There was a time when Multi-Level Marketing (MLM) felt like the golden ticket. A chance to work from home, be your boss, join a community of women who cheered each other on, and build “generational wealth” by sharing your favorite products. Oils, protein shakes, skincare, leggings—you name it, there was a “business opportunity” attached to it.
But the tides have turned.
In 2025, the MLM industry is facing an existential reckoning. From regulatory pressure to cultural fatigue, what once felt like a revolutionary way to earn income now feels more like an outdated relic from the early days of Facebook groups and inspirational hustle quotes.
Let’s take a look at the rise, the unraveling, and where things are headed next.
The Rise: A Movement Disguised as a Business Model
MLMs gained popularity for three reasons: low barriers to entry, community-driven sales, and the promise of residual income. You didn’t need a storefront, a degree, or a huge investment—just a starter kit and a dream.
For many women, especially stay-at-home moms or those seeking flexible income, MLMs offered something rare: empowerment and entrepreneurship, bundled into one pastel-colored Instagram grid.
But as social platforms evolved, so did the public’s perception.
The Fall: When the Dream Started Cracking
MLMs began to unravel under the weight of their promises.
1. Market Saturation
There are only so many friends and family members willing to spend $60 on shampoo or $120 on wellness packs. As more people joined, the market became crowded, and for most reps, the profits didn’t follow.
2. The Pandemic Wake-Up Call
During lockdown, many turned to online side hustles, but with more time at home came more research. People began asking questions about income disclosures, high attrition rates, and how much money people were actually making.
3. Influencer Culture Changed the Game
Why build a downline when you could build a brand? Influencer and affiliate marketing exploded, giving people direct access to monetization without recruitment models or minimum monthly quotas. Thank you, Amazon and TikTok.
4. The Public Got Wise
Thanks to YouTube documentaries, anti-MLM TikToks, and creator exposés, the public became more educated. Many began to see MLMs less as businesses and more as modern-day pyramid schemes wearing a pink blazer and drinking a collagen latte.
Pen Scheme Fatigue: The Cultural Shift
Let’s call it what it is: the boss babe era is burning out.
The public is tired of being sold empowerment that comes with a monthly auto-ship fee. They’re exhausted by the spiritual bypassing, toxic positivity, and groupthink disguised as mentorship. They are tired of being used and betrayed with false promises that lead to riches for a few at the top and burnout for the rest.
So What Comes Next?
The collapse of traditional MLM structures doesn’t mean the end of peer-to-peer sales, but it does mean the end of the era where success was measured by how many people you could recruit.
Here’s what the future looks like:
1. Affiliate Marketing Will Dominate
Creators and casual influencers can now earn commissions from brands they already use, without building a team or attending weekly Zoom pep talks. Platforms like Amazon, Like to Know (LTJ), and ShareASale offer simple, scalable income paths. Even Walmart, Target, and Lowe’s offer Creator programs rewarding individuals who promote the company and products.
Translation: The model shifted from “build your empire” to “build your niche.”
2. Direct Sales with a Compliance Backbone
MLMs that survive this shift will start to look more like affiliate companies:
- No compensation from recruiting
- No overinflated income promises
- No required monthly minimums
- Just product, customer, and commission
It’s less flashy, but far more sustainable—and less likely to trigger a class-action lawsuit.
3. The Rise of the “Soft MLM”
Some brands may evolve into hybrid structures, offering perks for referrals or VIP discounts, but without the traditional downline. Meaning individuals are paid for referrals, and not directly recruiting women to sell a particular product: examples include Grove Collaborative or Brand Ambassadorships.
4. The End of the Dream Narrative
No more “retire your husband” fantasy. No more stock photos of laptops on beaches. The new narrative is reality-based: flexible side gigs, not financial freedom. If you want to sell essential oils or protein powders, do it because you love the product, not because you think it will buy you a yacht.
Final Thought: Where We’re Headed
The MLM model isn’t completely dead, but it is undergoing a serious transformation. As consumers demand more transparency and fewer manipulative tactics, companies are being forced to adapt or collapse.
What’s emerging instead is a cleaner, clearer version of personal selling that is less about recruiting and more about real influence and value. It’s not glamorous, but at least it is honest.
In this new chapter, authenticity wins. And in the long run, that’s a far better business model than any pyramid could ever offer.
If videos about MLMs, influencer marketing, and the nature of overconsumption are your cup of tea, head over to YouTube and check out Hannah Alonzo at https://www.youtube.com/watch?v=eWsZ8t_GDT4
THE OUBAITORI EDIT 
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