Planet Money on Multilevel Marketing Schemes

This episode of Planet Money is about short-selling stock and Herbalife, but listen for the explanation of why things like Herbalife, Ambit Energy, and other multi level marketing distribution methods may not be on the up and up.

Ambit reps, and other reps with titles like “independent energy consultants” from other multilevel marketing companies, need to always sing the praises of those companies so that others will join underneath them. I know a few people into the Ambit Energy racket who are constantly on the lookout for others to recruit. It looks suspicious. I don’t know if there’s anybody left who’s gullible enough.1

Although, benefit of the doubt, maybe these things are legit but have tarnished reputations from over-eager and aggressive independent energy consultants. That would still benefit those further up the chain who got in on the ground floor and have moved onto the next scam thing.

  1. Er, what I meant to say was…uh, umm – THE MARKET IS SATURATED!