People as diverse as Kamala Harris and Donald Trump support multi-level marketing
Multi-level marketing companies have very powerful friends. Here is a list of some of the well-connected people tied to MLMs:
- Vice President Kamala Harris
- Former President Donald Trump
- Mitt Romney
- Madeleine Albright
- Former President Bill Clinton
- The former head of the Chamber of Commerce
- and many more
How is it that a business model where over 99% of the people involved will lose money is still legal? The answer is in the list.
My guest today is Robert FitzPatrick from Pyramidschemealert.org. His excellent book is Ponzinomics: The Untold Story of Multi-Level Marketing.
- A New York Times article about Kamala Harris and Doug Emhoff’s involvement with Herbalife
- A second NYT article about Harris and Emhoff
- A Washington Post article about President Trump’s “Trump Network” MLM
- A fascinating piece by Time about Herbalife
- The Washinton Post about Mitt Romney’s involvement with NuSkin
- Interesting Last Week Tonight episode about MLMs (contains strong language)
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.
- 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?