Should a Christian get involved with Multi Level Marketing?
- Dennis Gerencher
- Oct 27, 2013
- 16 min read
In today’s economy, more and more people are searching for ways to make ends meet. It’s a situation that effects each and every one of us, and a situation that creates fertile ground for the unscrupulous and nefarious to prey upon the well intended.
Nefarious? Unscrupulous?
Those are very strong and harsh words; words I have chosen carefully to describe the business practice of MLM (Multi Level Marketing).
Why do I say that mlm is so bad? A few of my reasons are that it breeds on discontent and lives off of the backs of others. It distracts people from living a God centered life for one focused upon greed and the subsequent deception needed to bring others into the fold.
Again, more strong words.
An mlm sales pitch is also worded strongly using phrases like, “I am so excited about this, I have to tell you about it!”, “We are going to change the world.”, “I have such good news to share with you, when can we get together and talk?”
If you’re a Christian, do some of those phrases sound familiar? Maybe you have used those same words to open up a conversation about the Good News?
Believers use some of the same phrases to talk about network marketing as they do about salvation. Unfortunately, many Christians find it easier to talk to their friends and neighbors about making money than about Jesus.
99% of people who become involved in an mlm lose money.
But have you ever heard this from an mlm proponent? No, you haven’t. What you will hear is how great it will be when you can “earn” a full time income while working part time hours. You will hear about the vacations, the cars, the new homes and the new life the income from this mlm will bring you.
When faced with the reality of mlm, the word “deception” doesnt seem so strong now, does it?
Network marketing, multi-level marketing (MLM), and direct sales programs are all about money. If you really wanted to help people, you would give them money. If you are wanting to make yourself rich, you will convince everyone else that they will get rich with you so they will join your heap (or pyramid) and make you lots of money.
Apparently, it’s difficult for gung-ho mlmers to see how they look from the outside. They can watch lifelong friendships unravel, churches and civic groups poisoned, family and friends avoiding them more and more, etc., and never see that mlm was the cause. If you try to point this pathology out, you are treated as if you have attacked the very gospel! They will claim to have made “new friends,” most of which are mlmers or new acquaintances who they ultimately consider “future prospects.” The shallowness of these “new friends,” the stilted conversations among the “old friends,” and the embarrassment in general, for what seems clear to everyone but the mlmer, go unnoticed.
Business failure of any type is traumatic on the relationships involved, but in most small businesses there is at least the chance of success. This is never the case in an mlm, unless “success” can be defined as profiting off of the failures of others.
Talk to a mobster, and he will tell you that he is “merely misunderstood in his benevolent intentions.” “We are just trying to ‘build our business.’” “It’s all a conspiracy to make us look bad.” “The Feds are out to get us because they are jealous or afraid of our new way of life.” “Why, look at all the good we do!” “We are looking more legitimate every day.” Here’s a statement from a famous DA showing that the Mob is really a good organization and no harm ever comes from it. “We’ve even got a minister to endorse us now!”
Many mlm members argue that their business model (often referred to as a pyramid) is just like that of major corporations. In fact, the mlm structure more resembles the distribution system of drug dealers. The people at the top lived like kings while all of the money from the bottom made it’s way up. People sell “product” in order to pay for their own “product”. They also get as many people as they can to sell the “product” they have in order to make more money. The “kings” live off of the backs of the users (those that only buy the product) and those that sell and try to get other to sell.
An mlm company follows a business model that most closly resembles that of a mob syndicate. For an in depth detail on how the two parallel each other, take a look at a report penned by Proffessor G. Robert Blakey, Proffessor of Law at Notre Dame Law School. He specifically targets Amway -the largest and oldest MLM around and the model for every other mlm- but an MLM is an mlm.
Even the US Postal Service warns about MLMs;
People can make money in an mlm, of that there is no doubt. The moral issue is: Where is the money coming from? Selling product? Then why not sell the same product in the “real world”? But everyone knows that the real incentive is not the product but the pyramid aspect, and the product is just the excuse used to make it legal, or at least the mlm promoter would like you to believe it is legal.
It is generally agreed that to mislead people in order to get their money is morally reprehensible. It is labeled “theft” or “fraud,” and those who do it should be punished. No one is naive enough to suggest that you can’t make money at it. Crime can pay, at least temporarily.
Pyramid schemes are illegal. They are illegal because they are exploitative and dishonest. They exploit the most vulnerable of people: the desperate, the out-of-work, the ignorant. Those who start and practice such fraud, should, and increasingly are, being punished for their crimes.
But add a product for cover, and call it an MLM, and people are willing to swallow its legality.
An mlm can effectively skirt the Federal Trade Commission by using word-of-mouth testimonials, supposed “studies” done by scientists, fabricated endorsements, compensated endorsements, rumors and other misrepresentations that would never be allowed to see the light of day in the real world of product promotion.
Thus, mlm has evolved into a “niche”: it can be used to sell products that could not be sold any other way. An MLM is a way to get undue credibility by exploiting people’s personal friendships and relationships via “networking.” This is an intrinsic moral difficulty with mlms that can not be removed from a “working” mlm.
A quick explanation of the math involved in mlms:
Mlms work by geometric expansion, where you get ten to sponsor ten to sponsor ten, and so on. This is usually shown as an expanding matrix (just don’t say “pyramid”!) with corresponding kick-backs at various levels.
The problem here is one of common sense. At a mere three levels deep this would be 1,000 people. There goes the neighborhood! At six levels deep, that would be 1,000,000 people believing they can make money selling, but to whom? There goes the city! And the MLM is just getting its steam going. Think of all the meetings! Think of all the “dreams” being sold! Think of the false hopes being generated. Think of the money being lost.
Nothing irritates a die-hard mlmer more than the preceding argument. If you point out the absurdity that if “the pitch” at an Amway meeting were even moderately accurate, in something like 18 months Amway would be larger than the GNP of the entire United States, then listen closely for a major gear-shift: “Well, that is absurd, of course. Not everyone will succeed, and so the market will never saturate.”
Well, which is it? Are we recruiting “winners” to build a real business, or planning by design to profit off of “losers” who buy into our “confidence”?
During “the pitch,” anyone can make it work. “It’s the opportunity of a lifetime.” “Just look at the math!” But mention the inevitable saturation and the losses this is going to cause for everyone, and then you’ll hear, “Of course it would never really work like that.” “Most will fail,” you will be told, “but not you, Mr. Recruit. You are a winner. I can just see it in your eyes.”
But the dialog usually never even gets to this. Anytime talk like this is brought up an mlmer quickly fires back with lines such as, “That’s what losers say” or, “Attitudes like that will leave you where you are and get you nowhere”.
While issues of morality and ethics can be tricky to discuss, materialism and greed are universally condemned by every major religion, and even by most of the irreligious. This does not mean people are not materialistic or greedy; in fact, the common ethical call to not be so is strong evidence that we are.
Pick up any brochure or videotape for an mlm and you are more than likely to see a cheesy, obvious, and blatant appeal to greed and materialism. This is offensive to everyone, even die-hard materialists. Typical is an appeal to “the American dream.” Usually there will be a mood shot of a large new home, a luxury car, a boat, perhaps a beautiful couple boarding a Lear jet, and so on.
While this need not necessarily be part of the mlm approach, it usually is. Such a transparent appeal should make people suspicious.
Why the bait? Couldn’t they show people doing more wholesome things with the money they make? If this is really a legitimate opportunity, why not focus on the market, product, or service instead of people reveling in lavish materialism?
But we have reason enough to know why the distraction is needed. Unbridled greed suspends good judgment.
Do you want to be involved in the blatant promotion of values contrary to your belief system? In most mlms you’ll have no choice. You are going to have to sit through meeting after meeting after meeting after meeting. You are going to be “motivated” to coerce your friends and family to hear “the pitch.” This is the way the “dream” is planted and fertilized.
Materialism is an over-focus on getting and possessing, a lust for more and more at the expense of things relational, ethical, spiritual, etc. It is disgusting when abject and, thus, universally condemned by nearly every philosophy and religion.
There is a difference between wanting and working a better life, with better things and being materialistic. An analogy would be the difference between social drinking and being slobbering drunk. Most people have a normal desire for more and better. Mlmers, on the other hand, are drooling…
Do you wish to be a salesperson for materialism?
Another morally questionable mlm practice is the idolatry of the leaders. In many mlms, the “approved materials” show what a great man the founder was, depicted the depth of his management experience, extolled his achievements, etc. It is easy to swoon in admiration of such a powerful, visionary man, dedicated to bringing this wonderful opportunity to “common” people like us. How great he must be to want me to succeed! Will he be at the next training session? Maybe I’ll get a chance to shake his hand, or better yet, even TALK with him!!!
This mentality permeates mlm organizations and anchors much of it’s sales force. Do I really need to quote scriptures that speak of the danger of getting caught in this trap?
MLM growth feeds on discontentment. The message to be conveyed, implied or obvious, is: “Don’t waste your life working for ‘Corporate America’.”, “Why bother getting a college degree (or job, or whatever)… just to work for ‘The Man’?”, “Your spouse doesn’t make enough money.” etc. “You need more,” is the gist. Dissatisfaction is thus stoked and prodded by MLM materials and culture. Discontent appears to be the preferred fuel for the mlm engine.
Yet, Christian doctrine is clear that believers are to “be content” (Hebrews 13:5, Philippians 4:11-12, 1Timothy 6:6-11) and motivated NOT by grumbling or greed or discontent, but by the Holy Spirit. For a professing Christian, how can this stark difference of emphasis and motivation be resolved with mlm practicea, presentations, and culture?
Isn’t MLM a great way for Christian ministries to support themselves? No. It is a great way for missionaries or laypeople or ministers to get derailed from their mission, waste a lot of money and time, alienate a lot of people, and lead a few unfortunate others down the same ruinous path. Athena Dean, in her books, makes a good real-life case study of this pitfall for Christians.
Often this temptation flies under the banner of “tentmaking”, a reference to the Apostle Paul who made tents and thus supported his own ministry so as not to be a burden on anyone else. Mlm is completely at odds with the spirit of this noble discipline. Paul wanted NOT to be a burden on anyone, and this is quite different than openly conning and exploiting people. Even if the mlm pyramid scheme aspect is downplayed (and it can not be eliminated), should ministers be hawking their wares within the church fellowship? WWJD?
Making money in mlm requires extraordinary time commitment as well as considerable personal skill and persistence. Beyond the sheer hard work and talent required, the business model inherently consumes more areas of one’s life and greater segments of time than most occupations. In mlm, everyone is a prospect. Every waking moment is a potential time for marketing. There are no off-limit places, people, or times for selling. Consequently, there is no free space or free time once a person enrolls in an mlm system. While claiming to offer independence, the system comes to dominate a persons entire life and requires rigid conformity to the program. Where do the other priorities in life fit in? Healthy relationships of any kind require diligent work to remain so. There is no “set it and forget it” button on being a spouse, sibling, parent or friend. What about your relationship with Christ? Living the mlm life WILL cause these relationships to suffer. Are you willing to pay that price? Are you willing to turn your back on God for worldly goods?
The use of spiritual concepts like prosperity consciousness and creative visualization to promote MLM enrollment; the use of words like “communion” to describe a sales organization, and claims that MLM fulfills Christian principles or Scriptural prophecies are great distortions of these spiritual practices. Those who focus their hopes and dreams upon wealth as the answer to their prayers lose sight of genuine spirituality as taught by religions. The misuse of these spiritual principles should be a signal that the investment opportunity is deceptive. When a product is wrapped in the flag or in religion, buyer beware! The “community” and “support” offered by mlm organizations to new recruits is based entirely upon their purchases. If the purchases and enrollment decline, so does the “communion.’
What goes unnoticed to the mlmer is that when the neighborhood is turned into a marketplace, something precious is lost… which is not easily regained. This aspect of the mlm experience should not be underestimated, and those interested in mlm should think twice about the value of friends, family, community, church fellowship and God before going any further.
If you are going to put effort into something, start your own business. One in which your morals and beliefs are protected.
And there is no such thing as residual income. You might profit off MLM for a couple years, but eventually people will find a better product or move on to the next deal and you will be left starting over again.
Get an education, develop a skill, or study wise ways of investing your money. Why put yourself at the mercy of a corporation that could dissolve with one lawsuit? Why should you try to profit by getting people to spend $200, $400, or $600 on a business and products that are over-hyped? Keep your friends as friends and do not manipulate them into joining your deal.
I think it is fine for wise Christians to turn a decent profit. However, we should never extort or overcharge people for goods or services. We all need money, and if you have any to throw away, I will be the first to hold out a wastebasket.
MLM and network marketing are some of the biggest trash cans of all, not just for your money but also for your relationships. These programs can segregate churches between those who are in the deal and those who are out. Worst of all, they distract believers from the greatest opportunity on earth; to share the Good News, find salvation and live a life pleasing to God.
Christians are enjoined in Ephesians 4:28 “not to steal”, but rather to do “something useful” so that they can “have something to share with those in need”. If you have read this far, you will likely have ascertained that the get-rich by magic pyramid-dream is nothing less than stealing, and you don’t even have to be a Christian to know that this is wrong. If you are in, get out. If you are thinking about it, DON’T DO IT. Do something honest, useful and pleasing to God instead.
Here a few Bible verses to study;
Hebrews 13:5 Keep your lives free from the love of money and be content with what you have, because God has said, “Never will I leave you; never will I forsake you.”
1 John 2:16 For everything in the world—the lust of the flesh, the lust of the eyes, and the pride of life—comes not from the Father but from the world.
1 Timothy 6:9-10 Those who want to get rich fall into temptation and a trap and into many foolish and harmful desires that plunge people into ruin and destruction. 10 For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs.
Luke 12:15Then he said to them, “Watch out! Be on your guard against all kinds of greed; life does not consist in an abundance of possessions.”
1 Timothy 6:10 For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs.
Matthew 6:19-21“Do not store up for yourselves treasures on earth, where moths and vermin destroy, and where thieves break in and steal. 20 But store up for yourselves treasures in heaven, where moths and vermin do not destroy, and where thieves do not break in and steal. 21 For where your treasure is, there your heart will be also.
Romans 12:2 Do not conform to the pattern of this world, but be transformed by the renewing of your mind. Then you will be able to test and approve what God’s will is—his good, pleasing and perfect will.
Matthew 6:33 But seek first his kingdom and his righteousness, and all these things will be given to you as well.
Mark 4:18-19 Still others, like seed sown among thorns, hear the word; 19 but the worries of this life, the deceitfulness of wealth and the desires for other things come in and choke the word, making it unfruitful.
Luke 16:19-31 19 “There was a rich man who was dressed in purple and fine linen and lived in luxury every day.20 At his gate was laid a beggar named Lazarus, covered with sores
21 and longing to eat what fell from the rich man’s table. Even the dogs came and licked his sores.
22 “The time came when the beggar died and the angels carried him to Abraham’s side. The rich man also died and was buried.
23 In Hades, where he was in torment, he looked up and saw Abraham far away, with Lazarus by his side.
24 So he called to him, ‘Father Abraham, have pity on me and send Lazarus to dip the tip of his finger in water and cool my tongue, because I am in agony in this fire.’
25 “But Abraham replied, ‘Son, remember that in your lifetime you received your good things, while Lazarus received bad things, but now he is comforted here and you are in agony.
26 And besides all this, between us and you a great chasm has been set in place, so that those who want to go from here to you cannot, nor can anyone cross over from there to us.’
27 “He answered, ‘Then I beg you, father, send Lazarus to my family,
28 for I have five brothers. Let him warn them, so that they will not also come to this place of torment.’
29 “Abraham replied, ‘They have Moses and the Prophets; let them listen to them.’
30 “‘No, father Abraham,’ he said, ‘but if someone from the dead goes to them, they will repent.’
31 “He said to him, ‘If they do not listen to Moses and the Prophets, they will not be convinced even if someone rises from the dead.’”
1 Timothy 6:6-10 But godliness with contentment is great gain. 7 For we brought nothing into the world, and we can take nothing out of it. 8 But if we have food and clothing, we will be content with that. 9 Those who want to get rich fall into temptation and a trap and into many foolish and harmful desires that plunge people into ruin and destruction. 10 For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs.
Luke 16:14-15 The Pharisees, who loved money, heard all this and were sneering at Jesus. 15 He said to them,“You are the ones who justify yourselves in the eyes of others, but God knows your hearts. What people value highly is detestable in God’s sight.
Luke 16:1-31 1 Jesus told his disciples: “There was a rich man whose manager was accused of wasting his possessions.
2 So he called him in and asked him, ‘What is this I hear about you? Give an account of your management, because you cannot be manager any longer.’
3 “The manager said to himself, ‘What shall I do now? My master is taking away my job. I’m not strong enough to dig, and I’m ashamed to beg—
4 I know what I’ll do so that, when I lose my job here, people will welcome me into their houses.’
5 “So he called in each one of his master’s debtors. He asked the first, ‘How much do you owe my master?’
6 “‘Nine hundred gallons[a] of olive oil,’ he replied. “The manager told him, ‘Take your bill, sit down quickly, and make it four hundred and fifty.’
7 “Then he asked the second, ‘And how much do you owe?’ “‘A thousand bushels[b] of wheat,’ he replied. “He told him, ‘Take your bill and make it eight hundred.’'
8 “The master commended the dishonest manager because he had acted shrewdly. For the people of this world are more shrewd in dealing with their own kind than are the people of the light.9 I tell you, use worldly wealth to gain friends for yourselves, so that when it is gone, you will be welcomed into eternal dwellings.
10 “Whoever can be trusted with very little can also be trusted with much, and whoever is dishonest with very little will also be dishonest with much. 11 So if you have not been trustworthy in handling worldly wealth, who will trust you with true riches? 12 And if you have not been trustworthy with someone else’s property, who will give you property of your own?
13 “No one can serve two masters. Either you will hate the one and love the other, or you will be devoted to the one and despise the other. You cannot serve both God and money.”
14 The Pharisees, who loved money, heard all this and were sneering at Jesus. 15 He said to them,“You are the ones who justify yourselves in the eyes of others, but God knows your hearts. What people value highly is detestable in God’s sight
Ecclesiastes 12:13 Now all has been heard; here is the conclusion of the matter: Fear God and keep his commandments, for this is the duty of all mankind.
1 John 3:17 If anyone has material possessions and sees a brother or sister in need but has no pity on them, how can the love of God be in that person?
John 10:10 The thief comes only to steal and kill and destroy; I have come that they may have life, and have it to the full.
Ecclesiastes 5:10 Whoever loves money never has enough; whoever loves wealth is never satisfied with their income. This too is meaningless.
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