If you’re a person with a Facebook, you’ve likely come across someone trying to sell you something. Maybe it’s the friend from high school trying to get everyone on board with the healing powers of essential oils. Maybe it’s your aunt, who keeps trying to recruit you into the makeup-selling home business she’s been trying to get off the ground for years. Maybe it’s one of your once-close friends whose insistent shilling of, let’s face it, ugly patterned leggings has left a bad taste in your mouth for a while now, rendering the two of you not as close as you once were.
MLMs, or multi-level marketing companies, are essentially pyramid schemes. The people at the top of the pyramid make money mainly from recruiting others to sell the same products — and the people at the bottom of the pyramid rarely make anything. MLMs may seem harmless, but investing time and money trying to sell for one is one of the worst financial decisions a person can make. And so many of these companies target women in remote areas, or who otherwise don’t have a lot of work opportunities. In this week’s episode of The Financial Diet, Chelsea walks us through how to tell if someone you know is too caught up in an MLM for their own good, as well as the unethical tactics practiced by many MLMs.
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