Should I get involved in multi-level marketing?

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[@greglees4011]

I wanted to get rid of all of my friends and relatives. So I joined an MLM and now I don’t have to worry about anyone ever calling me again. 😂

[@bengoodell8440]

Big Brain Plays 🤣

[@lemueloctave]

😂

[@stephenadams1524]

😁

[@ktrudy1]

Lol ikr😂

[@addie-eileenpaige6460]

I had a guy I knew from high school who sold disability insurance. We got along fine in high school, but weren't close friends. I knew he was grasping at straws or running out of friends & family to hustle when he reached out to me.

[@BamBamBigelow..]

I absolutely love pressuring family and friends to become my downline for products they don’t want or need! Yea for me!

[@SenorJuan2023]

So if you opened a brick and mortar business, you wouldn't tell your friends and relatives about it? LOL

[@BamBamBigelow..]

John Burris...TY for that question, a brick and mortar business makes me responsible for rent, utilities, products, employees. That is a business. If your MLM decides to close down, you’re S.O.L. You are a glorified salesperson. Not a business owner.

[@SenorJuan2023]

@@BamBamBigelow.. By your logic, If I own an online business, then I'm a just a salesperson. If you MLM, you have to recruit and train. It's not just about sales.

[@BamBamBigelow..]

John Burris...do you make the products? What if product maker goes out of business, can you make products yourself? Can this trained team take over production? Otherwise you are technically not a business owner, b/c you have no control of the product.

[@SenorJuan2023]

@@BamBamBigelow.. That's why you do your due diligence, just like when you're buying real estate, anything expensive, etc.

[@varunishere]

This girl wanted to meet me at Starbucks and made MLM look like some secret selective magic wand. We spoke a lot because she was trying to get me in. Instead, she ended up telling me how much she hates to struggle meeting unknown strangers everyday and pushing them to sign up. 😂

[@gafurrzogaj1426]

Yeh that's the worst part of mlm group which I also hate so I quit

[@varunishere]

@@gafurrzogaj1426 LOL

[@kaylaleave]

Lmao

[@CharlesCChatman]

I truly believed some of you like me were probably presented with the scheme and decided to look up some information on it before you gave them your answer, but I'm noticing that most of you are watching this video because you have already been duped and you're looking for the only video on multi-level marketing that tells you that you aren't a dumb ass that got tricked into a pyramid scheme.

[@TH-eo9vo]

haha

[@BillyO8828]

LOL...Thumbs up!

[@macklong8763]

Or you go to school, designed to have people be dependent... Come out of college with tens if not hundreds of thousands of dollars in debt, get a nice low paying beginners job with those that have a GED. Spend your whole life struggling to make it to your next paycheck until your employer downsizes you. I bet no one ever got 'duped' by that scheme. Its not like we had double digit unemployment for the last 6 years.... oh wait.... OOPS.

[@ksp62562]

Mack Long That's America for ya!

[@CharlesCChatman]

That's why I chose to do what I love. So if it doesn't pay well....Im still happy.

[@EverettValdez]

MLM stands for "moms losing money". MLM is just a fancy way of saying pyramid scheme

[@valuecalc]

Right. Why waste time on trash? People need real jobs, not this garbage.

[@Fohnzii]

@@valuecalc Lol, there is nothing wrong with an MLM structure. It is almost always in sales. Is sales not a real job? The only difference is in some cases you are 1099 and some cases you are W-2. I've worked for both and both are legitimate ways of making good money. One was selling ATT products out of Target where I had a team where I made management overrides and a percentage of the office profits. I interviewed, managed, trained and built relationships with my team. The other one I did and am doing the exact same thing except I am selling financial services where I had to get LICENSED at a STATE/FEDERAL level and be appointed by an authorized entity in my state in order to sell these services. So it's not garbage, I don't know how you define a real job but these are definitely real jobs.

[@valuecalc]

@@Fohnzii, rarely is it not just trash. People need real jobs with real checks, not this garbage. Otherwise, if you cannot sell the gimmicks, then what is next?

[@froggore52]

I was expecting Dave to be harder on MLMs. They may not fit the legal definition of a pyramid scheme, but they operate in similarly shady ways. Stay away.

[@johnnyguerra5427]

Unless your a Sales Expert which is 3%

[@TheOpinionSports]

Chris House Dave gets it, the only people who trash pyramid schemes are broke average people who will never achieve anything great in their career.

[@countessratzass5408]

okcboi Interesting. How did you arrive at that?

[@SenorJuan2023]

You simply have to do your due diligence, just like with ANY company or industry. LOL

[@TheOpinionSports]

Countess Ratzass it’s the truth, you never hear rich people bash MLM

[@stevee8318]

Something like 99.7% of people involved in MLMs either lose money or make less than minimum wage. You are better off working a few shifts a week in retail or fast food than you are running an MLM "business". You'll make more money and have none of the risk.

[@thepianist7084]

Dave is wrong here. Multi-Level-Marketing is generally NOT fine. Here's why: Someone at the end of the line is going to be left at the end holding the bag. You CANNOT have endless downlines. It is a flawed business model and it's NOT fine. It is a greedy business model.

[@Sarozism]

End of the line.. good point !!

[@BrysonJonesRealtor]

This is the first Dave Ramsay video I’ve had to dislike. Very disingenuous of Dave to act like these companies aren’t scamming 99.9% of their own “employees”. Yes products are sold but they aren’t the focus and those very products are always grossly overpriced and undifferentiated from competing non MLM comparable products.

[@CrisisHipHop]

Primerica for example, you would say is a scam?

[@johnd9541]

@@CrisisHipHop Why would DR bash Primerica? His original radio show co-host was Roy Matlock Jr......of Primerica.

[@Fohnzii]

@@CrisisHipHop People need to come to their own conclusions but no Primerica is a shining example of what Dave Ramsey preaches about. Buy Term and invest the difference. With Primerica that is the motto, they switch people over to Term and invest the difference of what they saved from letting go of their whole-life policy. He LOVES Primerica which BTW is an MLM so good luck with that moral conundrum.

[@kennethlee4894]

Dave Ramsey, is so diplomatic about how MLM's are a disaster for about 99 percent who join. He's just too nice about it actually.

[@aa1589]

Primerica loves him and I'm assuming all the other "financial" ones.. that's why he doesn't rip them IMO.

[@gdot5747]

I love how MLM and/or Network Marketers advocate the fact that you become 'free' from corporate america or become an 'independent business owner' - all while pushing the product or service that's provided by an established corporation.... Not even to mention the expenses that surfaces as you go along in their 'qualification' processes. Challenge me on this if you'd like, I know from experience AND research.

[@greydaze234]

One of my friends from childhood tried to recruit me into the same MLM Shelly is asking for, her mother was working for it when we were in college. Her own mother recruited her into the business, and she tried to recruit me. I went to the info session, saw it was an MLM, and politely declined her invitation to join because I don't want to work in that kind of environment. The next month, she told me, "Oh, the presenter at that one wasn't very good. Come to this month's instead!" I told her no, more firmly. This continued every month for half a year, before she got so upset that I wasn't "trusting" her business sense. We haven't talked since. I'm not saying World Financial is a scam or a bad company. But the pushiness I got from my "friend" and from the presentation I went to was too much, and they did not respect my answer when I said no.

[@AwesomeHairo]

You have a certain belief about MLM. It wasn't the "pushiness" of your friend.

[@greydaze234]

You're right, I do have a certain belief about MLM. But when I said no the first time, and especially the second or third time, that should have been respected, regardless of whether it was a business investment, an invitation to join an MLM, or asking me to pay for her dinner one night.

[@maryquinn7032]

So sorry you lost your friend because she was sold on the sign up ratios. We are not all like that

[@albertolucasbustilloruisbu7049]

Every company has bad apples I haven't recruited no one in my family they don't like talking to people and educating others that's not their thing. They have seen it but they said no, now my oldest sister says that she'll like to get the license and start working with me that after she is being a client for 3 months she knew about the opportunity but didn't like it. In wfg you shouldn't recruit everyone only recruit those who want to be recruited because they want to do the business. Don't just recruit everyone.

[@SuperTikes]

I like how he addressed the social issues it could cause and how one would have to avoid making everyone they meet a potential recruit. I had a good friend like that who tried to recruit me into a MLM opportunity and I felt almost like I should do it for the simple fact that I trusted him and he was my friend. Note to all salespeople: Quit using social pressure to recruit your loved ones or they may not be there for long. Over time, I felt more like a business opportunity or benefit to him than his friend. =/

[@PsychicsRfake456]

I was in a MLM and I am glad I am out of it. I am much happier now. My advice to people is to stay away from them.

[@makeshiftplayer]

wwondering the same

[@hugoc4910]

This person is happy becuase it can go back to being average like most people and doesnt have to do uncomfortable things to get the big reward so chooses the easy way to live life, to become a nobody.

[@makeshiftplayer]

HUGO c i can believe it

[@SenorJuan2023]

Too much work and you're lazy. I get it.

[@CharlesvanDijk-ir6bl]

@@hugoc4910 I am retired and receive a decent income and it is not by MLM but the stock market. You can make it as secure and as risky as you like it. I have 2 houses and travel the world not very rich but comfortable. I never duped any friend or relative and ,my advice is usually for free.

[@icanmanifest]

How about "They aggressively sell cash value life insurance" Dave! :-)

[@johnsanchez5484]

This is the most honest, objective argument I ever heard made for MLM!

[@jordankelley6005]

I tried it for 3 months and stopped. 😂 Now I’m a structural engineer.

[@dayoabby8418]

😂

[@michaelbone6183]

If the only way to make decent money in a MLM scheme is recruitment, then it's effectively (if not legally) a pyramid scheme. Bad advice.

[@denversings]

You are right, and that is what he said. You also make money off of products.

[@SenorJuan2023]

We have many people in our company who ONLY sell the product and make a great living.

[@patrickcarney6674]

John Burris Name your company.

[@SenorJuan2023]

Patrick, It's Legalshield. I had the membership for 6 years before I even became an associate.

[@tyrellparks888]

owning you're own business is great. its not going to be easy but the risk and reward is awesome.

[@dr.dermixgirlmd7479]

I love how Dave Ramsey breaks this down. He’s not bashing MLMs as scams. *MLMs are a legal pyramid business model, but he does call out the network marketing recruiting hype and typical brainwashing tactics for what they are: LIES.* He’s giving people a realistic glimpse into what it takes to actually make it in network marketing without dismissing it entirely. _It isn’t a part time gig. It’s doesn’t happen overnight. It doesn’t happen by accident. And most importantly it doesn’t happen for most people._ You’re signing up to be a professional recruiter and professional sales manager in a high turnover business. Most people really don’t want to do any of that. I know I don’t.

[@bruceseah]

That is why Socrates said, "The only good is knowledge and the only evil is ignorance." Different strokes for different folks, network marketing is for everyone but not everyone is for network marketing, not everyone wants to be a doctor, dentist, lawyer or accountant, isn't it? There is a right way to do it and a wrong way to do it. In any industry there are black sheep or wolves in disguise, why focus on the negative companies and leaders who are doing the wrong things? There are good companies and good leaders who are doing the right things. Do your due diligence and check out the management, support system and compensation plan, most companies have very good products that will benefit you and your loved ones. You can always just be a smart consumer and benefit from the products, doing the business is an option.

[@zanacos1]

I am going to go ahead and say this, MLM is seriously a waste of time. I am in MLM right now with life insurance, its bad. I have been trying to get a different job for a few weeks, Ive had one interview a day for the last four days, all of them say I have an "interview scheduled", but when I get there, its a conference room and its another MLM. I am not telling anyone what they should do, but MLM is a good way to get short term induced depression and financial stress.

[@071493lt]

James Watson its probably not for you.

[@OfficialYounginwell]

Respect for your honesty. James Watson

[@butterflyqueen9260]

James Watson primerica?

[@AcidicJO]

Butterfly Queen I’ve known ssooo many people involved in that company over the years, friends that quit it and got real jobs or returned to their old jobs still swear you can make money in it. Idk if it’s their pride or ego or what but it doesn’t allow them to admit they got taken. But they all have one thing in common. They have zero to show for their time there.

[@_cr8ive_]

James Watson 🤣🤣🤣 it's bad cause you don't know what you doing...🤣👍

[@anons000]

I love how Ramsey says MLM isn't a pyramid scheme, then he goes on to define MLM as a pyramid scheme to a tee.

[@freedomforall2924]

sean1256 A pyramid scheme is an unsustainable business model that involves promising participants payment or services, primarily for enrolling other people into the scheme, rather than supplying any real investment or sale of products or services to the public. I think you missed what he said. Or maybe you think what you want.

[@TheHelvetican]

I was going to say same. The difference, however, is pyramid schemes are illegal. That is why MLMers are so vehement about denying it.

[@freedomforall2924]

TheHelvetican​ I'm not denying some mlms are illegal. If they are though they get shut down by the ftc. Like vemma and fhtm. Usually the best mlms are the ones that are privately held and the ftc already sees them as viable business. There are so many factors in this conversation that we could argue forever. I'm just tired of people who are uneducated about the industry trashing it cause they had one bad experience with a person who took advantage of them. Which is really their fault for getting excited into a small biz mlm in the first place & not getting educated first.

[@freedomforall2924]

PandawdyBob​ what is you favorite movie and why?

[@freedomforall2924]

+PandawdyBob dude that's not how they operate today In the Internet age. Nobody stores product in their garages anymore. That's called front end loading (which is illegal) Any legit mlm knows this. You need to keep up with the times before mentioning old school ways of building business. But you know when you walk into a store like Safeway, they have already purchased the product and it's sitting on a shelf waiting for you to buy it. In return once you buy it they keep the mark up on that product. So how is it any different then what your talking about anyway? 

[@ladyv5655]

If you are paying them for the privilege of working and recruiting for them, you are a customer, not an employee or a small business owner.

[@SenorJuan2023]

You pay a small fee to get trained under their system. How is that ANY different than the Franchise model? except that you pay far less?

[@ladyv5655]

@@SenorJuan2023 under the franchise model, you don't have to recruit other people to start their own Franchises. Most businesses, for example McDonalds, don't want too many franchisees in one geographical area because that will not be good for the franchisee's businesses. Also, the advertising is all done by corporate McDonalds and doesn't depend on the franchisee constantly messaging random people on Instagram or claiming that french fries cure Autusm in order to move inventory. The shipments of supplies are based on the needs of the Restaurant rather than a quota or minimum purchase the franchisee must make in order to get her bonus. All the franchisee has to do is operate the restaurant. You're welcome.

[@SenorJuan2023]

@@ladyv5655 You have to pay a HUGE fee to become own a franchise and give them part of your profits. If MLM folks are spamming, that's simply poor training. Yet franchise owners aren't blasted for having to pay for a fee to own a business. LOL

[@ladyv5655]

@@SenorJuan2023 , because most franchisees make money, while most people who get into an mlm don't. Buh bye, brobot.

[@SenorJuan2023]

@@ladyv5655 Franchisees generally have a professional background to begin with. That's how they can afford those LARGE franchise fees. For the first 5 years or so, they're just a poorly paid employee with lots of debt. LOL

[@eddycarpenter8989]

To tell someone they cannot succeed in multi-level marketing is equivalent to telling them they are incapable of achieving their potential. A lot of people say it's a pyramid scheme but it's really just selling. If you know how to sell, negotiate, close, manage and recruit... You can succeed within a multi-level marketing structure. If you cannot. Then you will fail. It's as simple as that.

[@johnd9541]

You sound like an ideal candidate for my upcoming expedition to build a bridge between the twin-peaks of Mt Everest.

[@murraysaucedo897]

@@johnd9541 while at it I have a really nice luxurious beach mansion in the state of Montana I’m willing to sell you at a loss? Hell if you act now I’ll throw in a time share for a Florida mountain retreat at no extra cost just as a way of saying thank you

[@johnd9541]

@@murraysaucedo897 Does that ocean have a hill, as I love to water ski? lol

[@GlorifiedTruth]

"Should I get involved in multi-level marketing?" "No." It doesn't need to be a nine minute conversation.

[@scammedenoughalready7067]

Glorified Truth Unless you recruit a planet load of people into your deal ..... the REAL money would be way worse off than someone who flips burgers at a fast food joint

[@GorillaGrodd420]

Scammed Enough Already Not true. Not all MLMs are equal. Some are great some are not. It would be like asking if I should get into a mutual fund. Some are great some or not. Some have lost money in the stock market some have not. It depends on where you put your money. Same thing for MLMs. It depends on which one you choose and how and where you invest your time and money. If you choose a good one and take your upline's counsel you will do well. If you do nothing or try to take "short cuts" then you will not

[@gregorydowney5410]

Scammed Enough Already The key to MLM is recruit people who will recruit people. It's a community effort. One person will never recruit enough people on their own to get free. It takes a team.

[@GorillaGrodd420]

Gregory Downey It is more than just recruiting. It is recruiting and training. Some people may take that one makes money just recruiting. Unless there is an actual product being bought it is a scam

[@gregorydowney5410]

David Misner I am well aware that there is training involved. But not the "Sales Training" that Ramsey talks about. Generally a good program will sell itself. Sure you have to present the program but it's not like overcoming objections etc. If a person doesn't wasn't in right now, then they're obviously not "Seeing" it. Life Leadership has fantastic training. Some of the best in the industry.

[@KayDejaVu]

He broke this down wonderfully. I always wondered why these companies don't do direct sales. Dave made it simple , you make your money by always recruiting sellers.

[@synocrat601]

Which is the very definition of a pyramid scheme.

[@Bigbottomgal]

By this definition every company that’s direct selling is a pyramid it just so happens that some have very little over head like financial companies

[@CalgaryHughesFamily]

@@synocrat601 So, McDonalds or a car dealership, for example? They make their money by recruiting people to sell their products.

[@synocrat601]

@@CalgaryHughesFamily Hey. Stay ignorant if you want my friend. Does the car dealership require their sales people to buy several cars off the lot to retain their commission structure?

[@johnd9541]

DR describes earning in MLM is not from selling but from recruiting. That is the very definition of a pyramid scheme.

[@stevendurrant1724]

says it's not a pyramid, then goes on to outline prime recruitment characteristic that qualifies it as pyramid

[@mikeb2488]

+steven durrant Dave definitely did not do himself justice with this video. He just revealed MLM's "dirty little secret", and also gave an extremely long explanation of why they are illegal while endorsing them. This is exactly why the FTC needs to shut down HerbaLife, and then fire off investigations into the rest of these ridiculous things.

[@cazinger]

+steven durrant He really did not do a good job of explaining what a pyramid scheme was and distinguishing it from multi-level marketing.. A pyramid scheme is someone telling you "You come on board and invest $1,000 and then bring in 2 (or 3 or 4 or however many) other investors - you get a piece of each of those investors "investment" and a piece of each of the investors that each of them bring on board". In other words, the return that you get comes from other investors coming in under you - their "investment" into the company [NOTE: - NOT to be confused with any actual products or inventory that are purchased that you might then be expected to sell to others]. In other words, you get paid when you bring in other recruits. Multi-level marketing, on the other hand, sells actual products and the people doing it earn commissions when they (or someone under their "hierarchy") sell that product. Herbalife sells dietary supplements. Avon and Mary Kay sells cosmetics. Tupperware sells ... Tupperware, etc. Pyramid schemes are illegal. Multi-level marketing is not.

[@mikeb2488]

cazinger cazinger said, "Multi-level marketing, on the other hand, sells actual products and the people doing it earn commissions when they (or someone under their "hierarchy") sell that product. Herbalife sells dietary supplements. Avon and Mary Kay sells cosmetics. Tupperware sells ... Tupperware, etc." Yikes...you clearly aren't following the MLM news. Herbalife is under a huge investigation right now by 3 different agencies, Tupperware has gotten rid of their MLM model, and Mary Kay...well they are struggling along. You clearly do not understand the finer details on what makes MLM a disguised pyramid scheme, and use a common fallacy about them having a product. As the FTC states here. "Not all multilevel marketing plans are legitimate. If the money you make is based on your sales to the public, it may be a legitimate multilevel marketing plan. If the money you make is based on the number of people you recruit and your sales to them, it’s not. It’s a pyramid scheme. Pyramid schemes are illegal, and the vast majority of participants lose money." It doesn't matter if you have a product or not, as long as most of the sales are going to other distributors it is a pyramid scheme. You must provide proof that at least 70% of sales are going to the public, AND, you must have at least 10 sales a month to retail customers. So far, no company currently has enforced the 10 sales a month policy, and nobody can prove the 70% policy which makes MLM look very shady at best. cazinger said, "Pyramid schemes are illegal. Multi-level marketing is not." Sorry, but as I have proven, it is not that simple. Vemma was shut down for a couple of months to restructure because they had been convicted of being a pyramid. Monavie, is done, and they were proven to be a pyramid. Please get your facts straight before you speak on a subject you do not fully grasp.

[@cazinger]

+Ben Dover Wow. Congratulations on being such an authority in the youtube comments section about a topic most people do not come into contact with in their day to day lives and even fewer care about. You must be really good at using google. Well, you did such a good job of dissecting my post point by point, let me return the favor: "Yikes...you clearly aren't following the MLM news." You're right. It is not a topic I study, nor would I think most people would. Not sure why that warrants a "Yikes". We are writing in youtube comments here - not briefs submitted to a court in support of a motion for dismissal or anything that technical. "You clearly do not understand the finer details on what makes MLM a disguised pyramid scheme, and use a common fallacy about them having a product. " Again, you are at least partially correct in that I am not up on exactly what a court would consider when determining EXACTLY where the line is between a legitimate MLM business and a disguised pyramid scheme - but I would not call the distinction about having a product a "fallacy" - more like a general rule of thumb. Obviously a court would consider the underlying nature of the business and comb through the details of its transactions to determine whether or not the revenue of the business is based primarily upon the sales of product to consumers or based upon internal sales - but again, this is the youtube comments section - not c ourt brief. "cazinger said, "Pyramid schemes are illegal. Multi-level marketing is not." Sorry, but as I have proven, it is not that simple." You really think lot of yourself and your ability to use google, don't you? Of course, life is never as so simple that you can always use a "rule of thumb" to determine the outcome of every court case. Congratulations on stating the obvious. But again, for purposes of the youtube comments section, and the generalities that are usually called for in such a forum, listing every single exception to the general rule seems overly cumbersome. But, hey, don't let that stop you. You go on and google away and give us all a good detailed lecture on the subject. I'll get started on ignoring you right after I post this reply. " Please get your facts straight before you speak on a subject you do not fully grasp." Sorry, but I do not let little internet trolls dictate the subjects upon I which will comment - whether or not I am fully informed or just making a generalized comment in passing. If you don't like my comments, you are free to ignore them - but DO NOT respond to them in this manner again (actually, I don't care if you do, but since you were deeming yourself to try to dictate what others could and could not comment upon, I thought a little turnaround would be fair game :) )

[@mikeb2488]

cazinger cazinger said, "Wow. Congratulations on being such an authority in the youtube comments section about a topic most people do not come into contact with in their day to day lives and even fewer care about. You must be really good at using google." Um, thanks? Also, not sure what you have against Google...if I were getting all of my information from non peer-reviewed Wikipedia sources I would say you have more of a case. If you would like me to cite sources from a library instead, I'm sure I can make that arrangement. cazinger said, "You're right. It is not a topic I study, nor would I think most people would. Not sure why that warrants a "Yikes". We are writing in youtube comments here - not briefs submitted to a court in support of a motion for dismissal or anything that technical." Admitting your ignorance to the subject is good, and I am more than able to clarify as I have shown in my previous posting. I'm not sure why you are alarmed by the word "yikes", but it seemed to suit the situation well as you were overgeneralizing and incorrect. There is nothing wrong with being accurate in a KZbin thread, and if that means it is similar to a court case to you, then so be it. cazinger said, "Again, you are at least partially correct in that I am not up on exactly what a court would consider when determining EXACTLY where the line is between a legitimate MLM business and a disguised pyramid scheme" It would seem I am entirely correct in your mismanaged information. You are not on trial, this is over dramatic. This is how the FTC writes their conditions for legality, therefore it is important to understand. To date I have not seen one MLM that has proven to abide by the FTC's conditions. cazinger said, "But again, for purposes of the youtube comments section, and the generalities that are usually called for in such a forum, listing every single exception to the general rule seems overly cumbersome." If you find it cumbersome to be accurate with what you are stating, then perhaps you should keep your comments to yourself. KZbin thread versus a court room should not make you impervious to error. cazinger said, "You go on and google away and give us all a good detailed lecture on the subject. I'll get started on ignoring you right after I post this reply." If you don't want to learn, and want to hold onto your negligence that is your prerogative. I will enjoy this post reaching more users than just you, and you can be a great example for others to see. cazinger said, "Sorry, but I do not let little internet trolls dictate the subjects upon I which will comment - whether or not I am fully informed or just making a generalized comment in passing." Again, if you choose to not be informed, and make bad comments, then you give yourself up to scrutiny. Feel free to make more bad posts as nobody can stop you. Admitting that you are negligent and overgeneralizing is a good start, but it is better not to make it a habit. cazinger said, "but DO NOT respond to them in this manner again (actually, I don't care if you do, but since you were deeming yourself to try to dictate what others could and could not comment upon, I thought a little turnaround would be fair game :) )" How would you prefer I respond? Should I give you an accolade for incorrectness? I stand by my previous statement, you should not comment on things that you do not understand under a false pretense. If you make bold statements like you have please provide facts or some valuable knowledge. Good luck in your KZbin comment pursuit, and try to be more informed...knowledge and research are great assets.

[@GooblyWoobly69]

If Primerica ever reaches out to you; RUN

[@janayewill3883]

Why ?

[@dylaneatontrains2]

😂I fell into that trap

[@CharlesCChatman]

Its not a pyramid scheme, but you spend most of your time recruiting then you do selling product.? That sounds like a pyramid scheme. When your job is to get more people to work for this company and buy training material.. And you're getting a commission from the people that you helped recruit and some of your commission goes to the person above you, that my friend is a pyramid scheme. Aka Multi Level Marketing. You would think that you are selling to customers but in reality you are the customer.

[@TH-eo9vo]

right

[@CindyTemple]

Sounds like the US Military.

[@SFO14]

what if you don't derive any commission/compensation for recruiting, or even training new people? the only income is generated from cashflow (i.e. sales and distribution of product)

[@CharlesCChatman]

if you have to buy the product in order to sell it. . . than your commission/compensation is already in the negative. . . and you have to sell 2 times as much just to see profit.

[@CharlesCChatman]

If you're looking for a good example... check out the Sprint "Framily" or friends and family plan thats out right now.

[@mjwander1]

I bought into several multilevel marketing gigs back in the day and they over promise and tremendously under deliver I never made a dime off any of them. The best thing to do is create your own brand. Own a copyright. Trademark or a Patton on a product or service. That is how money is truly made

[@hergyflan4037]

Is your info safe after leaving mlm gigs?

[@sean3533]

Your success in a MLM is dependent on the failure of new recruits farther down the line.

[@BK00099]

What he said at the end was right on the money, well it all was but especially towards the end. Everyone you know becomes a prospect.

[@joebarniak]

I don't know why any serious financial advisor would give advice that multi-level marketing is a good idea?

[@joebarniak]

no MLM company really sells products. that's just their stick to get you into the door. all they want you to do is recruit people.

[@sfzsingularity]

Joe Allen Barniak I agree, I'm kinda sketched out that dave was not more against this

[@joebarniak]

The percentage of making money doing MLM is worse than any of the things Dave says aren't worth your time. You make more money on a credit card rewards program than you will on MLM. I kind of wonder if these people are somewhat involved.

[@cosmosgato]

1) MLMs are garbage. 2) Dave Ramsey is not stupid and should know this. *Conclusion: Dave Ramsey hands are not clean!* Use caution dealing with Dave Ramsey.

[@joebarniak]

cosmosgato I don't know what he has to gain from this crazy advice. Rich dad poor dad recommend MLM as well.

[@pondpro]

Direct Sales changed my life and I haven't sold a single energy bar, lip balm or diet cookie in 2 1/2 years. He is right, people are not just a transaction but there are those that legitimately see how Direct Sales can change their life, sign on and never pick up the phone when you try to show them how to actually change their lives. It's just part of it...

[@markdetweiler9668]

Agreed

[@marjn1030]

What company you work for?

[@TheRamseyShow]

Stay up to date with the latest videos from The Dave Ramsey Show by subscribing! kzbin.info

[@mikeb2488]

+The Dave Ramsey Show As the FTC states "Not all multilevel marketing plans are legitimate. If the money you make is based on your sales to the public, it may be a legitimate multilevel marketing plan. If the money you make is based on the number of people you recruit and your sales to them, it’s not. It’s a pyramid scheme. Pyramid schemes are illegal, and the vast majority of participants lose money." (www.ftc.gov/tips-advice/business-center/guidance/multilevel-marketing) What Dave has described here is the perfect definition of a pyramid scheme, and he is talking about MLM's in general. He states that it is about recruitment and not the product therefore they are schemes PERIOD...anyone who is still in support of this trash look at the FTC guidelines and the average monthly revenue of active IBO's...if you are still in support after that, please do us all a favor and jump off of a bridge.

[@clova1978]

Jonathan Spain-Collins i work for a MLM, in my spare time now but I use to be full-time so not my exprience loosing money. once I got my ins lic i made 15,000 my 1st 12 month before I went full-time. I sold life ins. and mutual funds. I dont rec ppl anymore but I still sell. 8 years..now most of my family and friends are clients. I wanted to pursue other things, that's why I only do it in my spare time I keep up my license because people call me to write their life insurance it's the fastest way to make 750 in 30 minutes legally and actually giving people what they need term insurance of course.

[@mstrackstar08]

I experienced everything that Dave described once I started my network marketing business. I recently let it go for these very reasons.

[@valuecalc]

Jacqueline Walter , you saw that it was a scam.

[@awolf81]

Facts: MLM is based on hype and emotion. MLM's are lead by hucksters who are great motivational speakers who excel at using your dream of being rich against you. The people who are really generating an income for the "business" are the distributors who are required to use/buy the product to be a "member". The lions share of profits are not coming from external sources only internal (the distributors). I know the pro MLMer's are convinced that folks like myself are fools. So don't take it from me. Think critically, ask questions, fully understand your MLM's compensation plan. When your up line is says there making 60K a year demand that they show you a year to date pay stub. Calculate what the up line is spending on the "business" to earn 60K a year. How much product are they being forced to buy? Whats the cost of their monthly website subscription? How many expensive seminars are they being compelled to attend?

[@squiggy420]

MLM's are of the devil.

[@GorillaGrodd420]

That is true for some but not all MLMs . also that is not fact as much it is an opinion

[@GorillaGrodd420]

***** Wrong! The reason is because of fear. People do not like talking to other people. They do not want to get out of their comfort zone

[@mikehorner8754]

***** Only 59% of college students actually graduate. That is a 41% failure rate. Sounds like a scam.

[@squiggy420]

You MLM defenders sure are brainwashed lol.

[@chrismacias305]

It's not just recruit recruit recruut. You can have a large organization but without having a customer acquisition for the products and services, nobody isn't getting promoted to the next highest position or getting residual/passive income. We have a service launching next month that will help many reduce their costs up to 50% when watching cable television through internet streaming. So no ridiculous prices or fees from those main cable and satellite providers.

[@fundude4566]

This why you sell the product first and get people on an autoship after they have tried it for 30 days and like it. The vast majority of your residual income can come from monthly product sales if you find people who want the product over the business opportunity.

[@DGoosby]

As a network & affiliate marketer, I agree that I've often "worked my natural market" in an abusive manner because I did just ask everyone with skin. But I also honestly believe I am offering something amazing with any product or service I offer. I am not focused on recruiting because I believe people will ask me when they're ready. Obviously I'm not a millionaire yet but that's ok. I earn enough so far. I think as adults we can sit down, hear a presentation from a friend trying something new and be supportive. If it gets old, be an adult and say that too. That's what I ask of my friends but I know each of us are different.

[@DGoosby]

Thanks Antonio. May I recommend that you ask first if one has ever heard of WUN before you type all of that... I have heard of it. I am a member. I enjoy the services, and wish you the best with your business... Aloha 🌴

[@antoniomagana6720]

I know its a word of mouth company I have to get it out some how lol and what team are you in

[@DGoosby]

I'm on team Never Broke Again. Which team are you on?

[@antoniomagana6720]

my up line is the Dream Team I was talking to seemore I forgot his real name but people call him seemore he told me they are my up line cause the person who got me in doesn't even promote WUN worst part she tired getting me into another company I wasn't a fan of that wee should stay in contact though so when we both do start to make that money we can have people Skype at our home meeting which I plan on doing if you don't mind the more proof I have the better the company looks to the leads

[@DGoosby]

Sounds great. We should definitely keep in contact.

[@bccadet07]

This is the best realistic answer I've heard.

[@andrewbutton5302]

Um my respect for Dave went down a lot with this one. MLMs aren't EXACTLY like pyramid schemes but they're pretty similar for all intents and purposes. Usually you can't make much money without recruiting, so the essential business model mirrors that of a pyramid scheme.

[@ERIN_198]

With pyramid schemes, no goods or services exist. Therefore it is not the same

[@JaniellesWorld4u]

I just started a network marketing. And the fact I earn money in 3 ways. Not all by recurite, that's just the Bouns. but I help people save on their traveling and earn. I have a self booking site and I earn money. But it all depends on what network working you join. An to my understanding Network marketing and MLM is two different thing. I love what I do.

[@RJugan]

Type in you tube... I still think its a pyramid scheme ". It's surprising Ramsey even mentions some of his friends are 7 figure earners yet he says its sales so why does he stop short of endorsing the profession? I am constantly getting emails form his company trying to sell me his material.

[@SenorJuan2023]

The Real Estate and Insurance industries are VERY similar to the MLM model, and yet no one calls them pyramid schemes. LOL

[@synocrat601]

Real Estate agents don't get money from referring more real estate agents to their brokerage over selling properties for commission. State licensing boards oversee and enforce these industries. Insurance agents make more in commission from repeat clients than they do bringing on new agents to the company. Why is this so hard for you to understand?

[@JJFLD]

Thank you!

[@SenorJuan2023]

@@synocrat601 You realize many MLM actually have products and services right? It's ONLY a pyramid if most of the money a company makes is FROM recruiting. Why is this so hard for you to understand?

[@SenorJuan2023]

@@synocrat601 They get a cut from their agents because they provide support, which is what sponsors do in MLM's. Why is this so hard for you to understand?

[@synocrat601]

@@SenorJuan2023 It's not hard to understand, you read the income disclosure statement, 95% of people don't make a dime..... boom... it's a pyramid scheme, no matter how they say it's not.

[@thomasbigwash1]

I am amazed that people still judge things without actually checking it out for themselves. MLM has been around for more than 40 years and has stood the test of time and has created more millionaires than any other industry. That is very strong and today people still call mlm a pyramid scheme, crazy. Go to Network Marketing why we rock video on youtube and check out what these guys are saying.

[@lanelipkin6399]

I cannot believe he is ok with mlm’s.

[@murraysaucedo897]

he’s probably pushing one himself that’s the only way I could justify it

[@sharonross4078]

Excellent advice! Been there...done that. Thanks Dave.

[@HoilisticTouchDebbieGordon]

If a person enjoys and uses a product, does it really matter to if they purchase the product from the internet, department store, or from an independent distributor?? I would be using my products regardless of the "vehicle" of how it is marketed. When a person is in pain and can find an excellent, natural, non-toxic alternative - HELLO- it is way cheaper than the doctor's office - Anyone listening?

[@BryanLeach]

I hear you! Right there with you! #ZFL

[@HoilisticTouchDebbieGordon]

Thanks, Bryan Leach!

[@karaokeDJ07]

+Hoilistic Touch Debbie Gordon I hear ya!! Like Bryan, I am right there with you!

[@HoilisticTouchDebbieGordon]

+karaokeDJ07 Thanks!

[@markdetweiler9668]

Preach

[@johnjuhasz9125]

MLM is a flawed premise. They say "if you sign 10 people and THEY each sign 10 people...." Problem is, of the 10 people you know (family, friends, neighbors, coworkers) will all have EACH OTHER as 9 of the 10 people they know. MLM victims (pure idiots) destroy their relationships by badgering or guilt tripping or annoying the hell out of their closest acquaintances.

[@napoleonolarte5911]

I have to say that no all MLMs are equal...5 things to succeed in the MLM business: 1. Product. You gotta have the right product that delivers what it says would do. 2. Support. This has to do with the company's back office and production line. (can they meet demand? is the company growing at a healthy rate?, vision, strategy, etc) 3. Market. Is the market saturated already, or, do i have a real opportunity in my geographic area? 4. Compensation Plan. This has to do with how much is the company willing to share with the affiliates. 5. The YOU factor. Do you understand what it takes to 'make it', and are you willing to commit on putting the effort to achieve your goals?

[@Queendomcruz]

Ive been with SIX different mlms and life insurance companies. I speak from experience Ive been through it all, the worst trainings, mentors, scripts, and presentations and nothing compares to when I found PHP. You are only as successful as you work. A lot of people join and want the business to work for them instead of doing what it takes. Its not all recruiting. Its showing people you can change your life just by showing people the opportunity and how to secure their finances and make sure things are taken care of when life hits the fan. Its all about good training too which a lot of mlms think is just a bunch of motivational pep talks or scaring you into believing the dream. The compensation here is crazy though, people are retiring their parents just within two years of being with the company. Two yrs goes by so quick these days its worth putting 2 solid yrs of real effort and see where it gets you.

[@nickb3463]

What's PHP?

[@ZayCold]

CHRISTINE CRUZ how are you doing now

[@sheltonstoker1622]

MLM is a form of advertising. Instead of traditional advertising such as newspapers, TV ads, radio commercials and billboards, these companies use people as their main form of advertising their services or products and it works. It's a financially sound way to advertise because every dollar spent on customer acquisition is for a customer that has already been acquired not hoping that you will get a customer. If the product or service that is being offered is of good quality and a fare price, then the consumer benefits and there is no difference from them purchasing the product from a retail store. Except for the fact that a portion of the money that they spend goes to the associate responsible for the sale. So why wouldn't I want to support my relative or friend if they are providing me with a quality product at a fair price? Let's use Amyway for an example ( no I'm not with that company) . Let's say collectively you and your entire family spend $1000.00 a month on toothpaste, bath soap, laundry detergent, mouthwash, vitamins and lotion. A member of your family is a distributor for Amyway and everyone decides to order their products from them instead of let's say, Walmart. So now, Amyway has $1000.00 increase in sales and a portion of that goes to your own family member. That's why we ask our family and friends to support us. You are spending the money anyway so why not help my finances and not just the Waltons? As far as recruiting, every recruit represents access to a share of the market that the company didn't have before. This means more customers which are the life blood of every business. Even radio shows. The more recruits you bring to the company, the more they pay you because you are contributing to increasing their share of the market which means more revenue.Its just simple business. MLM /network marketing is a different way of doing business and it has evolved over the years but most people still have an ancient understanding of the business model.

[@ebunmuhammad991]

Check this out

[@fate241]

Very interesting read of comments

[@JTSmith]

I personally like the marketing structure of these MLMs, the idea that you let other people do your marketing for you as a business and get compensated for it, and invite other marketers to get compensated for it. As an online marketer, I like the idea of getting paid to send people to these things. Instead of an MLM, in the affiliate world we call these things multi-tier affiliate programs. However, the start-up fees, minimum purchases, false hype, misleading numbers, and cult mentalities of a lot of these MLMs all things that I really don't approve of. Not to mention the high-pressure sales parties that force family and friends to buy things. That's not a moral sales tactic IMO.

[@redmolly1962]

I really wish i would have listened to this before I got involved in MLM. My recruiter has known me since kindergarten and I fell for the "How are you doing?, I have a great opportunity I want to share with you. I realize now that I was a mirror fogger and now Im getting myself out of a business I had no business being a part of.

[@SFO14]

Any institution of higher learning (colleges & universities) must recruit in order to survive. Are enrollment and tuition costs up or down these days? How about the debt-to-income ratios for new grads? Schools for the most part are a money pit, and guess what!? There is probably a very small percentage that does extremely well for themselves. Every bloody system is the same.

[@qivanawithmarie8891]

Wow, now that's a reality for sure! Well stated.

[@lonewolf604]

***** Good point, but at least most people know what they're getting into in college. In pyramid schemes you're promised quick returns and that you'll be driving fancy cars in a short time.

[@SFO14]

@108671345590288613887 That's true of traditional top-down hierarchies where overrides are spread out over 6 layers. However, there are scrupulous individuals within these organization (as with any industry) who prefer to do things the "right way". By that, I mean, they realize that the people beneath the on them totem pole must have success in order for the higher-ups to ultimately succeed, and so are incentivized to help them. This is common sense, but not commonplace.

[@omniminokyo2]

SFO14 in the end it’s all about profit. You help them sell more, also help them end more family friend relationship because you know for sure the products are overpriced and no strangers will ever buy from you

[@marjn1030]

Thank you! GREAT ILLUSTRATION! pay all that tuition and still don't get a job if anything that's kind of like a pyramid scheme and you have to pay the loan whether you get a job or not. find a mlm that's ethical and you're good.

[@AllAllah777]

ALL MLM, NETWORK MARKETING PARADIGMS ARE ALL PYRAMID SYSTEMS. THE MORE PEOPLE BELOW YOU WHO SIGN ON NEW REPS, YOU ARE ABLE TO KEEP EARNING MONEY, WHILE YOU CONTINUE TO RECRUIT NEW REPS. PRODUCT SELLING IS SECONDARY TO RECRUITING. IF YOU ARE A PEOPLE PERSON, LIKE TALKING, ARE POSITIVE OR A SOCIOPATH IT IS GREAT FOR YOU.

[@TrEo2322]

ANGEL ESTRELLA Sound like corporate America to me... Next time your in the office ask you boss for a raise....

[@AllAllah777]

Tyrell THE ONLY RAISE WORTH ANYTHING IS YOUR FINANCIAL FREEDOM.

[@TrEo2322]

I watch this a while ago....

[@SenorJuan2023]

Pyramid schemes are illegal and are shut down.

[@AllAllah777]

***** WHICH MLM ARE YOU WITH? MIGHT BE WRONG FOR YOU BUT THAT IS NOT THE NORMAL PROCESS.

[@grayandgray]

The math of MLM kills it. $1500/yr average income for 90-95% (outside of those that quit). So you are recruiting the last few dollars from the most desperate people you can find. Those bottomfeeders might get a little higher.

[@businessmanager4746]

Because he offers MLM his classes lol

[@BamBamBigelow..]

I took a sip of the kool-aid! Unfortunately I had to spit it out. 😔

[@CRazz2234]

Love this! Especially the end. When he talks every living breathing person becomes a potential recruit and everyone you know becomes transactions rather than relationships. I have good friends who have started selling ________________ (insert any multi-level marketing group popular today) and I've had to tell many of them that I want to be their friend and not just someone to gush their memorized sales paragraph to. Unfortunately, some friendships have been lost because of it. I'm honestly happy they are able to make money, pay off debt, and provide for their families. I just seems those things are more important than maintaining friendships.

[@SghNerium]

This is the most honest video and thank God our company takes a different approach and is honest about what is involved. And because we do the process right, many of us are making thousands per month, but ....BUT...you do have to work for it. It's not easy. Like any business, work is involved. When I see other network marketing companies, I thank God that I am involved with this company. Relationship is just as Dave Ramsey says; it's a relationship and that means you love those around you, do good things for others and don't worry about the money. If you are doing the right things the money will come. A lot of people give network marketing a bad name but it changes hundreds of thousands of lives of those willing to put in the effort. Thanks for an honest opinion Dave.

[@BillyO8828]

The stats say the opposite: homebusiness.about.com/od/homebusinessprofiles/a/The-Likelihood-Of-Mlm-Success.htm

[@SghNerium]

I do believe that you are more concerned with whatever it is YOU are selling as opposed to sharing true facts, but that's fine, you can do as you choose. :0)

[@LARRYUMEKA]

This video clip was exceedingly helpful and self explanatory. Remarkable duty of articulating!

[@RandoCalzone]

Dave admits that you can't make any real money in MLM simply selling products, and that the only money comes from endless recruitment--and yet he insists that it's NOT a pyramid scheme!? Wake up, bro!

[@Shjandy]

Because legally you have to have a product to sell as an "MLM" business. As long as you have that product to sell to whether it be your customers or your employees you are in the right. Pretty sad how these businesses take advantage of those that want to help support their families

[@abdulmoon1010]

@@Shjandy take advantage or propose an opportunity if it fits the person.

[@ramtuffdodge]

The concept is to USE the products from your company and RECRUIT and then TEACH people to USE the products in your company and then teach THEM to RECRUIT people and TEACH. It is a cycle of teaching people to use the products and everyone needs to use the products. That's where the money comes from. If you sell your products, you will lose money and interest. I am lucky to work with a company that has a product people love to USE and some people recruit and teach, some people just use the products. Dave is very honest and correct about his assessments. Many people are turned off but there are tons of people out there looking for "something better" and he is obviously very happy with that he is doing, he is not open to looking into any of them and that's OK. This industry is NOT for every one. Trust me it IS difficult. I would be happy to answer any questions someone might have about Network Marketing and of course about the one I am involved with. IF you are looking, feel free to visit my web page and leave a message it you would like to. If not, that's OK too. www.ylwebsite.com/younglivingwellness

[@awolf81]

James Miguez Have you ever read the final sentence of your web page? If not I'll post it here for you. ""*This statement has not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure, or prevent any disease."" The industry is not for everyone because the placebo effect only works for 30 to 35 percent of the population.

[@insideoutsideupsidedown2218]

Dave says that credit cards are the cigarettes of the financial world; then MLM's are the reverse mortgages of the business world or the whole life policies of the of the insurance world...

[@gamevirus01]

There's two ways to make sales in an MLM, through the associate or the actual customer. 90% of the time is through the associate as they need to purchase the product monthly in order to remain eligible for commission, and if you have a HUGE downline that do this, you're essentially making "sales" because you're moving product. And what do you need in order to build a huge downline? you need DUPLICATION, you first recruit then train/mentor those recruits to do the same, this is why dave said you're essentially a professional recruiter/sales manager in a successful MLM business. That's why motivational speakers/mentors are the perfect people to succeed in MLM because they can CLOSE recruits so effectively.

[@catpirrello]

"B.S. meter" lol

[@mlwilson2956]

I thought Ramsey was supposed to be some financial guru? MLM is a scam, period

[@ladyv5655]

He doesn't want to get sued.

[@TheOpinionSports]

ML Wilson well if it was a scam then why do companies work with them?

[@illogicerr3769]

Go ahead. Present your arguments.

[@SenorJuan2023]

Dave thinks ALL debt is bad. That's terrible financial advice.

[@gdixonfitness]

great video Mr.Dave!

[@Marilynefc]

DAVE! Thank you. I am 24 years old and I love listening to your videos. I always go here when people come to me with their crazy idea.

[@ChristelWaltmanbiz]

Not every business is for every person! Ask Yourself; What is my calling and purpose? How can I make a difference..not just money with my talents, personality, skills and , job or business? It does take personal and people skills without being manipulative! Hitting on friends and family is not always the best avenue or best suited business partner, since they may not have the skills or interest to learn and be professionally trained. Unfortunately,many come into this industry inexperienced, not knowing ... how to be professional about their business( and do puke all over their friends and family). There a multiple methods and professional skills to prospecting like human resources and e.g. medical recruiters sales force recruiters have used. It helps to understand people and marketing like in many other businesses to be successful. Fact is: MLM is a legitimate and honorable business..just many are uneducated and not properly trained. Did you know...MLM business model is now being taught in some universities and business programs? Blessings, Christel

[@erubielesquivel6510]

Christel Waltman very well said, smartest comment I've seen about mlm, is not for everyone and it's hard... which is the beauty of it :)

[@BamBamBigelow..]

I tasted the kool-aid too!

[@iternalflame1380]

Christel Waltman a great comment, I like WFG Personally and I’m a good recruiter so yeah😂😂😂

[@hazel8d]

Amway representative on the loose in the comments

[@Economivision]

Dave Ramsey should lose all respect in this very phone call. I don’t know if he’s trying to steer from discouraging her or insulting her, but this is utter pipe dream nonsense. To even allude to “legitimacy” on THIS particular type of program is RECKLESS.

[@CrisisHipHop]

I've known people in Primerica who are doing very well. I'm not saying it's for everyone or there aren't shady practices but there are for a fact people making money in insurance.

[@primus7776]

This Guy knows his stuff. Well Done indeed Sir.

[@startupinacar2794]

Mad respect for Dave Ramsey.

[@calinbirtasaimonx5987]

The first mistake tha people make is going to their frinds and family. To make a business in network marketing you have to see it like a business first and second you need to help people see the vision(what can they achive), set their goals and don`t give up on their goals and dreams.This is my humble opinion!

[@EastonSoccer6]

The chances of making it into the NFL are very slim. Does that make the NFL a scam?

[@chesterullrich2525]

yes, without a doubt. ;-)

[@chesterullrich2525]

agentorange20 i slipped a winky face into the end of my comment just in case you didn't see it.... i had a brush in with minor league hockey and i understand the requirements of carefully crafting one's game. that was a loaded comment based on the dangers of playing the game and one's chances of actually making it a career. most don't make a game their career. i got paid, albeit for less than 2 years, to play a game. i was a glorified suitcase,(meaning i was shifted around long enough to unpack then repack) but irregardless. MLM is a great opportunity, if one knows/understands the risks and rewards prior to pulling the trigger.

[@GrantValdes]

His first statement is "MLM is fine." No, the very MLM-ness of it is what's wrong with it. Over 99% of participants will lose money. The time wasted and opportunity cost of investing effort in this particular "entrepreneurship" route is a big waste, too.

[@tonybenedosso4669]

I’m truly flabbergasted by parts of his answer here. First, he incorrectly describes a pyramid scheme as a “last man standing gets no money” scenario. This is not a pyramid scheme. This is a Ponzi scheme. Then, he talks about how the only money to be made by MLM is by recruiting other members, and not selling the product. Ironically, this is a near perfect description of a pyramid scheme and he doesn’t seem to realize it. Dave Ramsey is very knowledgeable about certain things, but this is not one of them. If you’re considering MLM, there is one stat you need to know: The FTC estimates 98% of people involved in MLM will lose money. This is incomparable to any other business model. You’re better off trying your luck at a casino

[@gregorydowney5410]

Dave is wrong especially about Amway doesn't pay for new recruits. Amway pays on product usage. I've heard Dave say some idiot things, but this tops them all.

[@carriekucera387]

Gregory Downey He is not well versed on this topic, and seems to think he is an expert, clearly he has not looked beyond his own opinion. Look up what Robert Kyosoki says about network marketing....................real eye opener................back to your beans and rice DAVE RAMSEY!!!

[@gregorydowney5410]

Carrie Kucera I know very well what Robert has said. I worked for the company that delivers his coaching.

[@paultrosclair1775]

+Gregory Downey You clearly don't understand what he is talking about. He is talking about creating leverage by growing a team rather than just selling products. People who focus on selling products will stay broke.

[@GottaLoveFooty]

Anyone who comments their opinion can you please add your annual income? So that people can see they are taking advice from broke minded people. Opinions are the cheapest commodity on earth, and theres a reason why wealth circulates among the top 5%

[@johndoe2240]

LOL...you sir are diluted. Thanks for being a plague on society :)

[@Trollamollex]

Care to take your own advice?

[@marybarbay660]

exactly -- i am in a great mlm and life is amazing....its not perfect and we are always working to be better, but there is definitely a freedom in it. i agree with you completely

[@assainscreed1234]

post your income statements please? 1099's etc, we want to see.

[@HeliPadUSA]

deluded

[@fundude4566]

Yep Dave is right about the Wild Wild West thing in MLM and he said four or five different ones? Most MLM company forbid you from doing that. I hope he meant an affiliate business that only sell big ticket items of over $1,000 or more. For a one time purchase.

[@omigod2010]

When the MLM/pyramid-scheme people brag about how much they earn, ask them instead, how much they have spent to get it. Especially all those lobbying, entertaining, maintening, "marketing" costs. Most have invested much more than the commission earned. Not to mention long term maintenance. The people that can stay surely have more than enough money to get them going.

[@mulutlewatmulut718]

I own 2 conventional businesses and 1 MLM... Business is business. The point of doing business is to be rich. In order for your business to continue you must continue selling by recruiting customers to buy products. MLM is not easy. It is hard. But the good thing about MLM is you get to leverage your effort. My conventional business has expenses of $25K a month and my MLM business is only $189 a month. I can't tell poor people to open up a conventional business like me since most people in America barely have $1000 cash in their savings acct. But I tell people especially young people to start learning about business and MLM is the great place to do that. Not college. College is only good if you want to be an awesome 9 to 5 employee. Business is all about MINDSET. whether it's conventional or MLM the business mindset is the same - you must sell your products. Dave's product is financial advice. In order for him to continue his business he must recruit customers. He leverages his effort through radio and KZbin. MLM people do that through people. They educate their new recruit or customer about the business if they want to do the business. If they only want to be customers that's fine. But let me tell you something... Not everyone is successful in life. Only few make it in business. Just like only 1 winner in every sport competition out of so many teams. So if you don't have the guts to challenge yourselves just choose your path to be employees. There is few successful people also in every company. Every company has CEO, President, Managers...they are top guys who earn $$$$$$$ while the bottom earn $. So do what ever it takes to climb up to the top and fight for your dream. In the end it's all about becoming rich right? Good luck everyone! Let's get rich together.

[@nicoloboncinelli]

I'm involved in a network marketing business and I'm happy, no scams and pyramid schemes. It is a legal and moral way to become and entrepreneur!!!

[@mr.speyside5240]

Said no one ever...

[@businessmanager4746]

MLM focus on scammers look for poor broke women to prey on.

[@ksp62562]

All MLM's are structured so THEY make money, & YOU, if getting around barriers -- might make SOME money.

[@ksp62562]

ksp62562 TELL ME WHY MONEY ALWAYS GOES UP, NOT DOWN?

[@scammedenoughalready7067]

ksp62562 Thats a question no one has ever answered the money is shared upwards and so the new recruits have to come in and work hard only for the uplines and earlier entries to reap off of their work .... meanwhile these are the same people that mock employees for ''making their bosses dreams come true'' yet the same thing is happening in the pyramid schemes

[@ksp62562]

Money ALWAYS goes up, never down.

[@SenorJuan2023]

The upline gets paid to train the recruit on how to work the system. The downline can actually ADVANCE past his upline in RANK! Recruits get paid the entire time. Pyramid schemes are illegal. MLM is a legitimate business model and should not be confused with these schemes.

[@ksp62562]

98% of them don't work that way.

[@golforfishing]

Yuck hate MLM I've recently been a victim of sales pitches for Usana multivitamins from TWO different people

[@kmcl11]

+golforfishing And they are typically over priced. I tried it also selling Skinny Tea and it was very hard. I had a website and promoted it. Very hard getting people to buy 2 tea bags for 5.00. Once the word of mouth wears out, you have to use other ways to get sales or new recruits.

[@synocrat601]

@@kmcl11 Because it's a scam, the only tried and true way of losing weight is working out more and eating less calories than you burn. Anything else is a snake oil scam.

[@kldavis14]

I am very familiar with World Financial Group and I can tell you that it is not your typical MLM. Allow me to explain... I was once a part of an MLM that required you to pay for enrollment (not a big deal) and to commit to making purchases every month. What ends up happening is that you end up with a surplus of product that you can't sell. In addition, the products are usually overpriced. I believe that if you are selling a product you should use it. You can't convince people to purchase a product that you don't use yourself. Therefore if you are going to encourage people to invest or get life insurance you should have life insurance as well, AND it should be priced competitively with alternative options (THAT IS CRUCIAL). When you sign someone to a policy you will be compensated for as long as that person has the policy. You don't have to recruit people if you don't want to, but it will improve your business if you expand. Why would you not want to expand your business? So what's the risk? You invest $100 to receive materials and be trained. From that point, it's on you. Did I mention that you will also have the opportunity to write off certain items as business tax expenses?

[@keke8880]

I think Dave is reluctant to be outright against it because lots of LDS peeps are fans of his and also do MLM. But, at least he warned her that it's unlikely she'll see success. Also, I agree with him that lots of people who do MLM start seeing people as transactions. Happened to me with several people I know, all in different MLM businesses.

[@danielrojas4190]

MLM is no good because 99% people fail! Guitar is no good, 99% people who buy guitars don't end up playing like Slash. Golf is no good...etc. Your job is good because you get that pay check for sure, even though you got to change your whole time for it, but that's good

[@maryquinn7032]

Till the day you find your company has sold out or gone bust and you find yourself dumped to start again. Saying that it can happen with mlm companies too

[@rubenenriquez2010]

Wait, so this lady calls in to get advice on MLM, Dave says he knows people that make money, but then tells her not to do it? What the heck? Also, basically insinuates that you can only do MLM if you have nothing going on... So if you have a job you can't do MLM... Interesting. Just because he is Christian (just like I am) doesn't mean he's right on everything. Quit treating him like he's a God...

[@KayDejaVu]

He said that MLM are not pyramids and to understand the money made is through recruiting sellers, not actually buying the product.

[@GorillaGrodd420]

***** Which tells me he really does not know what he is talking about. One makes money in MLM by duplicating ones self and not trying to recruit some sort of sales force. Maybe there are MLMs out there that focus on trying to recruit a sales force but I would stay away from those. The best ones are those that teach the process of duplication.

[@KayDejaVu]

No. The real money is made by reciting others to sell products.

[@rubenenriquez2010]

McLeod, that is what duplication is.. Recruiting and teaching people how to sell the product or service and also recruit. Dave doesn't know what he is saying in regards to MLM because this particular caller called to ask for his opinion, and he pretty much told her she shouldn't do it. Not knowing anything about that company, and I know this because he even says it in the video that he wasn't familiar with that one.

[@KayDejaVu]

That is what i just said REuben!

[@anthonyanderson9303]

My uncle used to do pre paid legal and I met people in his organization that made millions on it. Unfortunately most didn't.

[@MLMRC]

Should you join an MLM. Well you should if not for anything else, for the actual experience of running your own business. And it might not work out of course. But if you try enough of them, one will eventually work out most likely. On average be prepared to try 100 businesses to find one that succeeds for you. Also realize nothing happens over night. You have to keep working at it for many months before you'll see it starting to develop. Also try building your business using the mlmrc downline builder. But carefully weight all your options. Carefully consider your budget and time constraits. Carefully do a risk reward scenario to see if you can at least get an idea of what you're up against. That will help.

[@ericludwig1638]

There is an amazing amount of misinformation about MLMs. You can make money in MLM, but before signing up you should: 1-Know and love the product, 2-Understand all the costs(Is it all upfront or will you be nickel and dimed constantly), 3-Understand how you make money(If the compensation plan is difficult to understand, walk away), 4-Understand how will you be trained(Do you have to buy training videos, will your sponsor ditch you once you sign up), 5-Understand how you can grow your business outside of friends and family(You will start with friends and family which is why loving your product is important, but you need to know how to move past them i.e. hostess plans, leads, etc). I would beware of any company that's new, promises a six figure salary in the first year, complicated, extremely cheap to join, requires inventory, requires you to buy training material, publicly traded, pressures you to sign up quickly, or promises cars. Not that companies that have those things don't work, just be cautious. I was skeptical when my wife joined a direct sales company, but she made back her investment quickly and built her business to the point that we both work at it now. Without sponsoring and assuming 5 hrs worked per week, you would make about $10-12k a year-Pretty useful for most people and good money without ever sponsoring. The only way to get in that $100K range is to build a team which will take time, but is easily doable with consistency. As far as pushing family/friends, if you have to "sell" someone on joining, you'll probably have to sell them on working their business which wastes our time so we've never been pushy.

[@KayDejaVu]

MLM makes money when the product is new to the market. The best MLMs are actual products (shakes, garment pieces, etc).

[@scammedenoughalready7067]

Eric Ludwig Loving your product isnt good enough ..... the SKILL & "Know how" is what most people ..... ignore ... miss .... are unaware of etc etc ...... while the new comers are "Loving the product" ...... and "becoming the product of the product" (LOL .... which creates peddlers anyway) .... The uplines and leaders are busy selling CDs .... Books .... Event Tickets, and enjoying pass up commissions (from their downlines) ..... and ALL the costs are rarely ever revealed up front. The pattern with MLM is ..... once a new comer gets recruited ..... the upline recruiting sponsor disappears. They dont take answer their phones anymore ..... they become cranky grouchy, very disrespectful and pungent in the long term. Speaking about Longevity, a company been around for a long time makes no difference on anybody's chance of success ..... FHTM took 11 years and eventually got shut down ..... MonaVie also was around for about a decade and ended up "Homeless" (got foreclosed on) ..... Cost of entry (either cheap or pricey) doesnt affect anything Being a marketer is about acquiring customers ..... but this thing focus on "Team", "Join" "Company", "Compensation Plan" ....... "Go Out and Refer others" ..... so most people just flat out miss the mark and fall flat on their backs. Thats MLM as we know it, thats the way its seen and felt by people.

[@anons000]

MLM has nothing to do with selling a product. The product is the facade to get you in the door. MLM is a joke.

[@ericludwig1638]

Scammed Enough Already I'm willing to bet you've had a really bad experience with a MLM, maybe a few. You probably also know of other people who have had bad experiences. The fact is there are bad sponsors even in good companies (By good I mean people that train, mentor, and encourage the people in their downline). I think I failed to make my point about MLM in my earlier post. Before you sign up in MLM, you need to consider the totality of the factors I talked about. The most important factor is how you will be trained/mentored which inherently involves your sponsor and whether you trust that sponsor to be upfront with you(And even then you should read the fine print of your contract). If you don't completely trust and understand how your relationship will be with your sponsor, walk away. An initial contact via facebook or e-mail should be an instantaneous red flag. If someone's primary method of prospecting is social media, they're probably far more interested in sponsoring a lot of people rather than developing the people currently in their downline(I know there are exceptions, so relax if you're reading this and sponsor via social media, but place a great emphasis on developing downline).While the sponsor is the most important factor for early success, love of the product is a really close second. If you don't love the product and appreciate the opportunity in the marketing plan, then I can't understand how you can feel purpose in your life.All that being said, I agree with you that there are major issues within the MLM industry, but there is opportunity out there and there are companies and sponsors who do an amazing job developing new distributors to succeed. People just need to understand as closely as possible what they're getting into.BTW, thanks for making an intelligent response. Our source of disagreement comes from what I assume are largely negative experiences on your part while mine have been largely positive. Binary statements like MLM never works or are always great opportunities just make no sense.

[@ksp62562]

Try Amazon.

[@mayzon111222]

MLM is bad news folks, stay away and put your time into something real!!!

[@freedomforall2924]

+mayzon111222 What kind are you talking about? Big biz mlms, small biz mlm, social media mlms (Facebook, instagram)? Are you talking about matrix mlms, binary mlms, unilateral, unlimited stairstep breakaway mlms or what cause I'm not sure which you mean. Or are you comparing one experience to every other mlm? That's like saying don't buy a car, I had a bad experience with a car salesman. You comment is very inaccurate.

[@mayzon111222]

Mark D Sounds like someone is in an MLM!

[@mayzon111222]

Mark D Don't tell me your an 'independent business owner'?

[@freedomforall2924]

mayzon111222 like I said I'm a business owner. Still don't understand yet do you. Let me guess your a job guy?

[@mayzon111222]

I am both employed and self employed. What MLM are in you in then?

[@tankbuster84]

There Are People Everywhere Who Are Looking.Social Media Gives you The Power To Do That.Life is What You Make It.

[@parkerbarefoot4255]

MLM is a good idea, if you're a solid person that people like to be around. My first was World Financial Group- not a good company. Don't get in that company. Businesses should be product based, WFG is not. It's not a good idea to cold market people on their finances. My next was ACN. I met many wealthy people in that company. Training was great, learned a lot about leadership. ACN is technology and getting paid off people's monthly bills. The company had massive success with advent of video-phone, but then skype came out, and killed it. Good luck getting a cell phone customer. Major reason companies go under, is when reps start to out number product sold. This is when it becomes a hair away from being a pyramid scheme, then people mistakenly take it as synonymous with pyramid scheme. Honestly, I think we as Christians need to bring MLM on a rise. WE ARE ENSLAVED!!! Look at these elections. Things ARE RIGGED. These really are our ways of fighting through corporate America, and how a redistribution of wealth should be. We just need to change mindset of the world. And what does that better than Jesus. BTW, I'm not even in a company... yet

[@parkerbarefoot4255]

***** At the time I wrote that comment, I was thinking about it. I decided not to join, but my opinion still remains the same. Reason I didn't join, I want a company where the product sells by popular demand, and not recruiting. Most products don't sell because you can get same for cheaper at store down the street. Also our mindset is wrong. We're way to programmed to be employee minded, and most don't know what they're getting into when joining, then quit. Most don't have what it takes up front to succeed, then quit before personal development has been achieved. People who succeed in one company, often succeed in the next because of who they are, and motivate others. Those that succeed, are often the individuals most emulate. Others succeed because they stayed with it. I did it years ago. Learned a lot, changed my mind about the way I thought. Led me to Christ, and that's why I quit. After years of studying and being with God, I realized why I failed, because of who I was. It truly is a great learning experience. Kids waste more on college classes that will never apply. It's perspective

[@ecturner2092]

Wow!!! This is really funny! First off, you can make a boat load of money simply marketing certain products from certain companies in MLM, like most things it will not happen over night but I can happen with hard work and determination. You simply can not put a price tag on Time freedom and those willing to work at it can do it.... Again, over time!!! *please stop giving out the wrong information.