Gaslight, Gatekeep, Girlboss: The Origin of #BossBabes and The Dangers of Multi-level Markets

BY: JENNIFER ZINGONE

Meet Brooke; Brooke is desperate to find different ways to make quick cash after losing her job. Meet Sandra, a friend of Brooke and a constituent at Tupperware, a container business. Tupperware is a Multilevel Market, also known as an MLM. Companies like Tupperware have constituents sell their products rather than selling them in a store. While associates earn money from selling their commodities, they also make money based on the number of people they recruit. Sandra begins to compliment Brooke for all her accomplishments and expresses that she would be a great businesswoman, despite Brooke never mentioning she wanted to do that. Afterward, she casually says that she’s making 5k a month just by selling containers! All she needs is a wifi connection! Sandra recommends that she join her MLM, and recruit everyone she knows. Since Sandra is a friend, Brooke trusts her, pays a hefty enrollment fee, and officially becomes a constituent for Tupperware, trying to gain that extra cash. Flash forward to 6 months later, and Brooke still hasn’t made back her initial investment. Unfortunately, Brooke’s story is similar to most women who join Multilevel Markets. Multilevel Markets use toxic positivity and pyramid scheme tactics to convince women like Brooke to join their brands.

As previously stated, Multilevel Markets (MLMs) are companies that use recruited constituents to sell their products. Unlike established companies, MLMs do not sell their products in a store. Instead, those recruited will sell to their family and friends. Another factor of MLMs is how their workers benefit from them. First, they make money through their products; However, most income comes from their downline, people they recruit. Their downline is beneficial for them because they get a percentage of what they make every month. This strategy motivates new customers to reach out to friends and family to increase their downline. So, MLMs focus on their representatives more than their products. However, once constituents join these schemes, they end up losing money and wasting time. 

A popular opinion of MLMs is that they are forms of pyramid schemes. A pyramid scheme is an investment scheme where members gain money according to how many people they recruit. The shape of a pyramid accompanies these schemes because the ones benefiting are at the top, while those at the bottom do all the work while attaining no benefits; people from the outside think these companies are profitable. Pyramid Schemes will make outsiders believe that everyone makes a lot of money, despite being at the bottom of their financial triangle. A pyramid usually collapses when there are no longer enough people to recruit. For example, if a company starts with six representatives that have to recruit six others, after 13 rounds of this, their downline exceeds the earth’s population. Many do not think of the risk of oversaturation when joining; The idea of making quick cash and only having to recruit a couple of family and friends blinds them from red flags. This blindness is common between MLMs and pyramid schemes. However, MLMs are still legal because they are technically selling a product. This fine line makes nonmembers believe that MLMs have no connections to pyramid schemes.

Speaking of products, most MLMs receive lawsuits for the quality of their products. Monat is an MLM that sells shampoos, self-care products, and, most recently, dog hygiene creams. In 2018, Trisha Whitmore and Emily Yanes de Flores took legal action against Monat and their shampoos after numerous hair loss complaints and scalp irritation. Multiple statements on Monats website regarding their products have been proven false; For example, in 2015, Monat described their products as a “sulfate-free gentle, hydrating cleanser”; After the evaluation of the shampoo, scientists found “Sodium C14-16 Olefin Sulfonate” (PLAINTIFFS v. MONAT GLOBAL CORP). Additionally, they claim to have no petrochemicals in their products, which can cause cancer and liver damage; However, the first ingredient in their shampoo is “Butylene Glycol, a known petrochemical” (PLAINTIFFS v. MONAT GLOBAL CORP).  So, not only are MLMs harmful financially, they are also dangerous physically.

Moreover, these companies want to persuade you into thinking you will own your own business. When researching how to join companies such as Herbalife, Amway, and Monat, they titled their application as “start[ing] your business” (Start Your Business Today). This terminology has seeped into the minds of their constituents. In a Facebook group chat titled “Network Marketing / MLM / Direct Sales Recruiting,” a member asked her fellow MLM hustlers what they call themselves when someone asks what they do for work. Most of the replies answered that they were business owners, including Sarah Rosario, who commented that “[she] call[s] [herself] a business owner because [she is] a business owner that’s in a partnership with the company, NOT a distributor/consultant for the company” (Rosario). However, this statement cannot be further from the truth. There is no way that you own these products. You cannot pick the price or the quality of the products you are selling. In Herbalife Nutrition’s terms of use, it states that Herbalife Nutrition does not allow “[higher ups] to accept or consider creative ideas, suggestions, or materials” from their salespeople (Terms of Use). With this, MLM workers do not hold any power in their company, making their statement of owning their own business false. 

 While reviewing Herbalife’s code of conduct, it is apparent that MLMs do not see their representatives as employees at their company. When referring to who their code of conduct is for, Herbalife asserts, “non-employees that have a business relationship with Herbalife Nutrition must comply with our Code’s paramount principles of honesty, integrity and ethical decision-making” (Our Code of Conduct). Big corporations do not see their constituents as employees; they are merely someone with a relationship to the company. 

So, how does having a relationship with a company become starting your own business? Furthermore, these companies embellish how much money their constituents make. For example,  Herbalife prides itself on being a way for women to make a household income. However, according to their Income Disclosure statement, only 1.4% of sales associates made $50,000 or more from their company every year. Additionally, the Top 1% earned $16,213 a month; Herbalife continues to point out that the Top 1% “are typically President’s Team members [which takes] between 5 and 11 years” to reach (Herbalife Nutrition). This statistic shows that MLMs are very top-heavy and only display the positive side of their incomes to new members, relating back to the financial triangle. Thankfully, Herbalife has since been fined “$123 million for running a decade-long bribery scheme to boost its business” (Mansker).

Multi-level Markets tend to show misleading statistics to gain more customers. At first glance, these markets seem like a dream come true. For example, Avon reported their yearly operating income of $235,200,000. While this may seem attractive, it’s very deceptive. It is not the hardworking constituents making money; Instead, only those at the top are benefitting. For example, if a consultant sold 40 items a week, which is very rare, that would only make $2,000 over two months. So, despite making millions a year, those who join commonly end up never making their initial deposit back, which is around $5,000.

Femvertising is a type of commercial that promotes female empowerment. An example of feminist advertising is the 2014 Superbowl ad by the brand Always; This ad showcased that doing anything like a girl should not be seen as an insult. Instead, running like a girl means running as fast as you can. Femvertising has impacted many girls worldwide, instilling the belief that they can do whatever they put their minds to, whether pursuing a STEM major or running for public office. However, Multi-level Markets are known to use femvertising negatively to promote their company. Companies use toxic positivity to target women into joining their brands. Potential victims feel that their problems will dissipate once they enter an MLM by clouding their vision through aesthetic Instagram and Facebook posts. However, once they join these schemes, they end up losing money and wasting time. 

Introducing the #BossBabe, also known as Momtrepreneur, Yummy Mummy, or Girl Boss. BossBabes are those who work for MLMs and are trying to grow their downline.  Bossbabes recruit women through social media, most commonly Facebook. BossBabes will post pictures of their luxury purses and cars onto their Instagram stories, claiming to have bought this with the money earned from their MLM. Yummy Mummys are trying to sell this opportunity as making instant money while owning their own business. Either they were at the top of the pyramid, or they were lying to persuade desperate women to join. When remembering the previously stated income disclosure agreements and code of ethics, it is clear that they are embellishing the life of a constituent for these companies. 

Especially for BossBabes working for Weight Loss MLMs, many use women’s insecurities to persuade them into buying their products. For example, a girl boss may start a conversation with a new mother, convincing her to buy weight loss products to lose her baby weight. Instead of friendly support, these messages are a way for women trapped in a scheme to sell cheap products to disinterested family and friends. BossBabes are gaining relationships with an agenda. Also, Girl Bosses will try and guilt trip their friends into sharing their business. Wanting to spread their “business”, a Bossbabe posted: “Beyoncé was pregnant with twins. You shared it. Wizkid lost his phone. You shared it. Cardi B & Nicki drama. You shared it. Kemi Adeosun resigns. You shared it. Your friend wants to start a business and needs your help attracting customers, your share button missing” (Kago Keotshwaetse). This guilt tripping is only there for more women to join their downline. 

After talking for some time, they assess your needs and attack. Consultants usually target three types of potential clients. First, military wives are perfect prey for Boss Babes. Due to their spouse’s career, many tend to move around the country, constantly meeting new people. Many companies do not hire military wives since they have sporadic living arrangements. So, military wives gravitate toward companies like MLMs. Second, new mothers are also desired by these markets. When on maternity leave, new mothers fancy the idea of making a supplemental income while spending time with their newborns. Hence, many BossBabes use this rationale to induce mothers. Lastly, now more than ever, unemployed people are desperate for a way to make side cash. Thus, jobless people will take any opportunity given to them, especially by someone they know. 

Once joining an MLM, you will be prompted to buy what’s called a starter kit. Up until May 2021, a general startup kit for Lularoe, a retail MLM, cost $5,000. In this starter, constituents would receive “65 pieces of inventory for your new business, free POS system… [and] access [to] entrepreneur education system” (Join the Movement). When seeing this hefty price tag, women recruiters may feel hesitant to join these companies. However, when expressing their concerns to the Bossbabes who recommended them, they are met with the idea to use their credit card; Bossbabes claim that they will make back the money in no time with how many products they will sell. With Brooke’s story in mind, we know by now that this is not true. After receiving their startup kit, saleswomen are given a quota of items to sell by the end of the month. In the beginning, “997 people out of 1000 surveyed said they lost money” (Darko). With this being said, most women do not meet their quota, making them have to disguise themselves as successful Bossbabes to persuade people to buy their product or join their team. 

Constituents do not only sell their products through social media. Most throw parties in their homes to promote their inventory and business structure. For example, Mary Kay has a whole website dedicated to throwing the best Mary Kay party. The website gives you ideas of what to do when guests arrive. Consultants are told to invite friends and family to showcase Mary Kay products and coax them into buying or joining your downline. A benefit of holding this party is “free products, discount, [and] gain[ing] access to custom special offers” (MK Parties). However, this is once again gaining friendships with a toxic agenda. They will smile at the guests at their party with a knife behind their back. Most attendants will buy products out of pure awkwardness, a common tactic for party throwers. The rest will probably never talk to the host ever again, hurt that their so-called friends only see them as business opportunities.

Leaving an MLM is mentally exhausting. Once deciding to cut ties with an MLM, many constituents from your upline will criticize you for making a terrible mistake. Uplines will claim that “lots of people do give up. Everyone wants success, but not everyone is prepared to do whatever it takes” (Botwatchblog). This is an example of victim-blaming, which occurs when the victim is wrongly scrutinized for something they did not do. Victim blaming makes the sufferer think they did something wrong, which persuades them to stay in their MLM.

Joining an MLM is a terrible waste of time. Their products are low quality, and it is impossible to make money. The worst part is that if the company desires to fire you, even though you were never an employee in the first place, they can do it without thinking twice. Think about it; Companies like Marykay already have many customers buying their products. Meaning they no longer need sales representatives to spread the word on their business. If Marykay ever decides that they are receiving too many lawsuits charging them with being a pyramid scheme, they can end their distributor program, leaving thousands without a side hustle. With this in mind, MLMs do not benefit anyone starting on the ground floor. If you are thinking of joining an MLM, ask yourself these three questions. Have you ever heard of a job where you have to pay to be hired? No, you haven’t. Are you going to trust a job that does not require an interview or resume? Are you going to join a company because a random stranger on Facebook DMed you? No, you wouldn’t. So, don’t get sucked into this business opportunity because, in reality, the business opportunity was you. 

Works Cited

Botwatchblog. “How to Leave an MLM.” The Anti-MLM Coalition, 19 Nov. 2020, https://mlmtruth.org/2017/11/11/how-to-leave-an-mlm/.

Darko, and Darko. “19 Amazing MLM Statistics You Should Read in 2020.” Jobsinmarketing, 19 Feb. 2020, https://jobsinmarketing.io/blog/mlm-statistics/.

“Herbalife Income Disclosure Statement.” MLM News Report, 30 Nov. 2017, https://www.mlmnewsreport.com/herbalife-review/herbalife-income-disclosure-statement/. 

Herbalife Nutrition. Statement of Average Gross Compensation. https://assets.herbalifenutrition.com/content/dam/regional/apac/en_in/consumable_content/policy-and-compliance/2021/09-Sep/MT-1st%20Sept%202021.pdf/_jcr_content/renditions/original. 

“Join the Movement.” LuLaRoe, https://home.mylularoe.com/www/enrollment/enrolleeinfo. 

“Kago Keotshwaetse.” Facebook, https://www.facebook.com/keotshwaetsekago/posts/1223327831498362. 

Manskar, Noah. “Feds Fine Herbalife $123 Million for Bribing Chinese Officials.” New York Post, New York Post, 29 Aug. 2020, https://nypost.com/2020/08/28/feds-fine-herbalife-123-million-for-bribing-chinese-officials/. 

“MK Parties.” Mary Kay, Mary Kay Cosmetics, https://www.marykay.com/en-us/mk-parties. 

“MONAT GLOBAL CORP V. VICKIE HARRINGTON.” MLM News Report, 26 Jan. 2018, https://d.docs.live.net/544daa51a3cf0423/The%20Comfy%20Coin/Blogs/Monat/monat-lawsuit-monat-global-corp-vs-vickie-harrington.pdf. 

“Multi-Level Marketing or Illegal Pyramid Scheme?” AG – Multi-Level Marketing or Illegal Pyramid Scheme?, https://www.michigan.gov/ag/0,4534,7-359-81903_20942-208400–,00.html.

Our Code of Conduct. Herbalife Nutrition, https://assets.herbalifenutrition.com/content/dam/regional/apac/en_in/consumable_content/policy-and-compliance/annoucement/Office%20Closure%20-%20Flyer.pdf/_jcr_content/renditions/original.  

“PLAINTIFFS v. MONAT GLOBAL CORP.” MLM News Report, https://www.mlmnewsreport.com/wp-content/uploads/2018/04/monat-lawsuit-whitmire-yanes-vs-monat-global.pdf. 

Rosario, Sarah. “Network Marketing/MLM/Direct Sales Recruiting.” Facebook, 30 Oct. 2021, https://www.facebook.com/groups/1537102083162160/permalink/1687656071440093/. 

“Start Your Business Today.” Start Your Business , Herbalife Nutrition U.S., https://www.herbalife.com/start-your-business/. 

“Terms of Use.” Terms of Use | Herbalife Nutrition U.S., https://www.herbalife.com/footer-pages/terms-of-use/.