I’m a couple of days late for my expose into MLMs, and I apologize for that. This is the first part of at least two sections.

No discussion of MLMs would be complete without mention of Amway. Several years ago, in 2001, Quixtar replaced the North American business of Amway, likely in response to mounting bad press surrounding the Amway name.

Basic premise of Quixtar: you buy products (toilet paper, energy drinks, shampoo, etc.) from Quixtar’s website. You are given a percentage (3%) of everything you buy back. Additionally, for every person you sign up to Quixtar, you get a percentage from whatever they buy as well. Obviously, the more people you sign up, the better it is for you (and for everyone else up the chain.)

In order for MLMs like Quixtar to work effectively, they have to maintain momentum and excitement and most essential of all, they must constantly bring in new recruits. They proselyte in three main ways — large conferences, small home meetings and weekly pep rallies.

I’ve been a couple of these weekly MLM pep rallies. Though the details may differ slightly, they are all variations on a main theme. Here’s a prototypical event:

A fair number of people assemble in a rented hotel conference room. At the stage in the front, stands an affable young man, smiling, sharply dressed and speaking about how much his life has changed since he became “free”, that is, independently wealthy. He speaks of extra leisure time and the luxuries of life he and his family now enjoy. He is able to play a lot of golf and doesn’t wake up until late in the day. He compares himself to famous mainstream business figures and shares stories from their roads to success.

He emotionally chokes up a bit as he declares that because of his new and growing wealth, his children will not know the sufferings and cruelty of poverty. He is a dynamic speaker who engages the audience.

On a white board he scrawls a few circles and some interconnecting lines and talks in vague pseudo-economic principles littered with over-generalizations and false conclusions. He denigrates formal higher education, saying that “the education I learned from my mentors [in this MLM] is far more valuable than anything I learned during college.” Throughout his comedic monologue, allied cohorts in the audience (who are coached to be well dressed and hyper), hoot affirmations, whistle and clap loudly.

“My wife and I just moved into a million dollar house in Alpine”, he says. “Woo-hoo! Yeah! Right on!”, the crowd responds. “Are you living the life you deserve?”, he questions. “Are you able to stay home with your wife and kids?”, he inquires. “Are you just working for other people’s compensation plans?”, he asks, “would you like to? Can anything stop you from obtaining your dreams?!? If I can do it, so can you! Let’s do it!” At this point the frenzied crowd leaps to their feet in a roar of applause and cheering.

In Utah, the scam artists increase their levels of deception. There is a wrapper company that “trains people to be a part of Quixtar.” That company is called “Teambuilders” and is run by Alpine resident Lennon Ledbetter (and family) and his Pacific Islander crony Manase Fotu. Teambuilders, of course, charges hefty monthly fees for the privilege of being “trained” to use Quixtar.

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