Frugal Friends Podcast Worst MLMs of 2025 Exposed! (they're not the ones you think!)
Dec 2, 2025
Uncover the hidden dangers of multi-level marketing as the hosts expose lesser-known MLMs targeting young adults. They delve into the toxic commission structures that reward recruitment over actual sales, often leaving participants in financial ruin. Learn about the risks of financial service MLMs and hear a case study on I AM Academy, highlighting the pitfalls of investment scams. Discover how to recognize red flags, respond to friends involved, and protect yourself from becoming a victim of these alluring but harmful schemes.
AI Snips
Chapters
Books
Transcript
Episode notes
Model vs. Incentive Problem
- MLM business model isn't inherently bad; it encourages real-world networking and conversations.
- The harm comes when compensation favors recruitment over product sales, creating perverse incentives.
Complexity Bias Fuels Financial MLMs
- Complexity bias makes financial MLMs effective because people feel uncertain and assume others know more.
- Promises of secret knowledge and staged exclusivity prey on people who 'don't know what they don't know.'
I Am Academy Targeted Young People
- Jen and Jill describe I Am Academy (iMarketsLive) as a trading-course MLM that charged monthly fees and waived them if you recruited others.
- The FTC alleged it scammed clients out of $1.2 billion and targeted young, often minority, audiences.
