Multi-Level Marketing Schemes: History, How They Work, and a Leggings Horror Story

The Reference Desk

In this episode, Katie is bewitched (more like deeply bothered) by multi-level marketing.
MLMs are synonymous with #bossbabes, promises of easy money, and uncomfortable sales pitches that make it hard to say no. But below the pyramid, er, surface, MLMs are far more insidious. In this first episode of a two-part series, we cover the history of multi-level marketing from its connection to direct selling, the genius of Brownie Wise, and the birth of Amway. We also take a look at the structure of MLMs, including how the promises in glossy onboarding pamphlets play out in actual income, what the top tier folks are really selling, and why it’s so easy to get caught up - and then trapped- in the MLM world. Finally, we’ll put it all together with a look at the horror story that is LulaRoe, an MLM leggings company that made billions in profits before they lost the trust of their consultants and customers with moldy clothing, pressure to lose weight, and financial manipulation.

Staff picks:

Katie: The Free People’s Village by Sim Kern

Hailee: Scamanda [Lionsgate Sound, hosted by Charlie Webster]

Sources:
The Tools Cult: History of the Amway Motivational Tape Scam
All other sources

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