Which companies am I talking about? Here's a list of MLM brands in the beauty, personal care, and wellness industries:
- Arbonne
- Mary Kay
- Avon
- Nu Skin
- Young Living
- Forever Living Products
- Beautycounter
- Younique
- Rodan & Fields
- Maelle
- Amway
- Herbalife
- Oriflame
- Aloette
- Nerium
- Monat
- Jeunesse
- doTerra
- BeautiControl
- Melaleuca
- Natura
- LipSense
- Scentsy
- Neal's Yard Remedies
- Tropic Skincare
MLM stands for Multi-Level Marketing. Instead of being sold in stores, these companies let their representatives do all the work. On the surface, an MLM representative appears to be selling you products. But what they're really trying to do is recruit you to be a representative under them, so they can profit from it.
Bloggers like me make prime targets because we have a big audience, so we can keep recruiting more and more women. These MLM representatives are always looking to add more representatives under them, because that's how they truly make their money.
In order to join an MLM an be a representative, you need to pay a fee and purchase inventory. This can cost anywhere between $50 up to thousands.
This is why MLMs are pyramid schemes: they're making money from recruiting other people. But in order to start out as a representative, you need to pay a large fee and purchase inventory.
Many MLMs also force or encourage their representatives to purchase more and more inventory, even though they're unable to sell it all. This is why 99% of MLM representatives end up losing money, while only the 1% at the top of the pyramid are making ridiculous amounts of money.
The average net income (after subtracting expenses) for the 200 top Amway distributors in Wisconsin was approximately minus $900. (The Case (for and) agaist Multi-Level Marketing)
In case you missed it, that's -$900. The top 200 Amway distributors lost an average of $900.
On top of this, MLMs use lies and manipulation to recruit their people. They give the false promise that you can "be your own boss", "work from home", and become loaded beyond your wildest dreams by joining the MLM. Remember that 99% of representatives LOSE money, making this is a big fat lie.
So far, regulatory agencies have not required honest and understandable disclosure of essential information to MLM prospects. I have examined the compensation plans of hundreds of MLMs and found that virtually all hide the near-zero odds of making a profit, and in fact almost certain loss after subtracting purchases of products necessary to qualify for commissions and advancement in the pyramid of participants. (The Case (for and) agaist Multi-Level Marketing)
One aspect of big MLMs I loathe is that they're preying on minorities and on those who struggle financially. As an immigrant myself, I find this heartbreaking and deplorable. MLMs love to expand to developing countries and exploit the hopes of the underprivileged. They're easy targets because they're not doing well financially, yet they'll do anything to get out of the hole they're in. When you're in that vulnerable position, it's easy to fall victim to their "live your dream life" propaganda.
Low-income immigrant neighborhoods offer pyramid-schemers the additional advantage of recruits' higher likelihood of ignorance about local business practices, which can make them easier to sell on wild business plans. When you're new to a country, everything might seem a little off, a little strange and unexpected. Therefore, you may be more likely to push aside that voice that says "this doesn't seem right" or "this seems too good to be true" than if you were in your native country. This is especially true among low-income groups, including non-immigrant minorities who might be more desperate for upward mobility than wealthier groups, which means they are willing to put in work or even invest their own money for a shot at the American dream. (Multilevel marketing companies target women, immigrants and low-income minorities.)
At their core, MLM companies are based on an unethical business model. While a few of them have gained cruelty-free certification, I choose not to include any MLM brands in our list of cruelty-free brands for this reason.
As of December 2019, our brand directory now has an "MLM" feature. MLM brands will be added and marked as MLMs as a warning for those who want to avoid these companies.
If you want to learn more about MLMs, I highly suggest you watch this John Oliver segment on Last Week Tonight:
Which Brands Are Cruelty-Free?
Download our list of 600+ verified cruelty-free brands straight to your device. Bring it with you everywhere you go, and never worry about supporting animal testing again. Click here to download
I stay away from all MLM’s. Unfortunately, my good friend just started with one and I’ve been using your website for many years, so I thought I’d just see if the company she fell into was at least cruelty-free. I am so glad that you’ve made this post and are taking a stand against these.
I’ve never left a comment on a blog before, but I just had to on this one because I’ve been following you for so long and these comments are wack. It’s crazy to see so many defensive comments about these companies who have ruined so many more lives than they’ve helped. MLM’s are absolutely pyramid schemes, just using different verbiage to bypass the “pyramid schemes are illegal” argument. It’s common sense and I’m so glad you’ve brought this up to talk about it.
I also share this segment of Last Week Tonight with anyone who doesn’t understand what an MLM is and I didn’t realize I could respect you more.
Keep fighting the good fight, girl. ❤️
I just came here because I wanted to know if Arbonne was cruelty free. But that aJohn Oliver video was an eye opener! ( truth Draize Test)
Hi Suzana,
Thank you for your article.
My partner shared an Arbonne consultant link with me from an acquaintance as a source of extra income. The first point of call when promoting a brand is to check if the products are cruelty-free, and that is how I came across your post.
My partner did inform me beforehand that this is a MLM. There has been an article against this company. Daily Mail link: https://www.dailymail.co.uk/home/you/article-7837095/The-inspirational-social-media-scams-ruining-womens-lives.html?fbclid=IwAR2JcRdMfmYR9Ofg1UHbjheSJ7qi7LiLehvNHqPMk_2_oZtWE0pX8MCVbQQ#socialLinks
Thank you for sharing this information.
Kind regards,
I was thinking about writing a lengthy post. Instead I’ll keep it short and sweet. I used to use your site as my go-to for cruelty free beauty products but after this posts you’ve made it hard to want to support your site. You should really do your research on MLMs, how some started, and how they really work. While some definitely give other MLMs a bad name (cold messaging, going after beauty bloggers, etc) some started Because it was the only way to get their business up and running. Unlike some big makeup conglomerates that can just go straight to store. MLMs have also helped a lot of women either change careers or creat supplemental income for their families. I’m sorry you had a bad experience with some MLM, but it’s sad you just lumped everyone into this very negative post.
Just so you’re aware R + F does NOT make you hold onto your own inventory better yet those kits you invest into are technically free. Yes you buy them but within your first month(s) you’re getting your money back and have a ton of product to try so you know the products actually work and you’re gaining product knowledge. There is nothing wrong with being apart of an MLM business! MLMs give everyone an equal opportunity to succeed and work you don’t need a degree of any sort, you don’t need to have a huge following like you claimed a smaller more intimate following can be better than a bigger one for several reasons. Also stop flattering yourself I don’t know anyone who’s come after just bloggers like you to be apart of their business hilarious. PYRAMID SCHEMES ARE ILLEGAL! Learn what a pyramid schemes is you can be more successful and make way more money than the person above you a pyramid scheme doesn’t allow that!!
When people say MLMs are pyramid schemes clearly aren’t educated on it. Yes, pyramid schemes are ILLEGAL. Most people’s only defense is this. Lol. But in a pyramid scheme you are buying a place and no product. Do MLMs businesses mostly run on a system that does look like a pyramid HOWEVER so do most businesses. Unlike traditional businesses and pyramid schemes, you can pass the person who brought you in. In a pyramid scheme you will always get paid after the person you bought into. In a traditional business the likelihood you can pass a manager or even corporate jobs are extremely high. There are also a lot of business that are also very predatory that are not MLMs. Like skin care commercials that say you need this wrinkle cream and stuff. Also I have NEVER heard anyone trying to recruit me into anything PROMISING me to make money. You need to work to actually get paid. But I guess a lot of people assume they can sit back and get paid. ???? Sucks that you were probably hurt by someone or an MLM that you won’t even list them on your cruelty free list. A lot of these companies are cruelty free and have great products. I guess listing things on your page being cruelty free isn’t as high on your list as protesting MLMs are. ????
You have no idea what running a business actually entails. You need to learn about businesses, in general, then learn about direct marketing, affiliate marketing, MLMs, whatever you want to call them. They are still actually legitimate businesses as deemed by the US government back in the 70s. No different then Sams Club or Cosco. Get a clue before you start running your trap about things you obviously don’t know anything about. It’s people like you and your misinformation that give good MLM businesses a bad front. They are like ANY business that you own & operate – you get out of it what you put into it. Can you show the statistics of how many BRICK AND MORTAR stores that fail within the first 5 years of opening? You see, there’s not any difference. If you want to have your own Network Marketing Business, then you need to do your homework – just like anything else.
I think it’s interesting you have no real sources that you site, yet make unsupported claims about earning, recruiting and being required to buy products. The Federal Trade Commission clearly states legal MLMs cannot make money off recruiting nor have requirements to buy any amount of products. Although some people use poor business practices that is not indicative of an entire industry. I think it’s interesting to see people who were in a MLM talk about how they didn’t make any money when they probably did nothing and were quitters. People quit things everyday MLMs are no different. In my opinion I think you need to be able to separate an individual from and industry or company. Whether Amway, Abornne, Herbalife or whatever, those companies are no more than suppliers.
If pyramid schemes are illegal then how have many of these companies been around for decades? If you ask an entrepreneur from any type of business model they will tell you that at times they made money and at other times they lost money. Difference in network marketing the initial investment is low so people treat it casually. A majority of small businesses fail within the first 5 years once the money from the loan runs out, network marketing is no different.
Also it’s typically network marketing companies typically have higher quality products.
Here’s a perspective that I came up with while reading through the comments, both for and against the MLMs. Is Costco considered an MLM? Hear me out, you pay an annual fee for access to their inventory of products at deeper discounts. You don’t renew, you lose access.
This is how Arbonne works; to be a PC you pay an annual fee and get access to a discount, if you sign up as a consultant you have more options – one of which being to simply shop. There is no minimum activity. There is no pressure to purchase. You choose which products you want and you have the “membership” to purchase there at a 35-50% off discount.
Or the second option you have is to build a business out of it. You can work your business any way you want to; social marketing, person to person, face to face – however you chose to build your business and Arbonne gives you the means to build your own business, a website, and business tools. There is no over head and no inventory to purchase. You could literally have a business based off of social marketing and not purchase one single item.
Just a thought and a different perspective.
About a year ago I decided that moving forward I would only purchase from CF brands. So as my tried and true favorite products have run out, I’ve researched if they are truly CF. If they are not, I then look into similar products made by CF brands as replacements. Your website has been INSANELY helpful with this.
I currently need facewash and after learning (from you) that my favorite brand tests on animals when required by law, I came to your site to ensure that the MLM brand a friend of mine represents is indeed CF (as you’ve taught me not every brand truly is). While I fully respect your opinion and your decision to express it on any platform you choose (especially when that platform is your site) I also respect my friend’s decision to become a rep for a MLM and I try to support her without judgement. So while it’s very much your right to “blacklist” all MLMs, know that (in my opinion) you’re doing your readers a disservice. You’ve made it your goal to provide a “reliable, all-in-one resource for cruelty-free beauty” and I trust you to tell me the facts about all beauty brands regardless of your personal opinion about that brand. So while I fully support this article, know that some of us just want to know if we’re buying cruelty free shit.
You have not done your research especially with your comment “they’re basically all the same.” Arbonne does NOT require you to buy inventory or invest a large sum of money to begin your business. It is NOT a pyramid scheme. You reap what you sow. Many people want to take the “easy way out” and “get rich quick” and believe joining and MLM is the answer but it’s NOT. It’s as real a job as your blog. Please speak of only what you are educated on
I work an MLM ( SeneGence ) and it is an incredible company. Definitely not at the top, but I have serious work ethic (I always have) .. do I have team members? Yes. Have I earned a car and trips? Also yes. Do I make more money on my personal sales than any bonuses on my team sales? Yes. I don’t force or push products on anyone. If they want them, they buy them and guess what? If they don’t like them.. they can return them. 12 month satisfaction policy. No questions asked. There are far from subpar., They work, are cruelty free and vegan as well as environmentally conscious. I don’t really have to prove myself to you or anyone here but I agree it’s extremely unfair to use your following to promote such garbage that you honestly know very little about. You generalize and don’t really know what each company does or does not do. I’ve never been encouraged to be pushy. I just show and let them use the products. Like I said, if they like, they buy. I don’t get in peoples inboxes and recruit. If they want to sign up, they can. This business got me through an tough divorce as a single momma of 4 kiddos that had to turn to the government for help because I wasn’t expecting to be on my own. I now provide for my family and teach my kids that if you work hard and stay consistent, you get results. You know why not as many people find success with MLMs? Because they have to be self motivated. Not everyone can be an entrepreneur. Why do you think so many people join the gym at New Years and quit working out before their first month is over? Lack of self motivation. It’s HARD. There are many days I don’t want to get up and do the work. If I worked a 9-5 , I would have to our i would lose my job. Some people are wired that way. They need someone to tell them what to do and to show up and do it. What we do is hard…we have to constantly create content, schedule demos, meet with people, work events, be social and wash, rinse, repeat. Over and over again and my up line isn’t gib’s make me do it. It’s all on me. I don’t have thousands of girls under me. I’ve got maybe 50 and most of them just buy for the personal discount. Our CEO always says “it’s your business, run it how you want to”. That’s what we do. Also I make more revenue off my personal sales than my friends that own boutiques make off their product that they buy and sell. How is that a bad thing? And it’s not based on how many people I have. You could literally sign up today and buy at 50% off . Sure I get a bonus from my team if they decide to work a business—but that is true off any sales company—car sales, furniture sales, cable sales. And even with non MLM companies there is someone “at the top” making more than the rest of us. More power to them… that is true with ANY COMPANY. There is a CEO, Managers, Supervisors, Leads and the regular guy. Their salaries vary according (guess what? It looks very much like a pyramid)… I think you’re looking at some bad apple companies and lumping them so together which makes you look ignorant. This is the first time I’ve been to your blog so I literally know nothing about you. I would just think that you would like to come across as more informed than you do in this gross over generalization post. MLMs have changed lives for the better and for the worse, again it depends on the company, it depends on the work effort. It DOESN’T depend on what you spend. I’ve never spent a single dollar of my own other that’s the $25 I spent to start the care of my dreams and it’s changed my family’s life, as well as so many others—whether it be women they have found confidence in themselves, their beauty, or freedom in their lives. OUR CEO teaches us to reinvest our profits into our business and pay ourselves a small profit. That’s how you build a business. That’s how I’ve built mine for almost 4 years and it has been extremely good to us. She built this company as a single mother herself and never took out a single loan to do it. She’s an incredible role model and has taught me so much in business building. I’ve always been a natural entrepreneur—but she has taught me discipline and consistency matter when it comes to success. Those that think they come into a business, spend a ton and then don’t really do the do—will fail and hurt themselves financially. I would never encourage or teach that and I’ve never seen that in this company. I’ve taught many single Mommas to use their profits and grow and that is what they have done (those that want to run a business) and others just take advantage of an amazing discount on incredible products. That’s okay, too. Sounds like your mind is set without doing any real research, but I hope this opens your eyes to it to some degree. I’m happy to answer questions or even have a phone conversation with you if that helps you to gain a clearer picture.
Peace & Love
P.S. All businesses can’t be compared to other businesses like this—they are each unique and deserve to be judged and treated that way. Just in case you didn’t catch that in my above statement. ????I can ramble. ✌️
I think what you’ve done here is very irresponsible. When you have a platform and a voice you should be extra diligent to not spew incorrect and misleading information. Pyramid schemes are illegal, there is a regulating body called the Direct Sellers Association that DOES enforce companies that don’t comply with the regulations and not all MLM or direct selling companies can be painted with the same brush.
Generally speaking it’s an effort based business model so if some make money and others don’t… well, see previous effort based comment. I’ve been in MLMs before and while I’ve made good money at times, other times I did not and I can tell you both times were directly connected to my effort level.
For the people above who have had a bad experience, I am sorry that happened to you. If you encountered someone that was pushy, that was the person, not the business model.
Suzana, I’ve noticed that so far you have only replied to the people who agree with you… I will be interested to see what you have to say in response to Jamie, Jacquie, Sandra and me.
Gosh, fine, I’ll respond.
“Pyramid schemes are illegal”
MLMs are pyramid schemes by definition, but they use loopholes to remain legal. Definition: “A pyramid scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products.” Sounds like Mary Kay to me.
“If you encountered someone that was pushy, that was the person, not the business model.”
Many MLMs TEACH their reps to be pushy and use manipulative tactics.
“I’ve been in MLMs before and while I’ve made good money at times, other times I did not and I can tell you both times were directly connected to my effort level.”
Was it “effort”, or being pushy and unscrupulous? Were you selling overpriced, low-quality products, or recruiting other people who lost money under you? If you were making good money, how come you stopped?
Please do your research properly about Arbonne & learn the facts… it is a member of the direct selling association & it would not be a member of this association if it was a pyramid scheme which is ILLEGAL!!! Consultants DO NOT get paid to recruit people in Arbonne nor do they carry stock. It also hasn’t tested on animals for 40 years – id like to know another company that can say the same thing
Please stop spreading the propaganda Arbonne is teaching you. Look up the Direct Selling Association. 90% of its members are MLMs, the board consists of MLM founders and CEOs, and they lobby against the regulation of MLMs.
I’d like to thank you for sharing this about MLMs. Although other commenters have pointed out that not all MLMs fit your description 100%, I think that bringing these trends to light is important, especially because they’re taking advantage of the insecurities and hopes of disadvantaged people. Because MLMs make money off recruiting people, I think they can encourage their members to pursue some aggressive recruiting tactics. Not only are people burning bridges with close friends and family, but they also come off ingenuine with their copy and paste messages trying to convince others to join their company. Something you didn’t mention that others might not be aware of is the large MLM-presence among military wives. MLMs prey on the loneliness of these women who just want to spend time with their families and make friends.
A friend of mine went to a large state university and had trouble meeting people. She finally thought she had made a genuine connection with a girl in her class and was upset when she found out it was a façade to convince her to join Amway. Not only do a lot of MLM recruiters sell the idea that members will get rich quickly, but they also put a lot of pressure on their downline to make money on the guise that they are their own “boss babe” and that they are empowered. If anyone is thinking of joining an MLM, I’d recommend the Vice Youtube documentary about LulaRoe.
What does Young Living do that has anything to do with cruelty to animals?
I totally agree with Sandra here. I work for a direct sales company which you wrongly lump in with MLM companies above and yes I paid for my stock to buy into my business BUT I have never:
– had to hit a sales target
– I do not need to pay a fee
– I have incentives where I can win prizes – vouchers or physical products and even all expenses paid holidays but these are optional for me to go for
– I am advised against buying any extra stock
– I can choose how I run my business and do not need to ask anyone to join my team if that doesn’t appeal to me
– I also work for a company that has the well being of the planet at it’s heart and such a high level of ethics that if a product isn’t working for customers it removes it rather than selling something that is not up to standard
I am actually really curious to hear more on why Arbonne in particular is on this list?.. I’ve heard amazing things about this company as an mlm and actually know many people successful in the business and they don’t require consultants to carry inventory.
I’ve read through all the comments and I’m quite shocked that you’ve not taken the time to reply to any comments that are in agreement with MLM companies!
Great publicly stunt taking about MLM companies, gets the attention and people’s blood boiling from both sides of the argument. I’m in network marketing and Although I’m not at”the top” I do earn enough to pay for my mortgage! Any extra money ontop of any other earnings is a bonus yes? It’s so unfair to slate this profession because it’s some people’s lives! I wouldn’t slate other people’s choice of job! What really is the issue is people need to be educated that it isn’t a get rich scheme and that like any other job you need a certain skillset first before going out to promote or give recommendations. This is where people go wrong and then to anyone that’s not in the network marketing business it gives the wrong impression. There will always be people for it and people against it. FACT a bit like being vegan. Your either are vegan and that’s your personal choice or you’re not and again that’s your personal choice.
It’s called RESPECT. I respect people’s choices. You are not a fan of MLM , that’s your choice but do you really have to slate what to some people is there lifeline!?
I’m not sure if this was mentioned, but Mary Kay isn’t cruelty free anyway. They sell to China… The title just seems misleading that they aren’t on the list only because they are MLM.
You need to add “it works” and “Lifevantage”
Thank you for this honest and frank post! It’s so true!
I first want to mention that your list says, “Lipsense”. LipSense is a product, not a company. The company you are referring to is called SeneGence. Secondly, the company is a member of the Direct Selling Association, so MLM it is, but it IS NOT a pyramid scheme. All products are never tested on animals (unless you consider a human an animal), do not have any animal by-products in them, are gluten free, and do not contain wax or lead. I agree with Jamie and Jacquie. You cannot bulk all MLMs together and say they are all “bad.” But, you know what? That’s your opinion and you are welcome to have one. Next time, I would suggest delving in a little deeper to each company before you go and blast them.
What about Seacret? Although I’ve seen some kiosks in malls I know someone who’s been very successful with about 100 people under him in us and Australia. He made a lot of money, went to conferences in luxury, etc.
We need more people with exposure to speak out against MLMs, so maybe people will consider it before signing up based on a huns salespitch. I’ve been researching MLMs a lot, as I find the cult mentality so fascinating. At first I kind of laughed at the patheticness of the hunbots, but now I just feel sad for anyone who is new to an MLM and doesn’t see they’ve been brainwashed. If more people spoke out about the truth regarding the predatory nature of their business structure, maybe they can stop hurting naive people. And also, their products are all either total crap or mediocre at best. Buying their products is enabling MLMs to continue taking advantage of hard working women and men.
I agree with you, thanks for the accurate description.
Thank you for this. You forgot NewULife, one of the worst.
Don’t forget Farmasi. They have a PETA certificate on their Slovenian website, but when you visit PETA’s cruelty-free brand list – guess what – they are not there! I contacted PETA about it and they said that Farmasi is not certified by them. Farmasi representatives claim that Farmasi and PETA have some sort of a beef between them. I honestly don’t think they were ever certified. They probably just found a cute bunny logo with the word cruelty-free below on the internet and posted it on their site…
https://uk.nyrorganic.com/shop/corp/area/become-a-consultant/
For those who were shocked or doubting that Neals Yard Remedies is guilty of this, it is and here’s the link to prove it. (I tried to reply to you directly but the reply button doesn’t seem to be working for me) Before I was aware of this terrible unethical money sinkhole I joined up. After spending about £400 of my own money on products I was supposed to sell on to others I realised I was being had (I know, it took me a while, what can I say, I’m a trusting person and I loved their products!) It was borderline impossible to recruit others as no one’s as naive as I am and if I were to recruit them I would have had to spend my own time ‘mentoring’ them. It all had such a bad feeling to it. I knew in the back of my mind it wasn’t right but I wanted to believe what they told me. Good job I didn’t give up my day job, I bet some do. I’ve boycotted them ever since even though their products are good and I’m so glad Suzana has called time on this crap. Can we start a petition or something? I feel so angry for people who put even more in than I did and get left with worse than nothing.
Tthanks so much for sharing your story and the link! MLM it is.
I generally find MLMs high pressure, sometimes to the point of obnoxious. I avoid. Just last week I was FB friended by someone in a group I”m in, to find that he immediately started using scare tactics – “your home is full of deadly chemicals that are killing you” – to get me interested in Melaleuca. The next day I told him, no thanks, and he got snarky. WTH. I didn’t accept a friend request to be bombarded with MLM crap. And let’s say you buy – then you get pressured to become a rep yourself (experienced that twice with Mary Kay). On principles, I avoid buying MLM products for the reasons you give, Suzana. I really appreciate your stand on MLMs. For every person who’s actually making money, there are thousands who have no chance of living the dream they’re selling. No. Just no.
Thank you Stephanie!