In the comeback we didn't know we needed, Kirsten Dunst has returned with a black comedy series about multi-level marketing (MLM).

On Becoming a God in Central Florida takes place in the early 1990s and centres around Krystal Stubbs, played by Dunst. She's chasing a better life and hopes signing up to a cult-like MLM scheme called FAM will help her get it.

It's estimated there are 463,000 independent sales consultants engaging in MLM, or direct selling, in Australia.

Think Tupperware, Nutrimetics, Rodan and Fields, Thermomix and Isagenix — just to name a few.

Recruitment is a big part of MLM, so it's likely someone has hit you up at one time or another to "realise your dreams of working from home" or "choose the freedom to be your own boss".

But there's a few hard truths you might like to know before you agree to sell essential oils and water filters in 2020.

Share your MLM experiences — good or bad — with us. Email life@abc.net.au

What is multi-level marketing?

MLM schemes are a form of direct marketing that distribute products or services through salespeople who are not employees of the company and do not receive a salary or wage, explains Gerard Brody, CEO of Consumer Action Law Centre.

Gerard Brody says signs the "MLM" might in fact be a pyramid scheme include selling products there isn't much consumer demand for. ( Supplied: Consumer Action Law Centre )

"Instead, members of the company's sales force usually are treated as independent contractors, who may — or may not — earn income depending on their own revenues and expenses," he says.

It typically relies on its existing salespeople to recruit additional members, creating multiple levels of distributors.

MLMs can be problematic for several reasons. An investigation by SBS' The Feed earlier this year found 99.7 per cent of new recruits to digital MLMs will lose money.

And social media has really upped the ante on selling the MLM lifestyle.

"Through the use of videos and Facebook pages, people are able to show others how successful they are," Mr Brody says.

"In reality, many people have difficulty making money from MLM."

But there are those who say the business model is ethical and fruitful — we'll get to that soon.

How does MLM differ from pyramid schemes?

Pyramid schemes are illegal in Australia. They are similar to MLMs, but instead make money primarily from recruiting people, rather than sales of actual products or services, says Mr Brody.

You don't want to get involved in one of those.

It can be difficult to distinguish an MLM from a pyramid scheme, Mr Brody says, and "there can be detriment associated with both".

On its website, consumer advocacy group CHOICE says if a scheme makes its money "mostly from selling products and the products sold by those you've recruited, it's likely to be a legitimate business using multi-level marketing".

"If it's mostly from the act of recruiting new members and any product sold is significantly overpriced and of minimal value, it's more likely to be a pyramid scheme."

Mr Brody says signs the "MLM" might in fact be a pyramid scheme include selling products there isn't much consumer demand for, like water purifiers.

"The sale or sign-ups are created by telling people they need this product, whereas in reality we have the cleanest water in [the world in] Australia and this isn't needed," he says.

Other red flags include promises like "make passive income" or requirements to buy lots of product for future sales, Mr Brody says.

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The ACCC has taken action against some so-called MLMs, arguing they are pyramid schemes.

Mr Brody says the definition of pyramid scheme needs to be broadened to capture more MLM businesses — and protect vulnerable people at Christmas lunch.

"While there are many genuine underlying economic activities involved in these schemes, they commonly operate to profit those at the top. And disadvantage those at lower levels," he says.

Direct Selling Australia (DSA) CEO Gillian Stapleton says any brands operating under its umbrella "undergo vigorous screening to ensure the legitimacy of their business models".

The screening process includes reviewing the company's distributor agreements and compensation plans. DSA also has a complaints process.

So if you think you've been pitched something dodgy, feel free to let them and the ACCC know.

Kirsten Dunst plays Krystal Stubbs in On Becoming a God in Central Florida. ( Supplied: SBS )

'That is the guilt they push on you'

While on maternity leave with her three-month-old baby, Taylah Bretzke bought a lipstick from a friend who was promoting it on Facebook.

Her friend said if Taylah became a consultant she could essentially "get more product for free".

"I thought, 'I kind of miss working, it might be alright'," 25-year-old Taylah says.

"She said I wouldn't have to go back to work, or send my child to day care to be looked after by a stranger. That is the guilt they push on you."

The MLM Taylah joined is online-based, so she made a Facebook group and invited all her friends.

"Then I had to start doing live videos which I felt a bit uncomfortable with — but they said it would up my sales.

"I felt like I was pushing people so many away. People were blocking me and deleting me, they were so sick of seeing my posts about the same thing, saying 'Buy this, buy this'."

Taylah left the group after six months. She says while she was only out of pocket $60 (whatever money she made she reinvested in new product), it's the time and effort that was taken away from her.

"They were basically saying eventually you can work from home and they make it sound like it's that easy.

"But realistically, to earn that sort of money you need to have so many people under you who are making substantial sales."

Mr Brody says MLMs are renowned for misleading members about income potential, and making them feel bad when they don't reach it.

"They can target vulnerable people, including low-income earners but also those easily persuaded by pressure sales or marketing claims,"' he says.

"Many employ psychological techniques to encourage an 'in-group, out-group' mentality, or make people feel like it's their fault if they don't succeed."

Managing expectations around MLMs

Of course, if no-one benefited from MLM, they wouldn't exist. There are Australians who say it's a model that works for them.

One mother we spoke to said it gave her the freedom to work from home. Another woman said the flexible hours suited her lifestyle.

Ms Stapleton from DSA says for most salespeople, the model offers people the opportunity to earn "just a little extra income for unforeseen circumstances".

"For some it's the chance to finally get items like family holidays; perhaps it's just being able to buy their favourite products at a discount," she says.

"Whatever the motivation, direct selling offers flexibility and a learning curve like no other.

"Far from a 'get rich quick' environment, direct selling rewards tenacity and hard work and that might be the drawback for some."

So when you're offered the "opportunity of a lifetime", just remember to manage your expectations.