
For decades, multilevel-marketing companies had it easy. Cutco knives, Tupperware containers, and Pampered Chef bread mixes were inoffensive products sold at weeknight wine parties and, later, in themed Facebook groups. For the most part, they were an unremarkable part of women’s lives.
Multilevel marketing—a form of direct selling in which a major chunk of a person’s income comes not from the sales they make themselves but from the sales made by people they recruit into the company—was often regarded as exploitative by consumer advocates, but it rarely encountered a serious threat.
During the pandemic, distributors for many MLM companies have used this lack of pushback to their advantage: On Instagram and Facebook, women have tried to persuade their followers to use their stimulus checks to join a company that sells shampoo or weight-loss products. They have used economic collapse as a recruitment tool, offering MLMs as the solution to lost income and increased precarity.
For Heather Rainbow, a 20-year-old chemistry student, these appeals were a wake-up call. In May, she made her first anti-MLM TikTok video, green-screening herself in front of what she claims is the 2018 income-disclosure statement for the hair-care company Monat, which shows that 94 percent of its distributors had an average income of $183 that year. She now considers herself something of a consumer advocate and misinformation combatant, posting about companies such as Cutco, Younique, Arbonne, and Lipsense to her 113,00 followers.
“That was my first TikTok to really get views,” she told me. “I had no idea that people on TikTok would be so receptive to the anti-MLM message.” (I reached out to several of the companies named in this article, and most, including Monat, did not respond to my requests for comment. A spokesperson for Arbonne told me in an email that regulators “have recognized the legitimacy of multi-level marketing for decades.”)
The same social networks that multilevel-marketing distributors are called upon to exploit—their friends, their family, their followers, their “mutuals”—are now the social networks through which women are pushing out a completely different message. (Though men participate in multilevel marketing as well, they do so in much smaller numbers.)
On Reddit, Facebook, YouTube, and TikTok, a huge community has coalesced around the anti-MLM sentiment, bringing together disenchanted former salespeople, curious independent researchers, and thousands of women who are just tired of getting Facebook messages about selling essential oils.
#AntiMLM is still diffuse and disorganized, but its rise poses an existential threat to multilevel-marketing companies that rely on the constant recruitment of new participants. And its newfound popularity is already presenting challenges for the community, which critiques capitalism on commercial platforms: If criticizing multilevel marketing is a good way to get views and followers and personal attention, how long will it be before that becomes the reason to criticize multilevel marketing?
On the Reddit forum r/antiMLM, members mock the industry all day long, referring to distributors as “hunbots” who lead off every conversation with a faux-warm “Hey, hun.” There is plenty of anger and caustic humor, but the community is tightly checked by moderators who insist that all screenshots have names and identifying information obscured.
Self-promotion of any kind is entirely forbidden, as is commentary on the quality of MLM products, good or bad. Shaming victims is out of bounds, and nobody is painted as a dupe: “If the post does not highlight a core problem with the MLM business model, it does not belong here,” the rules warn.
The moderators restrict discussions that take away from the mission of the subreddit—to map out and dissect MLMs—and encourage conversation about the system over anecdotes about low-level bad actors. The first major gathering place for people who shared the anti-MLM sentiment, the forum was started in 2011, but had only 2,000 members before suddenly taking off in August 2017.
Now it has more than 680,000 members and serves as the hub for a growing, informed discontent. Rainbow, the TikTok creator, refers to the Reddit community as the “OG anti-MLMers,” and calls it “the heart of the movement,” responsible for most of the significant work….Read more…..
Source: Multilevel Marketing and the Rise of ‘Anti-MLM’ YouTube – The Atlantic
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