Regular Business vs MLM: What’s the Difference for Christian Entrepreneurs?
- Chad Fisher
- Aug 8
- 5 min read
Updated: Sep 4
By Pastor Chad Fisher, sharing biblical insights to inspire and strengthen your faith and relationship with God.
Quick Answer:
Many people wonder whether there’s a real difference between running a traditional business and joining a multi-level marketing (MLM) or network marketing company. On the surface, both involve selling products and earning income. But the structure, goals, and biblical implications are vastly different.
As Christians, we’re called to handle our work with integrity, steward resources wisely, and ensure that our business practices honor the Lord. This post outlines ten key differences between traditional business models and MLM/network marketing — and why these differences matter for believers.
Key Scriptures at a Glance
2 Corinthians 8:21 — Aim for what is honorable before God and people.
Proverbs 20:17 — Deceptive gain turns bitter.
Proverbs 28:20 — Faithfulness over get-rich-quick promises.
Colossians 3:23 — Work heartily for the Lord.
Romans 14:19 — Pursue peace and mutual upbuilding.
The Core Revenue Model
Regular/Franchise Business – Revenue is earned primarily through the direct sale of products or services to customers who want them. Profit comes from a healthy margin between wholesale and retail prices.
MLM/Network Marketing – While product sales may be involved, significant income often comes from recruiting new participants. Many representatives earn more from their downline’s purchases than from actual retail sales to non-members.
Biblical Note: “A false balance is an abomination to the Lord, but a just weight is his delight” (Proverbs 11:1, ESV). A fair business prioritizes honest exchange of goods for value — not recruitment dependency.
Customer Focus
Regular/Franchise Business – The focus is on serving customers well, building a reputation, and creating repeat business through quality and service.
MLM/Network Marketing – The focus often shifts toward finding recruits, because the business model rewards building a downline more than building a customer base.
Biblical Note: “Let each of you look not only to his own interests, but also to the interests of others” (Philippians 2:4, ESV). Our business approach should prioritize genuine service over self-interest.
Pyramidal Success Structure
Regular/Franchise Business – While larger companies have hierarchies, employees and owners can move up based on skill, tenure, and merit.
MLM/Network Marketing – Success is inherently pyramidal: those at the top benefit most from the purchases and recruitment efforts of those below. The vast majority of participants earn little or no profit.
Biblical Note: “Better is a little with righteousness than great revenues with injustice” (Proverbs 16:8, ESV).
Control and Independence
Regular/Franchise Business – The owner can adapt, innovate, and set direction. Franchises do have rules about branding and operations, but owners still have significant decision-making authority.
MLM/Network Marketing – You are bound by the company’s compensation plan, marketing restrictions, and product line. If the company changes the rules, your “business” changes overnight.
Use of Church and Social Networks
Regular/Franchise Business – While referrals from friends happen naturally, customers are not pressured through personal or church relationships.
MLM/Network Marketing – Recruiting often targets friends, family, and even fellow church members, leading to strained relationships and distrust within the body of Christ.
Biblical Note: “So then let us pursue what makes for peace and for mutual upbuilding” (Romans 14:19, ESV).
Stewardship and Ongoing Costs
Regular/Franchise Business – Expenses are tied to operations — rent, materials, payroll — and can be scaled as needed.
MLM/Network Marketing – Representatives are often required to make monthly purchases to remain “active” and eligible for commissions, regardless of actual customer demand. This can create unnecessary financial strain and poor stewardship.
Biblical Note: “Moreover, it is required of stewards that they be found faithful” (1 Corinthians 4:2, ESV).
Entry Costs and Investment Risk
Regular/Franchise Business – Startup investments purchase tangible assets like equipment, inventory, or the right to operate under a brand.
MLM/Network Marketing – Initial and ongoing purchases may consist mainly of product inventory and marketing materials, with little in the way of transferable assets.
Biblical Note: “Which of you, desiring to build a tower, does not first sit down and count the cost…” (Luke 14:28, ESV).
Regulatory Oversight and Consumer Protection
Regular/Franchise Business – Operates under well-established business laws and, for franchises, detailed contracts and disclosure requirements.
MLM/Network Marketing – Operates in a legal gray area where the line between legal MLM and illegal pyramid scheme can be thin, and accountability often comes too late for those harmed.
Exit Strategy
Regular/Franchise Business – Can be sold, transferred, or closed with residual value in assets and brand goodwill.
MLM/Network Marketing – Typically cannot be sold without company permission, and income stops when you stop recruiting or purchasing.
Biblical Note: “A good man leaves an inheritance to his children’s children” (Proverbs 13:22, ESV).
Training and Skill Development
Regular/Franchise Business – Training equips owners and employees with transferable skills such as leadership, financial management, and customer service.
MLM/Network Marketing – Training often focuses heavily on recruiting techniques and motivational tactics, which may have limited application outside the company.
Biblical Note: “Do you see a man skillful in his work? He will stand before kings…” (Proverbs 22:29, ESV).
Practical Steps
Follow the money: What % of revenue is retail customers vs. downline recruitment?
Ask for disclosures: View income statements and costs (kits, products, events).
Count the cost (Luke 14:28): time, cash, relationships, reputation.
Test your motive: Service and craftsmanship or fast-income hype?
Seek counsel: Run the plan by a wise mentor/pastor and an experienced business owner.
Christian Business Compared to MLM FAQs
Is network marketing always the same as MLM?
No. Some “network marketing” firms are product-centric, but if pay depends mainly on recruitment, it functions like an MLM.
What’s the biblical red flag with MLMs?
When relationships become tools for profit and income is driven by recruiting, not real customer value (Phil 2:4).
Can Christians join an MLM with a good product?
Only after verifying retail-driven revenue, transparent earnings, and no pressure tactics—then decide with prayer and counsel.
How does a regular small business better fit stewardship?
Clear costs, customer-first value, and profits from serving needs—aligned with diligence and honesty (Col 3:23).
Will a sole proprietorship or LLC be better than an MLM?
Usually yes for control, clarity, and ethical alignment—pick a structure that protects integrity and liability.
How do I protect my witness while selling?
Solve real problems, avoid pressure, be transparent on outcomes, and keep church relationships free of sales expectations.
Final Thoughts
MLM companies are legal and some operate more ethically than others. But for Christians, the question is not only “Can I do this?” but “Should I?” A traditional business — whether brick-and-mortar, service-based, or even a franchise — usually aligns better with biblical stewardship, transparency, and service to others.
If you’d like to explore the broader spiritual concerns about MLMs and network marketing, see 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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