Christians and multilevel marketing can work. It also can be a catastrophic failure when done incorrectly. Sadly, multilevel marketing has been the root cause of wrecked relationships, shattered relationships, and financial frustration. Christians must tread cautiously when getting involved in multilevel marketing.
Multilevel marketing is also known as network or referral marketing. It’s pejoratively known as pyramid selling.
Multilevel marketing is a legitimate yet controversial business model. Companies utilize individuals to sell their products to their personal networks. Salespeople recruit additional friends and acquaintances to sell the products as well. Commissions are paid for sales made and for the sales of those recruited. Christians should only participate with their eyes wide open and with proper expectations.
The Good
Entry to a multilevel marketing company is easy. Often the cost to begin is minimal. For those wanting to start their own business, it can be a great first step. It’s possible to earn a little bit of extra cash as a side hustle as well.
* There are many available side hustles. Here’s an article that I wrote that will provide some additional information and context.*
There is legitimate money to be made in network marketing — when done correctly. It’s also a great way to learn sales, time management, and how to effectively deal with rejection.
Many businesses offer this type of opportunity. It’s fairly easy to find a company that resonates with your lifestyle.
We always had Avon catalogs around our house when I was a kid. Who doesn’t like Tupperware? Need to lose some weight? There is something for everyone.
There are hundreds of large network marketing companies. Here are some of the largest:
Christians and Multilevel Marketing — The Bad
Products do not sell themselves. Sales is not an easy profession. The failure rate of individual ventures is quite high.
According to this study on network marketing, about 25% of participants make a profit, and 27% break even. The remaining 48% actually lost money.
Multilevel marketing is grueling work. More than 50% of the participants drop out after one year (AARP).
A negative perception clouds network marketing. Overcoming that perception can be challenging.
Network marketing recruiters paint a rosy picture of easy money. That’s simply unbiblical.
Proverbs 14:4 Where there are no oxen, the feeding trough is empty, but an abundant harvest comes through the strength of an ox.
Warnings about getting rich quickly abound in the Bible as well.
Proverbs 28:20 A faithful person will have many blessings, but one in a hurry to get rich will not go unpunished.
The Ugly
Money is never worth the destruction of relationships. Friendships should be nurtured. Using others to reach financial goals is a sure way to kill friendships.
Successful network marketing leaders often lose the plot. They pressure new recruits to shakedown their family and friends for a sale. This activity alone has given network marketing a bad reputation.
Setting Proper Expectations
The odds are stacked against you. Failing is definitely an option. Only twenty-five out of every one hundred makes money. The majority lose money.
How much money can one make?
Profitable is a relative term. If you’re dreaming of a six-figure income you might want to sit down. Only 0.05% of network marketers earn $100,000 or more (AARP).
Perhaps you have what it takes. Just don’t expect to be sipping fancy drinks while vacationing in Aruba from day one!
Christians and Multilevel Marketing — Success Stories
I’ve known a few people who have done quite well in network marketing. Both are extremely strong Christians. Neither eroded their witness while earning a decent living.
My first experience with a successful network marketer was with Team Beachbody. I met a person who was deeply involved. He encouraged new salespeople and never over-promised. He knew that the work was hard and there was no such thing as a quick buck.
We’re still in touch through social media. He’s nearly finished earning his M Div and Jesus remains #1 in his life and family.
The other experience was with a person selling Rodan and Fields. She and her husband own a successful marketing company and she is involved in Rodan and Fields on the side.
She did a fantastic job of qualifying new recruits for the program. If a person was hesitant or disinterested she moved along to the next person. She did not allow this business to rule her life. The Kingdom was her top priority and not earning a few thousand dollars.
This type of work can be done successfully.
Proceed With Caution
If you’re being recruited please tap the brakes. Proceed with caution and with your eyes wide open. Here are a few questions for you to consider before joining any network marketing company.
Am I okay with a 50% failure rate?
Do I truly believe in the product?
Can a similar product be purchased at a retail location for less money?
Do I secretly believe that I am going to get rich quickly?
Have I been falsely promised more family time and financial abundance to give charitably?
Am I willing to pay the price for a year or two to build a strong business foundation?
How will I address the negative perception that clouds most network marketing companies?
Can I establish proper boundaries so the business doesn’t creep into every area of my life?
Honestly answer these questions.
Christians and Multilevel Marketing — Yes or No?
My gut reaction is to avoid multilevel marketing and not recommend it in every situation. I’ve witnessed a few successes but dozens and dozens of painful failures.
I’ve seen relationships destroyed and Christians depart the faith with the root cause being network marketing. One of my mentors went off the rails early in my walk with Christ. It devastated me.
Some do well but most do not.
If you insist on proceeding in network marketing do so Biblically. Understand all of the potential pitfalls and remove the rose-colored glasses.
Relationships are much more important than money. Remember that when you’re booking for your first sales pitch.
I truly hope that you’re one of the 0.05% who earns more than $100,000 and keeps all your relationship intact.