I’m all about keeping it real, sharing hard truths, and making sure you have the tools needed to build your future on solid ground, not shifting sand. After more than a decade inside the wild world of network marketing, I’ve seen first-hand just how much things have changed in this industry. Whether you’re still deep in “the bubble,” wrestling with your next step, or just MLM-curious, I want to take you behind the curtain – because the story of these companies isn’t just about a few wild product launches or hashtags on Instagram.
What’s happening right now with Beachbody, Modere, and the regulatory wave led by the Delaware bill could truly change the face of MLM as we know it.
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In this article, I’ve combined my experience with major news in the network marketing space to dissect why so many MLMs are falling apart, what the government wants to do about it, and what that means for the thousands of people whose livelihoods and identities have been built around them.
I know this can be an emotional topic. As someone who was part of the tippy top 1%, celebrated the “success,” and then watched the rug get pulled out – I get it. But if there’s one thing I hope you take away, it’s that the world is shifting, and there’s real hope and opportunity outside the broken MLM model. Let’s dive in.
Why MLMs Are Failing: Signs of a Sinking Ship
It’s impossible to ignore the unraveling of the MLM world over the past couple years. Take Beachbody (BODi) for example: when a business starts slashing its product line left and right, it’s not a sign of a healthy company planning for the future. Just this past year, they cut the popular mint chocolate beach bars – and that was only the tip of the iceberg.
From compound product cuts to compensation plan “adjustments” that left longtime coaches reeling, the writing has been on the wall for a while.
As I’ve said on air, “I’ve said it before and I’ll say it again. MLMs are not, I repeat, on the rise. They’re actually in their downfall.”
This sense of a looming collapse isn’t limited to Beachbody. When Modere, another stalwart MLM known for its “liquid gold” collagen, abruptly announced its closure, it sent shockwaves through the community. Unlike Beachbody, which tried to limp along with an affiliate-lite pivot, Modere simply shut it all down – one last fire sale, goodbye, and good luck.
I’ve lived this cycle first hand, and I recognize the familiar patterns: products disappearing, top recruiters silently exiting, and the entire vibe on social media shifting from empowerment to damage control. Each closure isn’t just a company failing – it’s thousands of people scrambling to justify, explain, and find a way forward.
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And what do you see across the industry when these announcements drop? Confusion, frustration, and a stream of “pivots” from leaders who once put their entire identities behind the now-defunct company. Coaches and sellers who used to post about their luxurious lifestyles – the Escalades, the private schools, the tropical retreats — now talk about being “in alignment” or “feeling called to a new path,” all while they radically downsize.
The truth? As soon as the money dries up, the lifestyle does, too. No amount of pastel pajama posts can mask the fact that the foundation was always shaky.
The Delaware Bill: What Could Spell the End for MLMs Nationwide
The government has finally had enough, and Delaware’s HB162 could be the shot heard ‘round the MLM world. For those who haven’t caught up, this proposed bill sets out to shake the very infrastructure MLMs have been relying on for decades.
We’re talking required up-front disclosures about compensation plans, actual evidence of real earnings, and strict rules about what you’re required to buy – and your rights to return it. “I support the hammer that this new bill coming from the state of Delaware is going to be coming down on the industry,” I said recently, and I stand by it.
Delaware’s bill is about accountability. It would force MLM companies to give potential recruits a written, detailed summary of the typical earnings — not just the “best case” numbers the companies love to flash in slick marketing materials. And it doesn’t stop there: companies would have to offer a minimum three-month cancellation window, refunding at least 90% of a recruit’s purchases if they decide the business isn’t for them. No more getting stuck with a basement full of protein powder or essential oils on “auto-ship” just because you wanted the discount.
Related Episode: Could The New Delaware Bill Spell The End Of MLM As We Know It?
What’s truly revolutionary is how this bill addresses the real backbone of MLM sales – the reps themselves. The majority of products sold in these companies end up with the distributors, not the general public. Think about that: the business survives by selling to its own.
With this level of mandated transparency and protection, the Delaware bill aims to cut through the predatory practices that have defined MLM recruiting. If it passes (and I think it will), its impact will ripple nationwide.
As you might expect, the industry lobby is panicking, trying to rally reps to “protect their right to earn,” but in reality, those fighting hardest — surprise, surprise — are the ones with the most to lose at the top of the pyramid.
Cult-Like Culture in MLMs: The Inner Workings and Red Flags
Let’s call it what it is – cult-like behavior runs rampant in the world of network marketing. There, I said it out loud. When you’re in the thick of it, though, you don’t see the warning signs. You’re not just selling products; you’re selling a lifestyle, a belief system, and, all too often, unwavering devotion to your upline or company founder.
Psychologists who study these groups lay out ten classic warning signs of a cult, and MLMs tick most of those boxes: “A lot of what goes on in network marketing is very much cult-like behavior.”
Think about the rituals — the matching pajamas at every “retreat,” the endless motivational calls, the absolute refusal to question leadership. If you dare to step out of line, suddenly, your “sisters” will ghost you.
I’ve seen it happen more times than I can count: longtime team members cut off overnight because they didn’t want to switch companies, disagree with a new company policy, or even just try competing products. Cults isolate you from outside opinions, create an us-vs-them mentality, and hammer home that financial “success” is proof you’re one of the chosen.
The manipulation goes even deeper. Leaders infuse their personal faith and values into recruitment, implying that God himself opened the door for their new venture. And then, when the company folds, everyone acts shocked — even though the people at the top usually have “insider knowledge” long before the rest of the team.
As soon as Modere closed, dozens of “leaders” magically appeared at Make Wellness with entire downlines in tow, “pivoting” and feigning surprise while their bridge payments kept the dream alive. The phrase “I was just as shocked as you!” has never rung so hollow.
The Ripple Effect: When One MLM Closes, Where Does Everyone Go?
So, what happens when a Modere shuts its doors or Beachbody’s affiliate model collapses? The answer is predictable and, frankly, a little sad: a mad dash to the next “groundbreaking” opportunity. In the MLM world, these closures aren’t seen as a reason to question the business model — they’re just an occasion for the “wolves” to start circling.
One of my listeners nailed it in my DMs: every time a network collapses, the big fish move quickly to snatch up the little fish and rebuild their empires elsewhere.
Let’s talk about “bridge payments.” These are secret (or at least hush-hush) deals where a new MLM will actually pay a top recruiter from another company just to bring over their downline — a literal signing bonus.
Meanwhile, the rhetoric on social media is always the same: “I’m just here to help,” “We’re all in this together,” “So grateful God opened this new door.” But what’s really happening is an orchestrated poaching operation. The second Modere closed, its top reps were already being touted by Make Wellness as the new faces of the brand, ready to insert their narrative — and downlines — into a new company.
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I can tell you from personal experience, when the tides turned at Beachbody, I was flooded with messages from people trying to “help me pivot.” The truth is, leaders at every company know what’s coming long before the rank and file do.
They protect their image and income by getting a head start on the next opportunity, using oversized promises and heavy-handed recruiting to bring as many team members as possible along for the ride. The cycle repeats, and for most, nothing fundamental truly changes — it’s just a new logo and the same old manipulation.
The Illusion of Financial Freedom: The Harsh Reality Behind the Scenes
Let’s tackle the big lie head-on: only the tiniest percentage of MLM reps ever hit true financial freedom, and even then, it comes at a bigger cost than you might think. For every “success story” you see on social media, showing off the house, car, or glam trips, there are dozens of working moms glued to their phones, juggling side gigs, or quietly maxing out credit cards just to stay afloat or maintain a shiny professional image.
As I often say, “In real business, you don’t get your money back. You take the L. Okay? There is real risk.”
MLMs love to flaunt “freedom,” but what they don’t tell you is just how much of your success depends on constantly recruiting, orchestrating volume in your downline, and buying product yourself to hit targets. When my own business started to falter as Beachbody shifted its compensation plan, I had to cut marketing budgets, let go of assistants with families to feed, and take on extra work — even returning to teaching golf full-time.
For so many leaders, that dream of retiring your spouse or only working two hours a day is just that: a dream sold to keep the machine moving.
The cherry on top is the way top reps are forced to buy product in bulk or juggle multiple family accounts just to maintain rank. I had accounts for myself, my husband, my parents — all to keep the business “active” and rank cycles flowing.
Yet the moment a real crisis hits (a spouse loses a job, you move house, or your child gets sick), it all comes crashing down. The model is transactional to its core, and when the network vanishes, so does the lifestyle it promised. For every person cashing a bonus check, there are hundreds left with expired shakes or overpriced makeup collecting dust.
Coping with Collapse – Leaving MLM and Reclaiming True Entrepreneurship
Leaving network marketing is more than a business decision — for many, it feels like losing a family, an identity, and a dream all at once. I felt it personally; 11 years with Beachbody built me up, changed my financial future, and let me make real connections. But when I started to see the writing on the wall, I refused to just leap into the next “amazing opportunity.” Instead, I pivoted my own way: back to golf and coaching, into user-generated content (UGC), and exploring new income streams that don’t depend on recruiting or passively hoping for a commission check.
The transition isn’t easy, especially if all your work friends, team calls, and even your self-worth were tied up in being a “leader” in the MLM structure. Saying out loud that you’re done can mean losing relationships, getting unfollowed, or even being blocked by people you thought were lifelong friends. But the relief and empowerment you gain by reclaiming your autonomy is worth it. Like I tell everyone: you can’t build a sustainable business when your future depends on keeping people in a tightly controlled system.
For those out there wrestling with a similar crossroads, know that you are not alone — and you do NOT need to replace one MLM with another in order to rebuild. There are genuinely viable, ethical ways to make money online: UGC for brands, Amazon Shoppables, TikTok Shop, and true affiliate marketing with reputable companies, to name a few. The difference? No recruiting, no drama, no sleight-of-hand about what you’re actually earning. Freedom, yes — but real, not imagined.
What’s Next? The Future of Social Selling and Online Income
So, where is social selling actually headed? Hint: it’s not back to the playbook of 1990s Tupperware parties, nor the endless cycle of Facebook groups and “Hey Girl” DMs. The space is evolving rapidly, with UGC, Amazon Shoppables, TikTok Shop, and soon Meta’s slice of the live shopping pie paving a brand-new path. “Network marketing, that’s dinosaur thought process… Social selling, live shopping — that is the future,” I declared, and I mean it.
Why do these new models work? For one, you’re getting paid up front for your skills, your personality, and your ability to make a product shine — not just for recruiting more people into your downline. When I did a 30-second Instagram Reel for a vacuum brand, I got paid for the content, kept the $500 vacuum, and still earn a little extra every month in affiliate and Amazon commissions. No chasing friends. No.”team calls” at midnight. No overwhelming pressure to sell a dream.
Brands are hungry for relatable, authentic content creators — and consumers are more hesitant than ever to trust MLM-style testimonials. UGC and live shopping put the creator back in control: you decide your workload, your clients, and your own brand. You keep the profits, build your reputation, and aren’t chasing anyone or getting sucked into an emotional sales pitch war. The future is transparent. The future is creative. The future is yours for the taking (without someone skimming 70% off the top).
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Conclusion: If You Know, You Know – Final Thoughts and Your Next Steps
If you’re still with me, thank you for giving this conversation its due. I know I’ve gotten raw, called out industry practices, and maybe even poked at some sacred cows along the way. But I do it out of real care — for the women and men I worked with, the friends I made, and everyone still enmeshed in the cycle.
At the end of the day, “There are a lot of beautiful pieces about being part of a network marketing company… But when you take a step back and you really remove yourself from that cycle, you start to really realize, like, there’s a really big problem here.”
My advice? Ask yourself the tough questions before signing on the dotted line — and demand honest answers. Don’t get swept up by hype, carefully curated highlight reels, or leaders who seem more interested in growing a downline than helping you succeed on your own terms.
Make sure you have informed consent before handing over the keys to your financial, career, or personal future to a system designed to benefit the few.
If you want more on this journey, keep the conversation going with me on Instagram (@macrowley). I’m committed to protecting your autonomy, giving you the receipts, and helping you discover ways to rebuild and thrive that have nothing to do with pyramid-shaped business models. After all, if you know, you know — and if you don’t… well, you’re about to.
