Many times they are cults - commercial cults. Check out Steve Hassan's website and do as much research as you can.
I also saw the similarities between MLMs and cults. My opinion is that you will find similar practices in such different groups simply because these practices usually work very well. And is the Watchtower really that much different than a business? The people they recruit are basically going to become customers. Customers for the pamphlets, books, DVDs. The Watchtower is similar to a pyramid scheme. It’s all about recruiting everyone you know. Cold calling the public to get them to join. The real product the Watchtower sells is eternal life in a paradise. And they claim to be the only company who can sell you that product.
I feel that there are many ethical problems with MLMs. Typically its all about appealing to a persons greed to get them to join. You will use your social network to find “customers”. But if I believe in a product and want to share it with loved ones, I simply tell them about the product. I don’t try to make money off of them. The line is crossed with MLMs. Research as much as you can about MLMs. My brother tried to recruit me into a MLM and it’s made our relationship somewhat strained. I don’t enjoy having a family member try to make money off of me.
I worked at an RV dealership last winter and one of the biggest motorhomes I ever saw belonged to a MLM distributor of MonaVie acai berry juice. The word I got was he got in on the ground floor and thousands of sellers/dealers were under him and he was getting $$ from all of their sales.
Often if you go to a MLM meeting or listen to the sales pitch of a distributor you will hear similar stories about a successful person in the company. This person will be presented as a example of how much money can be made in the MLM. But how did that person get to the point of making so much money? They made their money of the “suckers” below them. The majority of the people below them make no money and most even lose money in the MLM.