The Financial Realities of MLMs: A Biblical Stewardship Perspective
- Chad Fisher
- Aug 8
- 5 min read
Updated: Sep 5
By Pastor Chad Fisher, sharing biblical insights to inspire and strengthen your faith and relationship with God.
Quick Answer: Most MLM participants lose money rather than gain wealth, with profits concentrated among a small minority. The Bible warns against chasing quick riches (1 Tim 6:9–10) and calls believers to faithful stewardship, wise planning, and integrity in finances.
Multi-level marketing (MLM) opportunities are often promoted with promises of financial freedom, flexible schedules, and the chance to “be your own boss.” Yet the hard truth is that most people who join these ventures lose money — sometimes a great deal of it. For Christians, this raises serious questions about wise stewardship, contentment, and financial integrity.
In this post, we’ll look at the realities behind the numbers and how biblical principles apply.
Key Scriptures at a Glance
Proverbs 13:11 — “Wealth gained hastily will dwindle, but whoever gathers little by little will increase it.”
1 Timothy 6:9–10 — The love of money leads to ruin and destruction.
Luke 14:28 — Count the cost before committing.
Colossians 3:23 — Work heartily for the Lord, not men.
Proverbs 22:7 — The borrower is servant to the lender.
The Success Is Pyramidal in Nature
MLMs are structured so that the highest earners sit at the top, making most of their income from those beneath them rather than from genuine product sales. While not technically illegal, this creates a system where the majority never see the financial promises they were sold.
This becomes especially clear when you ask participants about income. If you ask, “How much do you personally make each month or year?” the answers are often vague. Rather than giving numbers, they point to what’s “possible” — six figures, luxury cars, early retirement. Rarely do they admit their own reality.
The same is true if you ask, “How long would it take to replace a typical salary?” Most avoid the question, because they haven’t achieved it themselves. Instead, presentations highlight a single “success story” on stage to suggest everyone can get there, while ignoring the thousands who lose money.
Jesus warned: “Take care, and be on your guard against all covetousness, for one’s life does not consist in the abundance of his possessions.” — Luke 12:15 (ESV)
If a system cannot withstand honest financial questions, and if it feeds covetousness by showcasing the few at the top, it is a red flag for believers.
The High Cost of Staying “Active”
Most MLMs also require members to keep spending to stay “qualified”:
Monthly product purchases to remain active.
Training programs, conferences, and marketing materials.
Inventory they often can’t sell.
This can cost hundreds of dollars a month, leaving members with shelves of unused or unsold products and drained savings. Many even go into debt just to “stay in the game.”
Add to that the vagueness around actual earnings: the expenses are clear, but income is not. Recruiters highlight potential, not reality. When real costs are concrete but promised returns remain hazy, it puts believers in a vulnerable financial position.
Scripture warns: “The rich rules over the poor, and the borrower is the slave of the lender.”
— Proverbs 22:7 (ESV)
Faithful stewardship requires transparency and truth. If the system leaves you spending more than you’re earning while keeping you guessing about income, it is wise to step back.
Overpriced Products Compared to Market Value
Another common issue in MLMs is that the products are often sold at a much higher price than comparable items in stores. This inflated pricing is usually necessary to support the commission structure, but it makes the products harder to sell and can strain your own budget if you’re buying them just to stay active.
Proverbs 11:1 says: “A false balance is an abomination to the Lord, but a just weight is his delight.” (ESV)
When products are priced far above their actual market value, it raises questions about fairness and honesty — both in how we treat customers and how we steward the resources God has entrusted to us.
The Odds Are Not in Your Favor
Do People Actually Make Money in MLMs? FTC analysis (2024): Reviewing income statements from 70 MLMs, the FTC found that most participants earn $1,000 or less per year—that’s under $84 per month. In at least 17 MLMs, the majority made no money at all. (FTC.gov Federal Trade Commission) This isn’t about individual motivation — it’s a mathematical outcome of the structure itself.
Ecclesiastes 5:10 reminds us: “He who loves money will not be satisfied with money, nor he who loves wealth with his income; this also is vanity.” (ESV)
Chasing promises of wealth in a system statistically stacked against you can lead to frustration and even bitterness. If specifics on income are missing, there’s a reason—and Christians paying attention should be cautious.
Stewardship Means Counting the Cost
Jesus taught the importance of counting the cost before making a commitment: "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?” (Luke 14:28) (ESV)
Before joining an MLM, believers should prayerfully calculate:
How much will I have to spend each month?
How realistic are the sales goals?
What will I do if I can’t meet those goals?
Wise stewardship means protecting your resources so you can provide for your family (1 Timothy 5:8) and remain generous toward God’s work.
The Temptation to Justify Poor Stewardship
Because MLMs often frame themselves as “investments in your future,” it’s easy to justify ongoing losses as “part of the process.” Yet stewardship means being faithful with what you have now, not just hoping for a big breakthrough later.
Paul wrote in 1 Corinthians 4:2: “Moreover, it is required of stewards that they be found faithful.” (ESV)
Faithfulness isn’t about taking unnecessary financial risks — it’s about managing God’s resources with wisdom and integrity.
Conclusion
For Christians, the financial realities of MLMs can’t be separated from biblical stewardship. The requirement to spend heavily to stay active, the high likelihood of loss, and the pyramidal nature of success all raise serious concerns.
Before joining any MLM, prayerfully consider whether it aligns with your calling to handle money in a way that honors God.
For a broader look at MLMs from a Christian perspective, including relational and spiritual risks, see our full guide on What the Bible Says About MLMs.
Related Reading on MLMs and the Christian Life:
MLMs vs. Pyramid Schemes: Understanding the Difference and the Biblical Cautions
How MLMs Can Harm Christian Witness and Damage Church Relationships
Regular Business vs MLM: What’s the Difference for Christian Entrepreneurs?
MLMs and the Danger of Selling the Dream Instead of the Product
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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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