.S. MLM participants, only 25 percent made a profit, 27 percent broke even, and 47 percent lost money. Of those who profited, most made less than $5,000 total, and only about 0.5 percent made $100,000 or more, and that usually took years of effort. Consumer researcher Jon M. Taylor studied hundreds of MLM plans and concluded that around 99 percent of participants lose money once required purchases and basic operating costs are factored in. These numbers matter because they cut through the emotional promises often made by MLM recruiters and expose the real odds of success.
One of the reasons so many people are misled is because MLM companies frequently emphasize gross revenue, or how much money someone brings in, rather than net profit, which is what remains after expenses. Gross revenue might look impressive, but it doesn’t reflect reality. When you subtract starter kit costs, monthly “autoship” requirements, training seminars, travel, website fees, product samples, and marketing expenses, the majority of participants end up in the red. It is the difference between looking rich on paper and actually having money in the bank.
MLMs vs. Pyramid Schemes
This leads us to an important distinction: the difference between a legitimate MLM and an illegal pyramid scheme. Legally, MLMs are supposed to make most of their revenue from actual retail sales to real customers who aren’t also distributors. Pyramid schemes, by contrast, rely primarily on recruitment and on purchases by participants themselves. The FTC uses a simple test: if the majority of the money comes from recruiting new people or requiring purchases to qualify for bonuses, not from genuine product demand, it is a pyramid scheme.
Several high-profile cases illustrate this. Herbalife, in 2016, was forced to restructure its compensation plan because of its recruitment-heavy model. That same year, Vemma was barred from paying for recruitment, and in 2019, AdvoCare was banned from MLM operations altogether and paid $150 million in penalties after the FTC alleged its business operated like a pyramid scheme.
Why People Join Anyway
But despite these warnings, millions of people continue to join MLMs each year. Why? Because MLMs tap into powerful human desires. People want financial freedom. They want to escape the paycheck-to-paycheck grind. They want the flexibility to work from home and set their own hours. They long for community and personal development. MLMs often provide motivational training, conferences, and a sense of belonging that feels almost like family. In fact, some even package their pitches with Christian language, presenting the opportunity as God’s provision or a way to fund ministry.
None of these desires are wrong. Wanting to provide for your family, find purpose, or live debt-free are all legitimate, even biblical, desires. The real question is whether MLMs deliver on these promises or whether they manipulate them.
What the Bible Says About Work
This is where Scripture must shape our perspective. The Bible doesn’t mention MLMs directly, but it speaks volumes about work, money, stewardship, honesty, and contentment. From the very beginning, God gave humanity the gift of work. Genesis 2:15 says, “The Lord God took the man and put him in the Garden of Eden to work it and take care of it.” Work is not a curse; it is part of God’s design for human flourishing. Paul echoes this truth in Colossians 3:23, “Whatever you do, work at it with all your heart, as working for the Lord, not for human masters.” This means our business pursuits must not only provide income but also reflect God’s dignity and character.
Stewardship and Integrity
Jesus also emphasized stewardship. In Luke 16:10, He said, “Whoever can be trusted with very little can also be trusted with much.” God calls us to wisely manage the resources entrusted to us. Taking on large amounts of debt to buy “starter kits” or speculative products without realistic chances of selling them may not reflect wise stewardship. In Proverbs 11:1, we are told, “The Lord detests dishonest scales, but accurate weights find favor with him.” If a business exaggerates income claims or hides the true odds of success, it lacks biblical integrity. As Christians, we are called to be people of truth, not hype.
Contentment and the Danger of Greed
The Bible also warns against the dangers of greed and discontent. In 1 Timothy 6:6–10, Paul writes, “But godliness with contentment is great gain… Those who want to get rich fall into temptation and a trap and into many foolish and harmful desires that plunge people into ruin and destruction.” MLMs often thrive on sowing discontent, convincing people their current life is not enough, that they need more, bigger, better. But godly contentment is a safeguard against destructive pursuits. Hebrews 13:5 adds, “Keep your lives free from the love of money and be content with what you have, because God has said, ‘Never will I leave you; never will I forsake you.’” When we rest in God’s provision, we don’t need to chase empty promises.
The Impact on Relationships
Relationships are also central to Scripture’s vision of life. Romans 12:18 says, “If it is possible, as far as it depends on you, live at peace with everyone.” John 13:35 says, “By this everyone will know that you are my disciples, if you love one another.” Yet MLMs often encourage participants to recruit friends and family, leading to strained relationships, hurt feelings, and awkward dynamics. When our business activities damage relationships, we undermine our witness to the love of Christ.
Why Believers are Drawn to MLMs
So why are believers drawn to MLMs, even with these risks? Many join with sincere motives. They want to provide for their families, which is affirmed in 1 Timothy 5:8: “Anyone who does not provide for their relatives, and especially for their own household, has denied the faith and is worse than an unbeliever.” They want to pay off debt, which aligns with Romans 13:8’s call to “let no debt remain outstanding.” Some want to fund missions or ministries through extra income. Others hope for more time with their children, valuing family life over endless work hours.
These are all good desires. But noble goals can easily be twisted. MLM culture often feeds false promises, comparison, and distraction. Top earners are paraded on stage, creating envy. Flashy lifestyles are presented as proof of “success,” when in reality they are the exception, not the rule. And instead of building God’s Kingdom, participants can find themselves consumed with building their downline.
The Heart Issue
At the heart of the issue, MLM involvement is not just about money. It is about trust. Are we trusting God’s provision, or are we chasing security elsewhere? Are we seeking true freedom in Christ, or financial independence apart from Him? Are we content with what God has given, or are we restless for more? These are spiritual questions that go deeper than business models.
Red Flags and Biblical Warnings
There are also red flags that should cause any believer to pause. MLMs often push relentless recruitment. But Jesus didn’t call us to recruit for businesses. He called us to make disciples (Matthew 28:19). If we are more focused on signing people up for our team than pointing them to Christ, our priorities are off. MLMs also put relationships at risk. Instead of love, patience, and peace, friends and family may feel pressured, manipulated, or distanced. Many participants even admit to losing friendships over business pitches.
Then there’s the issue of debt. Proverbs 22:7 warns, “The borrower is slave to the lender.” Yet many MLM participants go into debt buying inventory or paying fees. This is the opposite of God’s desire for His people. Finally, MLM culture often glorifies wealth and status. Jesus was clear: “You cannot serve both God and money” (Matthew 6:24). When flashy cars, big houses, and financial freedom are idolized, the danger of mammon-worship looms large.
A More Excellent Way
So what is a healthier path for believers who desire financial freedom, meaningful work, or extra income? Scripture offers several models. One is honest entrepreneurship. The Bible consistently honors honest trade. Paul supported himself as a tentmaker while preaching the gospel (Acts 18). Proverbs 31 describes a woman who conducts her business with wisdom, diligence, and fairness. Healthy business should serve real needs, provide genuine value, and operate with integrity. Another is stewardship-focused employment. Many Christians find purpose in regular jobs where they can live out their faith, serve faithfully, and steward their income wisely.
For believers considering MLMs, or any financial opportunity, there are practical steps to follow. First, research carefully. Ask for the company’s income disclosure statement and study the actual numbers. Second, pray for wisdom, as James 1:5 promises God will give generously. Third, seek counsel. Proverbs 15:22 reminds us, “Plans fail for lack of counsel, but with many advisers they succeed.” Fourth, check your motives. Is this about stewardship or greed? And finally, count the cost. Jesus Himself said in Luke 14:28, “Suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost to see if you have enough money to complete it?” The same applies to business opportunities.
Questions Every Christian Should Ask
In practice, before joining an MLM, believers should ask: Will this strain my finances or relationships? Does this align with biblical integrity? Am I motivated by contentment and stewardship or by dissatisfaction and greed? Could this hurt my witness with others? Would I be better off using my skills to start another kind of business or pursue another line of work? These are not just business questions; they are discipleship questions.
The Role of the Church
The church also has a role to play. Churches can equip believers by teaching biblical stewardship, offering financial literacy programs, and encouraging healthy entrepreneurship. Too often, Christians are left to navigate financial opportunities on their own, without the wisdom of Scripture or the support of community. But when the church steps into this gap, believers can make wiser choices that honor God and bless others.
Conclusion: True Freedom in Christ
In the end, MLMs promise freedom, wealth, and purpose, but the reality is that most participants lose money, relationships are strained, and faith can be compromised. For Christians, true freedom isn’t found in a business model. It is found in Jesus Christ. Financial independence can be fleeting, but the freedom we have in Christ is eternal. As Matthew 6:33 reminds us, “But seek first his kingdom and his righteousness, and all these things will be given to you as well.”
The lesson is clear: before joining an MLM, pause. Pray. Seek counsel. Measure it against God’s Word. And remember, God has already promised to meet all your needs according to His riches in Christ Jesus (Philippians 4:19). That is a promise no compensation plan can match.
About Larry W. Robinson
Larry W. Robinson is an inspirational speaker, life coach, syndicated media personality, and faith-based author dedicated to educating, encouraging, and empowering entrepreneurs and creatives. Known for helping others discover “a more excellent way,” Larry equips believers to align their financial and vocational pursuits with biblical wisdom and eternal purpose. He is the author of Occupy Until I Come and Createonomics, two powerful works that guide readers in living intentionally, stewarding resources faithfully, and building lives rooted in Kingdom values rather than fleeting promises.
For more information or to connect with Larry, visit https://ceolarry.com/