The End of an Era Why Traditional MLMs Are Collapsing and What Comes Next
Introduction: We Are At The Tipping Point in the MLM Industry
For decades, multilevel marketing (MLM) companies promised freedom, flexibility, and financial success to everyday people. But now, some of the biggest names in the industry are either shutting down, switching models, or leaving their distributors in the dust. From household staples like Tupperware to wellness brands like Modere and Beautycounter, a major shift is happening in how people build income and where they can turn next.
If you’ve watched your income disappear overnight due to a company shutdown or compensation plan change, you’re not alone. Let’s unpack what’s happening, why it’s happening, and how the new wave of membership-based business models might just be the smarter, simpler answer without the downside of high cost buy ins and expensive monthly auto ships.
The End Of An Era Why Traditional MLMs Are Collapsing or Restructuring
In just the last year, we’ve seen an unprecedented wave of closures, pivots, and quiet exits:
- Modere: Once a leader in “clean label” wellness and collagen, Modere filed for bankruptcy, leaving thousands of distributors unpaid and scrambling.
- Tupperware: A household name for over 75 years, Tupperware is on the brink of collapse due to declining sales and relevance.
- Thirty-One Gifts: Known for monogrammed bags and organizational gear, this company announced it would shut down operations in mid-2024.
- Beautycounter: Once a trailblazer in clean beauty, Beautycounter temporarily ceased operations and then shifted away from direct sales entirely.
- Epicure: The Canadian food-based MLM paused U.S. operations, causing disruption for thousands of American reps.
- Signature Homestyle: Quietly closed its doors, leaving representatives with no product and no warning.
These companies had loyal reps, strong product lines, and years—sometimes decades—of momentum. So what happened?
The Big Problem: Unsustainable Business Models
The traditional MLM model is built on recruiting. Distributors are encouraged to not just sell, but to build a team and in many cases those teams buy expensive inventory each month just to qualify for commissions.
But in an age where consumers are smarter and more price-conscious than ever, this model is showing cracks:
- Inflated product prices to cover deep commission tiers
- High monthly auto-ship requirements
- Complicated compensation plans
- Pressure to recruit just to break even
For many reps, it’s become harder and harder to justify the time, expense, and energy required.
And it’s not just about shutdowns. Even “successful” MLMs are abandoning the model.
The Affiliate Shift: A New Blow to Distributors
Another trend? Companies switching from MLM to affiliate programs which sounds great, until you realize what’s lost in the process.
- Bodi (formerly Beachbody): In 2024, Bodi transitioned away from its MLM roots, cutting off traditional team commissions in favor of a single-tier affiliate model.
- Seint: The once-popular beauty brand shifted toward a less structured sales program, causing income instability for many reps.
- Lorde + Belle and Color Street: Both scaled back their MLM infrastructure in favor of retail or affiliate strategies.
- Rodan + Fields: Recently revised its compensation model, cutting commissions for many who relied on team bonuses.
What happens when your entire income was based on a downline and that downline no longer earns commissions? For many, it feels like the rug is being pulled out from under them because it is. Years of hard word and dedication are gone in a day with a new corporate plan.
Why the Industry Is Evolving (And Needs To)
Let’s face it: the old model just doesn’t work for most people anymore.
People want:
- Real value for their money
- Simple, transparent ways to earn
- Products that make sense at fair prices
- Flexible side incomes without the stress
The idea of earning through sharing is still powerful—but the method has to change.
Enter the membership-based model.
The Rise of the Membership + Savings Club Model
Instead of pushing overpriced products and complex team building, the new wave of business models focus on:
- Low monthly membership fees (think $10/month)
- Access to value-packed benefits like discount shopping, travel savings, cashback apps, and wellness products
- Earning commissions on actual product movement—not just recruiting
- Simplicity, duplication, and transparency
One of the most exciting examples? What’s coming in July with TopSecretBiz. With just a $10/month membership, it delivers:
- A shopping platform with prices lower than the company that you already know.
- Premium wellness/skincare at honest prices
- A powerful savings + cashback app
- Deep travel discounts
- Commissions on both products and memberships. Earn without big buy-ins
And because there’s no inventory to stock, no confusing back office, and no income tied to just team building, people finally have a model that works.
Conclusion: A New Era for Everyday Entrepreneurs
The old MLM world is crumbling because it was never built to last for the everyday person. The new era is about accessible income, shared savings, and simplified systems that anyone can understand and grow with.
If you’re tired of being burned, the new company that TopSecretBiz will be unveiling and similar models offer a better way. They deliver real value, real products, and real commissions without the hype.
The question isn’t if the industry is changing, it’s whether you’re ready to change and evolve with it.
Ready to see what’s next? Join the waitlist at TopSecretBiz.com and see if it’s for you. It may time to be part of the smarter, simpler future of earning online.