MLMs and the Danger of Selling the Dream Instead of the Product
- Chad Fisher
- Sep 4
- 5 min read
Updated: 7 days ago
By Pastor Chad Fisher, sharing biblical insights to inspire and strengthen your faith and relationship with God.
Quick Answer: Why do MLMs sell the dream instead of the product? Most MLMs highlight the opportunity for financial freedom more than their products because their compensation plans reward recruiting over genuine sales. For Christians, this raises concerns about honesty (Ephesians 4:25), stewardship (Luke 14:28), and loving our neighbor (Matthew 7:12).
When most people first hear about a multi-level marketing (MLM) pitch, many times they don’t hear much about the product itself. Often, they hear about the dream: financial freedom, early retirement, luxury cars, world travel, and the chance to “be your own boss.”
But here’s the problem: in many MLMs, the real product is not the shampoo, vitamins, or skincare kit—it’s the opportunity itself. The money flows less from genuine retail customers and more from constantly enrolling new recruits who must buy starter packs, attend conferences, or keep up monthly purchases.
For Christians, this raises deep concerns about truthfulness, stewardship, and witness.
Key Scriptures at a Glance
Proverbs 11:1 - Reminds us that deceptive or lopsided business models dishonor God.
Ephesians 4:25 - Calls believers to honesty in every interaction, including business.
Matthew 7:12 - The Golden Rule warns against pressuring friends and church members into schemes.
Luke 14:28 - Encourages wise financial stewardship before joining risky ventures.
1 Timothy 6:9–10 - Warns that chasing wealth can spiritually and financially destroy us.
Product-First Business vs. Recruitment-First Model
In a healthy business, revenue comes from selling a good or service that customers genuinely want and are willing to buy at a fair price. Think of a carpenter, a bakery, or even a Christian-owned online shop: theses product stands on their own merit.
In many MLMs, however, the incentives push participants toward recruiting rather than retailing. Success is measured not by satisfied customers, but by how many people you can bring into your downline.
“A false balance is an abomination to the LORD, but a just weight is his delight.” (Proverbs 11:1, ESV)
When an opportunity overshadows the product, we move into a gray area where marketing can become deceptive.
Why the “Dream” Becomes the Real Product
There are structural reasons why so many MLMs emphasize recruitment over products:
Thin retail demand – Products are often average quality or overpriced, making them hard to sell outside the “business opportunity.”
Compensation plan design – The biggest payouts are tied to rank, volume, and team size—metrics that mainly depend on recruitment, not direct sales.
Leader incentives – Upline leaders often make money not only on product volume but also on recruitment, training systems, conferences, and books, all fueled by more recruits.
In short: if you stop recruiting, the system collapses.
The Hard Truth About MLM Earnings
When it seems MLM reps dodge questions like:
“How much do you earn per month?”
“How long did it take to replace a $75K salary?”
Here’s why they stay vague:
FTC findings: Over 70 MLMs showed that most earn under $1,000 annually, often less, and many earn nothing. (FTC.gov Federal Trade Commission)
Real-world example (Young Living): 94% made under $1/year, and 89% averaged just $4/year, before expenses to even stay active. (Wikipedia Wikipedia)
Legal records confirm it: Court filings show most members lost money, not gained it—even after annual “income.” (ClassAction PDF ClassAction.org)
Biblical Wisdom: "He who loves money will not be satisfied with money, nor he who loves wealth with his income; this also is vanity." — Ecclesiastes 5:10 (ESV)
Bottom line: if specifics on income are missing, there’s a reason—and Christians paying attention should be cautious.
Red Flags to Watch For
How can you tell if an MLM is really selling the opportunity, not the product? Look for these warning signs:
Meetings emphasize “financial independence,” “time freedom,” or “get in early” more than product quality.
Stories spotlight cars, vacations, and ranks rather than satisfied retail customers.
Scripts train you to overcome objections to joining, not to understand or serve customers.
Auto-ship or minimum purchases are required to stay active, even if you can’t resell the inventory.
Income claims highlight recruiting teams, not realistic customer sales.
Jesus taught us to measure by fruit: “You will recognize them by their fruits.” (Matthew 7:16a, ESV)
If the fruits are pressure, debt, and broken relationships, that’s a warning sign.
Ethical and Biblical Concerns
The shift from selling products to selling a dream is not just a business tactic—it’s a spiritual concern for believers.
Truthfulness: Selling a dream that 99% of people statistically never reach veers into deception. “Therefore, having put away falsehood, let each one of you speak the truth with his neighbor…” (Ephesians 4:25, ESV).
Love of neighbor: Reducing friends and fellow church members to prospects fails the Golden Rule (Matthew 7:12).
Stewardship: Many participants spend more than they earn, violating wise financial care (Luke 14:28).
Church witness: When recruitment invades church life, unity and credibility suffer (1 Peter 2:12).
Self-Check Questions Before Joining an MLM
If you’re considering an MLM, ask yourself:
If recruiting ended tomorrow, could I still profitably sell this product to people outside the opportunity?
Do trainings emphasize serving customers—or just signing up more recruits?
Is my monthly spend driven by genuine demand—or by rank maintenance?
If you can’t answer positively, it’s a red flag that the “opportunity” is the real product.
A Healthier Alternative
If you truly love the product, there may be healthier ways to approach it:
Act like a real retailer — validate customer demand, price competitively, and focus on repeat buyers.
Explore affiliate marketing or small business ownership where products and services stand on their own merit.
Use your skills to build something that adds genuine value.
Paul reminds us: “Whatever you do, work heartily, as for the Lord and not for men.” (Colossians 3:23, ESV)
A godly business serves people first, not promises of easy riches.
Frequently Asked Questions About MLMs
Is selling an MLM product sinful?
Not necessarily. But if the business pressures you to prioritize recruitment over honesty and service, it becomes spiritually dangerous.
Why do MLMs talk more about opportunity than product?
Because the compensation model often pays far more for recruiting than for retail sales. Selling a dream is easier than selling overpriced or average products.
Can Christians ethically join MLMs?
Only if it allows for truthful, sustainable retail sales without exploiting relationships. Many Christians conclude that MLMs, as structured, make this very difficult.
Final Word
When a business shifts from selling products to selling dreams, it is not only a business red flag—it’s a spiritual red flag. Christians are called to honesty, stewardship, and love of neighbor. If those are compromised, it’s better to walk away.
Want more insight on this topic, read:
The Financial Realities of MLMs: A Biblical Stewardship Perspective
How MLMs Can Harm Christian Witness and Damage Church Relationships
MLMs vs. Pyramid Schemes: Understanding the Difference and the Biblical Cautions
Regular Business vs MLM: What’s the Difference for Christian Entrepreneurs?
Christians and MLMs: Why Faith and Multi-Level Marketing Often Don’t Mix
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Written by Pastor Chad Fisher — Pentecostal Pastor & Bible teacher with 30+ years of ministry experience and author of several Christian books. Learn more →
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