What Makes MLMs Predatory And Problematic?

I had the pleasure of being interviewed by the team at Sounds like MLM but ok:  Katie, Sasha, and Zach.  We dived into the topic of what makes MLMs predatory and problematic.

I think you will find this interview of value.

Below are some of the questions we covered and the full podcast interview for your listening pleasure.

What made you get involved in exposing these companies?

Why don’t people make money in MLMs?

What are some hallmarks of the financial MLMs?

Why is it considered a pyramid scheme and not just retail?

What’s the difference between a MLM and a pyramid scheme and why they’re not really that different?

They say it’s better because it has a product but when you end up with a room full of unsold product vs. Simply being taken for your money, isn’t that MORE deceptive?

What are your thoughts about “self-help” MLMs like Volo?

Have you been following the NXIVM (NEX-ee-um) case?

MLM scams have a lot in common with cults in the way that they function:

  • They commonly will have a “great leader” that runs the company and is almost deified.
  • Deception is the foundation of what they teach people.
  • They manipulate people through individual and group pressure.
  • They separate you from people that don’t believe in what you are doing.
  • It is us versus them.
  • They suppress anyone that does not go along with the program.
  • They ask you to just believe. You don’t have to know how the compensation plan. It just works.

Here is the podcast: