There's another disturbing trend I've seen on Facebook. It's where these moms become "entrepreneurs" but when you dig into what their business actually is, they basically host these paid sessions on how to be an entrepreneur (setting up branding, etc.). As far I can tell, no actual product or value is generated, it's like a "business virus":

"I'm an entrepreneur!"

"Cool, what does your business do?"

"Help people get started on their own businesses!"

"And what do their businesses do?"

"Help even more people get started on their businesses!"

This is hardly restricted to MLM mom groups. What you've described is the cornerstone of every "motivational speaker" business model. You know, the types buying pre-roll ads on Youtube before any and all self improvement videos, promising they'll tell you all their secrets if you sign up for their $500 online course, but available for a limited time for $20.

The same goes for "thought leaders" selling "masterclasses" on "building an online business" or "blogging from home". I won't even touch on the crypto space which is full of these charlatans.

> As far I can tell, no actual product or value is generated, it's like a "business virus"

I believe that is what the OP means by MLM (multi-level marketing)

An MLM is a regular pyramid scheme with an actual product mixed in to lend legitimacy and to make it legal in the first place.

The proposed business virus is different. Unlike a pyramid scheme most costs are on signup, and there are no multi-level incentive structures.

Well at least with MLM there is some sort of product changing hands (knives, essential oils, etc.) Here, as far as I can tell, the purpose of the business is to create more businesses that create more businesses, etc. (but there is no actual product).

The value, perhaps, is the positivity and empowerment that people feel. People will gloss over a lot of things to feel in control of their lives.

This sounds exactly like Twitter, and many email newsletters.

I believe that is also the Amway.

I always thought MLMs were a bit of a joke and no longer existed. In the social spheres I willfully interact with MLMs are always the butt of a joke. In my whole life I've never had a close or distant friend try to sell me something.

Then my first child was born, and there's a great mixing of classes and social circles that happens. You no longer necessarily choose the adult friends you interact with.

All of a sudden, the whatsapp chat we setup among parents to coordinate 'kids things' became yet another platform for these MLM moms to push their shit (the dads are too busy talking about sports and gambling.)

It's really sad, desperate, and shows a complete lack of social awareness -- something I was never exposed to.

I was once stumped in trying to figure out why people do things against their own interests, but the MLM moms gave me the answer: A lot of people lack the critical thinking, distancing and math I consider fundamental.

> A lot of people lack the critical thinking, distancing and math I consider fundamental.

Mother in law took my partner and I to a "flipping houses seminar" with one of the TV hosts (by which I mean there was a cardboard cutout and some vague promise that if you signed up for the course there might be some meet and greet at some point).

They boasted "10s of thousands of members, some of whom had flipped 30+ houses with us!", and "We've financed 100 million of purchases".

Wow, exclaimed people, that's a lot of money! And for only $4,995 for the course!

And then I pointed out to MIL that at, say $100K a house, that formerly impressive $100MM investment was only 1,000 homes flipped...

... from 10s of thousands of members... "some of whom have flipped 30+ homes".

So, extrapolating, the average person that went through their course flipped... maybe 0.025 homes.

Faced with that math, she put away the checkbook and we left at the intermission.

> "gig economy" is this generation's "multi-level marketing"

>People who don't know any better get sold on the "be your own boss, earn what you put in" concept.

I personally know no person who thinks driving Uber or delivering food is a job where you are “being your own boss”. It seems like these jobs are generally perceived as low-status low-paying jobs for people without education who have no better opportunities.

I have many friends who have pretty average jobs who also do Uber/DD on the side. They just view it as a part time job that they can choose to do whenever they have extra time. I think it is a bit much to say it is for those without education or no other opportunities.

These businesses could still survive, but prices are going to have to start raising as subsides (Private Equity mainly) pull back. The next question will be, is the $6 dollar burger still worth it when it costs $14 to deliver?

Nope. Last-mile, on-demand delivery will never be economically viable if humans have to be paid to do it. There’s just not enough economic value there to compensate a human for their time.

Sorry I should qualify that statement. Obviously for certain niches it has been viable for a long time (e.g. pizza delivery) but it seems like delivery is already baked into (pun intended) that business model. Perhaps it only works with the “ghost kitchen” model which gets rid of the overhead of an eating area and waitstaff.

Pizza delivery has some advantage since the starting point is always the same (the pizza restaurant).