KQED's Forum How Multi-level Marketing Became America’s ‘Unseen Propaganda Factory’
Jun 3, 2025
Bridget Read, features writer for New York Magazine and author of 'Little Bosses Everywhere,' unpacks the deceptive allure of multi-level marketing (MLM) schemes. She reveals that 99% of participants earn little to no profit, likening their odds to gamblers in a casino. The conversation dives into the historical ties between MLMs and the political right, exposing how these companies exploit economic hardships. Read also discusses the cultural implications of MLMs, especially for women seeking flexible work, shedding light on the emotional toll and societal pressures they face.
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MLM Model Explained
- MLM companies allow distributors to recruit others and earn commissions from their purchases, creating a downline structure.
- This model can easily become a Ponzi scheme if actual product sales are minimal compared to purchases by participants.
Illusory MLM Retail Sales
- MLM 'retail sales' figures are actually hypothetical estimates based on distributor purchases, not verified consumer sales.
- This inflates the perception of MLMs as lucrative retail businesses despite unclear actual demand.
Monique’s Mary Kay Experience
- Monique joined Mary Kay with a small fee but quickly spent $1,800 on products she barely knew how to use.
- Her purchases inflated reported sales, benefiting her upline even without actual customer sales.
