Frugal Friends Podcast – "Worst MLMs of 2025 Exposed! (they’re not the ones you think!)"

Hosts: Jen Smith & Jill Sirianni
Date: December 2, 2025

Main Theme & Purpose

In this episode, Jen and Jill take a critical and humorous deep-dive into the lesser-discussed and more insidious multi-level marketing (MLM) schemes of 2025—specifically those in the financial services sector. Their goal: to expose hidden dangers, share real-world examples, and empower listeners to question business opportunities that may do more harm than good, all with an emphasis on protecting your finances and supporting true financial literacy.

Key Discussion Points & Insights

1. Rethinking MLMs: Not Just Nail Polish and Supplements

• Common Perceptions: Most people think of MLMs as “awkward Facebook messages,” “overpriced nail stickers, shampoos, and supplements,” or infamous products like “obscenely bright leggings.” (Jen, 01:54)
• Beyond the Usual Suspects: The real issue often isn’t the products, but the commission-based recruitment structure that incentivizes endless recruiting rather than genuine product sales. These companies thrive by focusing on recruitment, which creates a fundamentally unsound financial dynamic. (Jen, 04:23–05:15)

Memorable Quote

“I can’t even be mad at an MLM for maybe hiking up the price a little bit to take business away from these multibillion-dollar corporations. Right. The thing that makes MLMs so unhealthy is the commission structure.”
—Jen (05:15)

2. The False Promise and Real Risks of MLMs

• The Recruitment Trap: Most income is made not by selling products, but by recruiting others—a hallmark of a pyramid scheme. The majority at the bottom of the downline rarely make money.
• Conservative Reality: “For over 80% of the people who are going to actually be a part of the mlm...it's a conservative percentage.” (Jill, 09:28)
• Limited Markets: You’ll eventually “run out of people to sell to,” especially since many products are easily available elsewhere for less. (Jen, 09:25–09:57)

Notable Quote

“The products are just normal products. They’re not trying to revolutionize. … It’s literally just like, let’s create a network of people that just buy our products from this off brand versus the big companies.”
—Jen (11:17)

3. The New Frontier: MLMs in Financial Services

Why focus on finance?

• Jen and Jill highlight that MLMs are not limited to consumer products—they have found fertile ground in complex, intimidating markets like investing and insurance, where most people lack confidence or expertise and are therefore ripe targets.

Disclaimer for Legal Reasons

• The hosts clarify: “Everything we’re sharing in this episode is opinion based. It’s grounded in only publicly available information and data…maybe you’ll see us be vague in some places and that’s on purpose.” (Jen, 12:27)

A. Investment MLMs: "I Am Academy" & Beyond

• Example: I Am Academy (recently rebranded to Iovia and now insolvent, also previously known as IMarketsLive/IML/IMMA).
• Business Model: Sells online courses on speculative investments (crypto, forex, options) for $250 upfront + $250/month, but you can waive your monthly fee by recruiting two others.
• Tactics: Confusion, secrecy, targeting young, often minority communities lacking investing education.
• Scale: At its height, 500,000 members, $1B revenue (2022), and $1.2B allegedly scammed since 2018 (FTC, 2025)
• Legal Trouble: Fined for trading without a brokerage license; heavy FTC involvement as of 2025.

[22:10]

“It costs $250 upfront and then $250 a month. And so again, if you recruit two people in, then your monthly fee goes away…”
—Jen

[26:52]

“They’re targeting intentionally communities of color who do not have as much background in investing education. It was being very intentional with the communities that it targeted.”
—Jen

• What You Can Do: “We should be talking about what we know about investing because so many of the people that this company in particular targeted were very young…It takes all of us to be talking about this, to be normalizing this.” (Jen, 25:53–28:57)

B. Insurance MLMs: Primerica, World Financial Group, Family First Life

• Common Scenario: A friend starts selling life insurance and asks you to buy—often with genuine intentions but little financial background.

  • “People don’t know a lot about insurance. It’s boring. It’s intentionally complex and it has the most grifters in the financial services industry.” —Jen, 29:29

• Product Reality: You do get the insurance, but often pay more for coverage you could get for half the price elsewhere. Commission structures further incentivize recruitment, not customer service.

  • Standard Brokers: Earn 80–90% commission.
  • MLM Agents: Start at ~25%, rising only if they recruit others.

[36:24]

“The issue isn’t that you’re not getting the real product…same here. You will get the insurance that they’re selling you. But … you may not get the right thing for you. It might not be the most suitable or affordable. And so much of what you’re paying is just extra…”
—Jill

• How to Protect Yourself
  • Always compare quotes from at least 20 different insurance companies; don’t rely on a friend’s recommendation without doing due diligence.
  • Ask how many companies your agent can quote from—less than 15–20 is a red flag.
  • Online tools like PolicyGenius or reputable brokers like Ladder, Fabric, and Ethos can help.

[41:18]

“You can ask [the agent] how many different insurance companies do they work with?…if they’ve only got 5, 10, 15, that’s not enough…”
—Jill

• Names to Note: Primerica, World Financial Group, and Family First Life—all operate with MLM models. Their agents are licensed but do not have a fiduciary duty or access to all products on the market.

[42:35]

“So the biggest one is Primerica … World Financial Group … and then Family First Life. … They don’t have a fiduciary duty…and they don’t have access to every product available. So it is wise to do your due diligence with any insurance agent, not just these…”
—Jen

4. Red Flags & Warning Signs: The ‘Lightning Round’

Practical Advice for Avoiding MLM Pitfalls

• Classic Red Flags:
  • Secrecy around the business model/product.
  • Pressure to recruit your network rather than just sell something.
  • Emotional manipulation, especially leveraging existing community/religious bonds.
  • Promises that sound too good to be true (e.g. “You’re going to make millions for just enrolling a few friends!”).
  • Overlap with cult-like tactics—rituals, groupthink, “us vs. them” language.

[51:14] — Guest Story via Marco

“When I got home, I called him and I said, you know, I looked up this company and I wanted to share some of the things I heard about with you. … And what I was told back was, ‘You’re just like everyone else. You don’t believe in me. They told me you would say that’—and that was the end of my friendship with my best friend of four years and it was my introduction to the world of multi level marketing.”

• Faith & Manipulation:
  MLMs often mimic group identity and trust, especially in tight-knit communities and religious groups.

  • “If I see anything…tapping into religious norms…that for me, if I see like any overlap…” —Jen (54:47)
  • “When I start to hear your sales are connected to your level of faith—ding ding ding…” —Jill (54:47)

• General Guidance:
  If anything is overly mysterious, secretive, or pushes recruiting over value, walk away.

Notable Quotes & Moments

• Jen on Commission Structures:
  “Where you put the money is where you put the incentive.” (05:15)
• Jill on the MLM Dream:
  “Most of our friends who are a part of mlms … they’re not malicious … not really realizing where the true money is coming from…” (08:13)
• Jen on Financial Education:
  “It is still our responsibility to get in there, educate ourselves and help the people…” (28:57)
• Jill on Insurance MLMs:
  “You may not get the right thing for you. It might not be the most suitable or affordable.” (36:24)
• Jen on Red Flags:
  “If I see anything tapping into religious norms…for me, that’s a red flag.” (54:47)

Timestamps for Major Segments

• 01:54 – Defining MLMs: stereotypes and the real problem with recruitment
• 05:15–09:25 – Honest takes on MLM models vs. unethical practices
• 17:19–28:57 – Investment MLMs, I Am Academy/Iovia, how these companies operate, who they target
• 29:29–44:45 – Insurance MLMs, how complex products allow for hidden grifts, what to watch for, specific company names to know
• 49:33–56:00 – Lightning Round: Red flags and personal stories, cult parallels, religious manipulation
• 56:11–59:10 – Closing thoughts, pushing back on MLMs, the importance of support and community, book promo

Engaging Takeaways

• MLMs aren’t just about Tupperware or leggings—they now lurk in financial and insurance products.
• If a business is built on endless recruitment, tread very carefully—especially where money, community, or faith are involved.
• Support your friends by helping them find legitimate, non-MLM opportunities—don’t let MLM structures pit friendship or trust against sound financial decision-making.
• Trust financial and insurance professionals with recognized, fiduciary designations—not ‘opportunity’ sellers who rely on recruitment.
• Speak openly about money and these schemes, especially with younger people and vulnerable communities, to prevent exploitation.

For resources and further learning:

• Jen & Jill recommend searching for “anti-MLM” creators like Hannah Alonso and Alyssa Grenfell for deep dives.
• Key comparison tools: PolicyGenius (for insurance), various online brokers.

Final Reminder:
If it sounds too good to be true—and especially if you’re being pressured to recruit others—it probably is.

Summary prepared for listeners seeking to safeguard their wallets and social circles from the most insidious MLMs in 2025.