Joining an MLM Isn’t the Same as Owning a Business – And Here’s Why
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Let’s get one thing straight: owning an MLM gig isn’t the same as owning a business.
You hear it all the time at networking events:
“Hi, I own a skincare business!”
But as you start asking questions, you realize they’re actually a consultant for [insert MLM name here]. They paid $300–$500 for a starter kit — and suddenly, they’re a “business owner.”
Now, to be clear, I’m not judging the consultants themselves.
I get it.
MLMs can offer flexibility and community for people who need extra income or can’t take on the full financial risk of entrepreneurship. There’s no shame in that.
But these companies want consultants to believe they’re business owners. They encourage them to act like it — to find customers, nurture relationships, recruit new consultants, and keep the whole cycle spinning.
Because in MLMs, the fastest way to make money isn’t from selling — it’s from building a team and earning a cut from everyone’s sales.
Still, when someone pays $250 for a starter kit and calls it “owning a business,” it feels dismissive to those of us who’ve built ours from the ground up — who’ve taken real risks, leveraged life savings, and worked insane hours to create something truly ours.
I always joke: unless you are the Mary Kay, you don’t own a business. You own a consulting gig.
My Short-Lived MLM Phase
Here’s the thing: I didn’t always know this.
A few years before jumping into full time entrepreneurship, I dipped my toe into the MLM world.
I saw an ad for part-time wine consultants and thought, “Fun side hustle? I love wine!”
At the time, I just needed a little extra cash to pay down credit card debt. So when Kristen responded right away, I was thrilled.
But as she started describing the “opportunity,” I got the ick.
Still — $250 to host wine parties at my friends’ houses didn’t sound terrible, so I handed over my credit card.
At first, it was fun. I showed up to parties with five bottles of wine, a smile, and a catalog.
The problem? I had to pay for the wine upfront and only got reimbursed if the party sold more than $250 worth.
That doesn’t sound too hard…until you realize the bottles were $12–$15 each and my twenty-something friends weren’t exactly dropping cash on cases of Pinot.
Most nights, I barely broke even. Some nights, I lost money.
Meanwhile, every week, an email hit my inbox about the “top consultants” — the ones winning trips to Italy, earning thousands a month, “living the dream.”
But those people weren’t just selling wine. They were selling the opportunity. They had downlines — recruits whose sales generated passive income. And if those recruits brought in others, the cycle (and commissions) kept going.
I’ll give MLMs this: they make it look easy. But it’s anything but.
The Moment I Realized the Difference
Eventually, it stopped being fun.
I got tired of washing 24 crystal glasses by hand every weekend and constantly running into backorders. (Turns out, the company was struggling financially — who knew?)
So I quit. And never looked back.
That experience taught me one big thing: being an MLM consultant is not the same as being an entrepreneur.
Entrepreneurs create from nothing.
We build the systems, handle the finances, make the mistakes, and take the BIG risks.
When you own a business, you own the responsibility.
And that includes:
- Building a brand identity
- Managing profit and loss
- Paying for insurance, accountants, lawyers
- Creating and maintaining systems
- Learning the hard way (over and over again)
MLM consultants? They’re following a system someone else built — with the illusion of ownership but none of the control.
The Bottom Line
Again, there’s no judgment here. MLMs can be a stepping stone. They can offer connection and a taste of leadership.
But they’re not the same as building something that’s yours.
Entrepreneurs are the ones taking the risk, figuring it out as we go, and creating something from scratch.
And that distinction deserves respect.
What about you?
Have you ever joined an MLM or considered one?
’d love to hear your experience — what drew you to it, and what did you learn?
