How long do people last in MLMs?

Answered by Robert Dupre

The longevity of individuals in MLMs, as reported by the FTC, is quite concerning. According to Jon Taylor’s analysis of the FTC report, a staggering 95% of MLM participants quit within ten years. This statistic raises serious doubts about the sustainability and long-term success of MLM ventures.

In contrast, small businesses have a higher chance of survival over a ten-year period. Bureau of Labor Statistics data suggests that approximately 30% of small businesses manage to stay afloat for at least ten years. This means that the typical small business has six times the longevity, in terms of lasting beyond a decade, compared to MLMs.

The significant discrepancy in longevity between MLMs and small businesses is a cause for reflection. It indicates that the MLM business model, with its emphasis on recruiting and building downlines, may not provide a stable and sustainable income for most participants. While MLMs often attract individuals with promises of financial success and time freedom, the reality seems to be quite different.

Personal experiences and anecdotes from MLM participants further support the lack of longevity in the industry. Many individuals enter MLMs with high hopes and dreams of achieving financial independence, but they often find themselves struggling to make any substantial income. The constant pressure to recruit new members and the focus on selling products to friends and family can strain relationships and lead to burnout.

Moreover, the MLM structure itself can be inherently flawed. The pyramid-like nature of MLMs, where only a small percentage of participants can earn significant profits, means that the majority are left disappointed and financially worse off. This dynamic creates a cycle of high turnover as disillusioned individuals leave the MLM, further contributing to the low longevity rate.

It is important to note that not all MLM participants have negative experiences, and some may achieve success. However, the overwhelming data and experiences suggest that the vast majority struggle to sustain their involvement in MLMs over the long term.

The evidence shows that MLMs have an alarmingly low rate of longevity, with 95% of participants quitting within ten years according to the FTC report. This stands in stark contrast to small businesses, where approximately 30% can survive for a decade or more. The reasons for this discrepancy are multifaceted, including the flawed MLM business model, the pressure to recruit and sell, and the pyramid-like structure. These factors contribute to a high turnover rate and a lack of sustainability for most MLM participants.