

Episode 81: MLM Nation with Bridget Read
4 snips Jun 17, 2025
Bridget Read, a journalist for New York Magazine and author of "Little Bosses Everywhere," explores the intriguing world of multi-level marketing (MLM) schemes. She uncovers how these companies, from Amway to Herbalife, have influenced American politics and social movements, often targeting women's empowerment while masking exploitation. The conversation dives into the deceptive nature of MLMs, their historical roots, and eerie parallels with Silicon Valley investment practices, revealing a complex interplay of ambition, gender dynamics, and economic inequality.
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Origins of MLM Pyramid Scheme
- MLMs originated from door-to-door selling in the mid-20th century, transforming traditional direct sales into recruitment-based schemes.
- The key innovation is rewarding people for product purchases within their recruited downline, not actual consumer sales, creating a pyramid structure.
Affinity Fraud Powers MLMs
- MLMs heavily rely on affinity fraud by exploiting trust within communities and social networks.
- The scheme targets friends and neighbors, making it more insidious than traditional lone salesmen tactics.
MLM and Labor Protections
- MLMs helped entrench independent contractor status to evade labor protections introduced by the New Deal.
- This marginalization feminized the workforce and preempted unionization and labor rights.