Multilevel Marketing Schemes & The Scam of Financial Freedom

MLMs have been selling the scam of financial freedom for decades, and I'm fed up. Let's talk about it.
Multilevel marketing schemes, also known as MLMs, network marketing, or sometimes even pyramid schemes, sell the idea that you can make money and get rich easily. But the truth is far from that. From crippling debt, to preying on vulnerable communities, to many lies and deceit, multilevel marketing schemes have a whole lot of problems. In this video, I talk about why MLMs are dangerous, who they prey on, the fantasy of the get-rich-quick scheme, and how to actually become rich.
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#multilevelmarketing #mlm #personalfinance #videoessay #scams #moneymanagement #financialfreedom
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Time Stamps:
00:00 Lularoe's $5,000 investment
01:17 Let's talk MLMs
01:37 Dark reality of making money in MLMs
02:41 Pyramid schemes vs MLMs
04:18 Selling the idea of financial freedom
05:52 Why does this matter?
06:10 MLMs vs Gambling odds
06:52 Devastating financial consequences
8:10 Who MLMs prey on
9:10 MLMs targeted me!
10:29 How I knew I was in an MLM call
11:40 The MLM "opportunity" trap
12:05 "Get Rich Quick Schemes"
12:52 What do you think?
Keywords for some sweet, sweet metadata:
Multilevel marketing, MLMs, network marketing, financial freedom, personal finance, money management, making money, income, social media, video essays, video essay, dark reality of MLMs, scams, side hustle

[@mattwong5403]

If getting rich were as easy as MLMs make it seem, no one would be poor

[@answerman9933]

But that is the thing about MLM. Eventually there will be no more people to recruit.

[@lotusgrl444]

Exactly I dont understand why ppl that get scammed dont use that logic

[@MrHeat48]

Yes, so true, after that, it's just like biting their own butts.@@answerman9933

[@johnd9541]

@@lotusgrl444 A small percentage of any population always runs to the beach after a Tsunami sucks the water out because they don't know what comes next.

[@user-dw1ls3rp1l]

The infallible rule: if YOU have to pay to be involved, then YOU are the customer AND the product. The leggings, lotions, oils, and protein shakes are just props.

[@matthewgreen2425]

The worst thing about these groups is how they play with people's emotions, and give people false hope.

[@MsActor2009]

Agree!

[@sarahjane4908]

And convince those ppl to target their friends and family for recruitment into the MLM

[@tomlxyz]

That's the only way it can work

[@lesley9989]

And the multi-millionaires have always been homeless or taking drugs.

[@phobowl]

The worst thing about MLMs is that they encourage you to hook in your friends and families. I’m insulted anytime someone I know try to recruit me. They’re trying to scam me out of my money and they’re supposed to be my friend and family.

[@Mirage031]

In a way, it's an indication of who to weed out, if possible. I knew a couple of people that I thought were friends, but they never RSVP'd for my birthday party, yet they were quick to hit me up about a product they were selling or a "party" for said product.

[@TheKisshu1997]

I was sooo uncomfortable when someone tried to recruit me and asked to meet my mom/told me to tell my mom about the great products...

[@ellarose7301]

i can’t wait for this channel to become one of the big video essay channels

[@thefinancialfreedomgirl]

thank you so much, i'm honestly so inspired reading that :)

[@simp2234]

it take u this long to find out 😂😂😂

[@memelord3348]

Almost at a 100k, from there on I hope a million comes overnight

[@iamme4494]

Not to mention she’s extremely attractive ❤

[@lovelysakurapetalsyt]

@@thefinancialfreedomgirl You really should blow up! I wasn't able to find any good actually genuine essay channels after the you know who shit happened, but I'm glad I found your channel, it seems so genuine and well done

[@CBBforme]

I was in an MLM earlier in my career. At the time, I was completely seduced by the intense excitement, the super tight community, and the supposed possibility of wealth. I soon realized, that it was TRULY all about recruitment, not about product. And I HATED it. Imagine being pressured to speak to everyone you know - friend, family, stranger, about a "business opportunity" that wasn't even a business opportunity. It was awful. After I left, I was embarrassed about this chapter for quite some time. But now, I realize it was just part of my journey.

[@lionedheart]

Must have been really terrible. That the only way to make money was through recruitment. Sadly, reading between the lines of your story, it seems as if they were seducing people with the possibility of becoming millionaires

[@edaingonzalez7179]

You and me both

[@sliceofmini]

Oh my , my mom unfortunately was in one too , and she regrets that to this day as well. Unfortunately my mom and I were in a very desperate situation back then, she was newly widowed had to put me through college and we couldn’t even get to traditional interview job opportunities, so she thought this could be manageable along with looking after me. The awful part is that it was under a company that was and still is one of the top companies in my country , so my mom didn’t think twice about it. Even though we didn’t have to pay for getting into it , my mom spent so much money, we didn’t technically have to host get togethers for discussing the service or meet "potential" clients , she always would bring the business opportunity up even to strangers and the conversation would just sour the moment she brought it up. She finally stopped once she couldn’t pay for anything she had to, to get her " business " up. And eventually I started earning and let her know she doesn’t have to do anything and we’d still be ok . And yet we still look back on those days , in fact we were just talking about it yesterday.

[@user-dw1ls3rp1l]

A few of my long lost friends have hit me up with "amazing opportunities". I let them know straight away what they are into. If they want to keep on keepin' on, I lay out the boundary. I say you do you, but do not try to sell me if you want to remain buddies. Of course they recoil back into the woodwork, because the cult teaches them to cut out the "haters".

[@cdsersd2d]

@@lionedheart - Exactly! The only way is recruiting AND getting in early. The lower in the pyramid you are, the more your upline takes from you and your downline. Remember, when you consume and sell your $1000 worth of MLM product, the MLM company still has to pay for the product costs, management, founders, and all of the layers of upline. You'll be lucky to see $100 at the end of the month. The only way to make money is to recruit. But your downline will quit. Nobody wants to work for $100 per month. In fact, statistically...99% who join, actually lose money.

[@deersakamoto2167]

Problem is even people who criticize MLM often look down on honest labor at McDonald's etc. There's too much entrepreneur worship even though 99% of MLMers make less than a few hours of work at McDonald's

[@simp2234]

Well one dAy u become

[@tomlxyz]

​@@simp2234one day you become broke because you can not put in more money into the mlm

[@scirstrom5939]

My parents fell for an MLM, luckily we survived, but I told them straight up at the beginning that I had a suspicion that it was blatantly an MLM and they dismissed me because I was "too young to know anything".

[@rocky_wang]

If I were you, I would tell my parents they are too stupid to know anything 😂😂😂

[@unnecessary111]

Condescending parents are the worst

[@therobotdevil2284]

I've watched probably hundreds of anti-mlm videos at this point, and this is the one I will be sending to family and friends who don't know about MLMs. Outstanding work, Cara!

[@thefinancialfreedomgirl]

thank you so much!! so glad you liked the video and found it worth sharing :)

[@WilliamBTCWallace]

Hundreds? You have too much time on your hands.

[@DR-cu2fl]

It's insane how people still fall for pyramid schemes.

[@lionedheart]

there’s a new noob born every day

[@MarshallMathersthe7th]

I'm lucky i never did, i remember i was interested in a certain get rich quick scheme aka pyramid scheme. But my frugal self even back then when i was 16 thought ''why do i need to pay money to get this job/oppurtunity?'' It just didn't make sense to me. Just like those work at home ads and make (insert exorbitant amount) per month!

[@jalapeno1119]

​@@lionedhearta "new new"?

[@jalapeno1119]

They're so manipulative and target vulnerable people - usually those who are lonely and desperate for money.

[@lastswordfighter]

It's one of the oldest scams. Bread and circuses.

[@sweet2sunshine]

People join MLMs for the same reason people join cults, the military, and other group: COMMUNITY. Humans are social creatures and crave validation and interaction with others. Even introverts need that too. This is the foundation of why people will continue to join them. Often on videos like these people say why do people keep joining these if theyre such terrible investments? Because deep down, that's not why theyre there. Theyre craving friendship and community.

[@lionedheart]

Not all. Some are there because they’re seduced with the possibilities of becoming “millionaires”

[@sidharthsinhku371]

@bubblykates and the day you stop recruiting guys for the mlm, boom, All that friendship and community is gone.

[@joandarc441]

​@@sidharthsinhku371 no one is really your true friend in those MLMs.

[@cdsersd2d]

I think money is the largest motivator, but maybe a percentage also has to do with the support and friendships. But I'd rather make friends doing something else I enjoy.

[@WilliamBTCWallace]

Yeah but my MLM is different. 😅

[@dolledupwithdani1428]

I got trapped in an MLM for probably two or three months, thankfully not longer. I was at the pool, and this couple came up to me, and they were telling me that they were entrepreneurs, and I instantly got intrigued because I want to own my own clothing, business skin care, lashes, and whatever and obviously that intrigue them, so I got in contact with their “sponsor” I was doing weekly video chats, which were taking up a whole bunch of my time they were only about what strategies I was using trying to tell people I know about it and it was always about recruiting, which was honestly really annoying because I wanted to talk about how to grow my own business and then the fees came fees buying the products being a part of the group selling on the website etc. I was too broke to continue. I only had $100 left my name. They even wanted to help me budget and went through all of my expenses and everything and I just thought it was super ridiculous that after many times I told them that I honestly couldn’t afford to continue. They kept trying to help me with a new budgeting plan. I just blocked all of their numbers and thankfully I moved on.

[@dolledupwithdani1428]

And their stupid get together trips were hundreds of dollars and I had to pay $50 to watch it from home. It was ridiculous. I didn’t know what I was getting myself into and nobody around me has been in anything like that, so nobody could’ve warned me that this was a scheme

[@lionedheart]

Im glad you did. How’d you realize it was a pyramid scheme?

[@sarahjane4908]

I was targeted five years ago in LA by the Rodan and Fields “boss babes”. With that company I found they actually targeted higher income earners, but preyed on emotional vulnerability in order to recruit. For example: Do you feel unappreciated by your boss? R&F will always value you. Do you feel isolated and disconnected after birth of a new baby? R&F women will be your best friends. Does your husband work a lot and you feel like you have nothing for yourself? R&F is the answer. Seriously these ppl are evil.

[@rocky_wang]

Lots of dark empath😂😂😂

[@richardpodnar5039]

Another worst thing is having a family member, close friend or good neighbor who gets sucked into an MLM who invites you to an ostensible "party" which turns out to be nothing more than a high pressure selling occasion by someone he or she has also "invited". This has happened to me a number of times in the past. Very uncomfortable.😮😢

[@misssincere5762]

Sounds like a religious cult! 😭😭😭😭

[@missm10]

another demographic more vulnerable to MLMs are disabled people. alongside the fact many of us struggle to spot signs of scams, many of us cant access the mainstream world of work cause of ableist employers, so we have to look for alternative options to work. Especially given the late stage capitalist hellscape we currently live in.

[@thefinancialfreedomgirl]

such a great point, thank you for adding this!

[@coffeechatsandwalks3976]

Yes, any vulnerable working group from the disabled, stay at home Mum's, long term unemployed lacking confidence, qualifications or work references and suffering from low self esteem to enter the workforce etc

[@user-nb4rk5xd6o]

Thank you for discussing this topic. Sadly, I was a victim of MLM scams. They preyed on my vulnerabilities at that time when I was going through a rough phase. At first I was ashamed, wondering how I could be so stupid. Still working through forgiving myself. Now I've learned from these past mistakes and speak more about it. Warning people of the dangers that the MLM mindset poses and how to avoid the traps they lay out. Admittedly, some people do find success engaging with certain MLM's, but many others do not. Be wary with these "business opportunities".....

[@thefinancialfreedomgirl]

thanks for sharing your story and glad to hear that you escaped the MLM scam world & now can warn others of the dangers

[@CBBforme]

Same with me. Also felt ashamed for a long long time.

[@arinaira1417]

They target vulnerable people who are struggling financially

[@thefinancialfreedomgirl]

💯💯💯

[@arinaira1417]

@@thefinancialfreedomgirl i had a friend who lost thousands of dollars because of this. She was desperate for money after got laid off during the pandemic. She thought it could give her more income. But she wasn't able to sell any of the products

[@sarahjane4908]

And struggling emotionally. I know women with six figure incomes (not from the MLM) who were recruited with the promise of a supportive friend group. They target lonely people.

[@arinaira1417]

@@sarahjane4908 yes...this is so heartbreaking 💔

[@PumpkinToast420]

And stay at home moms. 😂

[@Mirage031]

I was invited to a Mary Kay party once. I had never been to one and my friend/colleague acted like it was going to be a laid back get together, no pressure to buy anything. This was not the case at all. We were instructed to try samples of the products, one by one, with the group. The host was visibly irritated if anyone jumped ahead or asked too many questions. It was blatantly obvious she knew quite little about make-up techniques for the diverse group in attendance. At the end, she literally isolated each guest by taking them to the other side of the apartment, out of earshot of anyone else, and asked what products we liked. She was a bit more pleasant and I thought this was a conversation where she sought feedback. Halfway through, I realized she was jotting it all down on an actual receipt, then she held it up showing the total cost. Once she realized I was only buying one fairly inexpensive product, her mood shifted drastically; she was cold and obviously done with me once she realized I wasn't spending a lot of money. She didn't say a word after I paid, not even a thank you, just called over another guest. We were all grad students, so it's not like we had a lot of cash to burn. The product works great, but I would rather have spent that Friday evening without such manipulative people.

[@lindseysummers5351]

My spouse was involved as a Scentsy consultant, a Jordan Essentials consultant, a Norwex consultant, traded/purchased from Lularoe, Perfectly Posh, thirtyone, and previously was a Partylite consultant. And there were others, like Tupperware and Pampered Chef. She passed away recently, and about the only good thing to come from that is I was able to get rid of all the MLM BS. I have more of totes and carrying bags than I know what to do with. Most of her clothes were from Lularoe. She took up most of the available storage space in our bathroom with all the bath and skin care products she never got around to using. And, she took up a good bit of our dining room and garage with all her Scentsy inventory. Thankfully, I got close to $1,000.00 by finally moving all the Scentsy products. I'm going to have a garage sale and attempt to unload all the clothing and housewares. But, I had to get rid of all the skincare items, because they have a shelf life and I couldn't vouch for how old they were. Thankfully, none of her "friends" have tried to recruit me directly or to stop me from canceling her accounts. I am just glad that part is over with.

[@chrsitineadriaenssen6074]

How can people so stupid to believe in them?

[@countyofcaptivatingcorgwn4784]

Have had several family members in MLMs. What I hate the most is how they used selling “health products” to shame me for having necessary surgery. One of them outright told me in writing that I was “forcing the family to suffer”, since taking these products would make any medical intervention unnecessary. I was also accused of “making the doctors rich!! Sweet coming from an MLM.

[@deea3586]

We need more channels like this! It speaks truth but at the same time not trying to shame the people who fall into the MLM trap. I feel like the income divide is so great that people want to believe that this is their solution to making money.

[@arcticredpanda4598]

MLM perfectly understand the psychology of women and how to manipulate them. That woman in the beginning of the video was so proud of the fact that she never went into debt never mind the fact that she wiped out her savings.

[@cleonpierre7969]

Promise of riches and lifestyle 🤷🏾‍♂️ same thing the dudes who be dogging them use on them, sell the dream 🤷🏾‍♂️. Materialism without the meritocracy of actual work, will continue to be their downfall. 🙄😒

[@fitforfreelance]

I did Cutco knife sales training right after college. They lost me when I had to buy my first set for myself. The gradual commission increase to 50% didn't help. But free training is always good!

[@drew8235]

I had a buddy in college who fell for one. He and his gf got roped into it and were doing the whole pestering friends on Facebook thing. Sad to see people fall for that. It should be so obvious at this point.

[@lauraperdue1307]

Im always up for Anti-MLM videos!

[@gosorios]

A few years back I was looking for a job, and I received an email for an interview that seemed very grounded and in line with other offers I had received in the past. It turned out to be an MLM. People running the meeting were showing images of their vacations and making promises. I distinctly remember an image of what looked like a pyramid of their recruitment benefits. I stayed out of curiosity and left after half an hour. Absolutely predatory behavior.

[@thefinancialfreedomgirl]

that's awful that they targeted you as you were looking for a job, and glad you didn't get sucked into that world I feel you with the staying out of curiosity haha once you know it's a scam, it is kind of interesting to see how they present everything

[@myu5519]

This kind of reminds me of a personal experience I had when I was looking for a job online after university, I came across an ad from someone selling beauty products door-to-door and enquired about it (as I was interested). Luckily, someone told me this was an MLM and once the advertiser asked for my phone number, I didn’t pursue any further. My former university even invited recruiters from a scam pyramid scheme to recruit students for work as-well. It is sad knowing how vulnerable people can be easily preyed on like this.

[@przemekkozlowski7835]

Same thing happened to me. I was unemployed for a while and getting desperate. I posted my resume on job seeker websites and I finally got a call. I met the recruiter in a coffee place and he talked about expanding into my area and looking for "associates". I actually thought that he was recruiting for a come-to-your-home IT support company so was receptive. He then told me to come to their regional office for a group interview. When I go there I quickly realized it was a pitch for Primerica. I stayed till the end, went home and tossed all the paperwork they gave me.

[@alessandron.6672]

In Italy, we had for a loooong time problems with shady businesess (using ponzi scheme to fraud and steal from "illitterate" people who weren't able to fully understand what was proposed to them). I think that one of the most important topic WE HAVE TO teach to younger generations is to have some sort of financial education, without one, they will be exposed to even more sophisticated schemes. Really appreciating your work btw. Have a great day.

[@charleswhite7035]

MLM is an endless recruitment game. You have to continually bring in people at the bottom to funnel money to those at the top. People are encouraged to recruit from within their circle of friends and family.

[@cjwalker8701]

My dad was involved in a few in the late 70’s and early 80’s. I grew up hearing about how BS they all were. They kept asking and I kept telling them no. A no nonsense friend the I had known for 30 YEARS somehow kept falling for them though. Three things these MLM’s like…charisma, strength of will, and financial weakness.

[@thriftingsisters1226]

Let's not forget that a former US President before he was pres, was involved in 2 MLM companies. Forbes and NY Times ran stories on this. Also, he also endorsed those No money down real estate courses that were popular back in the late 90's/early 2000's.

[@user-rg1lx8yt6g]

I was a firm believer MLMs can get you out of work. And after watching this and many more videos like this I’m on the fence. Makes me feel scared cause nothing out there is promised not a hard working blue collar individual, not a modern entrepreneur. It seems social media is where is at everyone wants to make it feel like it. I’m sure my logic has holes no doubt about that. But one thing I have noticed is for the most part everyone speaking bad or negative about those who guide these individuals, I hear props here and there but basic stuff I’ve never hear/read anyone say or comment “thanks to them I picked up a healthier habit of this and that.” It’s always “thank god I’m out they suck money” and so on. I’m scared not just for me but many others who just want something honest and want to live not survive. Me viewing this video is paying her bills while I’m working or studying or what not. I see everything as MLM these days a cook makes more then a dish washer a assistant manager makes more then a cook a manager makes more then a assistant manager and so on. It’s just normalized these days.

[@avengermkii7872]

No matter what product they sell, it's always a MLM. Blowing over $5000 on some tacky overpriced cheap garbage is a surefire way to lose money. I bet those same prints sell for less than what they are really selling for.

[@thefinancialfreedomgirl]

oh my gosh I can't imagine the crazy markup they have on those products

[@oscara8454]

My mom has a real eye for business. She graduated from elementary school. She didn't go to middle school or high school. She started working as a maid right after. She never got roped into the MLM her friends got into. She recognized that there is no money in MLMs.

[@herogebrial]

Did she start any businesses?

[@imalrockme]

@@herogebrial Even if she didn't, she at least didn't lose her salary.

[@Dman425]

The scary part is they have Sunday Services preaching the prosperity gospel at these Amway conventions(with the “motivational” group called World Wide Dream Builders)

[@Diana-vp3zr]

I used to be in one, never again. But also when people say it looks like a pyramid, every job looks like a pyramid, ceo makes millions while people at the bottom make minimum wage, its not unusual

[@cafsixtieslover]

I went to a kitchen equipment party a few years ago run by a daughter of a friend of mine. I could not believe the prices and refused to buy anything. This is a woman who had worked for a major private bank and could have had a well paid job any time she liked and yet she fell for the mummy wummy little job trap. She didn't do it for long.

[@MeyTribe]

I get soooo many emails to do "brand deals" My most important rule for myself- if they send me an email from a gmail- NO. Send me an email from a company domain - it already reduce half of the screening. And I always google the company domain first. So manyyyyy scams !

[@thefinancialfreedomgirl]

that's a great way to do initial screenings!

[@harrycee656]

Keep up the good work. I appreciate the insight and knowledge. Ignore the haters. They are trying to justify their mistakes.

[@jeffpchang]

It’s a two punch fight - greed and slice blame. Setup for failure

[@AdinaLintu]

I got contacted by a person I knew from my childhood to join an MLM this year. I asked about pay and contract and she just tried to deflect my question and tell me how great it would be to have a side hustle. 😂 I kept asking my questionas, she kept ignoring them and tried to sell me the dream of getting rich with minimal effort and I got tired of this rhetoric and told her I am not interested. She kept insisting for a couple of weeks, but I just said not interested. 😅 Some of them seem so desperate to recruit... it's sad... I am glad I was not in a vulerable situation and I was able to say no, otherwise maybe I would have accepted... These types of businesses are not nice... to say the least... 😔

[@CLUMSY101]

Pro tips based on my own experience,, If a long lost friend/relatives suddenly out of nowhere call you and invite you to meet, he/she says there is a huge "BUSINESS" opportunity for you... Well,, HANG THE GOD DAMN PHONE UP! Your welcome 😊

[@binyamj]

Some guy I used to know, got roped into the MonaVie mlm scam. He would call everyone he knew trying to get them to sell that crap. He even took a guy who just lost his father, out for a drink. Then proceeded to try and convince him to sell that crap.

[@noxello]

My father was in multiples and it was horrible. Every conversation he had was about recruiting people, and as you said, they try really hard to make it sound good. He wanted me to help him recruit people when I was a teen, and even pressured to recruit me when I turned 18. One of the website he would use got taken down as the company got sued for being a Ponzi scheme I think. Nowadays, he's still trying to refer people for "normal" companies (mobile plans, energy, bank...) and doesn't get it's damaging both his finances and relationships.

[@MsActor2009]

Every conversation you have with a MLM cult member is a conversation about them trying to recruit you. Seen it turn genuine people into people with a motive.

[@k.k4231kk]

This is becoming one of my favorite new channels. Please keep up the good work!! 😊Would love to see a video about homeownership/renting/etc in the future

[@thefinancialfreedomgirl]

thank you so much!! that means a lot :) ooh I'm actually thinking at some point of doing a video about renting vs buying, so maybe I'll have to move that up in the queue

[@TiagrajI]

These mlm schemes make me angry. I was caught so many times in those shady mlm and their sweet vague talks. I got out quickly enough. However now I'm going to call them on their schemes as they waste your most précious resource:time

[@OhNoNotAgain42]

Every MLM has a sucker paying for someone else to get rich. If you go to the MLM meeting, and you can’t identify EXACTLY who that is, it’s YOU.

[@jimyip2]

I was partially lured into a MLM when I was a student, luckily I didn’t really get into it much and maybe spent $40 total on products lol

[@sarahjane4908]

Why doesn’t anyone name the MLM in these comments?

[@cdsersd2d]

Same thing happened to me. I actually quit in 2 days and got back my signup fee. I think it was $100 or something like that. Glad I got out. My friend explained to me why it wouldn't work. Nobody I know has ever done well in any MLM. I knew people in Amway, Primerica, ACN, Nerium, etc. They all quit

[@One_Eleven111]

Back when I delivered pizza, I delivered to this guy trying to get me to join an MLM selling travel packages. He started off by asking if I would be interested in getting paid to go on vacation and travel. Of course anyone would say yes to that. He then went on a whole presentation to join an MLM, I instantly knew what was happening and was like "I have more deliveries in my car, I really need to get going." He then called the pizza place a few days later asking for me and tried talking to me over the phone to join lol

[@JohnJaneson2449]

I had been in an MLM and bought a package. Your description of MLM in this video is the most perfect one I've encountered. It's exactly that. The key truth is that business model of MLM, which is sales-distributor, is not viable. Real companies use industrial marketing or vertical integration to get their real products to real customers; that is the true distributorship. There is no way an MLM-style sales-distributor can make profit in reality, proven from just from the basic mechanism alone.

[@zhinningenge1754]

Years ago, a married couple hustled me hard to join Organo Gold. They bragged about their lifestyle, income, and so on. I said no. I explained that I already enjoyed a career that paid 6 figures. I did, however, buy a $30 box of instant coffee packets from them. They said it was sad that I would want to "limit" myself to my "little" job. Lol. Please tell me why the husband call me back two weeks later to tell me he was having a flash sale on the coffee. 15% off. This is the disturbing dichotomy of MLMs. Members make lofty claims but then 5 minutes later try to hock their low-quality products with the desperation of a drug addict. Over the years, he would reach out to me regularly to try to convince me to join other MLM companies he had "partnered" with. So sad...

[@paigewarren252]

Unfortunately I was apart of an MLM... my job closed for 7 months during the pandemic and I was desperate. I literally used my LAST penny to join and got nothing in return

[@cdsersd2d]

I feel bad for you, but not as bad as my friend who wasted 7+ years of his life doing it. If he would have taken a 2nd job and invested every penny of the second job's income in the SP 500, he probably would have had an extra $400K by now.

[@toddgalindo6121]

Almost did. A close friend of mine got me to do a couple in person interviews and we were at the next meeting me setting everything up. Luckily a phone call with my dad stopped me. Your channel is awesome.

[@joelmcclurg]

I really love some of the new editing effects! It really levels up the video. Also thanks so much for polling the community on the video title and being accountable and holding to your commitment to name this video accordingly. That's great and builds a lot of trust!

[@thefinancialfreedomgirl]

thank you!! the editor I work with is awesome with effects, and very grateful for everyone's help with the video titling!

[@backpackingtony1779]

I fake interest in MLM’s when I’m approached. I get approached constantly. I tend to feint that I’m going to join then pull out and slowly feint interest again. I’ll offer then business ideas like selling to Walmart or Whole Foods then explain why they can’t. I watch their faces drop when they realize what they’re into. I admit I’m a terrible person but sometimes that’s what it takes to undo all the brainwashing.

[@TheWeekendYogurt]

This is why I just show up to my job like a normal person

[@aa90502]

i almost was scammed by mlm’s but the cost to get into it was too much for me so i couldnt and thank god i didnt because a few days after talking to that girl who wanted to scam me (lol) i saw a video about mlm’s and im happy i didnt get into it or spend any money. Unfortunatly my mom fell into it and i don’t know how to let her know she is being scammed especially because they get into call every days she is being brainwashed and they just take most of her time everyday now. Anyways thank you for the video ! really informative !!

[@thefinancialfreedomgirl]

i'm glad you didn't get sucked into that world, and sorry to hear that your mom fell into all of it :( MLMs are so effective at brainwashing peope unfortunately

[@MsActor2009]

They can get quite aggressive when you question “isn’t this a MLM”?

[@aa90502]

@@MsActor2009 yes and they just dont realize that there are a part of a pyramidal scheme. Anyways if you have any advices to help her i really want them ahah

[@MsActor2009]

I once sweetly said “I know it seems so fun and easy, but there is no money in this. I can buy a few products from you, but I can’t sell them for you”.

[@ryancraig2795]

I've always gotten cult-like vibes from MLMs. Enough to send me walking, if not running, away as fast as I can.

[@vithursan.b]

I had some experience with ppl recruiting into mlm. Its frustrating and they can't take no for an answer and do not like when we are brutally honest

[@clk25120]

Always ask, why do the "rich successful" folks, continue to recruit if it's a successful venture? If I was already rich, why bother to recruit new followers?

[@tomalouis-goff7022]

I really enjoy your videos. Great editing, even better info, and a very calming voice. These videos make me feel proud to be a cheap thrifter

[@jerseyjulia]

I know a few folks who have been reeled into these and it totally bums me out because I feel like it compromises your relationship, like every time they reach out to you they're trying to get you excited about their business so they can dupe you too. 😬

[@huehou]

I went to a mlm conference once when i was 18. Thank god i had alittle bit of self awareness back then.

[@007Julie]

⁠ I’m a new subscriber and love your videos, they go to the point, are clear and really well researched. Keep it up!

[@danielthompson1478]

My ex is seriously deep in MLM. It ruins a relationship. Towards the end she said “you’re not part of my clan”… we payed more into the scam than we made. She was so deep in the cult she chose it over me. We fought constantly over money and her trips. She would say I didn’t support her while I worked and she went on trips. Financial wrecking ball 100% don’t walk RUN!!!! She’s right I’m not part of her clan.

[@user-jq8pb2eq4y]

😂😂 funny. Is better I work with people that are not to popular and stay home with my love Woman can't Lean

[@memelord3348]

Holy shit, didn’t knew MLMs were a thing. I got a family member doing amway. I’m going to share this video right away with all my family As always, thanks for doing the lords work when it comes to finances🙏🙏🙏

[@thefinancialfreedomgirl]

thank you for watching and sharing!! :)

[@TheScepticalThinker]

MLM is basically Instagram IRL. Fake it till you make it. But in MLM, you never really make it unless you're the 1st referrer.

[@reignbeauty395]

I just found you and I have subbed in less than 2 minutes into your video your voice is so clear and soothing and your content/ commentary is too notch interesting great work and keep up the amazing content!!!!!!❤️❤️😌😏😌😏❤️

[@YouMystMe]

Being part of a community filled with salesmen sounds like an absolute dream, I can see the appeal. /s Another great video. I found your channel recently and you are really good at this. Very easy to listen to and follow along. I also laughed a ton at your "better pizza, papa johns" reference in the "Stay At Home GF" video (reminded me of NakeyJakey's humour, I hope thats not insulting lol).

[@caml1720]

i recommend this channel to all my video essay snob friends. you condense salient info so cleanly

[@thefinancialfreedomgirl]

Thank you so much! :)

[@LeoMarcus81]

There’s always one our two Facebook friends knee deep into this. I currently see Travel Agents and Insurance Agents.

[@MsActor2009]

Love your channel - subscribed! You’re an excellent truth teller! A “friend” tried to recruit me into Airborne (misspelled?) an organic cosmetics company during their birthday dinner which I paid for, because she was broke after having a child. Got a bad vibe and felt insulted!

[@thefinancialfreedomgirl]

thank you so much! also woah that sucks that she did that, especially during a dinner you paid for :(

[@videohut4445]

Excellent video Cara. You understand MLMs very well. I made the decision a few years ago to stop promoting MLMs. A friend told me in detail how they work. I also found on KZbin the excellent video MLM Cults. I highly recommend this video to anyone about to consider joining any MLM opportunity. After watching that video i made the decision to never promote any MLM opportunity again. One of the best decisions i ever made. I made no money when i was involved with any MLM.

[@evgenijanankovska8815]

I would love to watch the video about get rich quick schemes and how you actually get rich. I have some people in my life that could use that advice and you are so eloquent it might get through to them. You are doing wonders

[@jassu7873]

I'm so glad I came across your channel. You have such great videos. Keep up the great work. 💖

[@fitforfreelance]

Really great point. It's selling a "solution" to the prospective salespeople, not necessarily the product to an audience!

[@yogi9661]

have you seen MLMs not have the "charge a monthly fee for life"? My coworkers are leaving to sell life and health insurance at a company whose structure is veeeeery reminiscent of an MLM (ex coworker is inviting them to join him claiming that he's makin an outrageous amount of money, and he'd get like 15% of what they sell) but the company doesn't charge them a monthly fee. The company does charge them for leads, so that might be the monthly fee disguised as something else?

[@adrianmckayministries]

I remember people said the same thing about Primerica despite you’re required to take state exams to sell insurance, mutual funds, or complete a mortgage package. Or that it was under the Travelers and CitiGroup umbrella. Now Primerica is publicly traded and you don’t hear these claims anymore lol. There is a difference between a MLM and a Ponzi scheme!

[@honggwan.]

A guy I came across a few times wanted to set up a meeting at a hotel lobby for a "business" opportunity. He showed up with his wife all excited. We shared our pleasantries and then he started talking about this new energy drink MLM that he is involved in and wanted me to get onboard as well. I just stood up, did not say anything, and left the scene. I never saw him again. I hope he is doing well though.

[@imalrockme]

Sometimes, it's the only thing to do. Had you explained your reasons, they would've just start to try to brainwash you untill you exploded.

[@the_washington_monument_am9714]

Firstly: fab video. Secondly: I’ve got some friends in Amway, and the undertone of every invite from them deeply off putting - all conversations with them inevitably circle to how nice it would be to be part of a welcoming community and how they’ve got some friends that would be really interested to meet me…thank you for articulating what I’ve been trying to put into words for so long. Thirdly: I am very supportive of Willem Dafoe in American Psych being the new X to Doubt 😅😅😅

[@BrianPeiris]

Insightful and important! Thanks for shining a light on the scammers.

[@thefinancialfreedomgirl]

thanks so much for watching!

[@lesterjohnson2691]

I was so engaged until clammed up and didn’t out the MLM company that you named in the video. All in all, script or not you do a great job in front of the camera.

[@maggie77777]

I can relate to everything you said. I've been in Purium for 3 year and since the beginning I felt uncomfortable with their strategies but I thought I had a problem. They ask us to be as vulnerable as possible so people can "relate" to us, we have to "attach" emotions to our "why", nothing would makes sense to me! Now I realize the company is the problem and not me.

[@StormShadow1500]

I love your viewpoints Cara! Your other video on the dangers of online gambling is stellar as well! Keep up the amazing work! 😀

[@thefinancialfreedomgirl]

thank you so much!

[@sham.saravai]

This is now my favourite channel

[@thefinancialfreedomgirl]

thank you :) that really means a lot!

[@sevenflashowls]

I agree, awesome!

[@diannholland]

Pampered Chef Was mine. And the Upline is STILL trying to find out why I quit and wonders when I am coming back... Umm Never Lady!

[@potatolyf5566]

I've worked in mlm for like 1 and half years. And boy o boy I've never been so screwd in my life before😢

[@TheWeekendYogurt]

Kara (sp?) you’re awesome. As a survivor of two cults you are the bastion of the light side of KZbin. Thank you!

[@blakeharrison3972]

The LulaRich documentary was wild, it’s been a minute since I watched it, I think a couple got divorced due to financial strain

[@janebaker4912]

"I always had enough in savings..." You're not going into debt, but still going backwards

[@StephsHealthMatters]

I know someone who was in Amway, Melalecuca. I did Avon when i was younger and had family that did Mary Kay and Herbalife.

[@adhityaputra8601]

My family has become a victim of this business. In the beginning, my mother, through her friend, was promised 1 billion rupiah. She was invited by her friend. She then visited their office, and at that time I also joined my mother in visiting their office, which looks like a very well-known office, but the strange thing is that they have military as their employees and also have a person that has been trained to explain everything, kind of a negotiator. At first, my mother was sure of it, even though I had warned her. My mother borrowed money at the bank, which amounted to hundreds of millions of rupiah, to pawn the property she owned. She was paid 10 percent of her investment. But after a few months, my mother was confused about why she didn't get the money promised to her. She then called their office. They answered that with many reasons, such as that the office was on holiday and only opened on certain dates, and also that their office has been experiencing some problems with tax. After a year, she called her friend's husband and found out that a lot of people who invest in their company have the same problem. She then called their office but received no answer until now.

[@adhityaputra8601]

Their product is only a sport pillow that cost thousand of dollar which is doesnt makes sense

[@DustinHaning]

One day we'll look back at how long MLMs were allowed to legally scam people and be horrified. This has been going on for almost 50 years now, it's crazy!

[@knicholaichukonyt]

I agree with your analysis. Very well presented. Thanks.

[@Roxass00]

I do have one experience back then when I was in college. My friends was telling this so call opportunity to make extra incomes by recruiting people but never mention the products as a way to make you curious and wanted to know more. As soon as I snap, he brought me to this office full of peoples waiting for me to explained what are their up to. Back then, I know nothing about MLM and I was convinced that the business was legit. But something went off during the conversation. They keep on bragging about getting rich and spending it on your dream cars, expensive vacations etc.. So I felt awkward because I have never met a group of people bragging about their riches like that because I live a simple life and never showing offs like the way they did. to cut story short, I end up asking people around and my family members about it and that's the end of my meet up with my friend. By the way It happened around 2006 -2007.

[@thefinancialfreedomgirl]

oh wow! thanks for sharing - the bragging about all the riches you can make through an MLM definitely seems like one of their go-to strategies. so interesting, and glad you didn't get sucked into that world!

[@Roxass00]

@@thefinancialfreedomgirl and back in those days there is no social media and information about MLM is almost non-existence. I have plenty of friends with rich parents back then but they never brag or talk about being rich like the MLM's crew.

[@The_10xcoach]

There are two sides of a coin many companies like this comes only to collect money and run but there are many brands who seriously are doing a genuine business in direct selling industry like forever living , tupperware good reputation and products . Direct selling business is same like any other business but the main thing here is that we earn the comission here not the advertising company or the distributor or wholesaler

[@sableann4255]

I have a friend (ex-friend) that was big into this MLM house parties...ALL THE TIME, she was having these damn MLM parties...I stopped going, such a waste of money & a scam

[@videohut4445]

I have also told friends online not to approach me with any MLM opportunities. You need to let other people know how dangerous MLMs can be.

[@Ironheart73]

The last part is so true. A lot of people do not understand that life does not become easier when you start earning serious money and your business begins to thrive. She is absolutely right, its not really as glamourous as if you won the lottery. No confetti shower or crowd cheering that you won the jackpot. Most definitely, when you become successful in whatever business you are engaged in, life WILL NOT be all about shopping trips, and vacations in exotic places. In fact, you will have more responsibilities. You will have more problems to solve. You will need to invest more time and sacrifice. It takes hard work to get succes, but a lot more of it to keep it. If you are a person with weak values already to begin with, you will really be easily bamboozled with the fool's gold that these MLMs show.

[@brendono9]

This is fantastic, well researched, well edited content! You make some really impressive videos!

[@thefinancialfreedomgirl]

Thank you so much!! I really appreciate that!

[@JelloImpact]

the scariest part is how they are shifting to counter the anti-network marketing narrative, positioning themselves as misunderstood truth and different. Every single objection i had they had a seemingly logical counter for. And all the while actually having legitimately good values, and seemingly helping people live better lives. After getting sucked in, 7 years later my wife and I are out. We didn't lose money, but we didn't make much either. We were in the top 5% or so of distributors in amway, maybe in the top 4 or even 3%. and we didn't make more than $100/month profit after our business expenses. Some people in our position made a lot more, and some probably lost more. More recently I started a youtube channel and after just 4 months I'm already making more than I was through Amway, on about a quarter of the time and effort, and actually enjoying myself. Although they're not outright scams, they have lots of underlying cult-like tactics under the surface. If you're willing to hear them out, they will have an explanation for absolutely every negative you could think of, and it's all fully logical. It's still surreal. Thanks for the vid, thanks for not outright calling them scams. By calling them scams outright and being TOO negative about it and missing the nuance, you are playing right into their new hand.