At the beginning of my journey into multi-level marketing (MLM), I felt an overwhelming sense of serendipity. Like many others, I was drawn into the promise of freedom, financial independence, and the power of owning my own business. That initial excitement felt so right, I even got a “trust the process” tattoo to anchor myself in the belief that I was on the right path. But the deeper I delved into this world, the more I realized the complexities and underlying control tactics that defined it.

Reflecting on my early days in the MLM space, I can’t help but think of how magical the thinking felt. I truly believed I was guided into the opportunity. But as time went on, the inconsistencies, emotional manipulation, and exploitative nature became impossible to ignore. It’s been a journey of grieving that magical thinking—something I now understand as part of a coercive, controlling system designed to keep me chasing an illusion.

Brandie, my guest on this episode, shares a similar experience. As a mother, writer, speaker, and advocate, she’s been at the forefront of exposing MLMs as commercial cults, wellness scams, and even legalized labor trafficking. She has spoken extensively about how her journey, which started with serendipity, eventually led her to scrutinize MLMs more critically. Her insights reflect the emotional complexity many face when disentangling from these organizations.

Here are some key aspects of our conversation:

• The Magical Thinking Trap: Both Brandie and I felt an initial sense of serendipity, which was reinforced by the community and mentors telling us to “trust the process.” This belief system is intentionally nurtured in MLMs to keep participants emotionally invested.
• Leveraging Credentials: We discussed how MLMs often leverage the credentials and influence of professionals like doctors, nutritionists, and influencers to give the illusion of legitimacy. Brandie emphasized how this tactic makes MLM pitches more persuasive, especially to vulnerable individuals seeking validation.
• The “Mother” Angle: Brandie shared how MLMs often target mothers, using manipulative language that preys on their desire for financial freedom and the ability to work from home while caring for their families. The messaging can be so powerful that mothers internalize guilt and blame when they don’t succeed, despite the system being rigged against them.
• Unpaid Labor and Emotional Manipulation: We delved into how MLMs strategically manipulate participants into performing unpaid labor, like attending large-group-awareness trainings or MLM conferences, under the guise that these events will lead to success. This creates a cycle of emotional dependency on the MLM structure.
• Coercive Control Beyond the Home: Brandie highlighted the growing movement to criminalize coercive control, not just in domestic environments but also in online groups and commercial cults, including MLMs. Canada’s Bill C-332 and California’s SB 1141 are steps toward addressing this kind of manipulation in non-physical forms.
  • Misleading Social Media Practices: MLMs are notorious for using social media posts to bait others into joining, often hiding the true nature of the opportunity behind attractive lifestyle imagery and vague promises of success.
  • Paid Certifications as Funnels: Another tactic we discussed is the use of paid certifications and courses as entry points to recruit others into MLMs or similar for-profit groups, disguising recruitment as personal development.
  • Power Dynamics and Influence: Brandie warned about individuals in positions of power, like pastors or healthcare professionals, who pitch MLM opportunities using their influence, creating a dangerous overlap between authority and exploitation.
  • Bait-and-Switch in Non-Profits: Some MLMs use non-profit organizations as fronts to recruit members, exploiting charitable intentions for financial gain.

Brandie’s Substack recently covered how Canada’s Bill C-332 and California’s SB 1141 aim to combat coercive control. These laws recognize that coercion doesn’t always result in physical harm but can have long-lasting emotional and psychological effects. Extending these protections to online and commercial environments, like MLMs, is a crucial step toward addressing the hidden abuse happening in plain sight.

MLM Compensation Plans

For those unfamiliar with how MLMs work, here’s a breakdown of their typical compensation plans, which all hinge on recruitment:

• Binary: You recruit two people, who recruit two more, forming a pyramid. You earn based on the sales and recruits of those beneath you.
• Unilevel: You can recruit as many people as possible, with everyone directly under you. You earn a percentage of sales from your downline.
• Forced Matrix: There’s a limit to how many people you can recruit directly, so recruits are placed under others in your team, further embedding the hierarchical structure.

Although MLMs claim that participants can make money from sales alone, true financial gain only comes from recruiting others. Companies avoid pyramid scheme accusations by paying bonuses on downline commissions rather than direct recruitment. Still, this setup exploits participants, most of whom will never see a living wage.

MLM Profitability

Studies and reports paint a grim picture for those involved in MLMs:

• FTC Report: According to the Federal Trade Commission (FTC), approximately 99% of MLM participants end up losing money.
• Profit Sources: Success in MLMs often hinges on recruiting new participants rather than selling products to consumers, which creates a structure where the majority are positioned at the bottom, struggling to make a profit.

When it comes to making a profit, the comparison between lottery odds and MLM (multi-level marketing) success rates reveals a stark reality: both paths are fraught with significant financial risk, but MLMs typically offer even lower chances of profitability.

If you’re evaluating an MLM opportunity, watch out for:

• Deceptive earnings claims
• Manipulative recruitment tactics disguised as “personal development”
• High-pressure tactics to attend unpaid events
• Cult-like devotion to leadership or the company itself

As Brandie and I peeled back the layers, it became clear that MLMs are not just financial traps—they are systems of coercive control designed to exploit both financially and emotionally. With legal movements like Bill C-332 gaining traction, there’s hope that MLMs and similar organizations will finally face the scrutiny they deserve.

---

Grieving the magical thinking days has been bittersweet. In some ways, it was easier to believe in the serendipity, but now, stepping into a space of scrutiny offers greater growth and clarity. In that sense, the journey may be more challenging, but it’s also far more rewarding.

How MLMs and high-control religions exploit narratives to control and isolate

As we have discussed in a previous blog post, in both MLM companies and high-control religions, sophisticated methods of narrative control and emotional manipulation are used to maintain adherence and deflect objections. These organizations craft carefully curated stories of success, empowerment, and belonging, reinforcing a strong sense of group identity while discouraging critical thinking. Objections are met with pre-scripted narratives designed to dismiss doubts and isolate dissenters, creating environments where questioning becomes taboo.

By understanding the parallels between these two worlds, we can begin to recognize the underlying tactics used to manipulate emotions and maintain control. Whether it’s an MLM promising financial freedom or a religious group offering spiritual salvation, the emotional hooks are the same: they both rely on your commitment to their carefully constructed reality. Breaking free means reclaiming your own narrative, embracing skepticism, and fostering critical thought in the face of pressure to conform.

Be sure to find Brandie on Instagram and on Substack!

Resources mentioned in the interview:

• The History of Multi-Level Marketing How a Pervasive Past Shapes the Pyramids of Present-Day
• A Truth that Heals Interview
• A Little Bit Culty with Sarah and Nippy.
• Always Marco-Exposing Pyramid Schemes one at a time.
• DoubleSpeak –Always Marco
• Why Criminalization of Coercive Control Should Extend to Commercial Cults
• The Real Harm Done – by Brandie Hadfield (substack.com)

🙏 Please help this podcast reach a larger audience in hope to edify & encourage others! To do so: leave a 5⭐️ review and send it to a friend! Thank you for listening! I’d love to hear from you, find me on Instagram!⁠⁠⁠ @taste0ftruth⁠⁠⁠ or⁠⁠⁠ Pinterest! ⁠⁠ ⁠ 

Here are some of the best resources for learning more about commercial cults and anti-MLM movements:

Books:

1. Ponzinomics: The Untold Story of Multi-Level Marketing by Robert L. FitzPatrick – This book provides a thorough exploration of MLMs and their business structures, helping readers understand how they operate like legal pyramid schemes.
2. Cultish: The Language of Fanaticism by Amanda Montell – Analyzes how cults (including MLMs) use language and manipulation techniques to maintain control over their members.
3. Duped: Compulsive Consumers and the Culture of Shame by Ron Jonson – While not MLM-specific, this book delves into how we’re manipulated by industries that exploit our insecurities.

Websites & Blogs:

1. Truth In Advertising (TINA.org) – A watchdog organization that exposes deceptive marketing practices, including MLM earnings claims and false advertising.
2. MLMTruth.org – A resource dedicated to educating the public on the dangers and tactics of MLMs, providing reports and analysis on popular companies.
3. The Anti-MLM Coalition – This coalition provides insight, resources, and stories from those who’ve escaped MLMs, along with analysis of companies and their harmful practices.

YouTube Channels:

1. The Anti-MLM Coalition – A YouTube channel that breaks down how MLMs operate, featuring stories from former MLM participants and experts in cult dynamics.
2. Savannah Marie – A former MLM participant who creates in-depth critiques and investigative videos on popular MLM schemes.
3. The Recovering Hunbot – Focuses on exposing the emotional manipulation and false promises made by MLM companies.
4. Hannah Alonzo-Hosts commentary-style videos relating to multi-level marketing companies, scams, cults, and influencer/social media culture.

Podcasts:

1. The Dream – A highly-rated podcast that dives deep into the world of MLMs, offering an in-depth investigation into the industry’s history and practices.
2. Life After MLM – Hosted by Roberta Blevins, this podcast features interviews with former MLM participants, exploring the mental and financial impacts of MLMs.
3. Opportunity Cost-Hosted by a past guest, Jill, and is about multi-level marketing, each episode she covers inner workings, origins, nuances, and tries to answer the question: Is this the opportunity of a lifetime? Or the illusion of one?

Conferences & Activist Groups:

1. The Anti-MLM Conference – A yearly event that gathers MLM critics, industry experts, and scholars to discuss deceptive practices in MLMs and their broader social impacts.
2. Multi-Level Marketing Conference (MLM Conference) – A scholarly conference that brings together academics, legal experts, and former MLM participants to discuss MLMs from a critical perspective.
3. Pyramid Scheme Alert – Run by Robert FitzPatrick, a pioneer in anti-MLM activism, this organization focuses on educating the public about the dangers of pyramid schemes and MLMs.

These resources provide a wide range of perspectives on commercial cults and MLMs, making them essential for those looking to understand and dismantle the harmful structures behind these organizations.