When an MLM or pseudo-business empire starts to fall apart, the first warning sign is rarely a news headline or legal notice. It’s when the so-called leaders — the top-tier loyalists, the “founders,” the hype merchants — start backpedaling, rebranding, or vanishing altogether.

And just like in cults, their silence or deflection says more than any press release ever could.

The MLM Leader Playbook: Loyalty Until It’s Inconvenient

Multi-level marketing “leaders” love to present themselves as mentors, visionaries, or family. They host Zoom calls full of platitudes, tell rags-to-riches stories that usually leave out the bankruptcy part, and create a culture where questioning the opportunity is treated like betrayal.

But when the collapse begins — whether through regulatory action, dwindling funds, or public backlash — their masks start to slip.

They go from “ride or die” to “I was just a customer” in record time.
They delete old videos, scrub their profiles, or pivot to “educating” people about scams — sometimes the very ones they helped promote.

A Tale As Old As Pyramid Schemes

We’ve seen it play out again and again:

  • With OnPassive, Marty DeGarmo and Robin Noble were paraded as trusted figureheads… until Ash Mufareh began tossing people under the bus. Marty, once seen as a true believer, suddenly backed away. Robin was “graciously” cut loose. Other leaders either doubled down or disappeared altogether.
  • In BitConnect, promoters like Trevon James initially mocked critics, then pulled a 180 when legal heat came down.
  • With TelexFree, top promoters played dumb while thousands of victims were left with nothing.

The script never changes. Just the cast and costumes.

Cult Behavior in Business Clothing

When MLM leaders act this way, they’re not just being shady — they’re following the exact same psychological patterns we see in destructive cults:

  • Us vs. Them Thinking: Any outsider who criticizes the group is “negative,” “toxic,” or “jealous.” Until the leader becomes the outsider — then they are the villain.
  • Blind Obedience Until Betrayal: Members are taught to follow leaders without question. But when the top tier sees consequences coming, they often betray the very people they trained to be loyal.
  • Shifting Reality: Just like cults rewrite history, MLM leaders rewrite their involvement. “I never made money from it!” or “I was misled, too!”

Sound familiar?

Why It Matters

When the leaders jump ship, it often leaves a wake of confusion and emotional damage. Members who invested time, money, and identity into the MLM are forced to confront betrayal — not just by a business model, but by people they trusted.

This betrayal trauma is very real and often goes unacknowledged.

MLM survivors frequently compare the exit process to leaving a cult: shame, isolation, and the slow realization that they were manipulated under the illusion of empowerment.

How to Protect Yourself (and Others)

  1. Watch what leaders do — not what they say. Anyone suddenly distancing themselves from an MLM should be questioned about their past involvement.
  2. Follow the money. “I wasn’t paid” is rarely true. Check their downline activity, affiliate links, or promotional videos.
  3. Call out the silence. If someone helped build a scam, they should be held accountable — especially if they’re now repackaging themselves as an “expert” or “coach.”
  4. Support victims, not rebranded perpetrators. Uplift the voices of people who lost money and time, not those trying to save face.

As long as MLMs exist, so will the leaders who profit from them — and abandon ship the moment the waters get rough. The more we recognize the cult-like tactics behind these exits, the easier it becomes to prevent the next wave of exploitation.

Because if there’s one thing you can count on in the MLM world, it’s that the pyramid always shifts — but never in your favor.

By Beth Gibbons (Queen of Karma)

Beth Gibbons, known publicly as Queen of Karma, is a whistleblower and anti-MLM advocate who shares her personal experiences of being manipulated and financially harmed by multi-level marketing schemes. She writes and speaks candidly about the emotional and psychological toll these so-called “business opportunities” take on vulnerable individuals, especially women. Beth positions herself as a survivor-turned-activist, exposing MLMs as commercial cults and highlighting the cult-like tactics used to recruit, control, and silence members.

She has contributed blogs and participated in video interviews under the name Queen of Karma, often blending personal storytelling with direct confrontation of scammy business models. Her work aligns closely with scam awareness efforts, and she’s part of a growing community of voices pushing back against MLM exploitation, gaslighting, and financial abuse.