Cults can have nefarious consequences. The mass suicide lead by Jim Jones in 1979 is an example of the power of manipulation and the radical ideas promoted by some cults. Drawing the line between mere influence and manipulation is important, even though the distinction strikes some as useless.
One of marketers’ jobs is to influence people, not to manipulate them. Unfortunately, some companies have lost sight of this fact. Herbalife’s distributor meetings, for example, take advantage of several psychological techniques, which create fanatics (not “associates”, as the company calls them). What’s the difference? Although lines can get blurry at times, a distinction is that fanatics would not even stop to consider reasons against their preferences.
In 2016, Herbalife reached a settlement with the US Federal Trade Commission that requires the company to prove that at least 80 percent of its income comes from distributors’ customers. The settlement was the result of a scandal that confronted Herbalife and investor Bill Ackman, who accused the company of running a pyramid scheme business model, where most of the income comes from the recruiting process distributors make and not from the sales of the products. The documentary Betting on Zero dissects the whole thing.
The documentary also shows some of the tactics used at these Herbalife meetings. To start with, the pitch to gain distributors hearts is exaggerated and revolves around one of the most cherished dreams of current societies: financial freedom. As it is usual with these type of tactics, financial freedom is depicted as involving more than freedom from a 9-to-5 job while being able to meet basic needs. It is outright abundance: driving a Buggati, living in a million-dollar mansion, going on holiday to Ibiza. Saying that this is just another emotional appeal would be an understatement.
Another tactic used by Herbalife is connection. There is a ton of research that shows that we crave human interaction. In The Happines Hypothesis, Jonathan Haidt summarizes this fact like so: “We are an ultrasocial species, full of emotions finely tuned for loving, befriending, helping, sharing, and otherwise intertwining our lives with others” (p. 134). Just imagine how rewarding the mere feeling of attending a Herbalife Extravaganza (that’s the name of Herbalife’s massive meetings) can be. You are surrounded by thousands of people just like you, who seem to share your goals and ideals. Additionally, the fact that you are physically present make you an easy target of social phenomena, like emotional contagion. People clap, scream… Excitement is in the air, and you follow the lead.
I loath companies built around practices such as these. I cannot put my finger on it, but maybe is the combination of playing with people’s dreams and freedom that makes them so despicable. Manipulation shouldn’t be a tool at companies’ disposal.