Assignment 16- Gersony

  Annotated Bibliography

 

Cunha, Darlena. “Beware of Selling Yoga Pants on Facebook.” The Atlantic, 18 Apr. 2018, www.theatlantic.com/business/archive/2018/04/multilevel-marketing-yoga-pants-facebook/558296/.

In this article, Cunha Darlena explores the phenomenon of Multi-Level Marketing companies (MLMs), focusing on the use of social media and networking to accumulate business. The emphasis is largely on the seemingly positive aspects of MLMs, exploring how the companies use the community to sell products and capitalize on a potential recruit's ambition. Darlena does also call out many of the shady aspects of a Multi-Level Marketing company, such as blaming all shortcomings on the seller for not working hard enough or hooking members on an often impossible goal, while the company continues to take their money. 

Cunha Darlena relies on first person accounts from people within the MLM community to support any assertion she makes in the article. She acknowledges both the beneficial and malicious features of MLMs, using specific examples of real MLM companies such as Jamberry, Perfectly Posh, LuLaRoe, Younique, and Young Living. 

This source acts as a comprehensive look into the world of MLMs, with quantitative and anecdotal evidence. It can be used to show how MLMs attract recruits, a majority of which are women. The article also explains the tactic of building a community to encourage those recruits to stay with the company, and even recruit their own family, friends, and acquaintances. 

Parker, Stephanie. “MLMs Are Using the Coronavirus to Recruit New Sellers.” Vox, 26 Mar. 2020, www.vox.com/the-goods/2020/3/26/21187035/mlms-coronavirus-recruit-y oung-living-doterra-essential-oils.

This article looks into how MLM companies are taking advantage of the Covid Pandemic to sell their products and recruit more members. MLM companies have begun to use Covid-19 buzzwords and phrases to attract members in this time of instability. Stephanie Parker reports how MLMs lure recruits in with the promise of working from home, away from crowds, while bringing in income to support their families. However, she points out that the reality is that an overwhelming majority of members make no profit and often lose money. On top of luring new members, MLMs sellers are also making dangerously false claims that their products, which consist of multivitamins and essential oils, can protect buyers from Covid. 

Stephanie Parker quotes Robert FitzPatrick, president of Pyramid Scheme alert, several times throughout the piece and cites a study when claiming that MLM sellers largely make little or no profit. She also uses direct quotes from real MLM ads (doTERRA, Herbalife, Isagenix) when speaking on how the companies are trying to capitalize on the pandemic.

This article speaks to the relevance of Multi-level Marketing company malice and provides evidence for how opportunistic the companies are. This source will be used to show how MLMs prey on people at their most vulnerable and spread misinformation to the public. 

Shellnutt, Kate. “ Why Your Facebook Feed Is Filled with Women Selling Essential Oils and Press-on Nails.” Vox, 3 Nov. 2016, www.vox.com/2016/5/12/11577466/multile vel-mar keting.

In this source, the factors that have caused the growth and spread of MLMs across America are examined. Kate Shellnutt investigates why the majority of MLM participants are women, and why the trend has taken off in military and religious communities. She points to the social pressure targeted at females and the illusion of community that accompanies MLMs as a primary reason. She also cites the limitations women face in a traditional workplace as a reason why many turn to MLMs. 

Kate Shellnett largely uses anecdotal evidence, mostly her first hand account from interacting with friends and family involved in MLMs. She recalls many stories from her time living in suburban Tennessee surrounded by MLM sellers, and since her article focuses on MLMs from a “friend turned client” perspective, this is adequate evidence. 

This online article gives insight into how MLMs became so popular and will provide information on some of the social phenomena that occur within the companies. It could also be used to argue that a potential solution could be to better harness female ambition in a more traditional workplace. 

Vesoulis, Abby, and Eliana Dockterman. “Pandemic Schemes: How Multi-Level Marketing Distributors Are Using the Internet—and the Coronavirus—to Grow Their  Businesses.” TIME, 9 June 2020, time.com/5864712/multilevel-marketing-sch emes-coronavirus/.

Abby Vesoilis and Eliana Dockterman breakdown how Multi-Level Marketing Businesses have continued to grow in the pandemic, while the traditional business model has suffered. The authors find that thanks to the internet, false claims about the products, and the exploitation of modern feminism, MLMs are able to actively recruit more sellers during a time of job insecurity. The article also examines the stories of Christine Baker, Illyss Demarino, Jamie Ludwig, and Jose Vargas to provide insight into MLMs from those who have lost money and time. In addition to looking at personal stories, the authors analyze the shady legality of MLMs, and suggest that greater awareness may prevent potential victims from getting sucked in. 

The authors back their claims throughout the article with testimonial evidence from experts such as Robert FitzPatrick, president of Pyramid Scheme Alert; Kati Daffan, an assistant director at the Federal Trade Commission; Joseph Mariano, President of the Direct Selling Association; and Peter Vander Nat, acting representative of the government in many cases against Multi-Level Marketing companies. They also use statistical evidence from the Consumer Awareness Institute to support their assertion that a majority of those involved with an MLM will make little-to-no money.  The authors utilize a comparison, analogical evidence, of the growth of MLMs during the 2007-2009 recession to the growth of MLMs during the Covid-19 pandemic to show a pattern of behavior for MLMs to thrive during time when people are at their most vulnerable.

This article can be used to give further evidence that MLMs are a relevant danger during the Covid-19. The authors also provide evidence to support the solution of increased social awareness, particularly among the female population. Additionally, the several court cases and personal stories mentioned throughout the piece give insight into the operations of MLMs, both on the surface and internally.

VICE. “Why Women Are Quitting Their Side Hustle: Leaving LuLaRoe.” YouTube, VICE, 22 May 2019, www.youtube.com/watch?v=L6eujSJ0-RU. 

This 30-min documentary takes the viewer into the shady world of LuLaRoe, a major Multi-Level Marketing company. It investigates how LuLaRoe used social and financial pressure to keep women hooked, as it drained their resources. Focusing on the experiences of three women, all ex LuLaRoe consultants, the documentary highlights the suspect practices of the company, such as constant shifting policy, encouraging recruiting more than selling, and poor quality control of the product (colorful patterned legging and other clothing items). The involvement of Deanne Stidman, co-founder of LuLaRoe, in encouraging 18 or more women in the company to receive plastic surgery in Tijuana, Mexico through the group chat “Tijuana Skinnies” is also discussed. 

Roberta Blevins, Courtney Harwood, and Deborah Goldman speak throughout the documentary about their first hand experiences at LuLaRoe. The women speak about how the company creates a sense of community, making it extremely hard to leave the venture. They also talk about how they felt abandoned by the company after it had taken their time and money, leaving them with nothing but debt. The documentary also cites the Federal Trade Commission for any information given about the parameters of what makes a pyramid scheme. 

This documentary contains testimonials from insiders about LuLaRoe’s dubious practices. LuLaRoe is a major Multi-Level Marketing company that shares practices with many other notable MLMs. The evidence presentation against LuLaRoe can be used to show how MLM practices are a societal monster..