Is Network Marketing a cult? Good Question! The Answer is Yes (keep reading)

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There had been charges for many many years from critics of Amway (and MLM in general) that some MLM meetings resemble cult meetings. Indeed, it was documented that at one time, Amway's own "Infocenter" FAQ contained an item where it attempted to answer the question that why do MLM meetings resemble a cult meeting (FAQ no longer available).

The answer is "Yes, some factions of Amway use cult tactics". Indeed, many MLMers found it much easier to use cult tactics to grow their downline than to do real sales.

But first, let us define what are cults, and cult tactics.

Cult: A system of religious veneration and devotion directed toward a particular figure or object.

In this case, the "object" is the business, or the "ideal" of the MLM business.

Cult tactics are designed to not only recruit more members to the cult, it is also designed to keep the members in the cult and never leave.

MLM "cults" are especially destructive due to the monthly autoship and/or monthly "qualification" purchases. Those add up to a continual drain of bank account of the afflicted.


Cult tactics are designed for "coercive persuasion", and it goes far beyond "training" and "inspiration" in that they involve the following 4 factors:

1. The reliance on intense interpersonal and psychological attack to destabilize an individual's sense of self to promote compliance
2. The use of an organized peer group
3. The use of interpersonal pressure to promote conformity
4. The manipulation of the totality of the person's social environment to stabilize behavior once modified

The difference between this and a job is a matter of choice. If you don't agree with the job, you can leave. You are not psychologically manipulated into staying with the job. A cult, however, will do everything that it can to prevent you from leaving, including sending so-called "friends" into guilt-tripping you. A cult will also seek to distance you from your pre-existing social environment and substitute their environment instead.

Indeed, MLM do use those four factors, whether intentionally or accidentally, to recruit and keep members

1) MLM often use various psychological attacks on the prospective members, usually by belittling the member's existing status, such as "you're stuck in a job and be a wage serf for life (and MLM can save you)".

2) MLM relies on "sales groups" to motivate each other, and very reliant on real or virtual meetings, such as conference calls, recordings, "training calls", and if possible, local meetings where a leader will organize the "peer" group to pressure wavering members into compliance, as well as indoctrinate potential new recruits.

3) MLM injects personal relations (social norms) into what should have been a purely business decision (market norms), i.e. earning money. By using shame and guilt, wavering members are pushed back in line.

4) MLM often uses additional psychological attacks on the members to keep them from friends and family, by insisting their friends and family don't understand (but MLM peers do).  In one documented instance, after the husband quit the MLM in disgust, the wife continued to go to MLM meetings to humor a friend. The "friend" asked the wife why is she sticking with a loser/quitter with no ambition.

MLM is declared cult-like by several cult experts, including Rick Ross and Steven Hassan.

Here's a video interview between Eric and Steven Hassan on "commercial cults". It's a 3 part series.



If you want to read a long study on all aspects of a cult, and how Amway resembles one, you may want to read this study.

http://www.cocs.com/jhoagland/amcult.html

So to conclude, yes, MLM often use (whether they mean to or not) cult tactics, and thus many are effectively commercial cults.

THAT is something they don't tell you about network marketing.