The Cult of the American Hustle: MLMs and the Erosion of Trust

Ryan Haylett

It started with a guy I met on LinkedIn. Seemed harmless enough— another “entrepreneur” in my inbox, pitching collaboration and hustle. You know the drill. The discussion went to SEO, search engine optimization for those not knee deep into marketing. He then wanted to introduce me to his business partner over a zoom call. Great, a new business I can help... or so I thought.

Ryan Haylett

After we make our introductions I begin my pitch, but his buddy looked at me like I had a third eye growing out of my forehead. I wasn't supposed to be the one making the sale. Au contraire, mon frère. This was a trap. I fell for it like Admiral Akbar.

Ryan Haylett

This guy was my new friend's up-line for some medical holistic bull-shit. It took long enough to dawn on me, but this was a Multi-Level-Marketing scheme. And for that reason, I was out, and I politely made my adieu.

Ryan Haylett

What started as a polite exchange later morphed into a barrage of late-night calls, random texts, invitations to “just hear about this opportunity.” For two years, this dude was relentless. No matter how clearly I said no thank you, he’d circle back with a new angle—like he was auditioning for the Olympics of not taking the hint. I’d almost admire the persistence if it weren’t so culty.

Ryan Haylett

And that’s the thing—these MLMs, these so-called “opportunities,” they know how to laser-target hope, and they dress it all up in red, white, and blue. It’s all about “financial freedom,” “be your own boss,” “start with nothing, get everything.” They smash the bootstrap button like it’s a slot machine. The pitch? That old, almost irresistible American myth: The only thing between you and success is hustle. If you’re not rich yet, hey, just grind harder!

Ryan Haylett

Here’s how it works: They start by love-bombing you—praise, possibility, promises. Then comes the special lingo. You’re no longer just a seller—you’re an “ambassador,” a “founder,” part of a “family.” Every message drips with urgency and possibility: “Act now, spots are closing!” It’s like countdown-clock psychology turned into a business model. And it’s relentless—if you’ve ever accidentally clicked on a LuLaRoe group, you know. That mess with the leggings that fell apart, leaving women with boxfuls of worthless inventory after the collapse? Herbalife? Promised nutrition, mostly delivered on lawsuits. And Avon’s empowerment pitch? Well, let’s just say the only thing most people end up empowered to do is chase unpaid debts.

Ryan Haylett

This isn’t just about annoying DMs or one pyramid gone wrong. It’s about trust—about how vulnerable we really are to this sort of manipulation, especially when it’s marketed with Olympic-level patriotism and urgency. But the real magic trick is how they make you believe it’s your choice. Long before you see how deep the manipulation goes, you’re already a mark.

Ryan Haylett

Here’s where it gets nastier. Multi-Level-Marketing scams don’t just dangle success—they wrap themselves in the flag and Bible verses. They say joining is “empowering,” “American,” sometimes even “God’s plan.” They go after church groups, military families, immigrants—especially women and anyone struggling to keep their head above water. When real jobs dry up, when child care is unaffordable and health insurance is a pipe dream, MLMs move in with a solution—one that costs you.

Ryan Haylett

And I’m not just talking about the pitch, either. These companies have armies of lobbyists. They throw cash at both parties—Democrats, Republicans, doesn’t matter.

Ryan Haylett

There’re industry-funded PACs and campaign donations keeping this stuff perfectly legal, even as lawsuit after lawsuit shows that 99% of MLM participants lose money. The Federal Trade Commission, the very folks tasked with protecting us, practically refuses to call these setups pyramid schemes. And why? Because the people with the money keep the definitions as fuzzy as possible—and their pockets lined.

Ryan Haylett

Look at Betsy DeVos. Yeah, the former Secretary of Education, the billionaire GOP donor who somehow convinced people she gave a damn about kids’ education. Meanwhile, the bulk of her family’s loot? Comes from Amway.

Ryan Haylett

And the DeVos family didn’t just sit on the sidelines counting cash; they were knee-deep in this MLM nonsense. They were the puppet masters pulling the strings for one of the biggest recruiting scams in America. It’s like if Bill Gates made his fortune selling you energy drinks out of your neighbor’s garage while telling you it’s the next big thing.

Ryan Haylett

Now, while Betsy’s up on Capitol Hill pushing ‘school choice’ and privatization like it’s the Holy Grail, her family’s trying to make sure nobody pokes too hard at their MLM cash cow. They lobbied to weaken the rules, so these schemes can keep siphoning money from the little guy into their pockets without anyone breathing down their necks.

Ryan Haylett

It’s classic politics-meets-profit. Where the people who preach about ‘free market’ capitalism actually rig it to screw over everyone except themselves.

Ryan Haylett

And you gotta love how nobody calls it out more, because hey, it’s religion, family, and billion-dollar schemes all mixed up in one giant mess.

Ryan Haylett

So, why do we keep falling for this? Are we just that desperate for opportunity, or is it the way these companies plug into what Americans genuinely need—community, purpose, dignity? It’s usually people on the margins—moms, immigrants, folks who’ve lost “real” jobs—who get targeted hardest. And when they fail, who gets blamed? Not the system. Not the recruiter. But you. “Didn’t hustle hard enough.” It’s the American Dream flipped backwards: If you’re broke, it must be your own damn fault.

Ryan Haylett

This isn’t new—just more efficient because now it’s everywhere, from Facebook mom groups to Instagram stories, and yeah, LinkedIn DMs too. The system’s built to keep the hustle going, to keep the legal gray area gray, while the few winners at the top rake it in and the rest scramble for scraps. And, uh, where was I going with that? Oh right—the real question: What’s so broken in our economy that these false promises are all some people have left?

Ryan Haylett

Let’s talk about the modern glow-up of the old scam: guys like Patrick Bet-David. If you don’t know the name, think Gary Vee with even slicker hair and just enough “family values” sprinkled in to sound legit at a suburban barbecue. Bet-David’s claim to fame? The PHP Agency—a so-called life insurance “opportunity” cooked up as a multi-level marketing company, founded in 2009. They say you’re selling insurance, but really, you’re also just selling others on selling insurance. Recruitment and commissions are tied together like a double-knotted noose.

Ryan Haylett

Bet-David’s endgame is the gospel of hustle culture: there’s no excuse for failure, just a lack of grind. This isn’t just a motivational speech—it’s a weapon. The story is always the same: If you didn’t make it, you didn’t want it enough. If you’re struggling, maybe you’re broken. Meanwhile, the house, the actual system built around recruitment, always wins. On the outside, it’s entrepreneurship and “helping people build generational wealth.” On the inside, it’s just a new spin on that boiler room logic.

Ryan Haylett

Here’s how the scam’s evolved: Instead of door-to-door, now it’s webinars, TikTok, “exclusive” masterminds. These influencers rake in followers selling the dream, but behind the curtain, there’s always a downline to build, always another “opportunity” that pays—just like their MLM predecessors. The language is modern, the technology new, but the grift is as old as snake oil.

Ryan Haylett

Not everyone pitching hustle online is running an MLM, but man, once you start seeing the signs—love bombing, urgency, “no opportunity like this,” then “let me tell you how I made six figures in my first year”—it’s hard to un-see. The influencers profit from your hope, and when it all goes sideways, guess who gets blamed? Still you. It’s the same old play, just a flashier stage.

Ryan Haylett

Now let’s get real about the aftermath. The psychological toll is brutal. Most people who join these things don’t just lose money—they walk away feeling ashamed and isolated. Like they let down their friends and family, or broke some unspoken promise to “make something of themselves.” The stats are staggering: over 99% of MLM participants actually lose money. But the culture is brutal about it—it’s never the company’s fault, always yours for “not hustling hard enough.” That’s by design.

Ryan Haylett

The folks MLMs go after aren’t lazy—they’re vulnerable. Single moms, recent immigrants, folks who lost jobs when factories shut down or health insurance got too expensive, people just looking for hope. And the reality? Once you’re in, it’s hard to leave. You spend time, money, social capital. The blame gets so internalized that people stop talking about it. Shame keeps you from calling out the scam.

Ryan Haylett

This is bigger than just MLMs. It ties into all of the systemic issues in the United States: stagnant wages, unaffordable healthcare, no safety net worth the name. Whether it’s Uber drivers paying their own health costs, DoorDashers scrambling for benefits, or you hustling your “starter kit” to the same five Facebook friends, the story is the same. The risk has all been shoved from companies onto us, and now it’s national policy. That’s the gig economy playbook.

Ryan Haylett

So what do you do? First—spot the patterns early. Any “opportunity” built around recruitment, not a real product or service—red flag. Love bombing, urgent action, secrecy, lots of hype and little substance: walk away. If someone you care about is caught up in one of these, remember, shame is the scammer’s best weapon. Talk to them, listen—don’t blame them.

Ryan Haylett

There are communities out there—Reddit’s AntiMLM, various Facebook support groups, forums—people who’ve been through it, who know. If you want to break out, or help someone leave, you’re not alone. And hey, none of us are immune to the pitch. No shame in taking a hit. The power is knowing the con, and calling it out.