Multi-Level Marketing Lies

podcast Mar 28, 2024

Multi-level marketing (MLM) companies overwhelmingly target women with their schemes. You are sold an "opportunity" to make money from home, working when and where you want, and making as much money as you want. You're told that you'll "be your own boss" and you'll be able to move up in the company whenever you choose, and you don't have to wait for a promotion from an executive. You'll likely be sold on the ideas of "unlimited income" and "financial freedom" and being an "entrepreneur."

All of these things are lies.

MLM companies are nothing more than pyramid schemes that prey on vulnerable people. People like women coming out of divorce who are desperate to make some extra money or get back into the workforce after being a stay-at-home mom.

The topic of financial abuse and lies by representatives for MLMs is our topic on this week's podcast. Emily Paulson, author and founder of Sober Mom Squad, discusses with us the deceptive nature of multi-level marketing and its impact on women. She is sharing her personal experience with MLM and she talks about the predatory tactics used by MLM companies.

What is MLM 

Multi-level marketing, or MLM, is a business model based on the concept of recruiting others into the system. The companies often use other names to describe what they do: direct selling, social selling, network marketing, or referral marketing. All of these names are just meant to disguise what they do and make you think it's not MLM. Another way to describe MLM is.... pyramid scheme. In pyramid schemes, the name of the game is recruiting. The recruiters at the top of the pyramid get rich, while more than 99% at the bottom lose money.

MLM companies pretend that their products are the focus of the "business." This is untrue. Yes, there is a product that is used to make this look like a legitimate retail business. But very little of the products are sold to outside consumers. Almost all of the products are sold to people in the pyramid who are trying to qualify to move up, and they will sell very little of those products to an end user.

How Vulnerable Women are Sucked into MLMs

Divorcing women are often in difficult financial situations and seek opportunities to earn more money. MLM representatives often prey on that financial need to lure women into their companies. Emily has firsthand experience of being lured into an MLM and how dark the experience was for her.

Emily explains that many MLMs were designed to specifically target women, offering false promises of financial freedom and empowerment. Across all MLMs geared toward women, we see manipulation tactics and shame being used to keep participants engaged and prevent them from leaving.

Should You Buy MLM Products?

Short answer, no. Buying MLM products is a bad thing because it supports this abusive system. Speaking out about personal experiences with MLMs, as Emily does, is crucial in combating the deceptive practices of these companies.

Hear the episode now and learn how to not get taken with these "business opportunities."

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