from Section 1 - Typology
Published online by Cambridge University Press: 19 June 2025
Multilevel marketing groups (MLMs) are businesses that require a consenting person (the “distributor”), often under false pretexts, to sell products or services through person-to-person sales and to recruit others to do the same. Some of these groups use cult-like strategies to enhance member commitment such as alienation from those outside the group, maintaining an “us versus them” mentality, and creating feelings of emotional connectedness between members and leadership. Many of these groups have charismatic leaders who recruit others to join based on promises of making large amounts of money. Traits and characteristics of leaders overlap those of other groups relying on persuasive leadership, including charismatic, and at times narcissistic, individuals who use misleading and biased claims to draw in potential recruits seen in MLM leaders. Additionally, certain characteristics including the desire for an in-group, having unmet needs, and being psychologically immature can be found in MLM members or followers.
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