Some women who joined multi-level marketing (MLM) companies with the promise of financial freedom and flexible work are now warning others about the significant toll these businesses can take on relationships and personal finances.
Christina Mitsi, 37, left her role as a sales representative for health and skincare brand Forever Living after 11 months, reporting a net loss of over £300. She estimated she earned around £1,100 during her tenure but spent approximately £400 on products and over £1,000 on company events and meetings.
Mitsi was initially drawn to Forever Living by a friend who suggested the opportunity offered high earnings for minimal hours. "I was in such a vulnerable place at the time and I trusted my friend," Mitsi stated. She invested in a starter kit and began contacting her extensive network to sell products and recruit others. However, she found herself struggling to make sales, spending up to 30 hours a week messaging contacts and attending mandatory strategy meetings and quarterly "success days," which incurred significant travel and accommodation costs.
Mitsi recalled that many people she contacted expressed annoyance, and she was advised by managers to block out negative feedback. "They’re just haters. That’s just negativity, you block those people out, don’t let them bring you down," she was told. Ultimately, she realized the business was not financially viable and the stress had impacted her family life.
Another former MLM participant, Laura Hill, who asked for her name to be changed, reported being in debt after 12 months with Herbalife. While she was among the top 3% of earners, making about £1,500 a month, her expenses for products and company events, including an annual overseas "extravaganza," led to a loss of at least £1,000 in her last year with the company. Hill noted that the company's culture emphasized recruitment, with a "three gets three" mantra, and that meetings were prioritized, leading her to miss family events. She left Herbalife in 2023, finding the products expensive even with her discount.
MLM companies like Forever Living and Herbalife operate by encouraging independent sales representatives to sell products and recruit new members. These recruits then buy products from the company at a discount to sell at a higher price, pocketing the difference, and earning commissions from the sales of people they recruit. While these companies can be technically legitimate, consumer experts caution that the potential for profit is often low for most participants.
Vix Leyton, a consumer expert at Think Money, commented that while the appeal of flexible work is understandable, the chances of making a consistent living from MLMs are frequently low. She advised those seeking flexible work to explore options like remote customer service, virtual assistant roles, or bookkeeping, noting that these generally offer a clearer correlation between effort and income.
Martyn James, another consumer expert, warned that some MLMs can foster cult-like environments where new recruits feel pressured to sign up. He recommended that individuals carefully calculate the sales needed to turn a profit and understand contract exit clauses before committing.
Forever Living, founded in 1978, operates in over 160 countries and relies on independent distributors. According to its online income disclosure statement, only 10.2% of its joiners earned a volume-based bonus, with the majority of those earning an average of £82.20 per month. Herbalife, established in 1980, stated that attending events is optional and that their business opportunity can supplement regular income for many.
Both Mitsi and Hill reported feeling isolated after leaving their respective companies, as recruits are often encouraged to distance themselves from those who speak negatively about the business. "It’s only when you come out that you get a sense of perspective on it all," Hill said.