I work as a web dev, FE/BE, and company I currently work in took a project that is basically some kind of MLM structured business. It’s a challenge to do such project, not only from dev perspective, but also morally I’m not sure if I’m okay with it.
My question is - what do you think about MLM structures in companies ? Is it scam based business or is there something that I’m missing ?
It’s not decided yet if it will be binary or turnover based, but what is your experience with those two types of management system ?- from a technical perspective or product seller perspective. Thank you.
Have you ever worked for MLM company before? What was you experience ?
Multi-level marketing is a kind of pyramid scheme, they’re only legal because existing anti-pyramid scheme laws only prohibit “businesses” that don’t actually sell any products, and make all of their money through recruitment.
MLMs get around this by recruiting people to “sell” products, but recruits must pay for them in advance (almost always at a massive markup) and the products are typically so overpriced and/or poorly made that many of them go unsold.
So, almost all of the profit of those at the top of the pyramid comes from their downstream recruits recruiting more people to “sell” the product, even though product sales are completely unrelated to the success of the scheme as a whole.
existing anti-pyramid scheme laws only prohibit “businesses” that don’t actually sell any products, and make all of their money through recruitment.
So like… NFT communities?
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According to the FTC, more than 99% of people who join an MLM end up losing money. It’s pretty evident it’s just a scam, where the only way you can end up making money is not by selling something, but by enrolling enough people in your downline, thereby defrauding them. I mean just read the Wikipedia article, or watch this episode of Last Week Tonight .
I worked as a dev for a tech company that had MLM’s as their clients almost exclusively. Some of those clients have been named in this thread but I won’t list them. I helped work on the apps and website that the products were sold on.
My experience was surprisingly positive because I was shielded from the scummy side of the business. I liked my coworkers and enjoyed working on the platform. I did leave after 2 years. I learned a ton on the job which helped me land my next job which I love(and a big level up). I wouldn’t go back into the MLM industry though unless I had to due to limited job choices.
I don’t really have anything juicy to say about the industry, for the most part it was like any other dev job. Well the company did lay off people recently because I assume their bigger clients are running out of potential victims. Some MLM’s stay forever while others burn bright and then fizzle out, so if this MLM is a new one they might fizzle out soon and you may get laid off anyways.
