004: The MLM Cult You Didn’t Know You Were In

In this episode of I Call B*****t*, Kristina Braly exposes the Multi-Level Marketing (MLM) industry, a $35 billion empire built on false promises, manipulation, and financial ruin for most participants. These “business opportunities” masquerade as female empowerment, side hustles, or easy passive income, but the reality is only 1% of participants ever make a profit—and many go into serious debt instead.

 

What We Cover in This Episode:

• What Is an MLM? The key differences between MLMs and pyramid schemes (spoiler: they’re nearly identical).
• Why 99% of Participants Lose Money: FTC data on income disclosure statements proves these businesses are set up to fail.
• Manipulation Tactics: Love bombing, toxic positivity, shaming quitters, and weaponized female empowerment.
• MLM Horror Stories: People losing their homes, maxing out credit cards, and destroying friendships for the “dream.”
• The Cult-Like Mentality: Why MLMs mirror religious cults, and how they brainwash members into staying.
• Red Flags to Spot an MLM: From Facebook DMs to overpriced starter kits, how to recognize a scam before you get sucked in.

Credits:

• Host: Kristina Braly
• Research & Fact-Checking: Kristina Braly LLC
• Production & Editing: Kristina M Braly, M.D.
• Music & Sound Design: Epidemic Sound, Kristina Braly LLC
• Special Thanks To: Riverside FM

MLMs and Financial Losses

• Federal Trade Commission (FTC). “Consumer Awareness on MLMs.” 🔗 https://www.ftc.gov/news-events/press-releases/2023/02/mlm-income-disclosure-warning
• Jon M. Taylor, PhD. (2011). The Case (For and) Against Multi-Level Marketing. 🔗 http://www.ftc.gov/sites/default/files/documents/public_comments/16-cfr-part-437-business-opportunity-rule-536058-00014%C2%A0/536058-00014-54741.pdf
• AARP Foundation. (2018). “AARP Study: The Truth About MLMs and Older Adults.” 🔗 https://www.aarp.org/content/dam/aarp/research/surveys_statistics/econ/2018/mlm-schemes-older-adults.doi.10.26419-2Fres.00259.001.pdf

MLM Failure Rates & Pyramid Structure

• Federal Trade Commission (FTC). “The 99% Failure Rate in MLMs.” 🔗 https://www.ftc.gov/system/files/documents/reports/federal-trade-commission-staff-advisory-opinion-multi-level-marketing-compensation-plan/ftc_advisory_opinion_mlm.pdf
• Robert FitzPatrick. Ponzinomics: The Untold Story of Multi-Level Marketing. 🔗 https://www.amazon.com/Ponzinomics-Untold-Story-Multi-Level-Marketing/dp/1734501605

Psychological Manipulation & MLM Tactics

• The Dream Podcast (2018). Behind the MLM facade. 🔗 https://podcasts.apple.com/us/podcast/the-dream/id1435743296
• Cult Education Institute: “MLMs and Cult-Like Behavior.” 🔗 https://culteducation.com/group/1260-multi-level-marketing.html

MLM Horror Stories & Real-Life Impact

• Vice News. (2022). “I Lost $30,000 to an MLM—And I'm Not Alone.” 🔗 https://www.vice.com/en/article/7kbznd/mlm-pyramid-scheme-victims-stories
• New York Times. (2021). “When an MLM Takes Over Your Life.” 🔗 https://www.nytimes.com/2021/06/08/style/multi-level-marketing-moms.html

Listener Action Items:

✅ Recognize the Red Flags: If an opportunity requires you to buy a starter kit, recruit others, or promises ‘unlimited’ income, it’s likely an MLM scam. ✅ Spread Awareness: Send this episode to someone considering joining an MLM—it might save them thousands of dollars and years of regret. ✅ Report MLM Scams: If you've been scammed by an MLM, file a complaint with the FTC at https://reportfraud.ftc.gov/. ✅ Subscr