MLM promises financial freedom, but what do the numbers show?
Income Reality
Top 1% earn 80-90% of all commissions. 50-73% earn nothing or lose money. Average active participant: $500-2,500/year before expenses. After expenses: 99% lose money (FTC research).
Binary Plans
Two legs, commission on weaker leg. Use our [Binary MLM Calculator](/calculators/binary-mlm-calculator). Example: Left ₹5L, Right ₹3L volume. Commission (10% weaker): ₹30K. Building equal legs is extremely difficult.
Matrix Plans
3×7 matrix: 3,279 people if fully filled. But most matrices are <10% full. Use our [Matrix MLM Calculator](/calculators/matrix-mlm-calculator).
Red Flags
Recruitment over product sales. Large upfront inventory. No income disclosure. Overpriced products. Pressure for expensive training.
The Math Problem
5 recruits each needing 5 more: Level 13 exceeds world population. The model structurally cannot have most people succeeding.
Better Alternatives
Freelancing (₹500-5,000/hr). E-commerce. Content creation. Investing (SIP ₹10K/month = ₹1Cr in 20 years — truly passive). Teaching/tutoring.