Three women in Australia—Sabrina, Chloe, and Ellen—found themselves in troubling financial and emotional circumstances after engaging in multi-level marketing (MLM) businesses. With around 300,000 MLM consultants in the country, predominantly women, the industry is legal but has garnered criticism for fostering predominantly negative outcomes for its participants.
Sabrina initially sought to generate extra income, while Chloe was influenced by fellow local mothers, and Ellen was looking for love when she was introduced to MLMs. Many join these schemes in hopes of financial stability, often during economic hardships, but research indicates that a vast majority ultimately lose money. In fact, fewer than 1% of consultants in the industry report making a profit.
MLMs operate by recruiting independent salespeople who earn income by selling products purchased from the parent companies and by bringing in new consultants to form a downline. This model skews close to the structure of illegal pyramid schemes, with many consultants relying on friends and family to succeed, which can strain personal relationships and foster a toxic culture within the network.
All three women experienced the darker side of MLMs. Sabrina joined NuCerity after recommendations from a friend, believing it would provide financial freedom. She ended up spending more to maintain her position in the company and struggled financially, eventually feeling “shattered” when her earnings never grew significantly. Ellen, recruited by a man she met while dating, engaged with multiple MLMs and lost thousands, feeling emotionally devastated and isolated. Chloe, sceptical of MLMs at first, later joined one through a relative. Though she made some initial profit, the experience left her shocked by the abusive and cult-like environment.
These women describe toxic behaviours within these groups, such as manipulation and emotional abuse, as they were encouraged to recruit vulnerable individuals and maintain an image of success—often at the expense of their own finances and well-being. Many of them dealt with significant emotional repercussions, such as depression and loss of self-esteem once they recognised the reality of their situations.
Now, Sabrina, Chloe, and Ellen dedicate their time to educating others about the inherent risks of MLMs, advocating for better financial education and greater protection for those affected by these business models. They believe that the system preys on individuals, particularly vulnerable groups, under the guise of supportive communities. The trio underscores the importance of sharing personal experiences to prevent others from falling into similar traps within the MLM landscape, emphasising that the majority of participants will not achieve financial success, while a small elite earns predominantly from the efforts of the many.