WHY SOME MULTILEVEL MARKETERS ARE DITCHING THE MLM MODEL

Summary from the TLDR Marketing newsletter

Multilevel marketing (MLM) is facing increased scrutiny, leading some companies to move away from the model. MLM's reputation has been damaged by regulatory attention, concerns about the legality of its practices, and low earnings for most participants. Companies like Avon and Amway defend the model, but others are shifting toward affiliate models or direct sales. Critics argue that the MLM model is outdated and unsustainable in the current market. Some firms are exploring alternative sales channels such as e-commerce, which introduce new pricing challenges.