Multilevel Marketing: Last Week Tonight with John Oliver (HBO)
LastWeekTonight・2 minutes read
MLM companies like Herbalife operate through distributors who sell products and recruit others, claiming to offer flexible work opportunities. Despite facing scrutiny and allegations of being pyramid schemes, Herbalife and other MLMs have made significant profits and faced legal challenges, highlighting issues with their business structures and practices.
Insights
- MLMs, such as Herbalife, operate by selling products through distributors who earn money by selling products and recruiting others, emphasizing the allure of working from home and being their own boss.
- Herbalife, a major MLM, faced criticism and FTC investigation for alleged pyramid scheme practices, leading to a $200 million settlement and changes in its operations, highlighting the risks associated with MLM structures and recruitment-focused models.
Get key ideas from YouTube videos. It’s free
Recent questions
What are MLM companies?
MLM companies sell products through distributors, not stores. Distributors recruit others to join, offering work-from-home opportunities.
How do MLMs make money?
MLMs make money through product sales and recruiting new distributors. They offer commissions and bonuses for successful recruitment.
What is Herbalife known for?
Herbalife is a major MLM company selling nutritional supplements. It has faced criticism for health claims and its compensation plan.
What was the FTC's issue with Herbalife?
The FTC alleged Herbalife operated as a pyramid scheme, leading to a multi-year investigation. Distributors reportedly made little to no money.
How did Herbalife settle with the FTC?
Herbalife settled with the FTC, paying $200 million and agreeing to significant changes. The company faced scrutiny for its business practices.
Related videos
How Money Works
Multi-Level Marketing Companies Are NOT Pyramid Schemes (They Are Worse)
TED-Ed
How to spot a pyramid scheme - Stacie Bosley
How History Works
How Two Families Shaped American Politics (& War) For Their Profit
Vietcetera
Ước mơ bán chè, nhưng nên duyên với nghệ thuật - Miu Lê | Have a Sip EP92
WatchMojo.com
Top 10 Misleading Marketing Tactics