How common are MLMs in the economy? (piefed.social)

submitted 2 weeks ago by Swaus01@piefed.social to c/nostupidquestions@lemmy.ca

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i still visit reddit via redlib to read BestOfRedditorUpdates, and a story i read this morning stood out to me because of its casual mentioning that a "protagonist" of the story works at an MLM and accepts this as normal.

Meanwhile I have always heard that MLMs are dangerous, 100% of the time, and can get cult-like, can underpay you (or not really pay you at all). Reading the post and thinking about them just accepting MLMs unsettled me because it reminded me that there are a few where i live, that i've seen some in job applications, and i started to wonder if the place where i work currently could be a sort of MLM. After all, plenty of workplaces in this economic system exhibit qualities in-line with MLM structure.

But my ultimate question is just this: How prevalent are MLMs? Are they just an accepted part of local economies? Do city councils work with them/allow them to exist despite the inherent shadiness?

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[-] Oka@sopuli.xyz 14 points 2 weeks ago

MLMs are semi-prevalent and are legal because the pyramid scheme is covered up by selling a product, and often by getting the applicant to sign up as an independent contractor, and each new "branch" or office of the company is actually a completely new LLC, effectively, and legally, a separate entity.

They prey on people looking for work, and lie through their teeth to get as many people as possible.

Some companies are known for using MLMs to sell their services.

this post was submitted on 01 Jul 2026

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