Ethical MLM’s or Franchises

[Arabelladrinkstea]

Inspired by another thread, harnessing the collective Mumsnet wisdom, is there no way to set up an ethical MLM or company whereby people genuinely benefit from buying into it and others do to?
Is this possible to create?
Or does that actually mean using something like a charity, not for profit or community enterprise?
Personally I’d love to see more community businesses and love the concept of MLM’s if it was a fair model….
Does anyone else think this?

At this point, the ethical thing is to stop setting up companies.

It’s like setting up an ethical sweatshop, inherently impossible
You can set up a collective though

MLMs by their very nature aren’t ethical.

Either people work for you and are paid a fair wage or you’re taking advantage of your workforce.

You can always share profits if you want to - MLMs have zero benefits to the workers.

I'd like to set up an ethical child labour agency If anyone has some good ideas..

If you're talking about a pyramid scheme, it can't work. The exploitation is built into the model.
A franchise, sure. You just need to be clear and transparent about costs and earnings.

Thanks all…..sorry to sound stupid!

I’m going to research ethical business structures or community businesses as I’d love to see a model of one that genuinely helps people but is a simple set up….

Look into community interest companies.

The MLM business model (or pyramid scheme) can never in its nature be ethical. It works because those at the bottom (the 'salespeople') are actually the customers. MLMs make money of those working for them (as they are forced to invest in stock), not the people buying the products.

Look into social enterprises OP

There is a crafters' collective near me which enables local crafters/artists to have their work on sale all year round. Each member does a half day per fortnight on the premises, that's how they staff it. I don't know how much rent they pay but the building is huge so probably quite expensive.
It is a super shop and there's always something tempting in there.

An MLM can never be ethical. The whole premise is based on selling the business not the product. This is why they are constantly on about getting you to join their 'team'.
There is next to no money to be made selling a couple items every few months to a handful of your friends which is all you are doing selling on facebook.

Not an MLM, but I'm launching an ethical business next year. Have spent a long time getting it set up. The industry already has billions of dollars thrown into marketing for one product that is the statement piece for women all around the world.

I can't change the world, but I can help by producing a product that clearly everyone desires, is actually better than the original but hasn't been created in an environment using slaves, bloodshed & conflict also damaging the environment and causing deforestation.

As anyone that starts a small business, it's a passion and if I can help in a small way - I feel this is it.

😊