Question
Can I lose money in an MLM?
What to do next:
- Add up every required and commonly expected cost for a full year.
- Compare that total with the income typical participants actually keep.
- Treat optional-but-expected costs as real when you do the math.
Why this matters
Gross payments do not show whether a participant made a profit.
Costs may be described as optional while still being common among people trying to build the opportunity.
See what companies actually disclose
These are companies' own published figures, before expenses, with sources on each page:
- Expenses not included in MLM income disclosures
- LuLaRoe income disclosure
- Color Street income disclosure
Questions to ask before joining
- How many participants earned less than their expenses?
- Does the disclosure subtract ordinary business costs?
- What recurring costs are common for active participants?
Related recruiting phrases
Helpful next pages
- Someone pitched me an MLM. What should I do?
- Before You Join an MLM
- Before You Pay
- Documents to request before joining an MLM
- MLM expense worksheet
- Scripts you can use
Sources
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Regulator guidance
Multi-level Marketing Businesses and Pyramid Schemes
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Regulator guidance
Business Guidance Concerning Multi-Level Marketing