
Why HighLevel Feels Like An MLM—and Why It Isn’t One
Is HighLevel an MLM?
Why It Feels Like One—and Why It Isn’t One
HighLevel (or GoHighLevel, often abbreviated as GHL) is a powerful business automation platform with a flexible affiliate program. But because of how some affiliates promote it, questions have surfaced: Is HighLevel a multi-level marketing (MLM) business? Should you treat it like one?
The short answer: HighLevel is not an MLM, but it can be treated like one—and often is. Understanding why this distinction matters helps affiliates decide how to market HighLevel ethically and effectively, and ensures potential customers understand what kind of support they’re getting.
Why HighLevel Might Seem Like an MLM
Let’s start with the surface-level similarities:
1. Tiered Commission Structure
HighLevel’s affiliate program includes a second-tier commission override—affiliates earn a smaller commission when someone they referred also refers a new customer. This kind of structure is a hallmark of many MLMs.
2. Focus on Signups
Some HighLevel affiliates focus heavily (or exclusively) on getting people to sign up through their referral link. In those cases, the pitch resembles typical MLM tactics: sign up, then recruit others.
3. Passive Income Appeal
MLMs often promote a dream of “passive income.” HighLevel’s recurring commissions can attract the same kind of pitch—earn every month without doing ongoing work.
When affiliates promote HighLevel solely as a business opportunity and not as a tool to solve specific problems, it risks being perceived as an MLM—especially if no follow-up support is offered.
Why HighLevel Isn’t an MLM
Despite surface similarities, the differences are more significant:
1. Not Dependent on Downlines
Unlike classic MLMs, HighLevel doesn’t require you to build a “team” or maintain a network to keep earning. The second-tier commission is minimal (5%) and there are no tiers below that level.
2. Product-Centered, Not Network-Centered
HighLevel is a robust SaaS platform with real, independent value. You can promote it and earn from using it to serve clients based solely on the software’s usefulness—without involving subscription commissions or recruits.
3. Support Exists—From Several Sources
HighLevel provides onboarding and technical support. However, it doesn’t provide business coaching, strategy, or implementation for the end user—leaving a gap that pure affiliates often fail to fill.
When It Might Make Sense to Treat HighLevel Like an MLM
There are cases where a “pure affiliate” approach may be appropriate:
You have a large audience and minimal time or technical expertise to provide ongoing support.
You use HighLevel yourself and can credibly say, “I use this in my business—you should too.”
You can’t offer support, but you disclose that HighLevel support or a third-party service will take over during onboarding.
In these scenarios, the affiliate functions more like a software referrer than a service provider. It’s legitimate—but it places the burden of success on the customer.
The Problem With the Pure Affiliate Model
Even if ethically acceptable, the pure affiliate model has serious limitations:
No influence on churn: Once someone signs up, you can't help them succeed or prevent cancellation.
Offloading the adoption problem: Customers are left to figure out how to integrate HighLevel into their business, which leads to failed implementations and lost revenue.
Reputation risks: When affiliates don’t offer support, customers blame HighLevel for poor outcomes—even when the software is sound.
In this model, the affiliate may gain short-term commissions, but often at the cost of customer success—and long-term revenue.
A Better Alternative: The Value-Added Affiliate
Rather than acting like an MLM recruiter, many successful affiliates adopt the value-added affiliate model. Here’s what that looks like:
You help clients solve a business problem, not just push them to sign up for a tool.
You offer templates, onboarding, coaching, or niche-specific assets that make adoption and implementation easier.
You stay engaged, checking in on usage and guiding implementation (or partnering with someone who does).
This approach is client-centric. The affiliate earns recurring revenue and improves client outcomes. Even if the compensation still comes from HighLevel, the relationship feels like a service provider—not a sales representative.
Beyond Affiliate Marketing: Becoming the Face of the Software
HighLevel also supports full white-label SaaS reselling. This is Business Model 3 in the framework mentioned in the transcript: you become the front-line support and brand, offering HighLevel under your own business name.
This model requires more technical skill and ongoing involvement—but it also gives you full control over pricing, onboarding, retention, and customer experience. It’s not MLM-like at all; it’s software entrepreneurship.
Niche Strategy: Affiliate + Coaching = Real Value
Even if your primary income comes from HighLevel commissions (Business Model 1 or 2), you can elevate your offer by aligning it with your niche.
For example:
You’re a business coach for lawn care professionals. You teach growth strategies and offer a coaching program. Then, as a side benefit, you recommend HighLevel (via your affiliate link) to implement your marketing ideas.
Here, the client sees HighLevel as a tool to execute your strategic advice—not just another SaaS platform. You're not offering HighLevel as a product—they're adopting it as part of your solution.
Final Thoughts
Yes, HighLevel can look like an MLM. It can be marketed like an MLM. Some affiliates even do that on purpose. But at its core, HighLevel is a legitimate SaaS platform—and whether you treat it like an MLM depends on the business model you choose.
If you're only after fast signups, be aware of the ethical and reputational risks. But if you're solving problems, guiding adoption, and offering real value, then you're not running an MLM—you’re building a sustainable, client-focused business.
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If you can't provide support, don't.
And HighLevel provides a path to make a successful business without tech support skills.
--but--
You are imposing problems on your customers (onboarding, adoption, adaptation) while offloading the solution of those problems to someone else.
The best thing about the pure affiliate model is that it can be a great side hustle or hobby business pursued part-time. The hidden danger is that it can share some of the worst characteristics of a multi-level-marketing (MLM) direct sales system.
The point of value-added affiliate (business model 2) is to solve to customer's problems using HighLevel rather than selling HighLevel to people and leaving them to figure out how to use it for themselves (the pure affiliate, business model 1).
Picking the right business model for your HighLevel agency.
business model 0 - end user client companies
business models 1 & 2 - affiliates (product = subscription)
business models 3 & 4 - SaaS & SwaS (product = systems)
business models 5 & 6 - agencies (product = services)
business model 7 - advisors (product = strategy)
business model 8 -supporters (product = support)
business model 9 - developers (product = software)
You can take a deeper look at all 9 business models in the Learning tab at: https://ghl.omnyhub.io/communities/groups/ghl-business-launch-2
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HighLevel isn’t an MLM—it just lives at the messy intersection of nine business models that most people can’t yet name.
Ever wonder why some platforms feel like MLMs… even when they’re not? 🤔
HighLevel isn’t a pyramid scheme—it’s a complex ecosystem of SaaS, agencies, affiliates, and advisors all interacting at once. The confusion happens when we don’t have a clear lens to see which role each player is actually in.
That’s why I built the 9 business models using HighLevel framework. It maps out how different business types deliver value—not just what they sell, but how they fit together.
In this framework:
• SaaS and SwaS sell systems
• Agencies sell services
• Affiliates sell subscriptions
• Developers build the tools
• Advisors shape the strategy
…and it all orbits around the End User Client.
If you're building a business or partner ecosystem, this lens helps you avoid MLM confusion—and design a model that actually works for you.
🔗 https://thebaldguymarketing.com/post/why-highlevel-feels-like-an-mlm-and-why-it-isnt-one
#BusinessDesign #GoToMarket #SaaS #HighLevel #BusinessModels #GHL #MLM