Network Marketing vs MLM: Is There Really a Difference?
- Chad Fisher
- Aug 8
- 5 min read
Updated: Aug 25
By Pastor Chad Fisher, sharing biblical insights to inspire and strengthen your faith and relationship with God.
Quick Answer: While often used interchangeably, "network marketing" generally refers to product-focused business models, whereas "MLM" may emphasize recruitment-based income. As Christians, our priority must be integrity and value, not industry labels—truth matters more than terminology.
Many companies avoid the term multi-level marketing (MLM) because it carries a bad reputation. Instead, they prefer to call themselves network marketing companies or direct sales businesses. But does changing the label change the reality?
From a biblical perspective, Christians are called to examine the substance of a thing, not just its name. Proverbs 14:15 (ESV) reminds us: “The simple believes everything, but the prudent gives thought to his steps.”
When we look closely, we find that in most cases, network marketing is simply MLM under a different name.
Key Scriptures at a Glance
Proverbs 20:17 – “Bread gained by deceit is sweet to a man, but afterward his mouth will be full of gravel.”
2 Corinthians 8:21 – “We aim at what is honorable not only in the Lord's sight but also in the sight of man.”
Matthew 7:15–16 – Beware of false prophets; you’ll know them by their fruit.
Proverbs 28:20 – “A faithful person will abound with blessings.”
Colossians 3:23 – Whatever you do, work heartily for the Lord.
The Core Structure Is the Same
Both MLMs and network marketing companies tend to operate on a similar model:
You earn commissions from your own product sales.
You also earn from the sales (and often the product purchases) of the people you recruit into the business — your “downline.”
The more people in your downline, and the more they sell or buy, the more you make.
While a company might say it’s “all about selling products,” the pay structure often reveals that building a team is the fastest — and sometimes the only — way to earn significant income.
The “Network Marketing” Label Is Mostly Rebranding
The term network marketing sounds friendlier and more professional than MLM. It gives the impression of genuine relationship-based sales rather than a high-pressure recruiting system.
But if the compensation plan rewards you for multiple levels of recruits, it’s still MLM in practice.
Changing the terminology is often more about marketing than about meaningful operational change.
Regulators Don’t Care About the Name
In both the United States and Canada, regulators such as the FTC and the Competition Bureau evaluate a company based on how it operates, not what it calls itself.
If the majority of revenue comes from recruitment and the purchases of new members, rather than retail sales to actual customers, the model may be considered a pyramid scheme — regardless of the label used.
The Pyramidal Reality Remains
Even in network marketing companies that emphasize product sales, the earnings pattern is still pyramidal:
A small percentage at the top earn large incomes.
The vast majority make little or no profit, and many lose money due to ongoing product purchases and fees.
This raises serious stewardship concerns for Christians. Luke 14:28 (ESV) says: “For which of you, desiring to build a tower, does not first sit down and count the cost, whether he has enough to complete it?”
Wise stewardship means carefully evaluating whether a business model gives you a realistic path to profitability — or primarily benefits those above you in the structure.
Practical Steps for Christians
Ask about revenue sources: Do they mainly come from retail value or recruitment?
Seek transparency: Request income disclosures (pack breakdowns, earnings reports).
Check your motives: Are you drawn to the model or to serving people?
Evaluate ethics: Discuss with a church leader or mentor before joining.
Reflect on testimony: Will this enhance or strain your witness and relationships?
Common Questions About Network Marketing and MLMs
Is “network marketing” always better than “MLM”?
Not necessarily—it depends on the business structure and where the money comes from.
What key question should I ask before signing?
“Do most payouts come from product sales or recruiting others?” If recruiting is the main source, red flags go up.
Is it okay to use church contacts in network marketing?
Only if products serve a need without pressure or expectation—otherwise you risk exploiting spiritual relationships.
Are legal MLMs different from pyramid schemes?
Legal MLMs must deliver real product value and comply with laws—but ethical concerns remain, especially in YMYL contexts.
What scripture warns against deceptive gain?
Proverbs 20:17; Matthew 7:15; and Colossians 3:23 remind us that integrity and product value matter most.
How do I know if a company is trustworthy?
Check for honest disclosures, product value, transparent compensation, and no pressure to recruit family/friends.
Labels Can Distract from Biblical Discernment
It’s easy to get caught up in terminology debates, but the more important question is:
Is the business honest and transparent?
Does it treat people as image-bearers of God, not as dollar signs?
Does the structure encourage fairness, or does it pressure participants into constant recruitment and unnecessary purchases?
As Christians, our calling in business is not just to make money, but to do so in a way that honors Christ and reflects His character. Proverbs 11:3 (ESV) says: “The integrity of the upright guides them, but the crookedness of the treacherous destroys them.”
Conclusion
Terminology like "network marketing" may feel more pleasant than "MLM," but labels don’t change what matters—models do. Christ calls us to clarity, truth, and relational care above marketing language. Let’s steward opportunity—and community—with wisdom and love.
Related Reading: If you want to understand the deeper concerns about MLM structures and the biblical cautions that apply, read my anchor post: What Does the Bible Say About MLMs?
Want more insight on this topic, read:
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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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