How MLMs Use the Psychology of Influence

Multi-Level Marketing (MLM) is a very popular business method. It relies on “distributors” who use the power of influence to purchase the products—and ultimately, to sign up as a distributor in their downline.

MLM companies continue to grow in popularity. The products and services they provide are endless: cosmetics, essential oils, weight loss shakes, health foods, kitchen gadgets, jewelry, wine, and more Most MLMs are in the Health & Wellness Industry; you can find a comprehensive list of all health-related MLM companies here.

Unfortunately, the Direct Sales and MLM business model is very troubling, because it causes tremendous financial, mental, emotional, and social damage (see my previous posts).

Today, I’m going to give examples of how Direct Sales and Multi-Level Marketing companies use the 6 Principles of Persuasion, and a Devil’s Advocate perspective to make sure you recognize and avoid predatory tactics.

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The MLM Persuasion Tricks That Convinced Me to Join

How do Multi-Level Marketing (MLM) and Direct Sales companies persuade so many people to join?

I will explain which 6 Principles of Persuasion were used to lure me into signing up… twice! …and what you can do to recognize the signs of a predatory company.

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HBO’s Chernobyl, Risk, and the Devil’s Advocates who Kept Us Safe

The Chernobyl nuclear disaster, which affects millions of people to this day, is now available as a 5-part HBO mini-series.

Here is what it taught me about having the courage to speak up.

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Analysis of the Disclaimer from a Direct Sales Company

Direct Sales companies, also known as Multi-Level Marketing (MLM) and Network Marketing, are growing exponentially. (Check out a list with hundreds of MLMs around the world.)

But despite their popularity and far-reaching impact, the MLM business model is often predatory, unethical, and at times illegal.

In this post, I want to evaluate the Disclaimer of one MLM company to shed some light on how this model works, how these organizations view risk, and why you should proceed with caution.

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My 2018 Business Year In Review

Another year has come to a close.

It’s time to reflect on how 2018 went.

And that can feel… like getting your teeth drilled at the dentist’s office.

I’ll admit, as much as I believe in how great the Year In Review process is, that doesn’t make it entirely pleasant to actually experience. But the benefits make this sometimes painful process worthwhile.

You’re invited to read my analysis of what happened—good and bad—for my business in 2018.

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What to Do If Your “Year In Review” is a Disappointment

Some years, things go really well.

And some years, they do not.

If you’ve experienced a lot of difficulties in your business, you may be tempted to see it as a massive failure:

“What a crummy year! It was so terrible. I can hardly wait for it to be over.”

“The new year can’t come soon enough.”

Even you were not able to meet your strategic business objectives this year, I encourage you to consider the positives that happened, rather than speeding past it.

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The 4 Responses to Fear as a Leader

What are you scared of?

As humans, we are biologically hard-wired to treat every perceived threat in an extreme way, with one of four reactions:

  1. Fight: go on the offensive, reacting aggressively to eliminate the problem
  2. Flight: avoid the problem by retreating to a safer position
  3. Freeze: shut out the problem by pretending like it’s not happening, or
  4. Face: confront the problem directly.

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11 Ways Multi-Level Marketing is Like a Cult

We have the power to exert tremendous influence on others.

Sometimes, people use this power to take advantage of those who are vulnerable by exerting tremendous control on their choices and behavior.

Today I want to share some insights about why Multi-Level Marketing companies operate exactly like a cult and how to build risk intelligence to keep yourself safe.

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Why I Hate MLMs: My Story [Video]

Of the 10 kinds of business models, Multi-Level Marketing (MLM) is one of the most predatory.

MLMs can cause people to get sucked into a system over which they have no control, power, or decision-making ability. Someone who joins an MLM is a contractor (also called a “consultant” or “distributor”) who agree to sell products or services. She or he is totally at the mercy of the parent company; they don’t have any say if things change.

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