This Is Why MLMs Get Called Cults

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I was a Herbalife distributor for 18 months spent well over $7,000 and have not recouped any money I was an Herbalife distributor for less than two months and I lost almost five thousand dollars in the eight months that we were in we lost at least $10,000 multi-level marketing companies or MLM seem to be everywhere lately plenty of us know someone who tries to sell beauty or health products on social media while those posts can be annoying you probably see them as benign however the institution's behind the products being sold in those posts are often much more nefarious than people assume half-jokingly some people call MLM z' cults a growing subculture of people against MLM often make that claim more seriously if you don't know much about MLM s that may seem ridiculous but if we dig deep into common MLM practices we can see what they're getting at now the layman's definition of cult is so broad and subjective that it's nearly useless that definition being a religion regarded as unorthodox or spurious or great devotion to a person idea object movement or work basically this definition allows anyone to define groups of people united under similar ideas as a cult as long as they don't like that group that's not very useful however there is a more useful way to talk about what it is to be cult-like and that is to make use of the work of cult experts within the field of psychology such as Steven Hassan and his bite model that model is a description of the control tactics which cults often use and a useful tool in determining whether or not a group is the type of manipulative harmful influence that we often think cults to be we'll see how MLMs fit that model in a second but I'll quickly introduce MLMs for those who don't know how they work an MLM starts with a few people developing and selling a line of products but instead of hiring salaried salesmen they recruit pretty much anyone to sell their products for Commission and more importantly to recruit others to work under them the incentive to recruit people under you is that you get a percentage of every sale made by those below you those high up in the company who showed up very early on get a high percentage while those below them get a lower and lower percentage with every level they are further from the top this means that the best way to make money in an MLM is to recruit as many salespeople under you as possible essentially you want to build this shape hmmm how curious unfortunately the overwhelming majority of consultants or distributors people who sign up to sell MLM products not only fail to make a sustainable profit but fail to make any money at all most consultants actually lose money according to a study made by dr. John M Taylor which was made publicly available by the FTC ninety nine point six percent of MLM recruits lose money that's actually worse than classic no product pyramid schemes and even less lucrative than literally playing roulette in Vegas now that we've gotten that out of the way let's use Hassan's bite model to explore whether MLMs use any cult-like manipulation tactics keep in mind that MLM s differ from company to company so not all emmalin's relate to the bite model the same way if you want to determine how manipulative and cult-like a specific MLM is go through the model yourself and see how it fits with what I'm about to describe the bite in bite model stands for behavior control information control thought control and emotional control the model lists specific control tactics under each mode of control so we'll go through each action to see exactly what applies to M elapsed the more that apply the more manipulative and cult-like behavior control promote dependence and obedience MLMs usually promote using and selling their products as a lifestyle one that allows you financial freedom good health and more time with your family as you work from home they encourage consultants to maintain that lifestyle by quitting their jobs to sell MLM products full time and to use their products exclusively in whatever function they provide also the consultants above you your so-called upline often monitor your performance and influence your activity in the company this is promoting dependence and obedience modify behavior with rewards and punishments obviously in a sales environment there are rewards for making sales and in MLM x' ranks are awarded based on monthly sales and stripped away whenever monthly quotas aren't met although this isn't exclusive to MLM zazz most sales environments behave somewhat like this dictate where and with whom you live not that I know of restrict or control sexuality again not that I know of control clothing and hairstyle MLMs that sell wearable products often demand that consultants use them exclusively you risk getting in trouble with your upline if you violate this rule in the makeup MLM unique for example consultants are not allowed to make visible use of or talk about other makeup brands on social media regulate what and how much you eat and drink tons of MLMs which I call altmed MLMs sell supplements and health foods consultants in these are expected to use the products they sell and to put that use on display exclusivity is often demanded here to also consultants for these brands sell and recruit by telling others how to eat drink and use supplements this is a type of regulation deprive you of seven to nine hours of sleep not that I know of no exploit you financially absolutely obviously less than half of one percent of all consultants make any money at all but potential recruits are nearly always sold the idea of an exciting lucrative opportunity you've been able to quit our day job and focus on our young living business MLM sell you the dream while knowing full well that it's nearly statistically impossible for you to achieve that dream on top of that MLM Slyke lularoe often don't allow returns and don't allow consultants to only stock items they sell most but require them to buy an almost random assortment of products for inventory stocking meaning consultants always buy more than they can sell and make their money back on I have all this merchandise and I need to sell it on top of that many MLM products are much more expensive than non MLM products of the same type and our lower quality restrict leisure time and activities you're likely to be encouraged to drop so-called distractions from selling and recruiting these can include leisure time and activities however this isn't always direct and insistent enough to warrant being called manipulation require you to seek permission for major decisions outside of the company not usually no information control deliberately withhold and distort information definitely again it's nearly impossible to succeed within an MLM but distributors are constantly fed false hope so that they'll keep selling the second year you'll make one hundred and twenty five thousand dollars they're never told just how certain failure has proven to be also many MLM distort the truth about their products altmed emmalin's often sell untested unregulated supplements which they claim to do all kinds of things that they've never been demonstrated to do they also make up arbitrary certifications and purity standards to imply external testing and product superiority cpt G certified pure therapeutic grade they rely on naturalness bias and meaningless buzzwords to sell products natural products free of toxins and synthetic chemicals finally conspiracies about vaccines cancer cures the FDA the FTC and the government in general run rampant through MLMs this of course paints MLMs as a safe haven where some of the only safe products out there can be found doTERRA Young Living and somebody how the company is a reason they're after you guys is because your products work forbid you from speaking with ex members and critics it's often encouraged to stay away from ex members as they're called haters and sour grapes who will just drag you down and keep you from success many people even encourage cutting off friends and family members who don't support EMA lens so that sisterhood is nom on almost like a cult sisterhood when I started speaking out this friends dropped off the ones that were still in lularoe discouraged access to non cult sources of information like I said conspiracies about institutions outside of the MLM propagate wildly the FDA and FTC are supposedly out to get MLM so any information they provide is suspect listening to ex members and critics is also discouraged and in many MLM certain information about the company is privileged only to those who have reached higher ranks why does that sound so familiar usually to hear the secret doctrine you have to be in the church for several years Stan are you ready to hear the truth divide information into insider versus outsider doctrine yes the rhetoric surrounding government entities ex members and critics applies here generate and use propaganda extensively big-time consultants are encouraged to make and use their own infographics to sell products and this often leads to claims which are not only outlandish but actually illegal since advertising curative claims about untested unregulated products is illegal of course since lowly consultants make those claims not the MLM itself the company is not legally accountable consultants are also encouraged to host parties and classes where illegal curative claims may be made behind closed doors and can teach prospective customers inaccurate information about the products on top of telling them about conspiracy theories which the MLM embraces MLMs also encourage consultants to show off their lifestyle even dishonestly on social media so that their friends and family will become envious of what they have and asked to join the MLM of course these companies also advertise outlandish testimonials which imply that their products can basically perform miracles new distributors were told Herbalife products help to treat heart disease and even helped one woman get pregnant use information gained in confession sessions against you not that I'm more Gaslight you to make you doubt your own memory again not that I'm aware require you to report thoughts feelings and activities to superiors consultants are usually expected to regularly report to their upline exactly how detailed this has to be depends entirely on the character of those in the OP line so this can leave consultants up for manipulation but it's not a given encourage you to spy and report on others misconduct MLMs don't like it when their consultants use competing products and many companies encourage consultants to report other consultants to their upline if they do that however this is not a given thought control instill black versus white us versus them good versus evil thinking absolutely we've already touched on how us versus them narratives and conspiracy theories are heavily propagated change your identity possibly even your name name changing no but identity changing in a lot of ways yes consultants are encouraged and even expected to act like preppy salespeople even to their friends and family remember MLMs are there to sell a lifestyle and in order to do that consultants have to live that lifestyle in a way that shows when Outsiders call MLMs cult they very often reference how an MLM took over the life of their friend or family member causing them to damage or destroy relationships through constantly pushing their lifestyle this is an identity change use loaded language and cliches to stop complex thought hey love hurt you're feeling a little down lately and saw on Facebook that you've been in the hospital do you know doTERRA balance oil could help you regulate emotions and share propriety blend can make depression disappear that's right no more Ken chuckles in your body with pills just natural oils to inhale let's meet up and I can give you for free samples of them yes they're that good yeah this happens nearly every MLM has his own insider terminology and many MLM share similar phrases and hashtags unfortunately a lot of these just include way too many emojis they also encourage tons of religious apologetic like cliched responses to criticism like you know what the real pyramid scheme is the corporate hierarchy that you work for and yeah these products do cost a lot but it's just way cheaper than paying for constant hospital bills the cliches are so prevalent in MLMs that anti MLM errs have a name for people that use them hun bots they're called this because of their constant use of pet names like hun and the fact that their speech is so predictable they come off like a mindless drone induce hypnotic or trance States to indoctrinate most probably don't do this but there are a few that do in Young Living Essential Oils for instance a technique called raindrop is used wherein a consultant basically gives a client a massage using essential oils the client is told that raindrop is not only useful for leaving certain physical ailments but also for allowing emotional release and healing the goal of course is to convince clients that oils have some kind of healing power and that they should buy them the consultants often perform raindrops and other consultants as well teach thought stopping techniques to prevent critical thoughts this is done to a certain extent like I said consultants are taught cliche responses to criticism sometimes they're also taught how to dodge difficult questions from potential clients it's not uncommon to run into an MLM ER who purposely plays dumb when told they're in an MLM or when pyramid schemes are brought up allow only positive thoughts motivational content is often an MLM errs bread-and-butter companies often push tons of motivational speeches and literature on their consultants this along with purposely blocking out any criticism from detractors discourages any doubt or negativity of course it makes perfect sense for MLM ours to constantly motivate their consultants since attempting to make a career out of sales without experience is incredibly risky motivational content keeps Consultants buying inventory and encouraging a hyper positive attitude helps the company sell use excessive meditation singing prayer and chanting to block thoughts not necessarily however many companies host conferences which behave similarly to charismatic religious services these are designed to invoke powerful emotional and even spiritual experiences and attendees after experiencing something incredible at a conference consultants are to shake off their doubts and work toward their dreams harder than ever this isn't a consistent form of thought blocking but it's worth a mention reject rational analysis critical thinking and doubt given that MLM often teach cliched defenses against criticism and avoidance of hard questions and encourage appeals to biases like naturalness bias conspiratorial thinking about science serving government entities and blocking out critical friends and family I think we can safely say they reject rationality critical thinking and doubt emotional control instill irrational fears of questioning or leaving group there's a common narrative in these companies that their products are the only way to financial freedom and good health for your family if you leave the company you have no chance of achieving your dreams you'll end up poor and your family will be unhealthy consultants are guilted into staying involved because if they leave it just goes to show how little they care about their family's well-being label some emotions as evil worldly sinful or wrong some what consultants are expected to stay incredibly positive in order to attract and impress customers an unhappy consultant is a failing consultant teach emotion stopping techniques to prevent anger and homesickness not that I'm aware promote feelings of guilt shame and unworthiness like I said consultants can be made to feel guilty for thinking of leaving the bigger guilt trip though is one that consultants used to recruit women into the company women are guilted for having regular jobs as consultants tell them it would be much better for their children if they were to work from home with an MLM of course if you stay at your regular job you don't really care about your kids so yeah basically hashtag boss babe and girl boss are just thin veils for sexism shower you with praise and attention love-bombing definitely at consultant hosted selling parties attendees are showered with attention and affection so that they'll feel the MLM offers a loving community they can join this happens at conferences too compliments are also a common part of sales pitches to friends and acquaintances threaten your friends and family not that I know of shun you if you disobey or disbelieve of course if you stop listening to your upline or stop believing in the products you'll have to leave and as we know consultants are discouraged from listening to the haters and sour grapes that are ex members and finally teach that there is no happiness or peace outside the group the idea is that living the MLM lifestyle is the obvious best way to live if you don't try to achieve it you're seriously missing out and not living to your fullest potential working a normal job is to lose the incredible wealth and happiness that the MLM brings it seems that MLMs have a way of hitting almost every single point on the bite model they can definitely vary given that basically anyone can work for one but the traits we've discussed here are common we can't take this and say that all MLM are cults but we can say that numerous cult-like tendencies are common in them allowance if you wanted to determine just how cult-like a certain MLM is take it through the bite model and if you're watching this as someone involved with an MLM and you recognize behaviors of your own company being mentioned here I'm sorry to say you might be in a cult thanks for watching I've been drew of genetically modified skeptic shout out to the anti MLM subreddit and the sounds like MLM but ok podcasts and Facebook group I highly recommend you check out all that links in the description as always praise be unto Adam my top patron and personal Lord and Savior for making this video possible go ahead and subscribe check out my patreon follow me on Twitter and Facebook @ GM skeptic join my new discord and until next time stay skeptical you

Info

Channel: Genetically Modified Skeptic

Views: 405,065

Rating: 4.9006267 out of 5

Keywords: atheism, atheist, agnostic, skeptic, skepticism, genetically modified skeptic, Lularoe, young living, Young Living Essential Oils, Doterra, Kyani, Herbalife, MLM, MLMs, Multi-level marketing, network marketing, direct sales, cult, cult psychology, essential oils, naturopathy, homeopathy, anti-vax, anti-vaxxers, cancer conspiracies, alternative medicine, eos, pseudoscience, steven hassan, bite model, sounds like mlm but ok, how quacks, quackery, anti-mlm, r/antimlm, scam, herbalife scam

Id: VeDHHt26ibQ

Channel Id: undefined

Length: 17min 23sec (1043 seconds)

Published: Fri Sep 07 2018

Reddit Comments

Very good analysis. It's not necessarily new information to anyone familiar with MLMs, but definitely drives the point home.

👍︎︎ 18 👤︎︎ u/canadiancarlin 📅︎︎ Sep 23 2018 🗫︎ replies

/r/AntiMLM

👍︎︎ 8 👤︎︎ u/aperfectfailyour 📅︎︎ Sep 23 2018 🗫︎ replies

My dad is recently been trying to get into a mlm from a company called life force. Neither he nor my mother works but he keeps buying 100s of dollars of their shit every month with my mums savings and never makes any money himself, which is why he keeps taking my mums money to do it. What the hell do I do? My mum just keeps enabling him. She won't ever refuse to give him her debit card.

👍︎︎ 7 👤︎︎ u/Scottykl 📅︎︎ Sep 24 2018 🗫︎ replies

bitconneeeeeeect

👍︎︎ 7 👤︎︎ u/steesi 📅︎︎ Sep 24 2018 🗫︎ replies

This guy is super informative and to the point.

But I stopped at 4 min cuz I don't got time for 17

👍︎︎ 6 👤︎︎ u/IEATTURANTULAS 📅︎︎ Sep 24 2018 🗫︎ replies

I'm under the impression they just use the sales people as their customers while making the sales people feel like they're partners. The MLMs sell them inventory and get them to buy the products -- they make them pay registration fees or whatever. From all that, the MLMs make money. The goal of the MLMs isn't to make money off the sales the salespeople make - the sale was already made when they hooked on the sales person.

👍︎︎ 3 👤︎︎ u/MiamiFootball 📅︎︎ Sep 24 2018 🗫︎ replies

I also recommend this piece by peter coffin

https://www.youtube.com/watch?v=aX9-BrWD58c

👍︎︎ 5 👤︎︎ u/Aerik 📅︎︎ Sep 23 2018 🗫︎ replies

Even people you think are fairly smart and have good common sense can get caught up in this. This guy I knew in high school, good grades, played lots of sports and had gotten into university approached me towards the end of high school. He want to talk about this business opportunity.

I'm glad his use of the word business opportunity weirded me out enough at the time that I refused his pyramid scheme.

Now anytime someone says business opportunity to me I'm just suspicious.

👍︎︎ 1 👤︎︎ u/SyncTek 📅︎︎ Sep 24 2018 🗫︎ replies