Network Marketing Australia 2025: Pros, Cons & What to Know

Network marketing – also known as multi-level marketing (MLM) – has become a familiar buzzword on social media feeds, promising flexible income, community, and even financial freedom. But as more Australians sign up to sell everything from wellness shakes to essential oils, the big question remains: is network marketing a smart financial move in 2025, or just a well-packaged dream?

What Is Network Marketing and How Does It Work?

Network marketing relies on independent distributors selling products directly to consumers, often through their personal networks. Distributors earn commissions on their sales and, crucially, on the sales made by others they recruit. This structure can create a pyramid-shaped system, where a few at the top profit from the efforts of many below.

• Direct sales: Face-to-face or online sales to customers.
• Recruitment: Incentives for bringing in new distributors, who in turn build their own teams.
• Residual income: Ongoing commissions based on your team’s sales volume.

Popular MLM companies operating in Australia include Isagenix, Herbalife, Arbonne, and Nu Skin. Many pitch the flexibility of working from home and the lure of passive income, but not all network marketing schemes are created equal.

Australian Regulations and 2025 Policy Updates

Network marketing sits in a legal grey zone between legitimate direct selling and illegal pyramid schemes. The Australian Competition and Consumer Commission (ACCC) continues to monitor this sector closely, especially as digital platforms make it easier for companies to recruit and sell at scale.

Key regulatory points for 2025:

• Pyramid scheme laws: It is illegal to operate or participate in a business where income is primarily earned from recruitment rather than product sales. Fines for breaches have increased in 2025, with penalties up to $500,000 for individuals and $10 million for corporations.
• Disclosure requirements: Companies must provide clear information about potential earnings, expected costs, and refund policies. The ACCC has increased enforcement actions against misleading income claims on social media in 2025.
• Income tax obligations: MLM income is taxable. The ATO has clarified guidance for network marketers, emphasizing the need to declare all commissions and keep detailed records of expenses.

Before joining any network marketing company, check that it is a member of the Direct Selling Australia (DSA) association, which requires adherence to a code of conduct.

Real-World Earnings: What Does the Data Say?

Despite the hype, only a small fraction of network marketers earn significant income. According to a 2024 DSA survey, over 80% of Australian participants earned less than $2,500 per year from network marketing. Most spent more on products and marketing materials than they made in commissions.

Common expenses include:

• Starter kits ($100–$1,000+)
• Monthly product purchases to stay “active”
• Event tickets, training, and marketing materials

There are success stories, but these are typically distributors who joined early, have extensive networks, or dedicate themselves full-time. For most, network marketing is a side hustle at best – and a costly hobby at worst.

How to Evaluate a Network Marketing Opportunity in 2025

Not all network marketing companies are scams, but careful vetting is crucial. Ask these questions before signing up:

• Is the company DSA-accredited and compliant with the ACCC?
• What percentage of distributors actually earn more than they spend?
• Are you pressured to purchase inventory or recruit others?
• Is the product genuinely valuable and in demand outside the network?
• Are income claims realistic, and do you have access to audited financials?

Network marketing can offer community and business skills, but it’s rarely a fast track to wealth. Treat income projections with scepticism and calculate your own break-even point before investing time or money.

The Bottom Line: Is Network Marketing Worth It?

Network marketing in Australia is more transparent and regulated in 2025, but the basic economics haven’t changed: most people won’t earn much, and the model rewards those who are skilled at sales and recruitment. If you’re considering joining, do your due diligence, scrutinize the company, and be wary of any opportunity that sounds too good to be true.