Organized Money Amway, Mary Kay, Herbalife and the Get Rich Quick Business
10 snips
Jul 29, 2025 
Bridget Read, a features writer for New York Magazine and author of "Little Bosses Everywhere," delves into the murky waters of multi-level marketing (MLM) and pyramid schemes. She discusses how companies like Amway and Herbalife exploit the dream of entrepreneurship, often leading to financial losses for participants. The conversation reveals the deep ties of MLMs to American politics, and how these schemes perpetuate a cycle of hope and extraction within vulnerable communities. Read also critiques the cult-like mentality that thrives in the pursuit of the American dream.
AI Snips
Chapters
Books
Transcript
Episode notes
MLM Equals Pyramid Schemes
- Pyramid schemes and multi-level marketing (MLM) are essentially the same fraud with different names.
- MLM is legitimized fraud that has global reach and lobby power in the U.S.
The True Size of MLM
- MLM's size is hard to measure due to self-reporting and turnover but may involve millions of people.
- MLM retail sales represent a small fraction (~2%) of the US retail market and are mostly to distributors, not consumers.
MLM Origin: Selling Opportunity
- MLM was invented to eliminate painful door-to-door selling by focusing on selling the business opportunity instead of products.
- Early MLM founders failed repeatedly until they realized recruiting was more profitable than actual product sales.
