The psychology of attraction to multi‐level marketing

Abstract

Despite being a risky and controversial business model, little research has investigated personal characteristics that increase attraction to multi‐level marketing business opportunities like Amway and Herbalife. A two‐wave survey (Ntotal = 1503) revealed that attraction to multi‐level marketing opportunities was associated with stronger extrinsic life goals (for becoming rich, famous, and attractive), belief systems related to spirituality and thought‐action fusion (i.e., the belief that thoughts alone create reality), and a cognitive decision‐making style that emphasizes intuitive over rational thinking. Intrinsic psychological needs (e.g., for control and meaning) showed the least consistent associations. Based on these findings, we provide guidance for consumer advocates and policy makers to consider individual psychological factors in education campaigns to improve decision making and participant wellbeing.