Scamfluencers Multi-Level Marketing: Your Product is You | 162
Jun 9, 2025
Bridget Read, a journalist and author of 'Little Bosses Everywhere,' joins to discuss her extensive research on pyramid schemes and multi-level marketing (MLM). She reveals the psychological allure and deceptive practices that attract individuals, particularly vulnerable demographics like women of color. The podcast examines the historical evolution of MLMs, their ties to conservative politics, and the emotional toll they take on participants. Read shares insights into the illusory nature of self-worth in MLMs, making this conversation a compelling critique of modern entrepreneurship.
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Josie's MLM Burnout Story
- Josie, a former makeup artist, joined an MLM selling workout routines and health shakes with initial success.
- Despite making over $100K and buying luxury items, she and top earners were exhausted and unhappy, leading her to quit.
MLM is a Recruitment Pyramid
- MLMs pay participants mainly through recruiting new members and their product purchases, not retail sales.
- This structure forms a pyramid scheme that rewards recruitment over actual product selling.
Purchase Volume Fuels MLM Ponzi
- MLMs pay participants based on 'purchase volume' from recruits regardless of actual retail sales.
- This incentivizes endless recruiting and buying products without regard to sales, creating a multi-tiered Ponzi scheme.
