{"id":7689,"date":"2018-09-13T03:30:05","date_gmt":"2018-09-13T09:30:05","guid":{"rendered":"https:\/\/www.personalfinanceforbeginners.com\/?p=7689"},"modified":"2019-05-02T20:31:45","modified_gmt":"2019-05-03T02:31:45","slug":"mlm-side-hustle","status":"publish","type":"post","link":"https:\/\/www.personalfinanceforbeginners.com\/mlm-side-hustle\/","title":{"rendered":"Why Multi-Level Marketing (MLM\u2019s) Is A Terrible Side Hustle"},"content":{"rendered":"<p>I live in the multi-level marketing (MLM) capital of the world.<\/p>\n<p>Don\u2019t believe me?<\/p>\n<p>Utah is headquarters to over a dozen of the largest MLM companies in the world:<\/p>\n<ul>\n<li>NuSkin<\/li>\n<li>d\u014dTERRA<\/li>\n<li>Morinda<\/li>\n<li>Young Living<\/li>\n<li>Younique<\/li>\n<li>And the <a href=\"https:\/\/www.heraldextra.com\/business\/local\/successful-multi-level-marketing-companies-based-in-utah-county\/collection_8720a5f3-7203-5b55-864a-f0f3323a2551.html\">list goes on<\/a>\u2026<\/li>\n<\/ul>\n<p>In fact, a number of my friends either currently work in the corporate offices of these companies or have worked for one of them in the past.<\/p>\n<p>(<i>Shh\u2026<\/i>. If you know me in person, don\u2019t tell them I wrote this!)<\/p>\n<p>For a time earlier this year, my daily commute would take me past one of <a href=\"https:\/\/www.reddit.com\/r\/antiMLM\/comments\/8oek15\/i_saw_not_one_but_three_billboards_honoring_gary\/\">several billboards dedicated to \u201cthe father of the modern essential oils movement<\/a>.\u201d<\/p>\n<p>I remember searching for jobs during my freshman year of college. As someone with limited work experience, I was always excited to hear back when I applied for any position.<\/p>\n<p>Recruiters would provide a very general description of the opportunity (\u201cdirect sales\u201d), affirm that I was the \u201cthe perfect candidate for the job,\u201d and invite me to join a \u201cgroup interview\u201d with several other <i>perfect<\/i> candidates.<\/p>\n<p>With so many frequent interactions with MLM companies, it was necessary for me to personally learn about what multi-level marketing is\u2026 and why even as a self-motivated entrepreneur and side hustler, it\u2019s not for me!<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_49 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Jump to...<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"ez-toc-toggle-icon-1\"><label for=\"item-647a0cfde79e6\" aria-label=\"Table of Content\"><span style=\"display: flex;align-items: center;width: 35px;height: 30px;justify-content: center;direction:ltr;\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/label><input  type=\"checkbox\" id=\"item-647a0cfde79e6\"><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-visibility-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.personalfinanceforbeginners.com\/mlm-side-hustle\/#What_is_an_MLM_multi-level_marketing\" title=\"What is an MLM (multi-level marketing)?\">What is an MLM (multi-level marketing)?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.personalfinanceforbeginners.com\/mlm-side-hustle\/#Why_do_people_hate_MLM_companies\" title=\"Why do people hate MLM companies?\">Why do people hate MLM companies?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.personalfinanceforbeginners.com\/mlm-side-hustle\/#So_what_makes_a_great_side_hustle\" title=\"So what makes a great side hustle?\">So what makes a great side hustle?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.personalfinanceforbeginners.com\/mlm-side-hustle\/#What_should_you_do_instead_of_MLM\" title=\"What should you do instead of MLM?\">What should you do instead of MLM?<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.personalfinanceforbeginners.com\/mlm-side-hustle\/#Find_freelance_work\" title=\"Find freelance work\">Find freelance work<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.personalfinanceforbeginners.com\/mlm-side-hustle\/#Offer_consulting_or_coaching_services\" title=\"Offer consulting or coaching services\">Offer consulting or coaching services<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.personalfinanceforbeginners.com\/mlm-side-hustle\/#Start_a_blog\" title=\"Start a blog\">Start a blog<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.personalfinanceforbeginners.com\/mlm-side-hustle\/#Launch_your_own_shop\" title=\"Launch your own shop\">Launch your own shop<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.personalfinanceforbeginners.com\/mlm-side-hustle\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_is_an_MLM_multi-level_marketing\"><\/span><b>What is an MLM (multi-level marketing)?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Multi-level marketing, sometimes called network marketing or referral marketing, is a product distribution strategy where companies pay \u201cindependent distributors\u201d a commission for selling their products.<\/p>\n<p>Distributors, typically stay-at-home parents, college students or other part-time workers, make money through one of two ways:<\/p>\n<ol>\n<li>Earning a direct commission for products sold to friends and family<\/li>\n<li>Earning an indirect commission for products sold by additional distributors they\u2019ve recruited<\/li>\n<\/ol>\n<p>Multi-level marketing companies promise an opportunity for financial independence, a flexible work schedule, and membership in an exclusive community of like-minded, ambitious go-getters.<\/p>\n<p>So why the hate on MLM\u2019s?<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_do_people_hate_MLM_companies\"><\/span><b>Why do people hate MLM companies?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>You may ask yourself why MLM&#8217;s are bad? What&#8217;s wrong with multi-level marketing?<\/p>\n<p>For starters, most people who participate in MLM\u2019s don\u2019t earn any profits at all!<\/p>\n<p>One study, by Jon M. Taylor of the Consumer Awareness Institute, <a href=\"https:\/\/www.ftc.gov\/sites\/default\/files\/documents\/public_comments\/trade-regulation-rule-disclosure-requirements-and-prohibitions-concerning-business-opportunities-ftc.r511993-00008%C2%A0\/00008-57281.pdf\">reported this surprising finding<\/a> (shout-out to <a href=\"https:\/\/www.apathyends.com\/hierarchy-of-hustling\/\">Apathy Ends<\/a> for sharing this report in a recent post):<\/p>\n<p>\u201cThe loss rate for MLMs is at least 99%. This means that less than one in 100 MLM participants make a clear profit, and at least 99 out of 100 participants actually lose money!\u201d<\/p>\n<p>This is because there are often significant costs to getting started with an MLM. As a new independent distributor, you may have to pay a racket for your \u201cfirst-time distribution kit,\u201d training and coaching, product inventory, and more.<\/p>\n<p>Remember those two revenue streams for MLM\u2019s?<\/p>\n<ol>\n<li>Commission from your sales<\/li>\n<li>Commission from your recruits\u2019 sales<\/li>\n<\/ol>\n<p>The most likely profitable path for MLM distributors isn\u2019t from selling products. At the end of the day, it\u2019s all about building a \u201cdownline,\u201d or recruiting other distributors who will earn a commission for you.<\/p>\n<p><i>Doesn\u2019t that sound like a pyramid scheme?<\/i><\/p>\n<p>Yes, indeed.<\/p>\n<p>MLM\u2019s can be an extremely profitable venture for individuals who get involved early. However, their reward isn\u2019t for selling the product \u2013 it\u2019s for helping to build the sales force.<\/p>\n<p>Unfortunately, the average MLM distributor is going to:<\/p>\n<ul>\n<li><b>Struggle to sell the product to others.<\/b> The exact compensation structure varies by company, but generally speaking, distributors will need to move tens of thousands of dollars in product each and every month to earn a reasonable income.<\/li>\n<li><b>Spend lots of their own money on the product.<\/b> MLM distributors want to sell a product they use and believe in. This sometimes means spending hundreds of dollars each month on beauty products, nutritional supplements, or whatever the product might be. In this case, MLM distributors will often become their #1 customer, spending more than they actually earn.<\/li>\n<li><b>Spent lots of money on training and marketing.<\/b> Business cards, house parties, group training, national conferences, private coaching, a personal website\u2026 Distributors can quickly spend hundreds of dollars on non-product expenses that claim to help speed up the path to riches.<\/li>\n<li><b>Make the MLM company very, very profitable.<\/b> As mentioned before, only 1 in 100 MLM participants earn a profit from their efforts. Meanwhile, the MLM companies themselves are sometimes worth hundreds of millions of dollars. Who\u2019s paying who?<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"So_what_makes_a_great_side_hustle\"><\/span><b>So what makes a great side hustle?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Just because working as an MLM distributor isn\u2019t the right option for pursuing your financial goals doesn\u2019t mean it\u2019s time to give on your dreams of finding a flexible way to earn some extra income.<\/p>\n<p>Even though MLM\u2019s may not be everything they claim, you\u2019re still on the right track if you\u2019re looking for a side hustle! Some of the features and <a href=\"http:\/\/www.personalfinanceforbeginners.com\/side-hustle-benefits\">benefits of a <b>good<\/b> side hustle<\/a> include:<\/p>\n<ul>\n<li>A change of pace from your typical daily responsibilities<\/li>\n<li>Little or no startup costs to get started<\/li>\n<li>The chance to connect with new mentors and peers<\/li>\n<li>The opportunity to develop new skills<\/li>\n<\/ul>\n<p>While at first glance, it may seem like an MLM offers these benefits, just remember\u2026<\/p>\n<p>Most MLM\u2019s require an investment that\u2019s rarely earned back, and participating in network marketing often burdens your existing relationships rather than building them!<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_should_you_do_instead_of_MLM\"><\/span><b>What should you do instead of MLM?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>If you\u2019ve found yourself spurned by the idea of multi-level marketing \u2013 whether due to your own personal experience or the endless solicitations on social media \u2013 you may be asking yourself:<\/p>\n<p>\u201cNot an MLM\u2026 But then what?\u201d<\/p>\n<p>Well, good news:<\/p>\n<p>There\u2019s an almost endless supply of great side hustles out there that can fit your passions, skills, and resources. Whether you need something with full-time income potential or just want to earn some extra cash for a vacation or the holidays, you can find a side hustle that works for you.<\/p>\n<p>If you Google \u201cside hustle ideas,\u201d you\u2019ll find dozens and dozens of examples, but here are four popular side hustle ideas to get you started:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Find_freelance_work\"><\/span>Find freelance work<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Not sure how to find your first client? Good news: you can start <a href=\"https:\/\/www.personalfinanceforbeginners.com\/making-money-upwork\/\">making money with Upwork<\/a> in just a few days by creating a targeted profile and submitting persuasive proposals. There are all sorts of projects available on the site, so whether you\u2019re interested in writing code or writing blog posts, you can turn your time and skills into a source of income.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Offer_consulting_or_coaching_services\"><\/span>Offer consulting or coaching services<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>You don\u2019t have to be \u201cthe world\u2019s best expert\u201d on a given topic to offer consulting or coaching services. You just need to further along the path than those you\u2019re trying to help or have experience with solving a very specific problem. You could offer to coach a small business owner can how they improve their social media presence, offer personal training sessions within your home, or offer up your career\/work experience to help companies on a project-by-project basis.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Start_a_blog\"><\/span>Start a blog<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Earning money through blogging is one of the most popular side hustles because of it\u2019s low barriers to entry. You can get started for just a few dollars. Bloggers earn income through banner advertisements, affiliate marketing, and selling their own products.<\/p>\n<p>While it\u2019s difficult (alright, impossible) to start earning money from blogging overnight, the flexibility of blogging makes it a great lifestyle business!<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Launch_your_own_shop\"><\/span>Launch your own shop<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Instead of selling other people\u2019s products, why not create your own? Whether it\u2019s handmade jewelry, wedding decorations, or baked goods, you can enjoy lower costs and higher margins by selling your own products. Depending on what you\u2019d like to sell, you can create an Etsy shop, put up listings on Facebook Marketplace, or set up a table at your local farmer\u2019s market.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><b><img decoding=\"async\" loading=\"lazy\" class=\"alignright wp-image-7691\" src=\"https:\/\/www.personalfinanceforbeginners.com\/wp-content\/uploads\/2018\/09\/multilevel-marketing-mlm-side-hustle.jpg\" alt=\"Why MLMs are a terrible side hustle\" width=\"320\" height=\"480\" srcset=\"https:\/\/www.personalfinanceforbeginners.com\/wp-content\/uploads\/2018\/09\/multilevel-marketing-mlm-side-hustle.jpg 600w, https:\/\/www.personalfinanceforbeginners.com\/wp-content\/uploads\/2018\/09\/multilevel-marketing-mlm-side-hustle-200x300.jpg 200w\" sizes=\"(max-width: 320px) 100vw, 320px\" \/>Conclusion<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>If you\u2019ve ever joined an MLM but felt disappointed with the outcome, don\u2019t be ashamed of your choice.<\/p>\n<p>You\u2019re seeking something that appeals to everyone: a flexible work environment, some additional income, and an opportunity to develop new skills and relationships.<\/p>\n<p>While multi-level marketing companies may not be the answer, there are plenty of other side hustles out there to help you pursue your goals.<\/p>\n<p>You don\u2019t have to be an entrepreneur to start your own side hustle, but don\u2019t be mistaken\u2026 A side hustle requires hard work, discipline, and time. Find a side hustle that fits your passions and strengths, then take the first steps to get started today!<\/p>\n<p><i>What\u2019s your experience with earning money through multi-level marketing (MLM\u2019s)?<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>I live in the multi-level marketing (MLM) capital of the world. Don\u2019t believe me? Utah is headquarters to over a dozen of the largest MLM companies in the world: NuSkin d\u014dTERRA Morinda Young Living Younique And the list goes on\u2026 In fact, a number of my friends either currently work in the corporate offices of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":7690,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0},"categories":[35],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why Multi-Level Marketing (MLM\u2019s) Is A Terrible Side Hustle<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.personalfinanceforbeginners.com\/mlm-side-hustle\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why Multi-Level Marketing (MLM\u2019s) Is A Terrible Side Hustle\" \/>\n<meta property=\"og:description\" content=\"I live in the multi-level marketing (MLM) capital of the world. 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Utah is headquarters to over a dozen of the largest MLM companies in the world: NuSkin d\u014dTERRA Morinda Young Living Younique And the list goes on\u2026 In fact, a number of my friends either currently work in the corporate offices of [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.personalfinanceforbeginners.com\/mlm-side-hustle\/\" \/>\n<meta property=\"og:site_name\" content=\"largeflare\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/personalfinanceforbeginners\" \/>\n<meta property=\"article:published_time\" content=\"2018-09-13T09:30:05+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-05-03T02:31:45+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.personalfinanceforbeginners.com\/wp-content\/uploads\/2018\/09\/essential-oils-mlm.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"512\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Aaron\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@PFforBeginners\" \/>\n<meta name=\"twitter:site\" content=\"@PFforBeginners\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Aaron\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.personalfinanceforbeginners.com\/mlm-side-hustle\/\",\"url\":\"https:\/\/www.personalfinanceforbeginners.com\/mlm-side-hustle\/\",\"name\":\"Why Multi-Level Marketing (MLM\u2019s) Is A Terrible Side Hustle\",\"isPartOf\":{\"@id\":\"https:\/\/www.personalfinanceforbeginners.com\/#website\"},\"datePublished\":\"2018-09-13T09:30:05+00:00\",\"dateModified\":\"2019-05-03T02:31:45+00:00\",\"author\":{\"@id\":\"https:\/\/www.personalfinanceforbeginners.com\/#\/schema\/person\/87121b928997f68b80eb866cb102a820\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.personalfinanceforbeginners.com\/mlm-side-hustle\/#breadcrumb\"},\"inLanguage\":\"en\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.personalfinanceforbeginners.com\/mlm-side-hustle\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.personalfinanceforbeginners.com\/mlm-side-hustle\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.personalfinanceforbeginners.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Why Multi-Level Marketing (MLM\u2019s) Is A Terrible Side Hustle\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.personalfinanceforbeginners.com\/#website\",\"url\":\"https:\/\/www.personalfinanceforbeginners.com\/\",\"name\":\"largeflare\",\"description\":\"Take the First Steps Toward Financial Independence\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.personalfinanceforbeginners.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.personalfinanceforbeginners.com\/#\/schema\/person\/87121b928997f68b80eb866cb102a820\",\"name\":\"Aaron\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en\",\"@id\":\"https:\/\/www.personalfinanceforbeginners.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/d1e2dbe8833523ed455493ad871d5428?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/d1e2dbe8833523ed455493ad871d5428?s=96&d=mm&r=g\",\"caption\":\"Aaron\"},\"description\":\"Aaron is a personal finance lover and lifetime entrepreneur who graduated with a marketing degree from the University of Utah in 2016. 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