I was recently interviewed for a Brazilian blog dedicated to exposing multi-level marketing companies and pyramid schemes for the scams that they are. Here are their questions and my responses:
1. How did you became involved with MLMs? What attracted your attention, personal experience or otherwise? At the time I got involved in Mary Kay Cosmetics, I was simply looking for an opportunity that I controlled. I didn’t look at it as a potential career for me, but as a part-time job for which I controlled the hours and the activities. I was also attracted by the supposed ability to earn a lot of money for my efforts. Little did I know that was a complete lie.
2. If some companies are real financial pyramids, why there is no intense action to prevent and correct them in the USA? Quite simply, the U.S. government has decided not to enforce the laws on the books. I think it is partly for political reasons, and it is partly because the companies running the pyramids are quite clever about it. Companies like Amway, Mary Kay, Usana, Herbalife, and the like have very cleverly masked their pyramid schemes with what appears to be a legitimate retail product. They ask the government to focus on the product, while in reality, the representatives of the companies are focusing on recruiting new members to the pyramid.