In recent decades, the Law of Attraction has become one of the most influential belief systems in wellness, self-help, and multilevel marketing (MLM) circles. Its premise is seductively simple: your thoughts shape your reality. Think positively, and abundance will flow; dwell on negativity, and you’ll attract misfortune.
We have discussed the pitfalls of Law of attraction in a previous episode, you can find here.
🎙️ Another throwback episode is linked below, where I unpack my journey from wellness fanatic within MLM into a high-control religion. Together, we explore the wild “crunchy hippie to alt-right pipeline.” 🌿➡️🛑 social media, influencers, and wellness hype quietly nudge people toward extreme ideas, and in this episode, we break down exactly how. 🎧🔥
This modern doctrine of “mind over matter” is often traced to The Secret (2006) by Rhonda Byrne, but its genealogy is much older. It reaches back to New Thought philosophy of the 19th century, where figures like Ralph Waldo Emerson, Phineas Quimby, and later Mary Baker Eddy (founder of Christian Science) claimed that divine thought itself was the engine of reality. These Mind Cure and faith healing movements linked spirt and matter together. Disease, poverty, and suffering were seen as products of “wrong or stinking thinking.” Salvation was not just spiritual but cognitive: change your thinking, change your life.
and so again I say: It is shockingly right instead of shockingly wrong of you to be prosperous. Obviously, you cannot be very happy if you are poor and you need not be poor. It is a sin. –Catherine Ponder (The Dynamic Laws of Prosperity)
In fact, it is the search for spiritual healing of the body that led to what is known today as prosperity consciousness or in Christian evangelism, it’s prosperity theology.
That intellectual lineage matters because it shows how the Law of Attraction has always been more than a harmless pep talk. It represents a cosmology of control, one that locates all responsibility (and blame) within the individual mind. As we have discussed many times before, Jonathan Haidt observes in The Righteous Mind, belief systems serve a dual function: they bind communities together and blind them to alternative explanations.
In this sense, the Law of Attraction doesn’t just inspire positive thinking; it narrows. By framing success and failure as purely mental vibrations, it obscures structural realities like economic inequality, physical health and genetic limitations, racism, or corporate exploitation.
And that narrowing is precisely what makes it the perfect handmaiden to MLM culture.
When Positive Thinking Becomes a Business Model
Robert L. FitzPatrick, in False Profits and Ponzinomics, describes MLMs as “endless chain” recruitment schemes. What sustains them isn’t product sales but the constant influx of hopeful recruits. Yet these schemes require something more than numbers: they require belief.
Here, the Law of Attraction becomes the MLM’s best salesman. Distributors are told:
Failure isn’t about the structure of the business; it’s about your mindset.
Doubt is “negative energy” that will block your success.
Quitting is not just a business choice but a moral failing.
In the Amway training program, the “ABCs of Success” are “Attitude, Belief and Commitment.” Attitude was the key which must be guarded. Don’t let anyone steal your attitude. Negative was defined as “whatever influence weakens your belief and commitment in the business” -False Profits
This is where Norman Vincent Peale’s “positive thinking” gospel dovetails with MLM. In his 1948 book Positive Thinking for a Time Like This, Peale popularized the phrase
“Let go and let God. Let Him take over your life and run it. He knows how.”
While originally a call to spiritual surrender, the phrase has since been weaponized in countless contexts from Holiness movements to Alcoholics Anonymous to prosperity preaching. At its worst, it functions as a silencer: don’t question, don’t resist, don’t think critically. Just “let go,” and trust that outcomes (or uplines) will provide.
Eastern Orthodox Christianity has a word for this: prelest. It’s the belief that human beings are so easily deceived that any private sense of spiritual progress — a feeling of clarity, joy, empowerment, even a mystical experience — can’t be trusted on its own. Without humility and the guidance of a spiritual father, you’re told it may just be pride, delusion, or the devil in disguise.
That’s the trap: you can’t trust your own mind, heart, or gut. The only “safe” option is obedience to the system. Which is exactly how MLMs and other high-control groups operate — undermining self-trust to keep you dependent.
Nietzsche would have called this a kind of slave morality, a belief system that encourages resignation to suffering rather than rebellion against unjust structures. The Law of Attraction, framed in this way, doesn’t challenge MLM exploitation; it sanctifies it.
More powerful than any product, charismatic leader, or compensation plan, the MLM mindset materials (the tapes, courses, and “personal development” kits) are the prime tools used to recruit and control distributors. Once you’re in the system, you’re encouraged to buy these materials week after week, keeping you invested emotionally and financially while feeding the company’s bottom line.
I went back through my Facebook to find some goodies for you! 😜This photo says “My energy creates my reality. What I focus on is what I will Manifest.” Here is the original caption so you can hear how brainwashed I was. “💥🙌🏼Belief is a feeling of certainty about something, driven by emotion. Feeling certain means that it feels true to you and therefore it is your reality. 💥🙌🏼 💪🏼 What you focus on you find 💪🏼 👀 You’ve got to believe it, to see it 👀”
Flashback to my first corporate event Aug 2016. My upline purchased my flight basically forcing me to go.
My caption at the time: 🤮
🔥IGNITE YOUR VISION! 🔥 ⚡Attended an event that changed my life. Showed me the massive vision of this company. 🤗Join our passionate, growing team of 18-35-year-olds striving for extraordinary lives and ownership of health, dreams, and contributions. 🤩Returning to this LIFE CHANGING event soon! Nashville, TN—let’s learn, grow, and celebrate!
Sounds inspiring, right? Except what they’re really selling is mandatory product purchases, endless hype, and a community that keeps you chasing the next status milestone. That “massive vision” isn’t about your health or dreams—it’s about the company’s bottom line.
Words like passionate, extraordinary, innovators, ownership are carefully chosen psychological nudges, making you feel like life itself is on the line if you’re not on board. And the countdown to the next “life-changing” event? Keeps you spending, attending, and emotionally hooked.
This is exactly what FitzPatrick calls out in Ponzinomics: the sales rep is the best customer. Only a tiny fraction of participants earn anything; the rest are paying to stay inspired.
More flashback images from my cult days….
The Psychological Toll
When these elements collide the New Thought inheritance of “mind over matter,” Peale’s positive thinking, religious community networks and MLM compensation plans… the result is a high-control environment dressed in empowerment language.
The outcomes are rarely empowering:
Blame and guilt when inevitable losses occur.
Anxiety from the demand to maintain “high vibrations.”
Suppression of doubt, lest skepticism be mistaken for weakness.
Financial harm disguised as personal failure.
In wellness communities, this logic extends beyond money. If essential oils don’t heal your illness, it’s because your mindset was wrong. If the diet doesn’t work, it’s because you didn’t “believe” enough. Structural realities (biology, medicine, inequality) are flattened into personal responsibility.
As Haidt warns, morality (and by extension ideology) can both bind and blind. The Law of Attraction, when paired with MLM, binds participants into a shared culture of hope and positivity while blinding them to exploitation.
Connecting the Dots: Bodybuilding, Metabolism & Team Isagenix
A couple weeks ago on the podcast, I shared about my bodybuilding years and the metabolic fallout I still live with today. I had forgotten how much of that season was actually entangled with my Isagenix obsession. My upline (the couple who enrolled me) were a part of Team Isagenix®, and I craved the validation of being “seen” as a successful athlete inside that community.
The requirements were brutal: placing in the top three of multiple competitions in a short span of time. So, between May 2017 and October 2018, I crammed in four shows in just 18 months. No off-season. No recovery. Just constant prep cycles. My metabolism never had a chance to stabilize, and I pushed myself past healthy limits. I wrecked my body and I’m still paying the price.
This is why I push back so hard when people insist that success is all about having a “positive enough” attitude to manifest it. My mindset was ironclad. What I lacked the conscious awareness that valued human health over recruitment and body image. That drive wasn’t just about stage lights and trophies. It was about proving my worth to an MLM culture that dangled prestige as the price of belonging. Team Isagenix® made the bar steep, and I was determined to clear it, no matter the cost.
And if you need proof of how deep this “mindset over matter” indoctrination goes, look no further than my old upline…now rebranded as a Manifestation Coach. Picture the classic boss-babe felt hat, paired with a website promising “signature mindset tools for rapid results.” According to her, if fear or doubt was “shrinking your dreams,” this was your moment to “flip it.” She name-drops 8-figure companies, influencers, and visionaries (the usual credibility glitter) while selling memberships, live events, and 7-day challenges.
It’s the same pitch recycled: your struggle isn’t systemic, it’s your mindset. If you’re not living your “life you truly love,” it’s because you haven’t invested enough in flipping the script (with her paid framework, of course). The MLM grind culture just got a new coat of “manifesting” paint.
🧠 Isagenix Programs & Their Psychological Impact
Healthy Mind and Body Program: A 60-day “mindset” initiative framed as holistic wellness. In practice, it ties product use to personal development, creating behavioral conditioning and binding members into a sense of shared identity and belonging. 🚩
IsaBody Challenge: A 16-week transformation contest requiring regular Isagenix product purchases. Completion comes with swag and vouchers; finalists are paraded as “success stories,” gamifying loyalty and dangling prestige as bait. The grand prize winner earns $25,000 but most participants earn only deeper entanglement. 🚩
Team Isagenix: Marketed as a prestige group for elite athletes with current national certifications, offering exclusivity and aspirational branding. This elevates certain members as “proof” of the products’ legitimacy, fueling both loyalty and recruitment. 🚩
Product Consumption: Isagenix requires 100 PV every 30 days just to remain “active.” This equates to about $150/month you HAVE to spend. On paper, bonuses and ranks promise unlimited potential. In reality, most associates struggle to recoup even their monthly product costs. Personal development rhetoric and community belonging often eclipse these financial realities, keeping participants cycling through hope, debt, and blame. 🚩
🤮🐦🔥 “Transform Your Life with Isagenix | Empowering Wellness and Wealth” 🐦🔥 🤮
Watch closely, because this is where the magic happens: the company paints a picture of limitless opportunity, but as Robert L. FitzPatrick lays out in Ponzinomics, the secret is that the sales rep is the best customer. That’s right… the real profits aren’t coming from your vague dreams of financial freedom; they’re coming from the people who are already buying the products and trying to climb the ranks.
The numbers don’t lie. According to Isagenix’s own disclosure: the overall average annual income for associates is $892. Among those who actually earned anything, the average jumps to $3,994. Do the math: $892 ÷ $3,994 ≈ 0.223 — meaning only about 22% of associates earn anything at all. The other 78%? Zero. Nada. Zilch.
And before you start fantasizing about that $3,994, remember: that’s before expenses. Let’s run a realistic scenario based on actual product spend:
$150/month on products or promotional materials = $1,800/year → net ≈ $2,194 − $1,800 = $1,194 before other costs.
Factor in travel, events, or socials? That $1,194 could easily drop to near zero…or negative.
The point: the so-called “income potential” evaporates fast when you account for the mandatory spending MLMs require. The only thing truly transformed is the company’s bottom line, not yours.
No wonder the comments are turned off.
Apparently, nobody actually crunches the numbers while the marketing spiel promises energy, strength, and vitality as if a shake could fix financial exploitation, metabolic burnout, and guilt-tripping at the same time.
My story is just one case study of how these tactics play out in real lives: I was recruited through trusted connections, emotionally manipulated with promises of transformation, pressured into relentless product use, and left with financial strain and long-lasting health consequences. That’s the “empowerment” MLMs sell and it’s why scrutiny matters.
Cultural Ecosystems That Enable MLMs
MLMs don’t operate in a vacuum. They flourish where belief structures already normalize submission to authority, truth-claims, and tightly networked communities. Evangelicals and the LDS Church provide striking examples: tight-knit congregations, missionary training in persuasion, and a cultural emphasis on self-reliance and communal obligation create fertile ground for recruitment.
Companies like Nu Skin, Young Living, doTERRA, and Melaleuca have disproportionately strong followings in Utah and among Mormon communities. FitzPatrick notes that MLMs thrive where trust networks and shared values make persuasion easier. The kind of environment where aspirational marketing and “prestige” teams can latch onto pre-existing social structures.
In short, it’s not just the products or the promises of positive thinking; it’s where belief, community, and culture all collide… that allows MLMs to hook people and keep them chasing elusive success.
Beyond Magical Thinking
The critique, then, is not of hope or positivity per se, but of weaponized optimism. When mantras like let go and let God or just thinking positive to manifest it are used to shut down discernment, discourage action, or excuse exploitation, they cease to be spiritual tools and become instruments of control.
Nietzsche challenged us to look beyond systems that sanctify passivity, urging instead a confrontation with reality even when it is brutal. FitzPatrick’s work extends this challenge to the world of commerce: if we truly care about empowerment, we must be willing to see how belief systems can be manipulated for profit.
That’s why MLMs and the Law of Attraction deserve scrutiny. Not because they promise too much, but because they redirect responsibility away from unjust structures and onto the very people they exploit.
Coming Up: A Deeper Dive
Next week on the podcast, I’ll be speaking with Robert L. FitzPatrick, author of False Profits and one of the world’s leading experts on MLMs. With decades of research, FitzPatrick has testified in court cases exposing fraudulent MLM schemes and helped unravel the mechanisms behind these multi-billion-dollar operations. He’s seen firsthand how MLMs manipulate culture, co-opt spirituality, and turn belief itself into a product.
Stay tuned. This is a conversation about more than scams, it’s about the machinery of belief, and how it shapes our lives in ways we rarely see.
Byrne, Rhonda. The Secret. New York: Atria Books, 2006.
Eddy, Mary Baker. Science and Health with Key to the Scriptures. Boston: The Christian Science Publishing Society, 1875.
Emerson, Ralph Waldo. The Essential Writings of Ralph Waldo Emerson. Edited by Brooks Atkinson. New York: Modern Library, 2000.
FitzPatrick, Robert L. False Profits: Seeking Financial and Spiritual Deliverance in Multi-Level Marketing and Pyramid Schemes. Charlotte, NC: Herald Press, 1997.
FitzPatrick, Robert L. Ponzinomics: The Untold Story of Multi-Level Marketing. Charlotte, NC: Skyhorse Publishing, 2020.
Haidt, Jonathan. The Righteous Mind: Why Good People Are Divided by Politics and Religion. New York: Vintage Books, 2012.
Nietzsche, Friedrich. On the Genealogy of Morals. Edited by Walter Kaufmann. New York: Vintage Books, 1989 (originally published 1887).
Peale, Norman Vincent. Positive Thinking for a Time Like This. New York: Prentice-Hall, 1948.
Quimby, Phineas P. The Quimby Manuscripts. Edited by Horatio W. Dresser. New York: Thomas Y. Crowell, 1921.
Wallace, David Foster. “Consider the Lobster.” In Consider the Lobster and Other Essays. New York: Little, Brown, 2005. (Useful on consumer culture critique, if you want a modern edge.)
New Episode Alert: The Dark Side of MLMs and Coercive Control
🚨 This Week on Taste of Truth Tuesdays 🚨, we’re diving into the complex and manipulative world of multi-level marketing (MLM) companies—uncovering the coercive control tactics they use to keep people hooked. 🧠💸 MLMs don’t just sell products. They sell a dream—a dream of financial freedom, wealth, and unlimited success. The problem? That dream is often built on deceptive tactics that prey on vulnerability, foster magical thinking, and emotionally manipulate their members.
At first glance, MLMs seem like a golden opportunity. They promise wealth, freedom, and independence—targeting people who are seeking a way out of financial struggle or a traditional 9-to-5. But underneath those glittering promises are dangerous tactics that prey on human psychology, exploiting emotional weaknesses to create loyalty and blind devotion.
A key tactic MLMs use is magical thinking. This is the belief that positive thoughts and visualizations alone can bring success, wealth, or health. A 2019 study in Frontiers in Psychology revealed that many MLMs sell products—like supplements and essential oils—by making unverified claims about curing diseases, with little to no scientific evidence to back them up. 😳
Why Is Magical Thinking So Dangerous?
Magical thinking isn’t just harmless optimism. In the context of MLMs, it can lead people to make poor financial and health decisions. Here’s why it’s so dangerous:
🚫 False Sense of Control: Magical thinking tricks people into believing they can control outcomes simply by thinking positively. This false confidence can prevent them from taking real, actionable steps to improve their situation.
🚫 Health Risks: MLMs often push supplements and oils with promises of “miracle cures” for serious illnesses—without scientific validation. People may choose these products over actual medical treatments, putting their health in danger.
🚫 Emotional Manipulation: By convincing members that failure is due to their lack of belief or effort, MLMs shift the blame from the system to the individual. This creates a toxic cycle of guilt and shame, trapping people emotionally in the MLM.
Coercive Loyalty and Emotional Manipulation
Beyond magical thinking, MLMs use coercive control tactics to create a false sense of community and belonging. They foster an atmosphere of loyalty where members feel pressured to stay positive, constantly recruit new people, and never question the system.
💥 Coercive Loyalty: Members are often told that the reason they’re not successful is because they’re not trying hard enough, recruiting enough, or believing in themselves. This turns failure into a personal flaw, rather than a flaw in the business model.
💥 Community Pressure: MLMs thrive on social dynamics, where members are encouraged to pressure their friends and family into joining. This creates a network of dependency and makes it harder for people to leave, even when they start seeing the cracks in the system.
💥 Emotional Exploitation: Guilt, shame, and failure are powerful emotional tools used by MLMs. When people don’t succeed, they’re often made to feel as if they didn’t believe in the product or themselves enough. This emotional manipulation keeps members invested—financially, mentally, and emotionally—even when the odds are against them.
Breaking Free: Real Stories of Escaping MLMs
In this week’s episode, we also share real stories of individuals who have been trapped in MLMs and how they broke free. These stories highlight the emotional, financial, and mental toll that MLMs take on their members, and how difficult it can be to escape once you’re in the cycle. 😳
Why You Need to Listen
If you’ve ever been approached by someone pushing a “life-changing opportunity” or a “groundbreaking product,” this episode is for you. If you’ve been tempted to join an MLM—or know someone who has—this episode is essential listening. We’re unpacking the toxic blend of pseudoscience, community pressure, and emotional exploitation that keeps MLMs running, and sharing actionable tips on how to recognize the red flags before it’s too late. 🚩
Tune in to this week’s episode of Taste of Truth Tuesdays to learn how to protect yourself from the manipulative tactics of MLMs and avoid falling into their web of magical thinking and emotional control. Whether you’re considering joining an MLM or are currently involved, understanding these tactics is key to protecting your financial and emotional well-being.
Magical thinking is a quirky psychological phenomenon where people believe that their thoughts, wishes, or actions can directly influence real-world outcomes, despite defying logic or scientific fact. It’s the belief that if you wish for something hard enough, visualize it every day, or think positively, the universe will somehow bend to your will. Sounds empowering, right? But in reality, it leads to a lot of irrational beliefs and behaviors, particularly in high-pressure environments like multi-level marketing (MLM) schemes.
MLMs thrive on this kind of thinking, pushing slogans and practices that dangle the promise of success, wealth, and happiness in front of their members—all through nothing but the power of positive thinking and visualization. “Just think it, and it’ll happen!” But here’s the catch: it never really works like that.
Why Is Magical Thinking Dangerous?
1. False Sense of Control
Magical thinking feeds people this false sense of control over their lives and circumstances. It convinces them that all they need is positive vibes to attract success, which can lead to dangerous complacency. Instead of putting in the hard work, effort, and strategic thinking needed to succeed in any real business, MLM recruits often fall into a trap where they believe success will magically come to them. Spoiler alert: it won’t.
2. Financial Loss
MLMs are notorious for selling the idea that anyone can make it big if they just believe in themselves. It sounds inspiring, right? But it’s a trap. People are encouraged to pour their hard-earned money into products, recruitment materials, and endless training sessions without fully understanding the shaky foundation these businesses stand on. In reality, research shows that up to 99% of MLM participants lose money, but thanks to the allure of magical thinking, they keep going, convinced that their big break is just one more product purchase or recruit away.
3. Emotional Manipulation
MLMs are also masters of emotional manipulation. If you’re not succeeding, they’ll convince you that it’s not the business model that’s failing—it’s you. You didn’t think positively enough, you didn’t manifest hard enough, or you weren’t dedicated enough to your dreams. This emotional burden can leave individuals feeling guilty, ashamed, and like personal failures, even when the deck was stacked against them from the start. The cycle of shame continues as they compare themselves to the shiny success stories splashed all over social media.
4. Detachment from Reality
Magical thinking can lead to complete detachment from reality. When you’re convinced that positive thoughts are all you need, you can easily ignore the mounting red flags. People end up ignoring their dwindling bank accounts, fractured relationships, and mental exhaustion because they’re too busy trying to manifest success. And by the time they snap out of it, the damage is done.
Why Do MLMs Use Magical Thinking?
1. Reinforcement of Loyalty
MLMs aren’t just about selling products—they’re about creating a cult-like loyalty. By pushing magical thinking, they foster a tight-knit community of like-minded believers. This sense of belonging makes it incredibly difficult for individuals to walk away, even when the financial and emotional costs start piling up. After all, leaving the MLM means leaving the tribe—and who wants to be the one to break away?
2. Justification of Failure
When magical thinking is the foundation of your belief system, failure is never about the business model. It’s always personal. Didn’t make the millions you were promised? It’s because you didn’t believe enough. This mindset is a genius way for MLMs to deflect blame, keeping their own reputation intact while making their members feel like the problem lies with them. It keeps the business running without accountability.
3. Encouragement of Recruitment
MLMs thrive on recruitment, and magical thinking is the fuel for the machine. The idea that anyone can succeed if they just think positively or visualize their dreams is a powerful hook for drawing in new recruits. If everyone believes success is inevitable through mental willpower alone, they’ll keep signing up—and bringing others with them.
Red Flags to Watch Out For
• Slogans and Phrases
Be on the lookout for those overly-optimistic, saccharine catchphrases like, “Just believe and you’ll achieve!” or “Manifest your dreams, and they’ll come true!” These slogans might seem harmless at first, but they’re big red flags that magical thinking is being used to manipulate and keep people hooked.
• Focus on Personal Stories
MLMs love to highlight the few personal success stories where individuals “made it,” while conveniently sweeping the 99% of struggling participants under the rug. This selective storytelling distorts reality and feeds the illusion that success is within easy reach for everyone.
• Pressure to Stay Positive
If you feel constant pressure to only stay positive and avoid discussing any challenges or failures, that’s another major warning sign. MLMs don’t want anyone disrupting their “positive vibes” because questioning the business model threatens the entire operation.
• Ignoring Evidence
If an MLM is constantly dismissing scientific evidence or research in favor of anecdotal stories and positive affirmations, it’s time to raise an eyebrow. Facts and figures don’t lie—but magical thinking demands you ignore the hard truths in favor of feel-good fiction.
Conclusion
Magical thinking can feel seductive—after all, who doesn’t want to believe that simply thinking positively can change your life? But in the context of MLMs, it’s a dangerous trap that exploits emotions, manipulates reality, and can lead to significant financial and psychological harm.
Recognizing the power of magical thinking is a key step toward protecting yourself from falling prey to MLM schemes. The next time someone tries to sell you the dream with a hefty dose of “just believe,” remember: real success comes from strategy, effort, and critical thinking—not wishful thinking. Stay sharp, and always dig for the facts behind the hype.
If you’re looking to dig deeper into the topic of magical thinking, MLMs, and their psychological impacts, here are some top-notch resources that will give you the depth and insight needed to fully understand the scope of this issue:
1. Books
“Merchants of Deception” by Eric Scheibeler
A former high-ranking member of an MLM, Scheibeler exposes the dark side of the industry, shining a light on the manipulative tactics, including magical thinking, used to keep participants hooked and financially invested.
“Ponzinomics: The Untold Story of Multi-Level Marketing” by Robert FitzPatrick
FitzPatrick’s book is one of the most thorough resources available on MLMs, dissecting the psychological manipulation that fosters the illusion of success, including how magical thinking plays a role in perpetuating these business models.
“Influence: The Psychology of Persuasion” by Robert B. Cialdini
While not specifically about MLMs, this classic book on persuasion provides a solid foundation for understanding the psychological tactics used in MLMs, including magical thinking. The book covers how people are influenced by emotional appeals and irrational thinking in decision-making.
“The Confidence Game: Why We Fall for It… Every Time” by Maria Konnikova
This book dives into why people fall for scams, cons, and magical thinking, explaining the psychological elements at play, such as the desire for control and emotional manipulation—key tactics used by MLMs.
2. Podcasts
“The Dream”
This investigative podcast explores the world of MLMs, breaking down the psychological manipulation, emotional appeals, and magical thinking used to recruit and retain participants. The show offers interviews and personal stories, exposing the inner workings of MLMs in a captivating and digestible format.
“MLM: The Broke Podcast”
Hosted by a former MLM member, this podcast uncovers how MLMs operate and the manipulative strategies they employ. The podcast touches on magical thinking and the emotional manipulation that keeps participants in these schemes.
3. Academic Articles & Research Papers
“Magical Thinking and Superstitions: How Beliefs and Cognitive Biases Drive Irrational Behavior” – by Michael Shermer
This article explores the psychological underpinnings of magical thinking and how it relates to belief systems. Shermer’s work is helpful for understanding the cognitive biases MLMs exploit.
“The Dark Side of Positive Thinking” by Gabriele Oettingen (Psychological Science)
Oettingen’s research critically examines the idea that positive thinking, often promoted in MLMs, can lead to worse outcomes when people fail to back it up with realistic planning and action, a key aspect of magical thinking.
“The Fantasy of Success: MLMs and the Psychology of Unrealistic Optimism” by Kim Korteweg (Journal of Business Ethics)
This study looks at the role of unrealistic optimism and magical thinking in MLM recruitment and retention, providing a scholarly perspective on how these psychological tricks keep participants engaged.
4. Documentaries & Films
“Betting on Zero” (2016)
This documentary follows hedge fund manager Bill Ackman’s quest to expose Herbalife as a pyramid scheme. It highlights how MLMs, including Herbalife, use magical thinking to maintain their recruitment and selling operations, and the devastating impact it has on participants.
“LuluRich” (2021)
A documentary series about the rise and fall of LuLaRoe, this film touches on the magical thinking that drove people to invest thousands into the company based on promises of riches and financial freedom. It dives into the personal stories of those who fell victim to the MLM’s tactics.
5. Articles and Blogs
“MLMs Use Magical Thinking to Sell Dreams” (The Atlantic)
This article delves into the connection between magical thinking and MLM success, explaining how the industry’s use of vision boards, affirmations, and other positive-thinking tactics lure people into believing they can manifest wealth.
“Why People Keep Falling for MLM Scams” by Amanda Montell (Cosmopolitan)
Montell breaks down the psychological manipulation MLMs use, including magical thinking, and how they tap into emotional vulnerabilities, especially for women seeking financial independence or a sense of community.
“Multi-Level Marketing and the Cult of Magical Thinking” (Psychology Today)
This blog post by a psychologist explores the mental traps of magical thinking, including how MLMs leverage these tactics to keep people hooked, even when they’re losing money.
6. Research Studies & Psychology Databases
American Psychological Association (APA)
The APA has various articles and studies on cognitive distortions, belief systems, and the psychology behind magical thinking, which are key to understanding how MLMs manipulate thought patterns.
PubMed/NIH Studies
If you’re looking for peer-reviewed research, searching PubMed for articles on cognitive biases, emotional manipulation, and the psychology of MLMs can provide high-quality, evidence-based insights.
These resources will give you a comprehensive understanding of how magical thinking, emotional manipulation, and psychological tricks are intertwined with MLM schemes. Whether you’re writing, podcasting, or just seeking to educate yourself, these tools will sharpen your perspective on the dangers of MLMs and the allure of magical thinking.
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 Substackrecently 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.
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Here are some of the best resources for learning more about commercial cults and anti-MLM movements:
Books:
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.
Cultish: The Language of Fanaticism by Amanda Montell – Analyzes how cults (including MLMs) use language and manipulation techniques to maintain control over their members.
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:
Truth In Advertising (TINA.org) – A watchdog organization that exposes deceptive marketing practices, including MLM earnings claims and false advertising.
MLMTruth.org – A resource dedicated to educating the public on the dangers and tactics of MLMs, providing reports and analysis on popular companies.
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:
The Anti-MLM Coalition – A YouTube channel that breaks down how MLMs operate, featuring stories from former MLM participants and experts in cult dynamics.
Savannah Marie – A former MLM participant who creates in-depth critiques and investigative videos on popular MLM schemes.
The Recovering Hunbot – Focuses on exposing the emotional manipulation and false promises made by MLM companies.
Hannah Alonzo-Hosts commentary-style videos relating to multi-level marketing companies, scams, cults, and influencer/social media culture.
Podcasts:
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.
Life After MLM – Hosted by Roberta Blevins, this podcast features interviews with former MLM participants, exploring the mental and financial impacts of MLMs.
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:
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.
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.
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.
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