“News” Articles on MLM Uphold Myths and Lies, Mislead
News and feature articles on “multi-level marketing” are now a distinct genre in the media. I should know. I am frequently interviewed for them. I and several colleagues play a small (about two sentences usually) but essential part in the MLM-genre. In these uplifting stories of success and hope, illustrated by happy faces and cheering crowds, I am the “MLM critic,” spoiling the mood with unexplained “opinions” about deception, fraud, cults and pyramid schemes.
These “MLM” stories are not prompted by investigative research, economic studies or government prosecutions (which have all but ceased in recent years). The news peg, if “news” is even the proper term, is that social media is suddenly and alarmingly swarming with MLM solicitations. Dismayingly, the demographic target for this recent tsunami of recruiting is not the poor or the immigrant, but, apparently, young adult women, educated and middle class. New and fast growing MLMs are tailored to this group, including Rodan & Fields, Stella & Dot, LuLaRoe and, one of the latest, Bellame. These new MLMs exude fun, sexiness, sisterhood, feminism, and an alluring potential for wealth and fulfillment!
Many of the reporters given the MLM-genre story assignment, educated middle-class professionals themselves, must explain a mass mania among their peers which, they tell me, they recognize as a cheesy, too-good-to-be-true scam that they would never join or support any member of their family to join. But they are under time and space restraints. Intuitively and with career savvy they also know their editors will never accept a story showing MLM as a preposterous fraud. The realities of a corrupted FTC and Congress protecting a racket based on charging hundreds or thousands for a non-existent “unlimited income” and “infinite expansion” are literally unpublishable. So, they write the usual fantasy story about personal sales of face creams or leggings as if it is the wave of the future and a breakthrough business model that can rescue the American Dream. A 2009 New York Times article included, as have others, the Direct Selling Association’s mathematically impossible claim that the “median” (half make more, half less) income of all MLMers is $2,400. If it were true, total “commissions” would have to be greater than the industry’s stated total revenue, which is obviously impossible. A calculator, not an expert or a critic, is all that is needed to indisputably prove the number is outrageously false. They printed it anyway and refused to retract it. Why? Perhaps because the actual median income is zero. Far more than half of all MLMers gain nothing at all.
A slight variation on the genre are stories that focus on personal mistrust and disruption that MLMs cause among friends and family. In these, as well as in those that focus on income, the MLM “business model” is treated as legitimate with “risks.” A typical example is a January 2019 piece in the Washington Post, “How MLMs are Hurting Female Friendships.” It is subtitled, “These businesses carry well-known financial risks. But what about the social costs?”
MLM-genre articles contribute to why so many people can no longer distinguish valid journalism from PR, propaganda, fake news and deceptive marketing. Presented as feature news stories, consumer protection pieces, cultural trend alerts or, occasionally, as business news, nearly all the articles could seemingly have been written by the same author. They repeat the talking points concocted by the Direct Selling Association and unwittingly repeated millions of times over by MLM recruiters. They include non-fact-checked profiles of “success” and false or misleading income claims without qualification. They reinforce the message that if you lost money in MLM, that’s just how “business” works sometimes… sucks to be you.
It is my experience that the journalists themselves are not deliberately deceptive. I have talked with many of them before and after the pieces have run. Inevitably they insist their articles are “fair and balanced” (noting that my own negative quote was included). DSA data are defended as valid, even when mathematically impossible because it is a “trade association,” and of course, they remind me that the FTC itself treats MLM as “legitimate.” Many admit they knew nothing about the workings of MLM or its history or its political lobby. They relied on what is accepted as the truth and wrote what their editors were willing to print, demonstrating that the aphorism, a lie repeated often enough becomes the truth and big lies are believed more than small ones, applies to the news media itself.
These MLM-genre stories overwhelmingly leave three interconnected impressions upon readers, which are “colossally” and “infamously” false:(see footnote)*
(1) “MLM” is based on retailing personal and household goods to friends and family, i.e., direct selling. At the same time, MLM is a breakthrough new business model unlike any other, and so powerful it can rescue millions from today’s economic pressures.
(2) There’s a true opportunity for anyone to make extra or a lot of money, full time or part time, in MLM and millions of people are doing it. You could too… if you work hard. The opportunity never diminishes.
(3) Most people don’t even try to do “the business”. Instead, they sign sales contracts and pay fees as “sales contractors” just to buy MLM products at a slightly lower price. Because so few “try,” income disclosures, loss rates and attrition may appear hopelessly negative and often prompt warnings about dire “odds” in MLM.
Takeaway: In an era of hyper-competition for decent jobs, college and credit card debt, unaffordable housing and health care, MLM is one place where hope still abounds and extraordinary income is truly possible. The main requirements, according to successful people, are “hard work” and “belief.”
In actuality, the percent of new recruits gaining even a penny of net profit is, effectively, ZERO. The system is designed to produce that rate of loss. The calculated losses of the 99% are transferred to the company and the top 1% of recruiters as “commissions” and “profits”.
Here, for example, is a recent and typical news story, entitled, How Much Money Do Multilevel Marketers in Charlotte Actually Make Selling You Things on Facebook? The headline already sets up the conclusion: MLM “marketers” do make money. The online publication in Charlotte NC claims 400,000 unique visitors a month, aimed at readers under 40. The article features the usual pleasing graphics of smiling faces, images of togetherness and attractively arranged products. In tone and intent it is offered as factual, informative and helpful. This one like most others includes disclaimers and cites one study showing 99% consumer loss rates.
Here are some imbedded deceptions, diversions and omissions in this piece, representing so many others of the MLM-genre:
1. The only individuals interviewed or referred to in the entire article claim to be “successful” in MLM.
One was formerly a non-believer, but is now a convert and happily getting thousands a month. One who is associated with the new MLM, Bellame, says she gets $8,000-15,000 a month, plus a $71,000 bonus. Another, with Rodan & Fields, says she makes $6,000 a month plus “perks like earning vacations, designer watches, jewelry, handbags and laptops.” Yet another from the MLM, Plexus, is a “Senior Ruby Ambassador” claiming to get more than $5,000/month on average from a downline of over 400 people. There is no mention of her downline’s average income because she claims, “About 80% of those people came in for the wholesale price and have no interest working the business. They just love the products”. And then another also with Bellame says she makes $4,000 a month “plus car, cruises and vacations.”
2. The losers – the article cites one source that they could be as many as 99% – have no face, no name, no story. They are lifeless stats.
Some of these MLM-genre pieces may include the voice of a “loser” who may blame the company or claim to have been misled. His or her experience is drowned and dispelled by other inspiring stories of success and overcoming great difficulties or doubts, making it seem that “failure” by anyone else is mostly a personal matter.
3. Color photos show happy, excited young women — hardly the faces of losers and seemingly undaunted by some of the article’s disclaimers and warnings. If they aren’t afraid, why should the reader be? If they see possibility and reason for hope, what’s wrong with you?
4. Income Disclosures of several MLMs are cited that, incomprehensibly, contradict the happy, hopeful message and stories by winners.
Against the stories and the images, these cold data points and stats tend to fade, like privacy statements when downloading apps. The happy successful people, the amazing stories of conversion, success and prosperity and the pleasing images drive the disturbing data from readers’ consciousness. Humans cannot hold two directly opposing and contradictory thoughts at the same.
5. The upsetting income disclosure data, though seemingly negative, are actually blunted and misleading. Reality is worse.
One company, for example, discloses that “44% earned no compensation” and “of those that were paid 60% earned less than $1,000.” Combining those figures shows 78% of participants gained on average less than $20 a week, with the majority of that 78% getting zero, and nearly two-thirds no more than $5 a week. Also, the term “earnings”, is before costs, purchases and fees are deducted.
6. Disclosure data are invalidated by the unchallenged statement that all losses are voluntary.
As one of the featured winners claimed without evidence, in the Charlotte-area article – and as someone always claims in MLM-genre stories – most people in MLM sign up as salespeople, not to make any money or even to sell products, but only to get the products at a discount. They they did not even “try” to succeed.
For this amazing claim to make sense, all those people would have decided the “opportunity” was not worth their effort or they had no need for any “extra” money. This is beyond belief. For this group to have been willing to sign “sales contracts” and pay fees just to get discounts, there would have to be a very large number of people paying full retail price. If there isn’t such a “retail” base, why would someone pay to get a discount? In fact, there is no evidence such “retail-paying” people exist and there is no reference to retail customers in MLM-genre articles. For a profitable retail market to exist, there would need to be a large base of retail sellers. In fact, there is no evidence of retail sellers either. If 80% of the “salespeople” aren’t selling, just buying based on “love” of products, who is making the retail sales?
Then there is the matter of retention. If these 80% “love” the product so much, then surely they are also loyal. Yet, the fact is most people in MLM quit buying and never buy again, in less than a year. What happened to the “love”?
Then there is the matter of retention. If these 80% “love” the product so much, then surely they are also loyal. Yet, the fact is most people in MLM quit buying and never buy again, in less than a year. What happened to the “love”?
7. And, the greatest deception: “Odds” are defeated by “hard work.”
The gist of the MLM-genre stories is that data show difficult “odds” but the winners prove that those odds can be overcome by anyone with “hard work.” This makes MLM appear like any other career opportunities or competitive business ventures. The articles normalize the impossible “endless chain” proposition as viable for all. The absence of an explanation of “endless chains” and its consequences along with the images of happy faces, stories of success and descriptions of the “business” as ordinary “direct selling” make the terrible truth of the “endless chain” invisible to the reader.
In fact, as an “endless chain” recruiting model, MLM is rigged – fixed. The losses are inherent and would occur no matter how many “tried” and “worked hard.” Those at the top always win. Last ones in – always lose. Making money in MLM, as the MLM-genre articles readily acknowledge, depends on how many people are in a person’s downline. This puts the entire model into a math paradigm. For there to be new winners with large downlines, there must be a corresponding and much larger number of new losers at the bottom of those downlines.
MLM’s absurd claim of “unlimited” expansion is unchallenged, even when data show the impossibility. For example, the MLM-genre article used as an example states that the state of North Carolina currently has 446,000 MLMers. That means 10% of all households are currently enrolled! There are only nine, on average, for each MLM to recruit. And that’s not counting all the past losers that quit and won’t join again!
In the absence of any authoritative voices or analysis offering reality and issuing urgent warnings about MLM as a calculated trap, or calling for federal investigation, the MLM-genre articles pass for valid journalism and are trusted. Millions are influenced to join and, after losing time and money and finally quitting, they are left only to conclude they did not beat the odds because they didn’t “work hard.”
Robert FitzPatrick (copyright 2019)
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(Although the following statement remains unthinkable to many people, the quantifiable evidence proves it to be an accurate summary of the current tragicomic situation regarding the 'MLM' cult phenomenon and, therefore, I make no apologies for it).
Today, due to its duration, the number of persons it has defrauded and exploited (and continues to defraud and exploit), the vast amount of money its peddling has unlawfully generated (and continues to generate) and the depth to which it has been allowed to gnaw its way (largely-unopposed) into the heart of traditional culture: the big lie entitled, 'Multi-Level Marketing,' poses one of the most-serious threats to freedom and the rule of law since the end of World War II.
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http://en.wikipedia.org/wiki/Godwin's_law
Unfortunately, as soon as anyone dares to compare kitsch, latter-day cultic groups to Adolf Hitler and the 'Nazis,' casual observers have a tendency to throw up their hands in horror and deny that this apparently shocking comparison can be valid or appropriate. There are even some academically-qualified casual observers who will point to what is known as Godwin's Law. However, Godwin's Law (which was created with the intention of stopping thoughtless persons from making glib statements) specifically allows thoughtful and appropriate comparisons to be made with Adolf Hitler and the 'Nazis.'
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'If you tell a lie big enough and keep repeating it, people will eventually come to believe it. The lie can be maintained only for such time as the State can shield the people from the political, economic and/or military consequences of the lie. It thus becomes vitally important for the State to use all of its powers to repress dissent, for the truth is the mortal enemy of the lie, and thus by extension, the truth is the greatest enemy of the State.'
Given its content, it is supremely ironic that there is no evidence for Joseph Goebbels ever having made the above statement (so often ascribed to him). That said, it is a pretty accurate summary of Goebbels' infexible approach as Adolf Hitler's propaganda chief. Indeed, before murdering his own children and shooting himself (rather than facing reality), Goebbels spent the last years of his life writing, producing, directing and performing endless ritual performances of the reality-inverting, closed-logic 'Nazi' controlling-narrative that the heroic and honest superhuman leader of the 'Noble Aryan Master Race,' was telling the truth, whilst the degenerate corrupt leaders of Britain and the USA (controlled by the forces of evil - Freemasons, subhuman Jews, etc.) were repeating big lies.
The origin of the first part of the above quote would appear to have been a psychological profile of Adolf Hitler, compiled in the
This document concluded that:
'Hitler's primary rules were -
'Hitler's primary rules were -
- never allow the public to cool off;
- never admit a fault or wrong;
- never concede that there may be some good in your enemy;
- never leave room for alternatives;
- never accept blame;
- concentrate on one enemy at a time and blame him for everything that goes wrong;
- people will believe a big lie sooner than a little one and if you repeat it frequently enough people will sooner or later believe it.'
Prior to the full-extent of his crimes being uncovered, Hitler's psychological profile was drafted by a team of medically-qualified academics who had apparently been studying 'Mein Kampf,' Chapter 10:
'... in the big lie there is always a certain force of credibility; because the broad mass of a nation are always more easily corrupted in the deeper strata of their emotional nature than consciously or voluntarily; and thus in the primitive simplicity of their minds they more readily fall victims to the big lie than the small lie, since they themselves often tell small lies in little matters but would be ashamed to resort to large-scale falsehoods. It would never come into their heads to fabricate colossal untruths, and they would not believe that others could have the impudence to distort the truth so infamously. Even though the facts which prove this to be so may be brought clearly to their minds, they will still doubt and waver and will continue to think that there may be some other explanation. For the grossly outrageous lie always leaves traces behind it, even after it has been nailed down, a fact which is known to all expert liars in this world and to all who conspire together in the art of lying.'
For more than a decade, the infallible 'Führer' was a 'Big Lie' - a long-con beyond the reach of the law in Germany; for the 'Nazi' controlling-narrative, gave Hitler a false-justification to exile, and/or imprison, and/or have assassinated, any ordinary mortal challenging his authority. It is now generally accepted that Hitler transformed into a megalomaniacal psychopath. The unconditional deference of his deluded followers only served to confirm, and magnify, his own increasingly-paranoid, and self-righteous, delusions of grandeur.
'Multi-Level Marketing' warning:
The following deconstructed analysis has been formulated to sharpen the critical and evaluative faculties of all unwary persons approaching so-called 'Multi-Level Marketing' from the dangerous (subjective) point of view that it must be a business/industry, rather than from the safe (purely-objective) point of view that they don't really know what it is.
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More than half a century of quantifiable evidence, proves beyond all reasonable doubt that:
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More than half a century of quantifiable evidence, proves beyond all reasonable doubt that:
- the widely-misunderstood phenomenon that has become popularly-known as 'Multi-Level Marketing' (a.k.a. 'Network Marketing') is nothing more than an absurd, non-rational, cultic, economic pseudo-science maliciously-designed to lure unwary persons into de facto servitude, dissociate them from external reality and not only steal their money, but also deceive them into unconsciously acting the role of bait to lure other unwary persons (particularly their friends and family members) into the same trap.
- the impressive-sounding made-up jargon term, 'MLM,' is therefore, the misleading title for an enticing structured-scenario of control which has been developed, and constantly acted out as reality, by the instigators, and associates, of various copy-cat, major and minor, ongoing organised crime groups (hiding behind labyrinths of legally-registered corporate structures) to shut-down the critical, and evaluative, faculties of victims, and of casual observers, in order to perpetrate, and dissimulate, a series of blame-the-victim 'Long Cons*' - comprising self-perpetuating rigged-market swindles**, a.k.a. pyramid scams (dressed up as 'legitimate direct selling income opportunites') and related advance-fee frauds (dressed up as 'legitimate: training and motivation, self-betterment, programs, recruitment leads, lead generation systems,' etc.).
- Apart from an insignificant minority of shills (whose leading-role in the 'Long Con' has been to pretend that anyone can achieve financial freedom simply by following their unquestioning example and exactly-duplicating a step-by-step-plan of recruitment and self-consumption), the hidden overall net-loss/churn rate for participation in so-called 'MLM income opportunities,' has always been effectively 100%.
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*A 'Long Con' is a form of fraud maliciously designed to exploit victims' existing beliefs and instinctual desires and make them falsely-believe that they are exercising a completely free-choice. 'Long Cons' comprise an enticing structured-scenario of control acted out as reality over an extended period. Like theatrical plays, 'Long Cons' are written, directed and produced. They involve leading players and supporting players as well as props, sets, extras, costumes, script, etc. The hidden objective of 'Long Cons' is to convince unwary persons that fiction is fact and fact is fiction, progressively cutting them off from external reality. In this way, victims begin unconsciously to play along with the controlling-scenario and (in the false-expectation of future reward) large sums of money or valuables can be stolen from them. Classically, the victims of 'Long Cons' can become deluded to such an extent that they will abandon their education, jobs, careers, etc., empty their bank accounts, and/or beg, steal, borrow from friends, family members, etc.
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** The enticing structured-scenario of control fundamental to all 'rigged-market swindles' is that people can earn income by first contributing their own money to participate in a profitable commercial opportunity, but which is secretly an economically-unviable fake due to the fact that the (alleged) opportunity has been rigged so that it generates no significant, or sustainable, revenue other than that deriving from its own ill-informed participants. For more than 50 years, 'Multi-Level Marketing' racketeers have been allowed to dissimulate rigged-market swindles by offering endless-chains of victims various banal, but over-priced, products, and/or services, in exchange for unlawful losing-investment payments, on the pretext that 'MLM' products/services can then be regularly re-sold for a profit in significant quantities via expanding networks of distributors. However, since 'MLM' products/services cannot be regularly re-sold to the general public for a profit in significant quantities (based on value and demand), 'MLM' participants have, in fact, been peddled infinite shares of their own finite money (in the false expectation of future reward).
Thus, in 'MLM' rackets, the innocent looking products/sevices' function has been to hide what is really occurring - i.e The operation of an unlawful, intrinsically fraudulent, rigged-market where effectively no non-salaried (transient) participant can generate an overall net-profit, because, unknown to the non-salaried (transient) participants, the market is in a permanent state of collapse and requires its non-salaried (transient) participants to keep finding further (temporary) de facto slaves to sustain the enticing illusion of stability and viability.
Meanwhile an insignificant (permanent) minority direct the 'Long Con' - raking in vast profits by selling into the rigged-market and by controlling/withholding all key-information concerning the rigged-market's actual catastrophic, ever-shifting results from its never-ending chain of (temporary) de facto slaves.
Although cure-all pills potions and vitamin/dietary supplements, household and beauty, products have been most-prevalent, it is possible to use any product, and/or service, to dissimulate a rigged-market swindle. There are even some 'MLM' rackets that have been hidden behind well-known traditional brands (albeit offered at fixed high prices). Some 'MLM' rackets have included 'cash-back/discount shopping cards, travel products, insurance, energy/communications services' and 'crypto-currencies' in their controlling scenarios.
No matter what bedazzling product/service has been dangled as bait, in 'MLM' rackets, there has been no significant or sustainable source of revenue other than never-ending chains of contractees of the 'MLM' front companies. These front-companies always pretend that their products/services are high quality and reasonably-priced and that for anyone prepared to put in some effort, the products/services can be sold on for a profit via expanding networks of distributors based on value and demand. In reality, the underlying reason why it has mainly only been (transient) 'MLM' contractees who have bought the various products /services (and not the general public) is because they have been tricked into unconsciously playing along with the controlling scenario which constantly says that via regular self-consumption and the recruitment of others to do the same, etc. ad infinitum, anyone can receive a future (unlimited) reward.
I've been examining the 'MLM' phenomenon for around 20 years. During this time, I've yet to find one so-called 'MLM' company that has voluntarily made key-information available to the public concerning the quantifiable results of its so-called 'income opportunity'.
Part of the key-information that all 'MLM' bosses seek to hide concerns the overall number of persons who have signed contracts since the front companies were instigated and the retention rates of these contractees.
When rigorously investigated, the overall hidden net-loss churn rates for so-called 'MLM income opportunites' has turned out to have been effectively 100%. Thus, anyone claiming (or implying) that it is possible for anyone to make a penny of net-profit, let alone a living, in an 'MLM,' cannot be telling the truth and will not provide quantifiable evidence to back up his/her anecdotal claims.
Although a significant number of 'MLM' front-companies (like 'Vemma', 'Fortune Hi-Tech Marketing', 'Wake Up Now') have been shut-down by commercial regulators, some of the biggest 'MLM' rackets (like 'Amway' ,'Herbalife', Forever Living Products' ) have continued to hide in plain sight whilst secretly churning tens of millions of losing participants over decades.
The quantifiable results of the self-perpetuating global 'Long Con' known as 'Multi Level Marketing,' have been fiendishly hidden by convincing victims that they are 'Independent Business Owners' and that any losses they incurred, must have been entirely their own fault.
Blog readers should observe how (in the above linked-videos) chronic victims of 'MLM' cults are incapable of describing what they were subjected to in accurate terms. Even though they are no longer physically playing along with the 'Long Con's' controlling-scenario, they unconsciously continue to think, and speak, using the jargon-laced 'MLM' script - illogically describing themselves as 'Distributors.'
Chronic victims of blame-the-victim cultic rackets who have managed to escape and confront the ego-destroying reality that they’ve been systematically deceived and exploited, are invariably destitute and dissociated from all their previous social contacts. For years afterwards, recovering cult victims can suffer from psychological problems (which are also generally indicative of the victims of abuse):
depression; overwhelming feelings (guilt, grief, shame, fear, anger, embarrassment, etc.); dependency/ inability to make decisions; retarded psychological/ intellectual development; suicidal thoughts; panic/ anxiety attacks; extreme identity confusion; Post-Traumatic Stress Disorder; insomnia/ nightmares; eating disorders; psychosomatic illness, fear of forming intimate relationships; inability to trust; etc.
David Brear (copyright 2019)
** The enticing structured-scenario of control fundamental to all 'rigged-market swindles' is that people can earn income by first contributing their own money to participate in a profitable commercial opportunity, but which is secretly an economically-unviable fake due to the fact that the (alleged) opportunity has been rigged so that it generates no significant, or sustainable, revenue other than that deriving from its own ill-informed participants. For more than 50 years, 'Multi-Level Marketing' racketeers have been allowed to dissimulate rigged-market swindles by offering endless-chains of victims various banal, but over-priced, products, and/or services, in exchange for unlawful losing-investment payments, on the pretext that 'MLM' products/services can then be regularly re-sold for a profit in significant quantities via expanding networks of distributors. However, since 'MLM' products/services cannot be regularly re-sold to the general public for a profit in significant quantities (based on value and demand), 'MLM' participants have, in fact, been peddled infinite shares of their own finite money (in the false expectation of future reward).
Thus, in 'MLM' rackets, the innocent looking products/sevices' function has been to hide what is really occurring - i.e The operation of an unlawful, intrinsically fraudulent, rigged-market where effectively no non-salaried (transient) participant can generate an overall net-profit, because, unknown to the non-salaried (transient) participants, the market is in a permanent state of collapse and requires its non-salaried (transient) participants to keep finding further (temporary) de facto slaves to sustain the enticing illusion of stability and viability.
Meanwhile an insignificant (permanent) minority direct the 'Long Con' - raking in vast profits by selling into the rigged-market and by controlling/withholding all key-information concerning the rigged-market's actual catastrophic, ever-shifting results from its never-ending chain of (temporary) de facto slaves.
Although cure-all pills potions and vitamin/dietary supplements, household and beauty, products have been most-prevalent, it is possible to use any product, and/or service, to dissimulate a rigged-market swindle. There are even some 'MLM' rackets that have been hidden behind well-known traditional brands (albeit offered at fixed high prices). Some 'MLM' rackets have included 'cash-back/discount shopping cards, travel products, insurance, energy/communications services' and 'crypto-currencies' in their controlling scenarios.
No matter what bedazzling product/service has been dangled as bait, in 'MLM' rackets, there has been no significant or sustainable source of revenue other than never-ending chains of contractees of the 'MLM' front companies. These front-companies always pretend that their products/services are high quality and reasonably-priced and that for anyone prepared to put in some effort, the products/services can be sold on for a profit via expanding networks of distributors based on value and demand. In reality, the underlying reason why it has mainly only been (transient) 'MLM' contractees who have bought the various products /services (and not the general public) is because they have been tricked into unconsciously playing along with the controlling scenario which constantly says that via regular self-consumption and the recruitment of others to do the same, etc. ad infinitum, anyone can receive a future (unlimited) reward.
I've been examining the 'MLM' phenomenon for around 20 years. During this time, I've yet to find one so-called 'MLM' company that has voluntarily made key-information available to the public concerning the quantifiable results of its so-called 'income opportunity'.
Part of the key-information that all 'MLM' bosses seek to hide concerns the overall number of persons who have signed contracts since the front companies were instigated and the retention rates of these contractees.
When rigorously investigated, the overall hidden net-loss churn rates for so-called 'MLM income opportunites' has turned out to have been effectively 100%. Thus, anyone claiming (or implying) that it is possible for anyone to make a penny of net-profit, let alone a living, in an 'MLM,' cannot be telling the truth and will not provide quantifiable evidence to back up his/her anecdotal claims.
Although a significant number of 'MLM' front-companies (like 'Vemma', 'Fortune Hi-Tech Marketing', 'Wake Up Now') have been shut-down by commercial regulators, some of the biggest 'MLM' rackets (like 'Amway' ,'Herbalife', Forever Living Products' ) have continued to hide in plain sight whilst secretly churning tens of millions of losing participants over decades.
The quantifiable results of the self-perpetuating global 'Long Con' known as 'Multi Level Marketing,' have been fiendishly hidden by convincing victims that they are 'Independent Business Owners' and that any losses they incurred, must have been entirely their own fault.
Blog readers should observe how (in the above linked-videos) chronic victims of 'MLM' cults are incapable of describing what they were subjected to in accurate terms. Even though they are no longer physically playing along with the 'Long Con's' controlling-scenario, they unconsciously continue to think, and speak, using the jargon-laced 'MLM' script - illogically describing themselves as 'Distributors.'
Chronic victims of blame-the-victim cultic rackets who have managed to escape and confront the ego-destroying reality that they’ve been systematically deceived and exploited, are invariably destitute and dissociated from all their previous social contacts. For years afterwards, recovering cult victims can suffer from psychological problems (which are also generally indicative of the victims of abuse):
depression; overwhelming feelings (guilt, grief, shame, fear, anger, embarrassment, etc.); dependency/ inability to make decisions; retarded psychological/ intellectual development; suicidal thoughts; panic/ anxiety attacks; extreme identity confusion; Post-Traumatic Stress Disorder; insomnia/ nightmares; eating disorders; psychosomatic illness, fear of forming intimate relationships; inability to trust; etc.
David Brear (copyright 2019)
The quantifiable results of the self-perpetuating global 'Long Con' known as 'Multi Level Marketing,' have been fiendishly hidden by convincing victims that they are 'Independent Business Owners' and that any losses they incurred, must have been entirely their own fault.
Blog readers should observe how (in the above linked-videos) chronic victims of 'MLM' cults are incapable of describing what they were subjected to in accurate terms. Even though they are no longer physically playing along with the 'Long Con's' controlling-scenario, they unconsciously continue to think, and speak, using the jargon-laced 'MLM' script - illogically describing themselves as 'Distributors.'
Chronic victims of blame-the-victim cultic rackets who have managed to escape and confront the ego-destroying reality that they’ve been systematically deceived and exploited, are invariably destitute and dissociated from all their previous social contacts. For years afterwards, recovering cult victims can suffer from psychological problems (which are also generally indicative of the victims of abuse):
depression; overwhelming feelings (guilt, grief, shame, fear, anger, embarrassment, etc.); dependency/ inability to make decisions; retarded psychological/ intellectual development; suicidal thoughts; panic/ anxiety attacks; extreme identity confusion; Post-Traumatic Stress Disorder; insomnia/ nightmares; eating disorders; psychosomatic illness, fear of forming intimate relationships; inability to trust; etc.
David Brear (copyright 2019)
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