The mirage of entrepreneurship:

A critical analysis of the true face of multilevel marketing in Mexico

Abstract

In Mexico, multi-level companies have been promoted as an accessible alternative for entrepreneurship, especially among vulnerable sectors seeking economic independence without requiring high investments or advanced technical knowledge. However, this article reveals that this model does not constitute genuine entrepreneurship, but rather a structure that distorts the essential principles of authentic entrepreneurship, such as innovation, value creation, autonomy, and the generation of real solutions. Unlike productive pusieses, multi-level marketing relies on pyramid schemes centered around constant recruitment rather than the production of goods or services. This approach prioritizes network growth over productivity, encouraging behaviors that lead to deceptive or abusive practices. Based on academic studies, sector data, and testimonies, the analysis shows that most participants do not obtain sustainable benefits and end up leaving the system after experiencing economic losses and deterioration in their personal and family relationships. Furthermore, mechanisms of emotional manipulation, exaggerated promises of success, and coercive coaching are identified that exploit economic vulnerability, disguising aggressive marketing as personal empowerment. The article also examines the role of certain institutional discourses and public policies that, without critical analysis, have indirectly legitimized this model as entrepreneurship. Finally, a clear differentiation is proposed between self-employment, businesses with real productive bases, and pyramid schemes, emphasizing the need for financial education, adequate regulation, and the promotion of sustainable models with local economic impact and real social value.