How MLMs Keep People Trapped

For those of us who know a friend or loved one who has been swindled into joining an MLM, we wonder how the person can get trapped in such an obvious scheme. If you’re someone who was once stuck in an MLM, you may be wondering how you didn’t see the signs earlier. Although many people point out the shady techniques of MLMs like LulaRoe, doTerra, and Arbonne, there’s a big piece of the puzzle that’s missing, and that’s the psychological aspect.

Something I spend many hours each a week studying are the various thinking flaws that all of us humans fall victim to. Many of these are cognitive biases that lead us to becoming the prey of different fallacies. Today, we’re going to talk about how MLMs exploit these cognitive flaws to keep people trapped, but more importantly, understanding these fallacies can help us make better decisions in all areas of our lives.

It’s also crucial to understand that there are external fallacies we fall for as well as internal ones. While MLMs are able to convince people that it’s their fault they aren’t making money, we’re also going to discuss an internal fallacy that simply magnifies the first one. When we’re able to first acknowledge what’s happening and then take a step back, we can make better, rational decisions. Not only will it help us better understand people who are victims of MLMs, but there are many other benefits.