Multi-level-marketing (MLM) is nothing more than a business sales strategy. A company like Mary-Kay and Beachbody incentivized independent distributors to recruit more distributors.

Many MLM companies produce consumer products. Therefore, distributors are also consumers. These types of products are commodities and are only as valuable as the packaging they come in. Around the world, there will always be consumer needs for health, weight loss, beauty, and jewelry products. In the MLM world, becoming a distributor means that an individual consumer carry’s a high volume of merchandise and is solely responsible for selling.

Selling these products, distributors are trained to recruit other distributors or salespeople rather than focusing on buyer preferences, relationships, innovation, and individual needs. Most MLM distributors have day jobs, while they plug and post their products on social media sites hoping to attract other distributors and buyers.

In reality, MLM businesses look like pyramids, but they are not pyramid schemes. A pyramid or Ponzi scheme involves financial investments where later investments merely repay earlier investors, resulting in no actual economic return. There is a similar notion with MLM businesses, the longer you’ve been a distributor and the more significant your network, the more money you will make. 

Marijuana is a consumer product, is it worth being a distributor for a marijuana MLM company? It depends, I want to say no, but I’ll say it’s not for me. Everyone loves a success story, and most consumers enjoy the story a good brand tells us. As mentioned above, successful MLM distributors who have been working the system for many years will have extensively large networks.
Although marijuana is becoming legal in more states, the unregulated market is still much more substantial than the regulated market. Notoriously, marijuana distributors benefit from smaller networks to reduce liability. As marijuana, becomes legal across all states we will see MLM companies that genuinely produce and sell flower.  It’s important to mention that some companies have adopted the MLM model for CBD and marijuana accessories which have far lower regulations.
The success of any marijuana business is dependent on how quick the organization can change with consumer preference, local and state regulations and the companies dedication to diversify and fill customer needs.
Instead of recruiting anyone with interest in the industry, I’d prefer to hire skilled leaders who care about filling a need and growing a business through creativity and not trying to sell a brand, image or packaging.