Hey Hun, Want To Talk About MLMs? : 1A - NPR

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An Herbalife logo is displayed outside an Herbalife office in Torrance, California. Mario Tama/Getty Images

Mario Tama/Getty Images

You may have been one of the many who were recently glued to their screen watching Amazon's "LuLaRich" documentary. The series uncovers the rise and fall of the multi-level marketing clothing business LuLaRoe.

The documentary exposed the inner workings of the MLM business model. These companies recruit contractors to sell their products and recruit more independent contractors. The more people a contractor brings into the company, the more money they stand to gain.

Many of these businesses recruit their contractors through flattery and promises of wild riches. However, according to one estimate, only 25 percent of those in an MLM turn a profit. And the Federal Trade Commission has even designated some MLMs as pyramid schemes.

We talk about the business of MLMs, how to spot a scam, and the experiences of those who were involved in that world.

GUESTS

Robert L. FitzPatrick, Roberta Blevins, and Josie Naikoi join us for the conversation.

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