June 9, 2025

Pyramid or Cult? The Dark Truth About MLMs - Bonus 01

Pyramid or Cult? The Dark Truth About MLMs - Bonus 01

Is it a business… or a belief system?

MLMs promise freedom, empowerment, and sisterhood. But what happens when that dream turns into control, guilt, and silence?

In this episode of Humans Being Awful, we break down how multi-level marketing companies use cult-style tactics — from shame to toxic positivity — to keep people trapped inside a system designed to scam them.

You’ll hear survivor testimony, expert insight, and the uncomfortable truth about how MLMs isolate critics, punish honesty, and exploit personal relationships for profit.

This isn’t about bad business. It’s about dark psychology.


Credits:"Music by Alexander Nakarada / https://www.creatorchords.com"

#MLM #MLMScam #MultiLevelMarketing #CultTactics #ToxicPositivity #LuLaRoe #FinancialFraud #SurvivorStories #DarkPsychology #HumansBeingAwful #Scams

“You don’t join a cult.
You sign up to sell leggings.”

“It doesn’t feel like a scam. Not at first. And definitely not like a cult.”

“But some people don’t just lose money.
They lose friends. Relationships.
Years of their lives.”

“And the worst part?
They’re told it was their fault.”

Summary:

This bonus episode looks at the dark overlap between pyramid schemes and belief systems — and why so many people fall into multi-level marketing (MLM) companies without realizing what they’ve signed up for.

It’s not technically illegal.
It’s not technically a cult.
But it feels like one.

Because the product isn’t really leggings, supplements, or oils.
The product is you.

This episode explores how MLMs recruit, control, and isolate people — using toxic positivity, guilt, and weaponized empowerment to keep them trapped.

Not everyone loses money.
But almost everyone loses something.

In This Episode:

  • How MLMs stay legal — and why the structure is the problem

  • “Toxic positivity” and its role in emotional control

  • Why failure is reframed as personal weakness

  • How MLMs isolate dissent and punish doubt

  • What it actually looks like to leave

  • What cult researchers say about belief, shame, and the guilt of recruitment

Takeaway:

This isn’t a story about bad business decisions.

It’s a story about control.

Sources:

https://www.washingtonpost.com/outlook/2021/10/04/allure-companies-like-lularoe-latter-day-saint-women/

https://time.com/6096777/lularich-true-story-amazon/

https://en.wikipedia.org/wiki/Multi-level_marketing

https://www.ftc.gov/business-guidance/resources/business-guidance-concerning-multi-level-marketing

https://www.investopedia.com/terms/m/multi-level-marketing.asp

https://www.vanityfair.com/hollywood/2021/09/amazon-lularoe-documentary-lularich

https://www.washingtonpost.com/health/2025/05/24/toxic-positivity-emotional-suppression/

https://www.theatlantic.com/family/archive/2021/08/tragic-optimism-opposite-toxic-positivity/619786/

https://theobserver-qiaa.org/atop-the-pyramid-of-the-american-dream-the-politics-multi-level-marketing

https://www.reddit.com/r/antiMLM/comments/13bomhn/toxic_positivity_is_an_expensive_pattern/

https://www.reddit.com/r/antiMLM/comments/ldqz1b/after_leaving_an_mlm_this_toxic_positivity/

https://www.atg.wa.gov/news/news-releases/ag-ferguson-sues-lularoe-over-pyramid-scheme

https://news.lularoe.com/news-articles/lularoe-announces-settlement-of-litigation-with-state-of-washington-attorney-generals-office

https://www.retaildive.com/news/lularoe-to-pay-48m-to-settle-pyramid-scheme-lawsuit/594748/

https://apnews.com/general-news-finance-46b4af77d750494b41034fc72016310d

https://en.wikipedia.org/wiki/Toxic_positivity

https://en.wikipedia.org/wiki/LuLaRoe