Are the products any good? Are they overpriced? Is there any convenience associated with getting the products they sell through through their distribution system instead of buying similar products at the store or through Amazon like most people do? Just curious about the inside view you guys might have....
All MLM companies are by definition bad, and that can be easily established. Because were it to be an ethical company..they would need to do what ethical businesses do, such as: 1. Set territorial protection for distributors to protect against competition between reps for the same customers 2. Set a reasonable limit on the number of total reps by geography (having tens of thousands of reps is pure folly) 3. Allow expansion in a geography only if demand warrants it (the existing reps can't keep up with the volume, for example) 4. Eliminate purchasing-minimums to qualify for commissions 5. Pay commissions and bonuses only on sales to outside customers...no commission on personal purchases or purchases made by down-line reps 6. Pay sales-commissions only to the rep that makes the actual sale (not ones above) 7. Charge reps true wholesale-pricing for the product so they can make a profit selling to outside customers at market-competitive prices But none of this will ever happen. MLM founders don't choose the MLM model because it is "more efficient". They choose the model because it allows them to charge ridiculous prices for mediocre products or products of dubious efficacy, while fooling their customers into thinking they are small-business owners. The products simply cannot sell at those prices without the associated "opportunity", which is why the reps are the only ones buying. The MLM sees the reps as the primary customer. No outside sales necessary.
1:30 You forgot something, Every time The Person on the second level recruits Person on the third level, A percentage of What the third levels pays Sent to the one on the top. Meaning They would get less Then what they've paid for. They can break even if they recruited enough people. But each time they do the man at the top gets richer and the people at the bottom Become broke
Nothing wrong with pyramid scheme but the value of product, if you pay $100 to get $120 value product and it worth right. For example a bottle of vitamin C in the market price is $10 and in MLM only $9, so it is not a problem, event for the last member because it worth as a member
Ah, but if each person can just pay ONE DOLLAR upward, eventually we’ll all be millionaires! 😂 Seriously, tho, just sell legit products Or make a RUclips channel 😊
I don't think you explained how the top levels make money very well. Going off your example the leader who got 5 people to sign up for 100$ got 500$ and a guy on the 4th or any lower level that got 5 people to sign up also got 500$. The only way for the leader to make more money would be to sign more people up himself?
Why is it that people who have never been successful tell you not to do this, but people like Robert Kyosaki and Warren Buffet say it's the best way for normal people to aquire lasting wealth? Hmmmm.
What’s the difference between pyramid schemes that need new levels, while businesses that are legitimate and also do Direct Sales, MLM businesses styles also!
@@dzllz Lost some money yeah not enough that put me in financial danger though...but let's just say they are all your friends and supportive until you want to quit, then you will see how nasty they can become towards you lol
@@dzllz so the one called vemma was selling energy drinks and the one called Acn was selling essentials services like gas electric WiFi and that lol but no one wanted the products
This is incredibly theoretical. And what if it stops at level 3, and the people at level three are well established businesses with sales channels, and level two is just your marketing team? Marketing team recruits level three people who are established sellers, but that’s it. Level 4 would just be a end consumer, and level 2 never buys in or buys any inventory, they just acquire level 3 clients. That destroys your whole theory about running out of people on the planet, and sure the business may plateau at some point, but level 2 makes good money, and level 3 is happy because they were in the brokerage business longer than the company has been around. Sure level 1 makes the most money, but they are also the ones with their necks on the line, and control the marketing budget and quality control of the products.
prolem with this video is that it fails to show how the sales of the product work so i cant really use this to prove my friends wrong because they will just say well we sell products
Though I know Apple will eventually run out of people to sell phones to…if they offer me a few dollars for everyone I refer…I’LL TAKE IT. even if I have to pay $1 a month to get $3 a month.
No. Pyramid schemes exist by getting people to join under you. You only make real money by suckering new people to join your down line. There is no real value to the scheme it’s just constantly getting new people to join and collection their initiation fees.
@@HeyMavDak then you’re not capable of grasping the basic concept. Businesses provided services or goods that you pay for, pyramid schemes are just scams where you only make money if more people join under you. It’s apples to oranges.
You are listening to this guy describing a pyramid scheme? Who is he? What background does he have the credibility to describe a pyramid scheme? To mention EXACTLY what MLM doesn't mean is a pyramid scheme does...All he is doing is describing what MLM does. Amway, which I am not a part of, MLM is what I am not a part of, he said Amway is LIKE a pyramid scheme....If it's like a pyramid scheme, or actually a pyramid scheme, you do know it's illegal in the United States. Report it! I bet they didn't?
@@dommiedarkoh8816 that's easy to answer. Your question is, " What is it that he's saying is NOT true"! That's easy to answer. If he's saying all MLM are scams, that's TOTALLY not true! That's what we are saying. Also, if he's saying that one MLM is a scam or pyramid scheme, he or anyone have to give more proof than ," They asked me for money and I didn't make money back "! We all know, well some of us, know that NOT all people are willing to admit they are lazy, they didn't follow the their company's systems, or simply lying that their MLM is a scam. We need proof, other than non-business professionals that bought screen time to state their opinions, again, opinions not facts, on why MLM's are a pyramid scheme! Pyramid schemes are ILLEGAL, if anyone been in one, simply report them to the DSA( Direct Selling Associations), DSEF( Direct Selling EducationalFoundation), FTC( FederalTradeCommission), States Attorney's office, not an amateur, ON RUclips, claiming to be a business analyst. I would believe those powerful third-party entities, before a joe-blow off the street who really didn't work their businesses right, and now they are passed they lost out. Reporting them would help the legitimate MLMs out there. But instead, they jump on RUclips hoping to gain tons of followers. Scare tactics usually gain a ton of people. Not truth!
@@ShaferScott Nope! Nice try. I Don't do MLM's. However, it sounds like you don't won't the people to listen to the professionals, people who legally specializes in finding pyramid,,,,instead of listening to amateurs like yourself. So, while I got you, I bet you won't admit you have a side business/or want lots of RUclips followers to build your viewers? C'mon! Tell the truth , for once, come on. I won't tell the public! Tell the people the truth. If anyone thinks, or feels, or suspect, a pyramid scheme, ponzi, or a scam, Tell them the proper channels instead of your opinion....or, give the public your specialty in discovering pyramid? Let not have you turn out to be a scam. Tell the truth! What agency you work at that specializes in discovering pyramid schemes? Or. Just your opinions and a business you didn't succeed in? Just, the truth? Remember! Don't you come off as being a scam by avoiding the question!
@@ShaferScott just don't make up anything, names? And location of that pyramid scam orthe agency you work with that specializes I'm discovering pyramids?
@Aundre' Lovelle' Collins every comment you leave helps the RUclips algorithm know this is a great video and to show it to more people. The 5+ comments you have left in the last day has increased the daily views of this video by 20% today, keep it up genius 👍
@@ShaferScott is for sure, that's how scams like yourself get attention. Work on people fears. Scare tactics. However, I do see that you are AVOIDING the question . What professional institution do you work for to determine what's a pyramid scheme or not?????? Love that the algorithm is being triggered to this subject. That way they would see how you dance around that question. Such lies by the way. Scams, pyramid schemes, ponzi schemes, are easy and quickly dispose of due to smart people reporting them to the proper chsnnels. Better Business Bureau, the FTC, DSA, DSEF, one of the 50 states' attorney general offices . Not listen to a guy like yourself, who's guessing and assuming what's a pyramid scheme is. What license, education, professional training do you have that put you along the lines of educating anyone like the professionals who TRULY handle pyramid schemes and scams? What degree do you hold in such field? Or, is it your option if what's what? You been hurt by one of those legitimate MLM'S, now you are hurt and were let down because you didn't follow their blueprint and you failed? C'mon! Tell the truth? Now, you want to lie and call them all pyramid scheme.
And, there's actually people listening to an officer, no? A guy who regulates businesses, no? A professional who knows business due to his success, not him saying it, but actually seeing his success? No? Who is this guy, lol
Whats the worst pyramid scheme around today?
monat
World Ventures
Inteletravel
Crowd1
Forex iMarkets Live. I’ve seen people throw their lives away for this smh
I have family that does Herbalife, it’s incredibly annoying
Same omg
Are the products any good? Are they overpriced? Is there any convenience associated with getting the products they sell through through their distribution system instead of buying similar products at the store or through Amazon like most people do? Just curious about the inside view you guys might have....
Lmao
Yea....this was almost me but decided to go with my gut before I put any money into it. Glad to say I didn’t waste my time👍🏾
If someone tells me to get money from someone or give someone then it’s obvious
All MLM companies are by definition bad, and that can be easily established. Because were it to be an ethical company..they would need to do what ethical businesses do, such as:
1. Set territorial protection for distributors to protect against competition between reps for the same customers
2. Set a reasonable limit on the number of total reps by geography (having tens of thousands of reps is pure folly)
3. Allow expansion in a geography only if demand warrants it (the existing reps can't keep up with the volume, for example)
4. Eliminate purchasing-minimums to qualify for commissions
5. Pay commissions and bonuses only on sales to outside customers...no commission on personal purchases or purchases made by down-line reps
6. Pay sales-commissions only to the rep that makes the actual sale (not ones above)
7. Charge reps true wholesale-pricing for the product so they can make a profit selling to outside customers at market-competitive prices
But none of this will ever happen. MLM founders don't choose the MLM model because it is "more efficient". They choose the model because it allows them to charge ridiculous prices for mediocre products or products of dubious efficacy, while fooling their customers into thinking they are small-business owners. The products simply cannot sell at those prices without the associated "opportunity", which is why the reps are the only ones buying. The MLM sees the reps as the primary customer. No outside sales necessary.
another great video Scott. Thankyou
Very informative! Thank you!
Sure thing
Being a Social Security recipient is #1.
Being an American taxpayer is #2.
Putting your money in a 401K or IRA is #3.
This is the way.
Shout out Uganda
1:30 You forgot something, Every time The Person on the second level recruits Person on the third level, A percentage of What the third levels pays Sent to the one on the top.
Meaning They would get less Then what they've paid for. They can break even if they recruited enough people. But each time they do the man at the top gets richer and the people at the bottom Become broke
It's called network marketing now
Nothing wrong with pyramid scheme but the value of product, if you pay $100 to get $120 value product and it worth right. For example a bottle of vitamin C in the market price is $10 and in MLM only $9, so it is not a problem, event for the last member because it worth as a member
Don't work if everyone u know is broke AF 😂🤣🤣
😂
Ah, but if each person can just pay ONE DOLLAR upward, eventually we’ll all be millionaires! 😂
Seriously, tho, just sell legit products
Or make a RUclips channel
😊
It's not a pyramid scheme. It's a triangle of opportunity.
😂
Love a glass half-full person
I don't think you explained how the top levels make money very well. Going off your example the leader who got 5 people to sign up for 100$ got 500$ and a guy on the 4th or any lower level that got 5 people to sign up also got 500$. The only way for the leader to make more money would be to sign more people up himself?
I heard you say one people... One person? Just playing with you. Hehe
Why is it that people who have never been successful tell you not to do this, but people like Robert Kyosaki and Warren Buffet say it's the best way for normal people to aquire lasting wealth? Hmmmm.
Robert kiyosaki is a grifter he promotes this rubbish
Great explanation
Thanks
What’s the difference between pyramid schemes that need new levels, while businesses that are legitimate and also do Direct Sales, MLM businesses styles also!
Forgive me if I’m just misunderstanding your question, but are you asking what the difference is between pyramid schemes and MLMs?? 😅
ruclips.net/video/otpC5k3AKOk/видео.html
The true difference
정말 감사합니다 for this awesme video
wow my two years of Korean studying have allowed me to read the very hard phrase... "Thank you very much"
you just need to structure them carefully.
As someone who has been in 2 looool just don’t do it
What happened when you were in them, what did you learn? Lost a bunch of money I suppose?
@@dzllz Lost some money yeah not enough that put me in financial danger though...but let's just say they are all your friends and supportive until you want to quit, then you will see how nasty they can become towards you lol
@@TalentDanceTV14 I see man.. so sad! What kind of scam product were they trying to sell?
@@dzllz so the one called vemma was selling energy drinks and the one called Acn was selling essentials services like gas electric WiFi and that lol but no one wanted the products
@@TalentDanceTV14 Thanks for the warning, have added Vemma and ACN to my personal Blacklist.
U smart as shit! I said it like that because it was my first thought!
This is incredibly theoretical. And what if it stops at level 3, and the people at level three are well established businesses with sales channels, and level two is just your marketing team? Marketing team recruits level three people who are established sellers, but that’s it. Level 4 would just be a end consumer, and level 2 never buys in or buys any inventory, they just acquire level 3 clients. That destroys your whole theory about running out of people on the planet, and sure the business may plateau at some point, but level 2 makes good money, and level 3 is happy because they were in the brokerage business longer than the company has been around. Sure level 1 makes the most money, but they are also the ones with their necks on the line, and control the marketing budget and quality control of the products.
true, you'd have to build a downline
" if you can do simple math".
One word; Calculator
I'm in it and paid 1500 and get 12000 in a month
How can I join?
@@Lazymath007_ did you not watch the video....
What about when you dont have to sell anything just a spot on the bracket for 500$ and when you move up in the bracket you get paid 4k?
That’s how the pyramid works
the receuiting is just a part of it what about the product
data checks out.
Melaleuca
prolem with this video is that it fails to show how the sales of the product work so i cant really use this to prove my friends wrong because they will just say well we sell products
Well, the items are usually over priced compared to similar products. You don't get much value. It's just a 'front'.
What you can do to explain it to them is.
Draw it and turn it into a pyramid in paper and they be like Ohh lol
ACN
yep
Though I know Apple will eventually run out of people to sell phones to…if they offer me a few dollars for everyone I refer…I’LL TAKE IT. even if I have to pay $1 a month to get $3 a month.
If pyramid schemes don't last then what about amway and herbalife
Lobbying.
this is ilegal in my country
I bet you Scott Shafer have his own business and MLM is killing his business. Find out what he does? Tells you everything
Isn't every business a pyramid scheme?
No. Pyramid schemes exist by getting people to join under you. You only make real money by suckering new people to join your down line. There is no real value to the scheme it’s just constantly getting new people to join and collection their initiation fees.
@@ShaferScott You just described many businesses.
@@HeyMavDak no I did not.
@@ShaferScott I disagree. Every business has a hierarchy, not everyone can be middle-class.
@@HeyMavDak then you’re not capable of grasping the basic concept. Businesses provided services or goods that you pay for, pyramid schemes are just scams where you only make money if more people join under you. It’s apples to oranges.
You are listening to this guy describing a pyramid scheme? Who is he? What background does he have the credibility to describe a pyramid scheme? To mention EXACTLY what MLM doesn't mean is a pyramid scheme does...All he is doing is describing what MLM does. Amway, which I am not a part of, MLM is what I am not a part of, he said Amway is LIKE a pyramid scheme....If it's like a pyramid scheme, or actually a pyramid scheme, you do know it's illegal in the United States. Report it! I bet they didn't?
Ummmm. Everything he's teaching is correct. What about it isn't true??
@@dommiedarkoh8816 that's easy to answer. Your question is, " What is it that he's saying is NOT true"! That's easy to answer. If he's saying all MLM are scams, that's TOTALLY not true!
That's what we are saying. Also, if he's saying that one MLM is a scam or pyramid scheme, he or anyone have to give more proof than ," They asked me for money and I didn't make money back "! We all know, well some of us, know that NOT all people are willing to admit they are lazy, they didn't follow the their company's systems, or simply lying that their MLM is a scam. We need proof, other than non-business professionals that bought screen time to state their opinions, again, opinions not facts, on why MLM's are a pyramid scheme! Pyramid schemes are ILLEGAL, if anyone been in one, simply report them to the DSA( Direct Selling Associations), DSEF( Direct Selling EducationalFoundation), FTC( FederalTradeCommission), States Attorney's office, not an amateur, ON RUclips, claiming to be a business analyst. I would believe those powerful third-party entities, before a joe-blow off the street who really didn't work their businesses right, and now they are passed they lost out. Reporting them would help the legitimate MLMs out there. But instead, they jump on RUclips hoping to gain tons of followers. Scare tactics usually gain a ton of people. Not truth!
A pyramid scheme, Is NOT all MLM! Wow! Before you share this opinion, not facts, first find out who this guy is, and look up what he does
😂 sounds like someone runs a pyramid scheme and isn’t happy about me spilling the beans
@@ShaferScott Nope! Nice try. I Don't do MLM's. However, it sounds like you don't won't the people to listen to the professionals, people who legally specializes in finding pyramid,,,,instead of listening to amateurs like yourself.
So, while I got you, I bet you won't admit you have a side business/or want lots of RUclips followers to build your viewers?
C'mon! Tell the truth , for once, come on. I won't tell the public!
Tell the people the truth. If anyone thinks, or feels, or suspect, a pyramid scheme, ponzi, or a scam, Tell them the proper channels instead of your opinion....or, give the public your specialty in discovering pyramid?
Let not have you turn out to be a scam. Tell the truth! What agency you work at that specializes in discovering pyramid schemes? Or. Just your opinions and a business you didn't succeed in?
Just, the truth? Remember! Don't you come off as being a scam by avoiding the question!
@@ShaferScott just don't make up anything, names? And location of that pyramid scam orthe agency you work with that specializes I'm discovering pyramids?
@Aundre' Lovelle' Collins every comment you leave helps the RUclips algorithm know this is a great video and to show it to more people. The 5+ comments you have left in the last day has increased the daily views of this video by 20% today, keep it up genius 👍
@@ShaferScott is for sure, that's how scams like yourself get attention. Work on people fears. Scare tactics. However, I do see that you are AVOIDING the question . What professional institution do you work for to determine what's a pyramid scheme or not?????? Love that the algorithm is being triggered to this subject. That way they would see how you dance around that question.
Such lies by the way. Scams, pyramid schemes, ponzi schemes, are easy and quickly dispose of due to smart people reporting them to the proper chsnnels. Better Business Bureau, the FTC, DSA, DSEF, one of the 50 states' attorney general offices . Not listen to a guy like yourself, who's guessing and assuming what's a pyramid scheme is.
What license, education, professional training do you have that put you along the lines of educating anyone like the professionals who TRULY handle pyramid schemes and scams?
What degree do you hold in such field?
Or, is it your option if what's what? You been hurt by one of those legitimate MLM'S, now you are hurt and were let down because you didn't follow their blueprint and you failed? C'mon! Tell the truth? Now, you want to lie and call them all pyramid scheme.
Thank you very much for your informative video, could you Please make a video about incruises - scam
And, there's actually people listening to an officer, no? A guy who regulates businesses, no? A professional who knows business due to his success, not him saying it, but actually seeing his success? No? Who is this guy, lol