Armchair Expert with Dax Shepard Bridget Read (on multilevel marketing)
Jul 16, 2025
Bridget Read, a features writer and author of 'Little Bosses Everywhere,' delves into the intriguing world of multi-level marketing (MLM). She traces the origins of MLMs, revealing how they evolved from door-to-door sales. The discussion highlights the staggering statistic that 99% of participants lose money and critiques the exploitative nature of such schemes, especially during economic upheavals. Bridget also touches on the surprising links between MLMs and societal issues like income inequality, and the psychological manipulation often involved.
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Core MLM Business Model Insight
- Multi-level marketing (MLM) rewards people based on purchases, not just product sales.
- The incentive is to recruit more buyers to increase commissions, not necessarily to sell products to consumers.
MLM as a Ponzi Scheme
- MLMs function similarly to Ponzi schemes, relying on constant expansion of new buyers.
- Early entrants profit most, while latecomers almost always lose money.
Regulatory Loopholes Protect MLMs
- FTC relied on company claims and loose rules to judge MLMs like Amway legal.
- Buyback and retail sales rules exist on paper but enforcement and transparency are minimal.
