Side hustles that aren’t MLM: how to tell the difference
A side hustle is not MLM if three things are true: you get paid for your work or for sales to real outside customers, you don’t have to pay to join or buy stock to stay “active”, and nobody pays you for recruiting other people. If any of those fail, you’re looking at network marketing or worse. Run any offer through the seven-question test below before you hand over money or your Saturday nights. It works in Australia and the US, and it takes about five minutes.
Plenty of genuine side hustles pass easily: virtual assistant work, bookkeeping, tutoring, and remote sales roles like appointment setting and closing, which is what we train women for at She Sells, in Australia and the US.
The 7-question MLM test
Answer each question about the specific offer in front of you, not the industry in general. Write the answers down. Vague answers count as red flags.
| # | Ask this | Healthy answer | MLM or pyramid red flag |
|---|---|---|---|
| 1 | Do I pay anything to start? | No, or only for tools I choose myself and keep | Starter kit, joining fee, “business pack” or a monthly minimum order |
| 2 | Who pays me? | A client, an employer, or customers buying from me | The company pays bonuses based on your team’s volume |
| 3 | What am I paid for? | Hours, tasks, finished work, or sales to outside customers | Recruiting, “building a team”, or rank advancement |
| 4 | Who are my customers? | Strangers who need the service or product | Mostly friends, family, and yourself |
| 5 | Do I need to buy to qualify? | Never | You must buy product each month to earn commission |
| 6 | How is income described? | A rate, a range, or a written commission plan | Lifestyle posts, top earners, “unlimited” or “financial freedom” |
| 7 | Can I check it independently? | Yes: a business name, website, reviews, ABN or registration | Only through the person recruiting you, often in DMs |
How to score it
- Seven healthy answers: it’s a real side hustle. Now ask whether the pay and hours suit you.
- One or two red flags on questions 1, 4 or 6: treat it as network marketing until proven otherwise, and read the compensation plan in full.
- Any red flag on question 3 or 5: walk away. Being paid mainly for recruiting is the classic pyramid structure.
Why these questions work: what the regulators say
The test isn’t my invention; it comes straight from what regulators warn about. The US Federal Trade Commission’s guide to multi-level marketing and pyramid schemes says a scheme is a pyramid when “your income would be based mostly on how many people you recruit, not how much product you sell”. It also says “most people who join legitimate MLMs make little or no money”, and lists “promoters make extravagant promises about your earning potential” and “distributors buy more products than they want to use or can resell” as warning signs.
In Australia, Scamwatch lists being told “you can earn a high income while working from home and with little effort” and having to “pay a ‘recruitment fee’ or pay for training materials before you begin the job” as warning signs. Its advice is plain: “Don’t take payment or rewards to recruit other people.” Pyramid schemes are illegal under the Australian Consumer Law: Schedule 2, section 44 of the Competition and Consumer Act 2010 says “a person must not participate in a pyramid scheme”.
For a broader scam check, our guides to legit work from home jobs vs scams and whether remote sales is legit go deeper on fake cheques, task scams and fake recruiters.
Side hustles that pass the test
These options all pay you for work or real sales, not recruiting. Pay varies a lot by experience, hours and client, and the ranges below are public data, not a promise.
| Side hustle | How you’re paid | Start-up cost | Good fit if |
|---|---|---|---|
| Virtual assistant | Hourly or per task, from clients | Low: a laptop and internet | You’re organised and good with inboxes, calendars and admin |
| Bookkeeping | Hourly or a fixed fee per client | Accounting software and some training | You like numbers and detail |
| Tutoring | Per session, from families or a tutoring company | Low | You’ve taught, or you’re strong in a subject |
| Appointment setting | Hourly, per booked call, or commission | Low: a laptop, headset and internet | You like messaging and chatting with people |
| Remote closing | Mostly commission on sales you close | Low, plus time to learn the skill | You’re a good listener and comfortable asking for a decision |
| Selling things you make or own | Customers pay you directly | Materials and platform fees | You have a craft, or a garage full of things to sell |
For a sense of pay: Payscale lists virtual assistant pay in Australia at about A$20.27 to A$50.51 an hour (10th to 90th percentile, small sample, updated June 2026), and US virtual assistant pay at about US$12.71 to US$29.89 an hour (updated June 2026). For more ideas with sourced pay ranges, see side hustle ideas for mums.
Want a side hustle with no starter kit and no downline? Book a free call with the She Sells team to see if remote sales could suit you.
The grey areas
Affiliate marketing
Affiliate marketing, where you earn a commission when someone buys through your link, passes the test if you’re paid on sales to outside customers and never pay to join. It fails if the “affiliate program” charges you a membership and pays you more for signing up other members than for selling the product.
“Online business” and coaching opportunities
Some offers sell you a business-in-a-box: a course plus a promise that you’ll earn by selling the same course to others. Run question 3 hard. If the main way to earn is recruiting new buyers into the same program, it behaves like a pyramid whatever it calls itself. In the US, the FTC’s alert on vetting a business or coaching opportunity tells you to ask for “the legally required 1-page disclosure document”, which must tell you about lawsuits, refund policy and references, and whether the seller “is making a claim about how much money you can make.”
Paid training
Paying for training is not automatically a red flag, but paying for a job is. The FTC’s job scam advice says “Don’t pay for the promise of a job.” A course is a purchase of skills from a provider who isn’t your employer. Judge it like any purchase: what exactly does it teach, how much time will it need from you, and what does it promise in writing? That applies to She Sells too.
Commission-only work
Commission-only isn’t MLM. You don’t buy in, and you’re paid on real sales. It does mean slow weeks pay less, and results take time. Our article on commission-only sales jobs covers the trade-off honestly.
Whatever you pick, it’s still taxable income
A side hustle that passes the test still has tax rules. In Australia, the ATO’s guide to business, side hustle or hobby says “‘not being in business’ does not automatically mean amounts you receive are tax-free.” In the US, the IRS says you must pay self-employment tax if your net self-employment earnings were $400 or more, at a rate of 15.3%. Keep records from day one.
Where remote sales and She Sells fit
Remote sales passes the seven questions when it’s done properly: a business pays you to talk to people who already asked about its offer, and you’re paid on calls you book or sales you close. It suits women who want part-time, flexible work from home, though many roles are commission-heavy and it takes practice to get good.
She Sells gives you both halves: the skill and help getting hired. She Launches is our foundation program, with live coaching, role play and frameworks; it doesn’t include direct placement. She Soars is our career program through the She Sells “Cert III in Remote Sales” certificate, and once you’re certified, our recruitment team works with you to land a role within 90 days, or your money back. My own first month in remote sales in 2020 brought in $440, which is my result and not a typical one. My very first taste of sales, back in 2014, was network marketing, so I know why this test matters. See our programs for details.
Frequently asked questions
How can I tell if a side hustle is an MLM?
Ask whether you pay to join, whether you must buy product to qualify for commission, and whether you earn from recruiting. If the answer to any of those is yes, it’s network marketing or a pyramid scheme, not a simple side hustle.
Are all MLMs scams?
Not legally. Some MLMs operate lawfully in Australia and the US, while pyramid schemes are illegal. But the FTC says most people who join legitimate MLMs make little or no money, so legal doesn’t mean worthwhile.
What side hustles can I start with no money?
Service work such as virtual assistance, tutoring, appointment setting and freelance admin usually needs only a laptop, internet and your time. Selling things you already own is another low-cost start.
Is affiliate marketing the same as MLM?
No, as long as you earn commission on sales to outside customers and don’t pay to join. If a program charges a membership and pays you mostly for recruiting new members, it has crossed into MLM or pyramid territory.
Is remote sales an MLM?
No. In remote sales a business pays you to sell its product to its customers, with no stock, no joining fee and no recruiting. If an “opportunity” asks you to pay to start or build a team, it isn’t a remote sales job.
Results vary. Nothing here is a promise of income. See our earnings disclaimer.
Ready to learn a skill that pays on real sales? Book a free call with the She Sells team in Australia or the US.
