Buy! Buy! Buy!-How Multilevel Marketing Companies Pressure Their Participants to Buy Their Products

Despite the popularity of multilevel marketing (MLM) companies and their ability to attract many distributors worldwide with the promise of an income opportunity, the financial outcomes for participants are often unfavorable. Many distributors invest more money in internal products and business expenses than they earn. Drawing on the professional and business ethics literature, this article develops a conceptual framework to understand how organizational characteristics collectively create pressure for distributors to overspend on internal products. The framework integrates legal, financial, and social dimensions, emphasizing the dual roles of MLM distributors as both victims and potential offenders. Utilizing this framework, the article discusses the limited effectiveness of current safeguard policies at preventing the problematic effects of the MLM industry, including pyramid schemes. The article proposes new directions for research on MLMs and other distinct areas within marketing and public policy, particularly addressing the broader category of deceptive income opportunity providers.