Trained to Stay: How MLMs Turn Learning into Escalation of Commitment

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2025-06-23

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en

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More and more people are drawn to training programs by Multi-Level Marketing (MLM) companies like IM Academy, enticed by promises of personal growth, skill development and financial freedom. While these programs appear to offer valuable learning opportunities, their primary function is to strengthen participants’ commitment to the MLM system, encouraging ongoing financial investment and active recruitment of new members. Many participants get trapped in a cycle of increasing investment and losses, unable to accept the gap between promises and reality. This thesis applies Escalation of Commitment theory to explore why participants struggle to disengage. Using a qualitative multi-method approach combining interviews and desk research, and applying Gioia’s methodology, it uncovers the dynamics within MLM’s organizational design that actively drive escalation. Findings show that MLMs deliberately employs positivity-enhancing strategies to shape belief systems and sustain participant commitment. These strategies operate via uplines reinforcing belief, strategically designed content and training, and an immersive learning environment. This conditioning reduces cognitive dissonance and triggers self-justification, prompting participants to rationalize continued involvement. This thesis concludes that persistence in MLMs is not simply the result of individual choice, but is the outcome of being trained to stay through learning programs that fuel escalation of commitment.

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Faculteit der Managementwetenschappen