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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?

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