These Shopping-Oriented Pyramid Schemes Lure in Ladies, Then Steal Their Friends, Cash, and Confidence
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Mary Kay isn’t the only pyramid scheme out there that targets stay-at-home wives and mothers looking for quick cash, an emotional support system, and — perhaps most of all — empowerment. Within the past few years, dozens of successors commonly known as multi-level marketing (MLM) schemes have convinced women to sell their jewelry, bags, and even sex toys, only to saddle them with shitty inventory, credit card debt, and shattered dreams of “having it all.” We scoured the internet to bring you the best (or worse) of Mary Kay 2.0.
According to a report submitted to the Federal Trade Commission, 99% of MLM distributors lose money, making “even gambling look like a safe bet in comparison.” To elaborate:
This is after subtracting purchases they must make to qualify for commissions and advancement in the scheme, to say nothing of minimal operating expenses for conducting an aggressive recruitment campaign – which (based on the compensation plans) is essential to get into the profit column. The claim by MLM promoters that many participants work for part-time or seasonal income is a bogus argument because without full-time and long-sustained effort, MLM participants cannot build and maintain a large enough downline to meet expenses, and therefore do not profit.
The report calls the MLM industry “flawed, unfair, and deceptive” as well as “extremely viral, predatory and harmful.” But who reads FTC studies? Compare that rhetoric with this inspiring passage from a Pure Romance brochure:
Top Consultants tell us time and again that what really matters is how Pure Romance has changed their day-to-day lives. The way they can pay bills and shop without worry. The way they can finally afford the wants in life, not just the needs. The way their flexible schedules allow quality time with those they love. The way heart-to-heart conversations with their customers in the shopping room remind them they’re making a difference in others’ lives.
You can be one of these top Consultants. You can let the little rewards spur you to big accomplishments. With Pure Romance, it’s possible! Set your sights on achievement during this contest period-Consultants just like you have done it, and now it’s your turn. Define your future. Design your destiny. Dare to dream!
Who wouldn’t want all that?
Here’s a very incomplete list of MLMs, gleaned from interviews, emails, and forums like Pink Truth where former MLM devotees gather to share their woes.
Stella & Dot

What it is: “Stella and Dot, an Inc. 500 Fastest-Growing Company, is a San Francisco based social selling company that creates flexible entrepreneurial opportunities for women. Our boutique-style jewelry and accessories line is available exclusively through in-home Trunk Shows by Independent Stylists and online.”
Their pitch: “You control your income.” “Earn extra spending money or a six-figure income – it’s up to you!” “Free and discounted fabulous accessories.” “Recognition and celebration.” “Glam Getaways and Wow life experiences.” “Unlimited earnings on team sales”
Particularly cultish quote: “Let’s talk business and passion and flexibility and fabulous rewards. We think life is too short not to have all of that go together. Launch your own social selling business as a Stella & Dot Stylist and create the success you deserve. Our empowered community of entrepreneurs is ready to cheer you on every step of the way.”
Real talk:
The buzzwords, they slay me. Slay me! Independent distributors are “Stylists.” The home party is a “Trunk Show” — because any fashionista worth her Christian Louboutins is a fiend for trunk shows, right? The annual meeting (which you must attend if you want to be paid all of the commissions you’ve earned) is “Hoopla.” And of course, when you begin to recruit other stylists — because you WILL — you are not building a pyramid. You are building “layers.”
Speaking of those layers, let’s take a look at their compensation plan. I won’t break down the numbers too closely, but they’re pretty horrifying. There’s some verbiage in there about how Stylists don’t carry inventory, and how everything is shipped directly from the company to the customer — but Stylists are expected to book a certain number of Trunk Shows every month, and you can’t have a trunk show without samples. So women are *still* getting frontloaded, because samples help sell the product, and you can’t sell from an empty cart, right?
— excerpted from the Pink Truth Forums
Also shady: Stella & Dot seems to have gotten rid of their “Entrepreneur Program” for college students. which included an application process and financial aid opportunities — to help you go into debt to go further into debt!
Premier Designs Jewelry

What it is: A “direct sales” jewelry company
Their pitch: You can “be your own boss”! Make 50% on every sale and you get paid immediately! No inventory required! No sales quotas!
Particularly cultish quote: “When you become a Premier Jeweler, you join an enthusiastic, supportive family who are willing to support and encourage you, and are thrilled to celebrate every milestone and victory with you.”
Real talk:
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