S4:E10 The Hidden History of Multi-Level Marketing
The story of how pyramid schemes came to effect 1 in 6 American households
Multi-level marketing (MLM) is a relatively new invention. It was created when a failed vitamin salesman named Carl Rehnborg was out of options. So his wife suggested that he attend a rally by Dale Carnegie, author of “How to Win Friends and Influence People”. Once there, he formed a bond that created one of the most profitable predatory financial traps in modern history: multi-level marketing. One that found its legs… in the world of cemetery plots.
Our guest in this episode is Robert FitzPatrick. He’s the founder of PyramidSchemeAlert.org, a non-profit that tells the truth about pyramid schemes. He’s also the author of the excellent book Ponzinomics: The Untold Story of Multi-Level Marketing.
Discussion Questions:
- Do you know someone who sells for an MLM?
- Have you ever sold for an MLM?
- Do you think they should be legal?
- What is market saturation and how does it impact salespeople?
- Have you ever bought an item that you didn’t need just because the salesperson was so good?
- What can you do to show MLMs for what they are?
- Has anyone at your church ever tried to sell you on an MLM?
- How can tying a bad business practice impact how people see Jesus?
Helpful Links:
- PyramidSchemeAlert.org – Robert’s Website about MLMs
- Ponzinomics: The Untold Story of Multi-Level Marketing
- A Consumer Reports article about vitamins
- A fascinating history of cemetery plots
