You open up your Instagram and what do you see? A girl you went to high school with holding up a bottle of an all-natural, fast-acting juice cleanse. She’s promising results: decreased bloating, better skin, weight loss, increased energy, better sleep and a whole host of other unbelievable benefits that seem too good to be true. The next day, she’s filming herself on her story talking about how you really can make money being a brand ambassador/promoter. She’s so excited to share these products with you and is urging you, please, to DM her if you’re at all interested in having a side hustle. She’s boasting returns over a grand a month, all possible on the device we hold in the palm of our hands. Do you believe her?
Sometimes, it’s hard not to. You want to believe her. It’s almost irresistible. The idea that you could be making so much money from just posting on your Instagram seems like a missed opportunity. But the real question is, can you actually make money from these so-called Instagram pyramid schemes? The skepticism is real. I’ve seen so many social media conversations, especially on Twitter, making jokes and even criticizing people who participate in these organizations. I’ll be honest, sometimes they do warrant a chuckle. But, before jumping to conclusions about whether or not these systems are really a scam, let’s look at the facts.
First off, while you may hear people refer to them as “pyramid schemes,” they’re actually called Multi Level Marketing companies (MLMs). A few you may be familiar with are makeup companies like Mary Kay and Avon that send out representatives to sell their products. If you’re interested in starting your own instabiz or just want to know how other people are doing it, the first thing you should be aware of is the upfront investment. Most companies will ask you to do a sort of buy in; it can range from around $50 to $150, which usually covers the cost of the first round of products they send you along with a business guide depending on the company. You can either use the products they originally send you or sell them for an “instant” return on your investment.
After that, as long as you’re an active member, they’ll keep sending you products and it’s up to you to report your sales. Most of the money you earn will come from the commission of those sales. Again, depending on what company you’re working for, you can also receive bonuses for additional marketing and promotion campaigns you perform on your social media or with each new level of the company you climb to. That being said, according to an article from U.S. News and World Report, 80 percent of independent distributors working for MLMs gross less than $1,200 a year. And while the article goes on to tout different statistics and testimonies from research companies that claim MLM organization are purely trying to scam you, the general consensus from actual participants is that your returns wholly depend on how much time you put in.
Independent distributor Amanda Capiaghi works for a an MLM company called ItWorks. ItWorks sells different kinds of health products including Keto coffee and juice cleanses. Capiaghi is a beauty school graduate and used to do professional makeup for fashion shows and photoshoots. She found out about ItWorks from following a girl from her hometown on Instagram. Capiaghi actually began as a customer and claims that she was seeing major results from using their products. She now runs her own business completely from her phone and it serves as her sole income. “I haven’t found that promoting products on social media has hurt any of my relationships or my social media, my social media presence has actually grown,” Capiaghi told me through direct messaging. When the critics come for her, she responds with a positive attitude. “My company has been around for 17 years and has been featured in Delish and Forbes Magazine.” One thing Capiaghi consistently tells her followers when trying to lure new members, “All of the energy and time you put in will be so worth it if you’re willing to work for what you want.”