Thinking of joining a multi-level marketing scheme or MLM as your side hustle? Read this first

Multi-level marketing (MLM) is a business model that relies on direct selling and consultants recruiting friends and relatives to also become consultants, salespeople or distributors. MLM salespeople sell products – such as beauty products, kitchenwares, essential oils or health supplements – directly to end-user retail consumers. These sales are made through relationship referrals, word-of-mouth marketing, and increasingly through social media. Billed as entrepreneurial self-employment, many people (mostly women) join MLMs to supplement their income or make some money while caring for kids. However, while MLMs promise financial independence, flexibility and work-life balance, it’s been widely reported by media and researchers that very few MLM sellers make any profit.