MLM’s. Are they all just cults?

MLM’s or Multi-level Marketing Companies

man-with-barsMLM’s are legitimate businesses.  They just follow a different business model.  Instead of the profits being concentrated in the hands of shareholders who bring no value themselves, the profits are spread more widely.  This is accomplished by reducing overhead.

  • Not as many bricks and mortar locations.
  • Better inventory management practices.
  • More input from the bottom up.
  • Pay based on production

This leads to the company being leaner but not meaner.  I say that because each member is much more valued as they are each integral to the success of the company as a whole.  Those who are not producing in a MLM company will leave of their own accord or at least be passed over and not get in the way of the success of the others.


Compare Company Structure

Large corporations are made up of many levels (Multi-level?).  There is usually a President and/or CEO.  Then a level of Vice Presidents followed by a level of District Managers.  After that, there is a level of Store or Unit managers followed by a level of department managers and then the level of the workers who actually do most of the work.

Multi-level Marketing companies have a much similar structure except you are the President of your company.  Wealth is spread much more evenly throughout the levels, with the higher rewards at the “bottom”.  The benefit to the people on the upper levels is the benefit compounding.

The success of your MLM business is much more dependent on your own efforts and the training you provide to your team.  This is where it differs from conventional business.  MLM’s operate much more like a team with management by consensus whereas a conventional company is much more like a dictatorship.


MLM Opportunities versus Conventional Business Opportunities

Bag of moneyConventional business opportunities require huge investments.  The need for large sums of cash and access to lines of credit prohibit many people from even entertaining going into business for themselves.  I suspect it would be difficult today to find even a franchise opportunity for much less than $250,000.  The success of the franchise is largely dependent on you but it’s your cash and credit that is at risk.  There will be very specific expectations regarding what you do and when you do it.

MLM opportunities are generally less than a few hundred dollars to get started.  Some require maintaining product inventories whereas others like LegalShield or Pure Leverage have no inventory requirements.  It’s up to you to choose your style.  Once you get started, you control the pace of your success.


MLM’s are just a bunch of cults!

Most organized groups have a culture built around a set of common beliefs.  Whether you are part of a large company like Apple, belong to a church or are part of a MLM, there is a common culture.  The root word in culture is cult!  So, is Apple a cult?  Is the Catholic Church a cult?  What cult do you belong to?

Whether you choose to work for someone else or work for yourself through a franchise or MLM, choose the culture you want to be a part of carefully.  Think about the kind of people you want to do business with and who you want to be associated with.  I would recommend watching Simon Sinek’s “First Why, Then Trust” video.  He does a great job of explaining the importance of the culture you choose to be a part of.



One of the definitions of cult by Merriam-Webster:  “a great devotion to a person, idea, object, movement, or work (as a film or book); especially   : such devotion regarded as a literary or intellectual fad”

  • business
  • religious faith
  • politics
  • family
  • and yes, MLM’s


So, to answer the question “Are all MLM”s just cults?”, the answer is that MLM’s are the same as any other organization.  Whether you work for a major company like Walmart or own your own business, there is a company culture.  We all belong to one in some form or another.  Yes.  MLM’s are cults just like Walmart or the Catholic Church!

What culture do you belong to?  It’s up to you to decide why you do whatever you do and then just do it!


Make it a great day!


P.S.  What am I thankful for today?  I’m thankful for people like Simon Sinek.  I’m thankful for the opportunity that MLM’s provide.  I’m thankful for the support of family and friends.

What are you thankful for today?