The true cost of $5 MLM jewelry

Multi-level marketing has taken off in the pandemic, but it's not working well for many. The pandemic was a death knell for many struggling businesses across the US — but not for MLMs, or multilevel marketing schemes. Instead, the $40 million MLM industry has managed to thrive, using the Covid-19 pandemic as an opportunity to [recruit more sellers]( in light of economic insecurity and people’s desires to work from home. But the bleak reality is most MLM sellers (who are primarily women) don't make money — and they have to shell out cash to participate. Some people have lost money, fallen into debt, or, in the case of one high-pressure MLM convention, contracted Covid-19 and died. Vox's Emily Stewart [investigates the exploitative nature]( of the business model and how it fosters a culture of allegiance among its members, all while leaving them financially vulnerable. —[Terry Nguyen](, senior correspondent $5 jewelry and an MLM conference gone wrong [a series of interlocking neon triangles]( Getty Images In early August, thousands of people — mostly women — descended on the MGM Grand Casino in Las Vegas in the name of $5 jewelry. They had come from across the country to celebrate the 10th anniversary of Paparazzi Accessories, a multilevel marketing company, for a four-day extravaganza that would be a mix of product showcases, motivational speeches, networking events, and performances from OneRepublic, Pitbull, and Jim Gaffigan. The founders declared the event their “best convention yet.” It was also one that ended in tragedy. Celebrate Paparazzi 2021 [has been described as a superspreader event](. Dozens of the company’s consultants and loved ones were sickened by Covid-19 after the event, sources told me, and at least six people died. While it’s impossible to know exactly where attendees contracted the disease, many became ill after attending the large, often-unmasked convention. [Read the full story >>](  [Learn more about RevenueStripe...]( Peloton star Cody Rigsby, explained by his biggest fans Peloton’s Cody Rigsby hates licorice, loves Britney Spears, and is the biggest fitness star since Jane Fonda. Dancing With the Stars is just going to make him bigger. [Read the full story >>]( Why everybody’s hiring but nobody’s getting hired America’s broken hiring system, explained. [Read the full story >>]( More good stuff to read today - [The sad, predictable limits of America’s “economic recovery”]( - [What would a healthy social media platform even look like?]( - [How to make your job search suck a little less]( - [The Great Shortage]( - [Gabby Petito’s disappearance, and why it was absolutely everywhere, explained](  [Learn more about RevenueStripe...]( Manage your [email preferences]( or [unsubscribe](param=goods). If you value Vox’s unique explanatory journalism, support our work with a one-time or recurring [contribution](. View our [Privacy Policy]( and our [Terms of Service](. Vox Media, 1201 Connecticut Ave. NW, Floor 11, Washington, DC 20036. Copyright © 2021. All rights reserved.