Question
Do I have to recruit people in an MLM?
Short answer: Maybe not formally, but you should ask whether meaningful net income is typical without recruiting.
Why this matters
A compensation plan may allow retail sales while higher payments, bonuses, or rank advancement depend on team activity.
The useful question is what comparable participants earn after expenses without recruiting anyone.
Questions to ask before joining
- What percentage of participants earned money without recruiting?
- What did they keep after expenses?
- How many retail customers did they have outside the participant network?
Related recruiting phrases
Helpful next pages
Sources
- Multi-level Marketing Businesses and Pyramid Schemes, Federal Trade Commission . Accessed 2026-06-14. Support type: Regulator guidance.
- Business Guidance Concerning Multi-Level Marketing, Federal Trade Commission , 2024 . Accessed 2026-06-14. Support type: Regulator guidance.