What I heard was that he wanted to BE RETIRED at 50. But working part-time? Yeah, try "retiring" doing anything part-time. Retirement has a nasty habit of harshly brushing off anyone who does things half-assed
NickT127 ha! That's why you prospect more people to become your customers, cause if you just keep selling to a group of five doesn't matter if it's your family or friends, then of course they might get annoyed, just keep spreading your customer's list that way you have more chances of people looking for you to buy products for you, it happens to me, and yes i still have friends and family precisely because I used that strategy
@@lazybeastz182 scam?ever taken a look at your job? 8-5 for 40 years and hopefully you will retire with some money cause they won't pay you what you are truly worth? You want to live a life where everyone dictates what you should be doing or where and how you should live cause you can't afford much?? Well then go ahead and keep living the way you are since you keep telling yourself such self destruction thoughts
@@edwinmalachy people are so dense; they assume that "doing mlm wrong' is the right way to do it; and when they do it wrong, they make people upset with them, and blame MLM instead of their WRONG approach to MLM -- never fails; but people are dense
I thought this too. But I think he is being “diplomatic” these mlms go HARD after their detractors (if they have any real pull) he probably just didn’t want to say anything that would trigger a frivolous law suit. And yet it’s still hard to say he was encouraging MLM as a viable career
He’s not wrong though in what he said, at least as far as MLMs go. There’s nothing inherently wrong with an MLM you can make money in it, but he’s also saying that most people don’t. It’s not impossible, but it takes a certain developed skill set to make money with an MLM. Turnover is high, most people aren’t going to do much of anything and certainly aren’t going to make money.
4:30 "There's nothing evil or wrong with the business" Putting people in more debt, having them cripple relationships, making them look like a fool and nuisance on social media on a statistically low dream...sounds wrong to me.
Time is the most valuable luxury we have. Why spend 10 yrs of your life recruiting for someone else’s business when you can invest that time and energy to build your own empire.
Some people don't want an Empire. Some people just want to make a really good living. If you have the skill set that Dave is talking about, the truth is that MLM can help provide that.
ASimoneau Exactly. Running and building an empire is not for everyone. As you said, many people want to make a good living and be wealthy, but don’t want all the stress that comes with running an empire. They also want the relative security that comes with being an employee vs owning a business. I am building a business myself, and it’s extremely stressful. While other people get off work and chill, I get off work and check into owner mode working on my business nights and weekends. It’s easy to tell me to start a business but it’s hard to keep it going and that’s why many buckle in under a year.
Most capable, hard working people who start their own business will fail. Some will hit it big. Most capable, hard working people who work for a corporation will earn a living and support themselves and their families.
I disagree with you and i can prove you wrong. Send me a direct message if you want. 1) Not all MLM are Scams.(Fact) 2) There are some that are Legit and really good (Fact) 4) Some Jobs are more of a Scam than some MLM 3) MLM Is Not for everyone because Not everyone has the Business Mindset and Determination 4) It requires a particular skillset that you need to learn which can take time but at the end is worth it. 5) MLM just like any Business you have to Hire people in this case is Recruiting. 6) Any kind of Business you have to train your People if you want to Succeed, same in MLM. 7) The reason most People Fail in any Kind of Business and Complain and call it a Scam is because they are Really Good at Working for Someone else but when it comes to Work for themselves they don't put the same Effort, they expect the Business build itself. 8) I know friends that are in Amway, Herbalife, Melaleuca, Primerica that are doing very well because they work hard, hey are not scamming people, they are providing a service or selling a product. **Corporate Jobs are Pyramids too, 1)You get recruited 2)You are under someone which is your boss and Upper management 3)You want more Money? you need to move up the ladder (Which might take you Years) 4) What are the chances of you getting to an Executive Level in the Company? (Very Low or None) 5) Your Pay Rate will not increase much in the next 10-20yrs 6) Who Makes all the Money? The Owner, Investors, CEO and Executive Level Team. 7) More than Likely you hate your Job and you are Jumping from Job to Job 8) You work for a Company that might be doing Shady Business and actually Scamming Customers without you Knowing it. Ex. Banks, Retail, Restaurants, Car Dealerships Etc... Whats my Point? there are Some very Legit MLM that are actually more Ethical than some Jobs. You have 2 Options: You Either work for Someone else or you Work for Yourself. Choose which ever one you think you are stronger.
@@robertcruz1127 send me a direct message and I will teach you how to properly capitalize your words... It appears you never learned that lesson in 3rd grade.
Ugh don't do it man. I hate people who offer me a 'job' and I ask them 'what kind a job is it?'. They say 'you can be an entrepreneur in this job'. That is a dead give away for mlm.
You say it like it's a bad thing. I never offer people a job. I say "Hey, if I could show you something that could "make you" xyz, would you be interested in taking a look at it? If they get back to me and they like the product, "Awesome brother! Ok, so here's the price and if you are interested you can get the member price at xyz if you sign up." The member price is about 40 a month cheaper than the product retails for. The investment is $59. Thus the 2nd month you are buying the product you have covered your expense and started getting a sizeable discount on the product. The product in this case is $180 retail, $140 member price. Yearly that is a savings of $360 if you continue to use the product. (Which has a 96% rebuy rate due to benefits and effectiveness.) Throw in the fact that they can retail it and even get commerical accounts if they want- bam. Closed deal generally. People start seeing the effects of the product on them and they start asking where they can get it and how much. They can either refer their friends and family and colleagues out to me and I'll take the $40 a bottle or they can sell it to them themselves when and keep the $40 a bottle. His advantage, he makes $40 a bottle that he sales plus volume bonuses. I myself get his volume credited to me because it was my efforts that brought him in. So, you see I never off people a job. I offer people a discount on their product and with the caveat that the membership discount also gives them access to sell it if they find anybody interested. So the selling opportunity is secondary to the discount on the product which is in and of itself worth it.
The problem is they are pitching it as a job and they shouldn't be. Its a business not a job. Jobs pay very little so you can live paycheck to paycheck. Busineses pay you 6 or 7 figures for the few who work hard for 7-10 years for very little money upfront. Backend you can become financially independent...TRUTH IS MOST PEOPLE AREN'T WILLING TO WORK HSRD FOR VERY LITTLE MONEY IN THE BEGINNING TO SEE THE BIG PAY OFF
ps only about 3000 have ever achieved $100k out of all reps (past and present), with many never repeating. Many have been gone for years/decades and some are deceased. There have been well over 500,000 individual reps in their entire 40 year history.
Mal Mal Call us when you make it big. You would be better off being a real estate agent. More upside and much less risk. People can make it but the risk and potential reward is statistically poor.
If you’re making $1 million a year in Amway, you’re selling seminars and training materials to the poor saps that think they’re going make a million dollars a year selling their run of the mill products.
Given Dave’s strong thoughts on topics such as Whole Life insurance, car leasing, etc, I’m surprised at his tepid response. He must have business friends high up in some of the MLMs
@@andrewdutton3831 Can't really blame him for that, I'd assume many would do the same if they had friends in the business. Even still he was doing his best to talk Dan out of joining the MLM business while maintaining that professional line.
Well he probably doesn’t know much about it because it’s really a job and not a financial plan. I don’t know about Amway, but I’m sure he would rip into businesses like IM Academy and ACN if he knew all about them.
@@bluerabbitjeevs but he’s got to have friends in the whole life insurance game too, but he's still a fierce critic. MLMs have a near 100% chance of failure, and are a bad idea for virtually all his listeners. Something odd is going on here.
Some people are lazy, sure. But it's mainly because the MLM scheme is fundamentally unsustainable and vastly more people are "recruited" to sell said product than exist customers willing to buy said product. The MLM company will never admit it, but the real "customers" are the people who buy into the scheme thinking they are going to actually start their own businesses, not the people buying the makeup or nutritional products that the company claims is the revenue source.
By definition, if the number 1 way to make money in a MLM is recruiting and NOT selling product it is legally considered a scam. I haven't seen a single MLM where the top performers earned their income from product sales instead of recruiting.
@@cannon-n02 I had a retired tax client who lost thousands in Amway over a few years. He insisted on continuing his efforts because his upline told him he would make money eventually. Even though his business was not growing a bit. Did he lack discipline?
Dave was apart of MLM company that taught him some of the concepts he teaches now. In fact he's great friends with a multi-billionaire who started a strong MLM company
Friend of my wife was suckered into a MLM. We said; "It sounds like a pyramid scheme". She was already indoctrinated and replied; "It is not a pyramid, but an upside down triangle".
Yup. I was given an MLM pitch and they also said it was an "Upside down pyramid." I had to walk out of the room and so I could start laughing. Like they do know it's still a pyramid even if it is turned upside down, right?
American Edokko Newsflash: When you first start ANY business, you lose money to begin with. Takes a couple years to make profit. Amway is the same way but it only costs $180 or something like that instead of thousands of dollars.
So are people working minimum / slightly above minimum wage jobs living paycheck to paycheck I'm not defending MLM/network marketing because I still think its a pyramid scheme
@@ALFREDO_FUENTE24 In a way. People want a system where there are winners and losers, because being a winner is so much better, and also playing is fun. But the system defines how many can win and how much. Total wealth of people increases all the time, its distribution does not. Playing with percentages is a zero sum game. Everyone cannot be a winner. And this is what people fight over; making winning better, or reducing the amount of losers. Cant have both.
I did an MLM for a while. The thing that really hit me as a surprise and made me quit MLM is that if someone in your "team" is failing, you need to cut them and replace them. You can't take your "lowers" with you on the way up... You are competing with them. I failed at MLM because I wasnt willing to cut my struggling friends and leave them in the dust, even tho i was good at it. So because of that I ended up failing like they did because i wouldnt leave my friends in the dust. I was surprised that I had the skills and contacts to be good at MLM but there was a heartlessness and selfishness required to make good money.
i used to love dave ramsey but the fact that he said that there’s nothing wrong or evil with mlms completely made me question if i’m ever going to listen to him or not
Because he's wealthy and hangs out with wealthy people, so he personally knows the ten people who actually made real money out of it by selling product to the caller
@Thora Friganza I disagree with you and i can prove you wrong. Send me a direct message if you want. 1) Not all MLM are Scams.(Fact) 2) There are some that are Legit and really good (Fact) 4) Some Jobs are more of a Scam than some MLM 3) MLM Is Not for everyone because Not everyone has the Business Mindset and Determination 4) It requires a particular skillset that you need to learn which can take time but at the end is worth it. 5) MLM just like any Business you have to Hire people in this case is Recruiting. 6) Any kind of Business you have to train your People if you want to Succeed, same in MLM. 7) The reason most People Fail in any Kind of Business and Complain and call it a Scam is because they are Really Good at Working for Someone else but when it comes to Work for themselves they don't put the same Effort, they expect the Business build itself. 8) I know friends that are in Amway, Herbalife, Melaleuca, Primerica that are doing very well because they work hard, hey are not scamming people, they are providing a service or selling a product. **Corporate Jobs are Pyramids too, 1)You get recruited 2)You are under someone which is your boss and Upper management 3)You want more Money? you need to move up the ladder (Which might take you Years) 4) What are the chances of you getting to an Executive Level in the Company? (Very Low or None) 5) Your Pay Rate will not increase much in the next 10-20yrs 6) Who Makes all the Money? The Owner, Investors, CEO and Executive Level Team. 7) More than Likely you hate your Job and you are Jumping from Job to Job 8) You work for a Company that might be doing Shady Business and actually Scamming Customers without you Knowing it. Ex. Banks, Retail, Restaurants, Car Dealerships Etc... Whats my Point? there are Some very Legit MLM that are actually more Ethical than some Jobs. You have 2 Options: You Either work for Someone else or you Work for Yourself. Choose which ever one you think you are stronger.
MLM explained simply. MLM company: pay us for the right to sell our product and if you really want to make money convince others to also sell our product. It's like opening a shoe store and thinking you could make even more money if you convinced other people to open shoe stores.
FRANCHISE::: Pay thousands or hundreds of thousands of dollars for a license to conduct business in a geographical area selling the franchisor's services or product. Then, pay an average of 12% GROSS on total turnover. to the Franchisor. In 15 years the license will expire rendering your business obsolete. MLM ... Pay a couple of hundred dollars and retail products or services and introduce other people who wish to have their own business. LEVERAGE your time and efforts by training others to retail the company's products and receive commissions and bonuses in return. Income UNLIMITED and on death the business can be willed to your loved ones. A JOB (Just Over Broke). Conform to society's "norm". Dig yourself into debt studying for a degree where there is a high chance the degree will NOT help you find the job of your dreams. Work 2 or 3 jobs to make ends meet for the next 45 years and on retirement live on a third of your income. No wonder 68% of Americans have less than $1000 saved in a bank. Which one looks better??
Although Amway has a few retail stores around the world, they are not a retail base business in the US. It's purely a referral base company so they make sure they get loyal customers by sharing incentives with them. They do have a website you can purchase on as well.
@@aarononthesauce I've never seen one. And I've never sought one out. SO if Amway has such great products and has had them for the last 60 years why have they hidden them from me?
@@aarononthesauce You don't need a special Amway store. If the products are so great, they would be on the shelf at Wal-Mart competing with similar products which cost 1/3 as much. But of course they're not. Instead, Amway would rather open "experience centers" in Russia and India.
I’m no financial expert, but what I’ve learned through observations of some of my friends or acquaintances in MLM’s: Can one make a lot of money? Sure! Will YOU make a lot of money? Probably not.
Lol well if it wss true then wouldn't he say that? It isn't so that's why he didn't. And he is pretty wealthy and educated probably more than most people watching this video commenting their opinions...lol so I'd say trust the person with the success and knowledge who's been there, done that. Not the broke person typing away about their opinion who doesn't have any credibility..
Kenny Bellau I want to correct you on one thing. You say that 99% of all people involved in an MLM lose money, but it’s actually about 99.6%. In other words, instead of 1 in 100 people being able to make a net profit in that particular business scheme, it’s more realistically 1 in 250. Besides, it’s a very inefficient way of conducting business, and if it were legitimate, then it wouldn’t specifically require constant “endless chain” recruitment.
This is terrible advice from Dave Ramsey. I thought he was all about good stewardship? Those making the big bucks are doing it by selling audio and putting on events that members are pressured into attending. I went to an Amway meeting once and it was like a church service, except people were worshiping money. I can't believe this advice came from Ramsey.
That is why MLMs are very similar to cults; a lot of worshiping, brainwashing and indoctrination happens on these meetings and "events". I was also very surprised about his response. He is very knowledgeable about money and finances, he should know that MLMs are 100% scams.
I was part of Amway and their leadership team program for over two years, and boy. Is that the truth. And YES, you HAVE to recruiter people to make money.
It sounds like he's subtly trying to dissuade the caller. Especially because he told him to look up the average pay people in that company make. I wonder if he isn't supposed to tell people it's a scam, for some reason.
Other reasons why MLM get high turnovers is that recruiters based their recruiting methods on hype and lies. Recruiters often throw their downlines under the bus after they've collected their commission.
Raymond Phengmany Amway is not a pyramid scheme for the simple fact that you don't keep the levels under you forever. You only maintain them if they don't achieve a certain level AND you keep selling too. However, they actually rely on people believing it IS a pyramid scheme because that is a dream people have. No work for big money. Amway is simply a structured & organised way, but a very hard way, to potentially make money. Plenty of other ways to do it.
@@raymondphengmany134 MLMs strive to be legal pyramid schemes by selling a product. In fact, many MLMs require everyone buy a certain amount of product to retain their rank/status within the MLM. That said, if you look at the pay structure and see the bulk of the money comes from recruiting and maintaining downlines, then its probably best to avoid it unless you have the right skill set and lack of conscience.
I tried MLM many years ago, and failed. I don't know if it is a scam or not, but I do know that, as Dave said, you have to constantly recruit and train new people because of the very high turnover rate. This is important because you make most of your money on the commissions from the people below you. The biggest concern is that the people at the bottom have to sell products to customers. A lot of these products are quite expensive and difficult to sell unless you can convince people that these products are different from what you would see in retail stores or online, and are worth the extra cost.
It’s not inherently a scam, but it attracts people who want to get rich without working (thinking it’s a passive income), and a lot of the companies don’t offer products that would stand up on their own.
A few are. Sadly. Most are just extremely difficult due to a lot of market factors like desirablity of the product, supply and demand, pricepoint, etc.
The reason why I couldn't be in an MLM is because their prime money maker is recruitment, not selling a product. So you're basically making money off people, not a product. That doesn't quite sit well with my conscience. I'm glad Dave actually laid out what it is and what it isn't though. MLMs are not a side hustle that you can get rich off. It's a sales business, and you need to recruit like mad to become a master salesman. But yeah, you're not going to make money selling the product, however great it is. You're making money on recruitment. It's essentially a legal pyramid scheme, because as long as everyone knows what you're doing I guess it's okay to take people's money from them.
as he said, u r a trainer, teacher,recruiter, motivate ppl to work harder n learn more? all these stuff r free??? u go to school u pay school fees, have they promised u success?? yet u paid them right?? be open minded and objective bud
@@FaithandNova before Amway? My friend was a manager in a parking garage. His mentor was a manager at Hilton. My friend coached a financial planner to retire at 28.
Yes, but... then he actually lists some major wrongs: make no money, make friends mad, get deceived or deceive thousands of recruits... Can't directly attack the thing, it's already in the victims heart. But the message is clear - it's a fool tax.
You don't have to scam others or be scammed with MLM. It can be decent part time income for some people. Its when you go for the quick buck that it turns bad.
I work 3 jobs right now. One of them isn’t Uber. It’s Lyft. I make $700 a week easy where I drive. $100 a day doing between 11 to 16 rides which is about 5 hours on the road. Trying to be debt free within the next week or two. No credit card purchases or nothing. I’m new to the Dave Ramsey plan but I’m working on it. Almost there!
My favorite is when they brag about being a $1 million earning, and what that usually means in an MLM is that their team has made $1 million over the several years since they’ve joined.
Dave's take here is honest and correct. MLM business aren't scams by definition. It's the liars and dishonest people who poison the well for everyone else. There can be liars and dishonest people in a business that operates under a traditional model - that doesn't make traditional businesses scams. The flaw in MLMs is that, as Dave points out, being successful requires that you have a very particular skill set that most people don't have. Most people get into it mistakenly believing that they do. Dave puts the onus on people knowing what they're getting into before they get into it.
Jacob Gilliam : This is 2019. You don’t have to recruit anyone to make money with MLM. You’re mad and upset about a business model that NO LONGER EXIST! 😂
The issue with Amway is they actually rely on people imagining it is fundamentally a Pyramid scheme. It definitely isn't - but what is astonishing is that people in the business often don't actually realise it's not. They don't realise you can lose those "under you" when they reach a level and it also relies on continual work, not just reaching a point then easing off. You can sum it up by "you snooze you lose". Quite literally. Stop recruiting or selling and lose all the "downstream" levels. It's a job.
I am pretty disappointed in this episode because he made it seem like this guy could have a good opportunity in making good money if he sticks with it. Like many of the people writing the top comments on this video, there is more than enough evidence to label MLM as scams. Even if Dave can't legally say it is a scam he could have done a better job of shining light in this matter.
@@jakerose7288 you actually think that MLMs work for the average rep? This isn't an opinion I can show u he's wrong with the income disclosures these companies have to show.
@@skfkfkd Yes I do and please do because I've personally seen and experienced the amount of income that can be generated, I agree that not every company is the same but depending on the products and services and compensation plan in order to achieve and increase your income, it is doable, regardless of how long it takes.
Want to know the great thing about MLMS? Ayone can get into them. Want to know what sucks about MLMs? Anyone can get into them. Long story short most people dont have the actual work ethic and commitment and the ability to hold out for delayed gratification.
But the tool isn’t really that good now is it? It’s a house of cards. One disaster happens, and it topples down. They hype everyone up as if every one has a chance to be a diamond. But no, the model requires people to always be at the bottom. The model requires people to be a foundation for one diamond. If it was a perfect world and everyone did exactly what was taught, there will always be people at the bottom. The company would never reach a point where everyone is a diamond. This company profits off of gullible losers who are willing to “delay their gratification” to fuel the engine.
Honestly. I used to work for PRI America which is an MLM and I found out from a few employees working at the office I was hired at that the management were selling social security numbers and other sensitive info and when I went online I found out the company was sued in Florida for scamming its customers out of their pensions back in the day. I decided to quit and 3 other employees quit alongside me too. I’m glad I did. I feel safer now and I feel like I got my dignity back too. I’d rather do honest work.
MLM is not for whimps. It’s a great business model if you area’ t afraid of hard work and can stick with something. If you can not be lured into inventorying to get garage qualified. If you are offering something people NEED.
People have alot to learn about Network marketing. I'm in a network marketing company called ACN and its given millions of us the life we've always wanted. We dont sell products we sell services on bills we would be paying everyday for the rest of our lives anyway. People say it's a scam because the work is hard. Yes it's harder working for yourself than it is working for others. But you can become successful in wayyyy less than 7-10 years if done right and you take it serious
For all of the Pro MLM people, please name me one legit Fortune 500 company that made their fortunes as an MLM. For example: Apple, Microsoft, Ford, Amazon, Geico, etc. If the MLM model is so great, then how come Steve Jobs did not sell iphones through an MLM company?
MLM companies have an interest in enriching its workers.. Corporate companies HATE workers. In fact peoples wages are the biggest drain on the CEO's wallet and he'll do anything not to pay it. Thats why Fords's factories are filled with wageless robots, and Apples's Iphones are made in extremley low waged Chinese labour camps.
Not pyramid schemes.....by whose standard? The FTC allows the MLM industry to self-regulate except in rare cases., and warns the public to make their own determination. The FTC currently has a 29-0 record against those they've investigated to date.
Someone tried to lure me into MLM. Every time I asked her if I was going to be selling my own products or someone else's she couldn't answer. I told her no way and she was so upset. Just be honest from the jump. It's a scam.
I know a real go getter extrovert who has been diligently working at Amway for 6 years. Today he makes 2100 a month but he spends about 400 of that on overpriced product for self usage, writes off 600 a month on vehicle expense to run around to endless meetings, goes to 4 big annual meetings that involves traveling airfare expenses. If this dude I know isn't making big money then I doubt the average person will make any real after expenses money.
You may think he is a go getter . But maybe he is Not putting in as much work as you think . I know people who have been in MLM for years with not that much success and other that quicker gain more financial success . It’s hard work not just tune in that matters . Do some research
Derrick Stinoski well in this video he clearly states that there are people who achieve success with it. Why can’t you believe it! Wake up . In the USA only top 1% individual income earners earn over 250/k per year in income . It’s hard to be top 1% income earner no matter where you are or what you do .
Men in their twenties who talk about retiring early gross me out! And it's always guys who didn't have to work while they went to school. Like...you estimate that you can only stomach working 15 or 20 years of your life? Get out.
Utterly disappointed in Dave. An MLM is an unethical business model and it destroys lives. Honestly, it sounds like Dave was not prepared for this conversation. Explains why there is 266K views and only 8.7K likes.
Unethical??? Why do many large companies incorporate the MLM business model within their business?? Why do people like Warren Buffet invest in Multi Level marketing companies??? Obviously you have not done your due diligence
Or by being delusional enough to believe that you are helping those you are recruiting because you don't understand the true economics of your business
Pyramid scheme it is not. Work for ANY company and it is structured as a pyramid. You have zero chance of reaching the top. In MLM EVERYONE has equal opportunity to reach the top.
MLMs are just Time Shares for poor people. They sell you something that sounds great but it’s all just a way for a wealthy company to take advantage of people who don’t know better.
If this guy wants to be retired by age 50, it won't happen if he's doing multi-level marketing. Every MLM company I've seen has a few people at the top making millions and the rest are making almost nothing or losing money. The concept is just doomed by design. Why it still goes on, I will never understand. The next person who tries to recruit you for multi-level marketing, ask them how much extra money are they making? I guarantee you will get one of three answers 1) no response at all, 2) claiming they are just getting started and expect to be making real money soon or 3) claiming they don't share any of their personal finance information with others.
Family members were part of Amway. We were sitting down at an amusement park and they started talking about their Double Diamond upline. The upline was moving. "Why are they moving?" Ans: Because their landlord sold the the house they were living in. Why didn't they own their house? Ans: It was not their dream house. Hmmm. Double Diamond should be well into the "Able to own your own house!" Category.
Another possible theory of Dave's reluctance to criticize MLM's is that many of his listeners are most likely involved. If he calls them out for the scams they are, he becomes a 'Dream Stealer' and they tune out.
I really don't understand Dave's accepting attitude of MLMs. They're scammy, slimy and a huge waste of money and time. They're right up Dave's alley for things he should ridicule for their stupidity, yet he doesn't...
Wyatt Chartrand no you are lol mlm is not a scam it's just annoying tedious work. A pyramid scheme is when a recruit pays to join and no real product is being sold everyone makes money from the recruiting and that's illegal
Because he has friends that make millions meaning he knows the people who started or were the first recruits. Everyone else will fail. He won’t bash it when people are relying on him not too
If you can get people to sell, you can reap their rewards. Get all the sellers to sell for you and you can work part time just reaping what they sow. Usually only 1%
it takes a certain kind of personality - thick skin and social skills. most people think they're tough and persuasive, but they're not million-dollar tough and persuasive
Looking strictly at the numbers, you probably should've listened. In order to "retire" as a full-time Lyft driver, you'd need to take standard fares all day long for 72 years. But even if you go only to the top of Amway's sales plan (ignoring the team aspect completely), you should be able to gross $1.5 million (the low end American retirement fund amount) within about 7-8 years. And you don't have to put gas and new brake pads onto an Amway business--not to mention no one can throw up in your car either! The good news is you're more than welcome to do both though. Money is money, in my opinion.
@@kingoffuzziethieves plus you have unlimited people to sift through as a lyft driver. This guy in my city went from 0-15k/mo in a year driving lyft fulltime then hosting a plan showing every friday. His whole team started doing this and he had liek 5-6 3k/mo earners in 6-8 months. It was crazy to see the come up for these guys, one was 21! MLM is only a scam if you dont work it consistently and dont qualify people.
Pyramid schemes are some of the biggest scams ever. If you're not the scammer at the top you're being burned. My cousins thought about getting into one and they had to purchase the product out of pocket in order to sell and they don't keep much profits. I'm glad they avoided it.
If you are considering a MLM and a Network Marketing business a scam by default because it's structure is shaped like a pyramid then you are not educated enough on the matter to determine it's a scam. Because there are SEVERAL distinguishing factors between a MLM/NM company structure and a pyramid scheme. But here, can you explain to me what the differences are? If you can't it means you aren't educated on the differences so you wouldn't know a legit company structure if it reached out and shook your hand. This is not an insult. This is a encouragement to educate yourself so you can discern the difference.
@@droneboy5415 Because he is predisposed to figuring any explanations are deceptions and therefore rather than doing his own research he would simply dismiss it out of hand.
Im real surprised by Dave's response. I woulda thought based on how he perceives money in general that he would wholeheartedly advise people to not jump into a pyramid scheme. I wonder if he gets paid to speak at any of their seminars?
MLM makes you believe that you can sell and recruit people to make money. The nasty truth is you’re the customer who’s buying products that you don’t need with hopes of selling them to someone.
I think most don’t understand that these MLMs are only for salespeople. If you’re not into sales or have no desire to learn how to sell, don’t do MLM. *Side note, if you’re selling to family and friends you’re doing it wrong.
I use to be in an MLM at 18. Learned a whole lot and got my first taste of what the sales world is; it can be brutal. But it gives you a thick skin. I quit because music always called me back with it’s urge to create.
It's a known fact that around 98% of people who join an MLM do not earn enough to replace a full-time job...Between 50%-65% leave within 12 months with most in debt.
Why in debt?? Filling their garages with stock to qualify??? Leasing a fancy car and renting a mansion to "fake it until you make it" Do these things and you WILL fail. You are only bullshit*ng yourself.
Dan, take a hard pass. Amway makes its money on recruiting and not selling products. How much comes from recruiting and how much from selling? I don’t know because MLMs never report it. They prey on the hopes and dreams of desperate and adrift people. As a new recruit you will be paying the following: • Registration Fee: • Starter Kits: • Annual Renewal Fee: Does a real job make you pay to be employed or does it pay you? There is money to be made but it won’t be by you. Go and play the drums and think about another plan.
So filling your car with gas, taking a bus or a train to "work" and paying out of your own pocket to make your employer rich is what??? I wonder why millions of "workers" struggle just to survive. MLM is a legitimate business model in which EVERYONE has equal chance to reach the top UNLIKE traditional businesses.
Yes but why are pyramid systems bad? Yes, you give a part of your profit to someone over you but you get a part of x amount of people. It's more or less a way to motivate the marketers to do something.
rraannddoomm because all pyramid schemes will inevitably collapse. The main feature of pyramid schemes is that the only way for a seller to became profitable is to become a supplier to other sellers, so if 1 person supplies to 5 people and those 5 people supply to 5 more people each you'll have 25, those 25 people supply to 5 each and you'll have 125, after 14 cycles of this you'd literally run out of people on the Earth to supply to, at that point the pyramid collapses and everyone loses their money. It's simple Math.
This is why pyrimidine schemes are ILLEGAL in almost every country on Earth including the Unites States. MLMs like Herbalife and Rodan&Fields are pretty much operating in a legal gray area.
Funny how people say MLM is bad, it's a pyramid scheme, don't get into it and yet the majority of them are ok with being in the true pyramid scheme of them all: a job.
People typically aren't thinkers or leaders, yes, a job is the biggest scam around, especially if you consider the ones that offer few, if any benefits. Others, like Sears, allows employees to devote the better part of their life, 25-30 years before the company decides not to pay a pension as promised.
Peter McNally a job doesn’t require you to pay them more than you initially make to be employed by them. A job doesn’t require you to purchase tools and apps on a monthly basis to remain employed. A job doesn’t require you to attend rallies for story telling and motivational speaking to remain employed. In a job, you are paid for the work you give. In a MLM, your work directly benefits those above you, while you get less than 1% commission for every dollar YOU generate. You are the product. You are the source of income. THAT is the pyramid, not a job.
@@Dero_milsurp There are jobs that do require people to pay for their background check before getting hired, and it's not even a guarantee that you'll get the job. Also, some jobs do require you to go to training seminars, for instance, most corporate positions, union jobs, and even fast food restaurants. Plus, a lot of jobs do required to pay for tools out of your own pocket, hence mechanics, carpenters, and even warehouse positions. And, most jobs have a dress code you have to abide by, so you'll have to purchase the clothing required in order to meet it. In a job, you're helping the owner make money, and he/she are giving you a very small cut of the profits because it's the law, which they in turn can write off on their taxes at the end of the year and get back in their returns. I'm not defending MLM businesses, because they have many flaws within them too. I'm just saying don't knock on them all the time and give jobs the pass because they're not innocent either. In this day in age, it's best to be self-employed, whether it's in MLM or in a traditional business. I go for the latter.
There’s people who have been in Amway for years and years, but have lost more than they made. Also, you can’t be in Amway part time if you want it to work. It’s a full time thing.
Sarah Bullard There is nothing evil with mlms. It is how you you recruit and how you sell that makes you evil or good. You can be in mlms and still be ethical.
LISTEN at 3:40 to 3:52 . Dave is saying that he knows 5 people that became millionaires. He also met thousands that quit in 3 months. He is NOT saying to join Amway. LISTEN!!!!
You don't have to promote your business to family and friends to be successful in mlm. You can always create a business account/page on instagram/twitter,RUclips etc and find entrepreneurial minded people to become new customers/business partners in your online business. Also there's many other ways to build your online business as well.
@Bryan Badass Dass lacked discipline, lacked budgeting, invested in something that is not a real interest of yours, invested in more then the minimums. Invest as much as you want but get a game plan, execute it and get a plan b.
@Bryan Badass Dass No, but a recruiter should always make sure new prospects like the product or service and invest more time and less money. Businesses need more time then they need money.
Dave really needs to undertake an ethical evaluation of MLM (this income disclosure obviously stinks). It's fantasy to think some star will rise in an MLM. To do that, you have to start one. I don't like how Dave seems OK to churn a downline for those poor peoples' last $399. Predatory.
I know this is an old post and I'm not defending Dave, but when you live like a hammer, everything looks like a nail. Dave is focusing here primarily on the business aspect and not considering the ethical issues.
Affiliate Marketing through blogging is way better and easier than MLM. It is an introverts dream business. But like any business it takes hard work, 💰, and patience.
Dave's very diplomatic and doesn't want a lawsuit. I have a family member that's been in MLM for over 20 years that sells financial products. She's in her 60's has never owned a home or a car and the only reason she's surviving is because she's stolen money from her elderly mother. Yet she tried to recruit my teenage son to join the scheme. My husband and I have cut off contact with her.
Even if you’re successful, you’re fraudulent because you’re selling people false hope and worse…….. taking peoples money that they can’t afford to lose and will never see again!
To me it seems like the law needs to be followed. The 80 20 law says that an MLM company needs to make 80% of its sales revenue from retail end users not affiliated with the MLM (distributors). That would signal real market demand for the products and not artificial demand created from distributors buying products then recruiting more distributors to buy more product making them the legal definition of a pyramid scheme. The problem is that there is so many levels of commission built into the sale price of each product that they can't compete in the free market and have to sell the product along with the "business opportunity" for a sale to happen so they have to operate illegally according to the 80 20 law. This information can not be refuted because most MLMs conveniently don't track it because they don't have to and would be shut down if they did.
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 RUclips. 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 competing. 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.
Mulut Lewat Mulut This was one of the most credible comments left under this video. I wholeheartedly co-sign. I also certainly acknowledge that there are so many in the network marketing profession who over-hype their business in order to recruit. It gives MLM a bad name. But those of us who do this business right run an honest and viable business. People like Eric Worre, Ray Higdon and the late Jim Rohn are folks that we teach our teams to emulate so that we run our businesses the CORRECT way. Addressing the attrition in MLM: 95-99% of ALL businesses fail, MLM or not. But unlike any job in corporate america, Network marketers are incentivized for helping others achieve success. In certain jobs, we rarely are incentivized for helping others and sometimes it makes us replaceable. MLMs teach leadership, personal development and professional development skills. Most serious MLMers are in Toastmasters. And many of us, myself included, have used our earnings to give back, launch other thriving businesses, and support others who are looking to run their own businesses. Like others in this chat, I was very much against MLM‘s until I met successful 6 and 7 figure earners who took the time to teach me the science. I was open to hearing their POV. Everyone is entitled to their opinion and I certainly acknowledge that many are turned against this profession. It’s not for everyone. But it’s not a flawed business model. Unfortunately it’s a factor of a small number of flawed people.
Thanks for taking the time to share your thoughts on this subject which I agree with 100%. Every business must continually grow or they become a statistic in the dustbin of history. Business is business! In Network Marketing, individuals with no special certifications can leverage their time through the talents of others who are willing to assist with their referrals while they are new and learning. In any industry like real estate, financial planning, doctors, lawyers, Subway, etc., FEW ever hit the TOP 1%. Getting Rich is NOT a primary goal of most people buy they want to spend more quality time with their loved ones, take vacations, enjoy the good life without accumulating bad debt! In life, there are always risks involved with running your own business but rewards are available for those with the greatest desire and success habits. Network Marketing is no different than any other business except that it has the power of leverage and time freedom.
MLM is not easy, you have to put in the hours, learn and become a professional. Just like any other business, people think they just show up and win money without doing anything and then call it a Scam 🤷🏼♂️🤦🏼♂️
Absolutely, MLM is a SCAM! There is a local business man, if you could call him that, that loves taking others money. He isn't a hard worker but finds suckers that give him money all the time. Now he is being sued!
TYPICAL AMWAY ENCOUNTER Old stranger: *calls you out of the blue* You: "umm hey?" Old stranger: "Hey uh... it's been a while I hope you're doing fine" You: *awkward pause* "yea"? Old stranger: " so are you looking to make an extra source of---" You: *Hangs phone up in face*
I got “recruited” to Primerica when I was like 19. I was in college making minimum wage and was desperate for money. I paid for my insurance license (which was very expensive for me). I, of course had no one to sell to and was to naive to figure that out ahead of time. I am by my nature a TERRIBLE salesperson. I’m not pushy and hate selling people products I don’t feel they need.
You were the wrong target market they recruited because you don’t have a market in which you can talk to about your product. Thus, you need to go cold prospecting and cold prospecting sucks!!
You were in Primerica and paid for your insurance license?? Hmmm... Initially all you pay upfront is a small fee to get you in the system to obtain your agent ID and studying material to pass the state exam. Primerica pays for all other fees for you to obtain a license and reimburses your investment back plus more once your license hits the state. So the information you're giving is incorrect. Unless you paid to obtain your life license on your own outside of Primerica because you can but it be way more expensive that way so it sound like that's what you did instead?... except you were a naive broke college kid at the time who was clearly misinformed. By what Im reading you also didn't see the value in properly protecting families in case of a death. So even then you didn't think a family deserved to know the importance of having life insurance? My 17 year old nephew even knows the importance of having it. No one wants to struggle paying for a funeral. My spouse has been in Primerica since he was 19 and is now 29 even he was naive enough to know the importance of what we do for families. We make unbelievable income. You were just not hungry enough for someone who was broke in college.
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.
@@eddycarpenter8989 Yes, and majority of their sales are ultimately made to the people they or their recruits recruit, in the form of starter kits or purchases made to maintain their "Active" status in the pyramid. Self consumption is the hallmark of MLM, and also the prime reason they are determined to be Pyramid Schemes.
@@eddycarpenter8989 Actually no. I'm a forensic financial analyst who specializes in Annual Reports and other financial statements, including MLM "Annual Income Disclosure Statements", or as I refer to them "Pink elephants and Unicorn glitter".
The bad part about MLM's is that these things too often take on a level of enthusiasm that makes them start to feel like a cult. You start to look at everyone you interact with as a recruit and you have no relationships in your life anymore that aren't transactional. They break down their manners and decorum to the point that no one wants to be around them. - Dave Ramsey
The only real get rich quick scheme is selling a get rich quick scheme
Exactly.
Create your own Church. Not only will you make a ton of money, it’s tax exempt.
You aren't wrong.
You are spot on!
Yes! Hahaha
He is 24...wants to retire at 50...but only wants to work part time.
He is ultimate MLM bait. Sell him an empty dream.
So freaking true lol love the rockers icon too
Dude my friend retired at 23 off a part time effort while working as a manager at a job.
What I heard was that he wanted to BE RETIRED at 50. But working part-time? Yeah, try "retiring" doing anything part-time. Retirement has a nasty habit of harshly brushing off anyone who does things half-assed
@@ApartmentKing66 my friend retired at 23. On a part time effort. Has made MILLIONS from Amway.
Trillions????
It’s not worth burning bridges with your friends and family over a few bucks.
NickT127 ha! That's why you prospect more people to become your customers, cause if you just keep selling to a group of five doesn't matter if it's your family or friends, then of course they might get annoyed, just keep spreading your customer's list that way you have more chances of people looking for you to buy products for you, it happens to me, and yes i still have friends and family precisely because I used that strategy
@@erubielesquivel6510 so ur saying scam people just not in ur immediate circle?
@@lazybeastz182 scam?ever taken a look at your job? 8-5 for 40 years and hopefully you will retire with some money cause they won't pay you what you are truly worth? You want to live a life where everyone dictates what you should be doing or where and how you should live cause you can't afford much?? Well then go ahead and keep living the way you are since you keep telling yourself such self destruction thoughts
"burning bridges"? I've never had that happen dude. I've met 2 of my best friends through this business.
@@edwinmalachy people are so dense; they assume that "doing mlm wrong' is the right way to do it; and when they do it wrong, they make people upset with them, and blame MLM instead of their WRONG approach to MLM -- never fails; but people are dense
This is a bit sketchy from Dave. This dude doesn't trust a 2% cash back credit card, but those who work in Amway are "good people." Yikes
He sounds like a quack
You sure you watched the video?
He was basically semi bashing it saying how only 1 in 10k people are successful in this business.
I thought this too. But I think he is being “diplomatic” these mlms go HARD after their detractors (if they have any real pull) he probably just didn’t want to say anything that would trigger a frivolous law suit. And yet it’s still hard to say he was encouraging MLM as a viable career
He was trying to be politically correct here. Think about how many people do this stuff that he could be offending on his show.
He’s not wrong though in what he said, at least as far as MLMs go. There’s nothing inherently wrong with an MLM you can make money in it, but he’s also saying that most people don’t. It’s not impossible, but it takes a certain developed skill set to make money with an MLM. Turnover is high, most people aren’t going to do much of anything and certainly aren’t going to make money.
4:30 "There's nothing evil or wrong with the business"
Putting people in more debt, having them cripple relationships, making them look like a fool and nuisance on social media on a statistically low dream...sounds wrong to me.
Don’t talk about our school system like that....
@@goodbeardesign5664 lol
Yes. And that statistic is 99% lose money in MLMs. Sad, but that what the studies say.
Lol ignorant...
You are not making people do anything.
Time is the most valuable luxury we have. Why spend 10 yrs of your life recruiting for someone else’s business when you can invest that time and energy to build your own empire.
Some people don't want an Empire. Some people just want to make a really good living. If you have the skill set that Dave is talking about, the truth is that MLM can help provide that.
ASimoneau Exactly. Running and building an empire is not for everyone. As you said, many people want to make a good living and be wealthy, but don’t want all the stress that comes with running an empire. They also want the relative security that comes with being an employee vs owning a business. I am building a business myself, and it’s extremely stressful. While other people get off work and chill, I get off work and check into owner mode working on my business nights and weekends. It’s easy to tell me to start a business but it’s hard to keep it going and that’s why many buckle in under a year.
Most capable, hard working people who start their own business will fail. Some will hit it big. Most capable, hard working people who work for a corporation will earn a living and support themselves and their families.
An empire built on the exploitation of the poor.
Beautifully said.
MLM's go one of two ways: you either get scammed, or you make money scamming others.
I disagree with you and i can prove you wrong. Send me a direct message if you want.
1) Not all MLM are Scams.(Fact)
2) There are some that are Legit and really good (Fact)
4) Some Jobs are more of a Scam than some MLM
3) MLM Is Not for everyone because Not everyone has the Business Mindset and Determination
4) It requires a particular skillset that you need to learn which can take time but at the end is worth it.
5) MLM just like any Business you have to Hire people in this case is Recruiting.
6) Any kind of Business you have to train your People if you want to Succeed, same in MLM.
7) The reason most People Fail in any Kind of Business and Complain and call it a Scam is because they are Really Good at Working for Someone else but when it comes to Work for themselves they don't put the same Effort, they expect the Business build itself.
8) I know friends that are in Amway, Herbalife, Melaleuca, Primerica that are doing very well because they work hard, hey are not scamming people, they are providing a service or selling a product.
**Corporate Jobs are Pyramids too,
1)You get recruited
2)You are under someone which is your boss and Upper management
3)You want more Money? you need to move up the ladder (Which might take you Years)
4) What are the chances of you getting to an Executive Level in the Company? (Very Low or None)
5) Your Pay Rate will not increase much in the next 10-20yrs
6) Who Makes all the Money? The Owner, Investors, CEO and Executive Level Team.
7) More than Likely you hate your Job and you are Jumping from Job to Job
8) You work for a Company that might be doing Shady Business and actually Scamming Customers without you Knowing it. Ex. Banks, Retail, Restaurants, Car Dealerships Etc...
Whats my Point? there are Some very Legit MLM that are actually more Ethical than some Jobs.
You have 2 Options: You Either work for Someone else or you Work for Yourself. Choose which ever one you think you are stronger.
@@robertcruz1127 send me a direct message and I will teach you how to properly capitalize your words... It appears you never learned that lesson in 3rd grade.
@@robertcruz1127 This kind of "MLM" attitude that you have is exactly what pushes people away.
@@brianNYC546 he kinda is right but he's still a shill
@Jason Tsang Can you prove that all MLM are Scams and Why? i want to hear a logical answer. Not just what you Believe.
Ugh don't do it man. I hate people who offer me a 'job' and I ask them 'what kind a job is it?'. They say 'you can be an entrepreneur in this job'. That is a dead give away for mlm.
You say it like it's a bad thing. I never offer people a job. I say "Hey, if I could show you something that could "make you" xyz, would you be interested in taking a look at it? If they get back to me and they like the product, "Awesome brother! Ok, so here's the price and if you are interested you can get the member price at xyz if you sign up." The member price is about 40 a month cheaper than the product retails for. The investment is $59. Thus the 2nd month you are buying the product you have covered your expense and started getting a sizeable discount on the product. The product in this case is $180 retail, $140 member price. Yearly that is a savings of $360 if you continue to use the product. (Which has a 96% rebuy rate due to benefits and effectiveness.) Throw in the fact that they can retail it and even get commerical accounts if they want- bam. Closed deal generally. People start seeing the effects of the product on them and they start asking where they can get it and how much. They can either refer their friends and family and colleagues out to me and I'll take the $40 a bottle or they can sell it to them themselves when and keep the $40 a bottle. His advantage, he makes $40 a bottle that he sales plus volume bonuses. I myself get his volume credited to me because it was my efforts that brought him in. So, you see I never off people a job. I offer people a discount on their product and with the caveat that the membership discount also gives them access to sell it if they find anybody interested. So the selling opportunity is secondary to the discount on the product which is in and of itself worth it.
The problem is they are pitching it as a job and they shouldn't be. Its a business not a job. Jobs pay very little so you can live paycheck to paycheck. Busineses pay you 6 or 7 figures for the few who work hard for 7-10 years for very little money upfront. Backend you can become financially independent...TRUTH IS MOST PEOPLE AREN'T WILLING TO WORK HSRD FOR VERY LITTLE MONEY IN THE BEGINNING TO SEE THE BIG PAY OFF
ps only about 3000 have ever achieved $100k out of all reps (past and present), with many never repeating. Many have been gone for years/decades and some are deceased. There have been well over 500,000 individual reps in their entire 40 year history.
Mal Mal Call us when you make it big. You would be better off being a real estate agent. More upside and much less risk. People can make it but the risk and potential reward is statistically poor.
No... They're looking for business partners......
If you’re making $1 million a year in Amway, you’re selling seminars and training materials to the poor saps that think they’re going make a million dollars a year selling their run of the mill products.
maybe two of them will get there out of thousands... everyone else, go kick rocks
Faxx😊
Have you had a "bad" experience in MLM??? Yes?? I thought so.
Given Dave’s strong thoughts on topics such as Whole Life insurance, car leasing, etc, I’m surprised at his tepid response. He must have business friends high up in some of the MLMs
EXACTLY my reaction. Dave's stock just went down a little for me.
@@andrewdutton3831 Can't really blame him for that, I'd assume many would do the same if they had friends in the business. Even still he was doing his best to talk Dan out of joining the MLM business while maintaining that professional line.
@@andrewdutton3831 yep,,,,,amway is horshit.his stock with me...the best wat to put it
Well he probably doesn’t know much about it because it’s really a job and not a financial plan. I don’t know about Amway, but I’m sure he would rip into businesses like IM Academy and ACN if he knew all about them.
@@bluerabbitjeevs but he’s got to have friends in the whole life insurance game too, but he's still a fierce critic. MLMs have a near 100% chance of failure, and are a bad idea for virtually all his listeners. Something odd is going on here.
When 98% of people who engage in MLM make no or negative money, it's statistically safe to say it's a scam.
Nick Joslin because people are lazy?
Some people are lazy, sure. But it's mainly because the MLM scheme is fundamentally unsustainable and vastly more people are "recruited" to sell said product than exist customers willing to buy said product. The MLM company will never admit it, but the real "customers" are the people who buy into the scheme thinking they are going to actually start their own businesses, not the people buying the makeup or nutritional products that the company claims is the revenue source.
Nick Joslin do you even own a business?
By definition, if the number 1 way to make money in a MLM is recruiting and NOT selling product it is legally considered a scam.
I haven't seen a single MLM where the top performers earned their income from product sales instead of recruiting.
Exactly. The Earth only has limited people. The pyramid WILL run out of people. The people on the bottom layer get stomped on.
When you get into an MLM, one of two things is going to happen:
1) You get scammed
2) You make money by scamming other people, directly or indirectly.
@@cannon-n02 "Disciplined MLM joiner" = "someone ruthless and/or lucky enough to scam lots of other people."
@@cannon-n02 I had a retired tax client who lost thousands in Amway over a few years. He insisted on continuing his efforts because his upline told him he would make money eventually. Even though his business was not growing a bit. Did he lack discipline?
When you get into a JOB one of 2 things happen:
You start out broke
You end up broke
@@oneeyedman99 "scamming" them how? By getting better product? By changing where they buy stuff? By paying off debt and even retiring from the job?
@Bryan Badass Dass "scamming" them how exactly???
Dave was too soft with his answer. Those companies are detrimental to society
Ryan N he can’t say it’s a scam. He could be sued for libel among other things.
Sapphire Sky unless they’re paying him as a speaker at one of their conferences
No they aren't I know several people who made a lot of money in MLM. He would make a lot more money building his own product and business though.
The Realest Lebomba bingo!
Dave was apart of MLM company that taught him some of the concepts he teaches now. In fact he's great friends with a multi-billionaire who started a strong MLM company
Friend of my wife was suckered into a MLM. We said; "It sounds like a pyramid scheme". She was already indoctrinated and replied; "It is not a pyramid, but an upside down triangle".
It's no pyramid!
Yup. I was given an MLM pitch and they also said it was an "Upside down pyramid." I had to walk out of the room and so I could start laughing. Like they do know it's still a pyramid even if it is turned upside down, right?
@@Songsnewsmex-86 But it is pyramidical in nature
🤦🏾♀️
Lol 😂
FACT : 99.9% LOSE MONEY IN MLM/Network Marketing. PERIOD.
American Edokko Newsflash: When you first start ANY business, you lose money to begin with. Takes a couple years to make profit. Amway is the same way but it only costs $180 or something like that instead of thousands of dollars.
Plus it’s a pyramid scam...imo
Post the information that has these facts
Next post the stats on small businesses please
So are people working minimum / slightly above minimum wage jobs living paycheck to paycheck
I'm not defending MLM/network marketing because I still think its a pyramid scheme
The secret isn't convincing people to do it, but finding those that already want to do it.
Facts so lets find then. I want to make $$$
You are right. That is why 95% of the population is either poor or heavy on credit or retire on a shoe string. Only 5% living their dreams.
Ju'Von Nathan Yo,Juvon!
This is George from USF, how are you doing fam!?
If you want to sell life insurance.
Yeah definitely. Go find people who like selling policies.
@@ALFREDO_FUENTE24 In a way. People want a system where there are winners and losers, because being a winner is so much better, and also playing is fun. But the system defines how many can win and how much. Total wealth of people increases all the time, its distribution does not. Playing with percentages is a zero sum game. Everyone cannot be a winner. And this is what people fight over; making winning better, or reducing the amount of losers. Cant have both.
I did an MLM for a while. The thing that really hit me as a surprise and made me quit MLM is that if someone in your "team" is failing, you need to cut them and replace them. You can't take your "lowers" with you on the way up... You are competing with them. I failed at MLM because I wasnt willing to cut my struggling friends and leave them in the dust, even tho i was good at it. So because of that I ended up failing like they did because i wouldnt leave my friends in the dust. I was surprised that I had the skills and contacts to be good at MLM but there was a heartlessness and selfishness required to make good money.
Can you please explain? what does it mean "if someone is failing" and in which way was you supposed to "cut and replace"? btw, good friend commitment
What company was this??
@@mytime4687 it was ACN
@@MaydaysCustomWoodworks Wow.
You were in the wrong one. Lol
i used to love dave ramsey but the fact that he said that there’s nothing wrong or evil with mlms completely made me question if i’m ever going to listen to him or not
I think he's describing how his business runs.
I’ve lost a lot of respect for him
Income disclosure statement
He has no education at all
I thought he gave a very non emotional, intellectual, realistic response. Its why I respect him.
The people defending MLMs are the same people getting scammed by them. Wake up and realize you've been scammed people.
I woke up and quit, still looking for something else to do though. Have you woken up and realized that your job won’t get you what you want though?
Facts
Funny that. Three years ago I was unemployed. Today I earn over $100,000 pa with a MLM company.
Shame on Dave Ramsey for not condemning MLMs. They are predatory.
Ok
Because he's wealthy and hangs out with wealthy people, so he personally knows the ten people who actually made real money out of it by selling product to the caller
Exactly what I was thinking! SHAME
Why are MLM bad?
Dave’s whole business model is an MLM lol
People buy in to teach it to others
Come on Dave, you're better than this. MLMs destroy people's lives! I've had friends and family personally harmed by these companies
In contrast, I have friends in their 30’s and 40’s retired from working MLM’s. They are real and they can work.
@@Mavryck_Tha_Myghty That's the part he doesn't want to tell you lol
Ok and some people go broke playing the lottery. Still dosemt change the fact that some people get rich from ir
Do you think that argument is going to turn people towards or away from MLMs
@@Mavryck_Tha_Myghtyno you don't.
i knew mlm were scams when i was a teenager and financially i was an idiot so that says a lot.
Thank you!!!
@Thora Friganza I disagree with you and i can prove you wrong. Send me a direct message if you want.
1) Not all MLM are Scams.(Fact)
2) There are some that are Legit and really good (Fact)
4) Some Jobs are more of a Scam than some MLM
3) MLM Is Not for everyone because Not everyone has the Business Mindset and Determination
4) It requires a particular skillset that you need to learn which can take time but at the end is worth it.
5) MLM just like any Business you have to Hire people in this case is Recruiting.
6) Any kind of Business you have to train your People if you want to Succeed, same in MLM.
7) The reason most People Fail in any Kind of Business and Complain and call it a Scam is because they are Really Good at Working for Someone else but when it comes to Work for themselves they don't put the same Effort, they expect the Business build itself.
8) I know friends that are in Amway, Herbalife, Melaleuca, Primerica that are doing very well because they work hard, hey are not scamming people, they are providing a service or selling a product.
**Corporate Jobs are Pyramids too,
1)You get recruited
2)You are under someone which is your boss and Upper management
3)You want more Money? you need to move up the ladder (Which might take you Years)
4) What are the chances of you getting to an Executive Level in the Company? (Very Low or None)
5) Your Pay Rate will not increase much in the next 10-20yrs
6) Who Makes all the Money? The Owner, Investors, CEO and Executive Level Team.
7) More than Likely you hate your Job and you are Jumping from Job to Job
8) You work for a Company that might be doing Shady Business and actually Scamming Customers without you Knowing it. Ex. Banks, Retail, Restaurants, Car Dealerships Etc...
Whats my Point? there are Some very Legit MLM that are actually more Ethical than some Jobs.
You have 2 Options: You Either work for Someone else or you Work for Yourself. Choose which ever one you think you are stronger.
@@robertcruz1127 agreed
Rickeys Lake 😂
@@robertcruz1127 preacchhhhh
MLM explained simply.
MLM company: pay us for the right to sell our product and if you really want to make money convince others to also sell our product.
It's like opening a shoe store and thinking you could make even more money if you convinced other people to open shoe stores.
FRANCHISE::: Pay thousands or hundreds of thousands of dollars for a license to conduct business in a geographical area selling the franchisor's services or product. Then, pay an average of 12% GROSS on total turnover. to the Franchisor. In 15 years the license will expire rendering your business obsolete.
MLM ... Pay a couple of hundred dollars and retail products or services and introduce other people who wish to have their own business. LEVERAGE your time and efforts by training others to retail the company's products and receive commissions and bonuses in return. Income UNLIMITED and on death the business can be willed to your loved ones.
A JOB (Just Over Broke). Conform to society's "norm". Dig yourself into debt studying for a degree where there is a high chance the degree will NOT help you find the job of your dreams. Work 2 or 3 jobs to make ends meet for the next 45 years and on retirement live on a third of your income. No wonder 68% of Americans have less than $1000 saved in a bank.
Which one looks better??
That's why I love this man Wisdom
Nah Dave, they're all scams 😂 The rich people in MLMs are just high level scammers.
Incorrect.
If the products are so good...sell them at a retail store/online.
George McGovern they do. Amway has a bunch of stores worldwide.
Although Amway has a few retail stores around the world, they are not a retail base business in the US. It's purely a referral base company so they make sure they get loyal customers by sharing incentives with them. They do have a website you can purchase on as well.
@@aarononthesauce I've never seen one. And I've never sought one out. SO if Amway has such great products and has had them for the last 60 years why have they hidden them from me?
@@macioluko9484 the obvious answer without context would be there isn't an amway store in your town.
@@aarononthesauce You don't need a special Amway store. If the products are so great, they would be on the shelf at Wal-Mart competing with similar products which cost 1/3 as much. But of course they're not. Instead, Amway would rather open "experience centers" in Russia and India.
I’m no financial expert, but what I’ve learned through observations of some of my friends or acquaintances in MLM’s:
Can one make a lot of money? Sure!
Will YOU make a lot of money? Probably not.
The same could be said of having a job.
No not really, because there’s a guaranteed weekly/biweekly income or salaried income, whereas this is based purely on commission.
I wish this video was 8 seconds long. "Are MLMs company a scam? Yes."
He can't legally say that, which is probably why he's avoiding it.
No they arent.
Kenny Bellau It’s a business like any other. Educate yourself on it and you will succeed. Go in their with no plan then you will only scam yourself.
Lol well if it wss true then wouldn't he say that? It isn't so that's why he didn't. And he is pretty wealthy and educated probably more than most people watching this video commenting their opinions...lol so I'd say trust the person with the success and knowledge who's been there, done that. Not the broke person typing away about their opinion who doesn't have any credibility..
Kenny Bellau I want to correct you on one thing. You say that 99% of all people involved in an MLM lose money, but it’s actually about 99.6%. In other words, instead of 1 in 100 people being able to make a net profit in that particular business scheme, it’s more realistically 1 in 250. Besides, it’s a very inefficient way of conducting business, and if it were legitimate, then it wouldn’t specifically require constant “endless chain” recruitment.
The majority of people in MLMs make less than Minimum Wage.
Because they don't treat their business as a business.
Generally quite predatory. If you’re a good enough sales person to succeed in an MLM, sell something else that gets you a higher commission
@@mischahecter896 You might like The Psycopath Test by Jon Ronson.
This is terrible advice from Dave Ramsey. I thought he was all about good stewardship? Those making the big bucks are doing it by selling audio and putting on events that members are pressured into attending. I went to an Amway meeting once and it was like a church service, except people were worshiping money. I can't believe this advice came from Ramsey.
That is why MLMs are very similar to cults; a lot of worshiping, brainwashing and indoctrination happens on these meetings and "events". I was also very surprised about his response. He is very knowledgeable about money and finances, he should know that MLMs are 100% scams.
I was part of Amway and their leadership team program for over two years, and boy. Is that the truth. And YES, you HAVE to recruiter people to make money.
It sounds like he's subtly trying to dissuade the caller. Especially because he told him to look up the average pay people in that company make. I wonder if he isn't supposed to tell people it's a scam, for some reason.
He sales you stuff right? He wants you to use his people, right? He wants you to become an advisor. Hmmm
Other reasons why MLM get high turnovers is that recruiters based their recruiting methods on hype and lies. Recruiters often throw their downlines under the bus after they've collected their commission.
If you are getting a commission from recruiting someone in, RUN AWAY AS FAST AS YOU CAN BECAUSE ITS A PYRAMID SCHEME.
Raymond Phengmany Amway is not a pyramid scheme for the simple fact that you don't keep the levels under you forever. You only maintain them if they don't achieve a certain level AND you keep selling too. However, they actually rely on people believing it IS a pyramid scheme because that is a dream people have. No work for big money. Amway is simply a structured & organised way, but a very hard way, to potentially make money. Plenty of other ways to do it.
@@raymondphengmany134 MLMs strive to be legal pyramid schemes by selling a product. In fact, many MLMs require everyone buy a certain amount of product to retain their rank/status within the MLM. That said, if you look at the pay structure and see the bulk of the money comes from recruiting and maintaining downlines, then its probably best to avoid it unless you have the right skill set and lack of conscience.
Really??? I have 2,300 in my business downline and I have never thrown anyone under a bus.
@stevenhull5025 Yeah, right! Scammer!
I tried MLM many years ago, and failed. I don't know if it is a scam or not, but I do know that, as Dave said, you have to constantly recruit and train new people because of the very high turnover rate. This is important because you make most of your money on the commissions from the people below you. The biggest concern is that the people at the bottom have to sell products to customers. A lot of these products are quite expensive and difficult to sell unless you can convince people that these products are different from what you would see in retail stores or online, and are worth the extra cost.
It’s not inherently a scam, but it attracts people who want to get rich without working (thinking it’s a passive income), and a lot of the companies don’t offer products that would stand up on their own.
Dan, I don't want to have to point this out, but you just basically described a scam.
Mike, I'm beginning to think MLMs are scams.
People fail in A lot of things at lawyers doctors truck driver at making the NFL and NBA
A few are. Sadly. Most are just extremely difficult due to a lot of market factors like desirablity of the product, supply and demand, pricepoint, etc.
The reason why I couldn't be in an MLM is because their prime money maker is recruitment, not selling a product. So you're basically making money off people, not a product. That doesn't quite sit well with my conscience.
I'm glad Dave actually laid out what it is and what it isn't though. MLMs are not a side hustle that you can get rich off. It's a sales business, and you need to recruit like mad to become a master salesman. But yeah, you're not going to make money selling the product, however great it is. You're making money on recruitment.
It's essentially a legal pyramid scheme, because as long as everyone knows what you're doing I guess it's okay to take people's money from them.
as he said, u r a trainer, teacher,recruiter, motivate ppl to work harder n learn more? all these stuff r free??? u go to school u pay school fees, have they promised u success?? yet u paid them right?? be open minded and objective bud
@@jeffrey2688 EXACTLY 💯
They should have condemned this. Not acted like this is ok.
agreed
Yup
he probably has friends with MLM folks.
This kid said he wants to retire at 50. I bet he never had that thought until amway showed up and told him he could retire soon
I know several people who retired before 30 🤔
FrogyProd haha so true! Or other opportunities that brings up retirement and it wasn’t until that convo they’ve thought of retiring lol
Sometimes that's the way it goes. Some things never even occur to people until they know it might be possible
@@edwinmalachy what did they do for a living?
@@FaithandNova before Amway? My friend was a manager in a parking garage. His mentor was a manager at Hilton. My friend coached a financial planner to retire at 28.
Dave "there's nothing wrong with mlms" Ramsey. Definitely lost some respect.
That's because his church program is a "direct marketing" model. Like Toastmasters. And Zumba.
@@humbughumbughumbug What's the church program called? I'd like to research that.
@@Seaberrytidedelight3 It's called, "Financial Peace Churchwide"
Yes, but... then he actually lists some major wrongs: make no money, make friends mad, get
deceived or deceive thousands of recruits...
Can't directly attack the thing, it's already in the victims heart.
But the message is clear - it's a fool tax.
You don't have to scam others or be scammed with MLM. It can be decent part time income for some people. Its when you go for the quick buck that it turns bad.
The short answer is "yes." Any other answer is disingenuous.
the answer is NO
I work 3 jobs right now. One of them isn’t Uber. It’s Lyft. I make $700 a week easy where I drive. $100 a day doing between 11 to 16 rides which is about 5 hours on the road. Trying to be debt free within the next week or two. No credit card purchases or nothing. I’m new to the Dave Ramsey plan but I’m working on it. Almost there!
Everyone here saying that MLMs aren’t scams, I’m interested in how much money you earns year through your MLM?
My favorite is when they brag about being a $1 million earning, and what that usually means in an MLM is that their team has made $1 million over the several years since they’ve joined.
$100,000 plus pa
Dave's take here is honest and correct. MLM business aren't scams by definition. It's the liars and dishonest people who poison the well for everyone else. There can be liars and dishonest people in a business that operates under a traditional model - that doesn't make traditional businesses scams.
The flaw in MLMs is that, as Dave points out, being successful requires that you have a very particular skill set that most people don't have. Most people get into it mistakenly believing that they do. Dave puts the onus on people knowing what they're getting into before they get into it.
Jacob Gilliam : This is 2019. You don’t have to recruit anyone to make money with MLM. You’re mad and upset about a business model that NO LONGER EXIST! 😂
This was great, thank you for your honest opinion, not all MLMs are scams, but you do need to know what you are getting into like any other biz.
The issue with Amway is they actually rely on people imagining it is fundamentally a Pyramid scheme. It definitely isn't - but what is astonishing is that people in the business often don't actually realise it's not. They don't realise you can lose those "under you" when they reach a level and it also relies on continual work, not just reaching a point then easing off. You can sum it up by "you snooze you lose". Quite literally. Stop recruiting or selling and lose all the "downstream" levels. It's a job.
I am pretty disappointed in this episode because he made it seem like this guy could have a good opportunity in making good money if he sticks with it. Like many of the people writing the top comments on this video, there is more than enough evidence to label MLM as scams. Even if Dave can't legally say it is a scam he could have done a better job of shining light in this matter.
So you're disappointed because he didn't agree with your assumption and that these opportunities actually work? lol
@@jakerose7288 you actually think that MLMs work for the average rep? This isn't an opinion I can show u he's wrong with the income disclosures these companies have to show.
@@skfkfkd Yes I do and please do because I've personally seen and experienced the amount of income that can be generated, I agree that not every company is the same but depending on the products and services and compensation plan in order to achieve and increase your income, it is doable, regardless of how long it takes.
@@jakerose7288 what MLM has generated you wealth?
@@skfkfkd ACN and now Nexarise
Want to know the great thing about MLMS? Ayone can get into them. Want to know what sucks about MLMs? Anyone can get into them.
Long story short most people dont have the actual work ethic and commitment and the ability to hold out for delayed gratification.
Very true.
The most coherent comment Ive seen. Its not the business thats bad, its a tool. Its up to the people/leaders to use that tool for good or evil.
But the tool isn’t really that good now is it? It’s a house of cards. One disaster happens, and it topples down. They hype everyone up as if every one has a chance to be a diamond. But no, the model requires people to always be at the bottom. The model requires people to be a foundation for one diamond. If it was a perfect world and everyone did exactly what was taught, there will always be people at the bottom. The company would never reach a point where everyone is a diamond. This company profits off of gullible losers who are willing to “delay their gratification” to fuel the engine.
Honestly. I used to work for PRI America which is an MLM and I found out from a few employees working at the office I was hired at that the management were selling social security numbers and other sensitive info and when I went online I found out the company was sued in Florida for scamming its customers out of their pensions back in the day. I decided to quit and 3 other employees quit alongside me too. I’m glad I did. I feel safer now and I feel like I got my dignity back too. I’d rather do honest work.
Catalyst - D B how did you find out ?
MLM is not for whimps. It’s a great business model if you area’ t afraid of hard work and can stick with something.
If you can not be lured into inventorying to get garage qualified. If you are offering something people NEED.
At least someone here has common sense.
People have alot to learn about Network marketing. I'm in a network marketing company called ACN and its given millions of us the life we've always wanted. We dont sell products we sell services on bills we would be paying everyday for the rest of our lives anyway. People say it's a scam because the work is hard. Yes it's harder working for yourself than it is working for others. But you can become successful in wayyyy less than 7-10 years if done right and you take it serious
Really worried about a 23-year old who is already dreaming about retiring.
Seriously "I've never worked, and I never want to, but I want to be rich."
@@SupremeChimp Wants all the money but not willing to put in the work...what a loser.
Why?? At 20 I dreamt I would retire at 48. I did.
It's definitely a scam Dave just doesn't want to hurt his friends feelings
Dude, he is the most transparent person ever lol
@Shane Stensaas Then he’s an idiot if he’s even mildly endorsing MLMs.
I was in it for three months and am not anymore. 😂 Bogus. Now I’m a structural engineer.
How successful of a structural engineer were you after three months?
@@rickthebeekeeper9170 More successful than I was after three months in the MLM.
I would truly believe that making “real money” at an MLM is about as realistic as hitting the lottery
Technically, lottery wins have better odds.
Lottery is a better chance
playing the lottery doesn't require rare skills and abilities🤷♂
For all of the Pro MLM people, please name me one legit Fortune 500 company that made their fortunes as an MLM. For example: Apple, Microsoft, Ford, Amazon, Geico, etc. If the MLM model is so great, then how come Steve Jobs did not sell iphones through an MLM company?
Geninc
Maybe they will say cause they are all new companies
MLM companies have an interest in enriching its workers.. Corporate companies HATE workers. In fact peoples wages are the biggest drain on the CEO's wallet and he'll do anything not to pay it. Thats why Fords's factories are filled with wageless robots, and Apples's Iphones are made in extremley low waged Chinese labour camps.
@@jahsnoke8043 what mlm do you work for lol
Primerica
MLM’s feed on people in their 20’s. It’s always amazed me how Dave does not call pyramid schemes out for what they are.
cool kids because he also knows a few people who became millionaires thru it.
Because they are not pyramid skins . They are just hard business
Iron Heart Fitness 🤣🤣🤣...You mean “hardly” business
Derrick Stinoski lol ... so ignorant
Not pyramid schemes.....by whose standard? The FTC allows the MLM industry to self-regulate except in rare cases., and warns the public to make their own determination. The FTC currently has a 29-0 record against those they've investigated to date.
Someone tried to lure me into MLM. Every time I asked her if I was going to be selling my own products or someone else's she couldn't answer. I told her no way and she was so upset. Just be honest from the jump. It's a scam.
And you still work at your dead end job, don't you?
Christof L stop talking to me, scammer.
@@brianafranklin8164 Keep working hard and maybe you can retire at 67.
Christof L okay scammer
Briana Franklin , he is indeed a scammer, doing his best to defend scammers by attacking you.
I know a real go getter extrovert who has been diligently working at Amway for 6 years. Today he makes 2100 a month but he spends about 400 of that on overpriced product for self usage, writes off 600 a month on vehicle expense to run around to endless meetings, goes to 4 big annual meetings that involves traveling airfare expenses. If this dude I know isn't making big money then I doubt the average person will make any real after expenses money.
You may think he is a go getter . But maybe he is Not putting in as much work as you think . I know people who have been in MLM for years with not that much success and other that quicker gain more financial success . It’s hard work not just tune in that matters . Do some research
Iron Heart Fitness 😂😂😂typical response from a. Amwaybot
Derrick Stinoski well in this video he clearly states that there are people who achieve success with it. Why can’t you believe it! Wake up . In the USA only top 1% individual income earners earn over 250/k per year in income . It’s hard to be top 1% income earner no matter where you are or what you do .
Men in their twenties who talk about retiring early gross me out! And it's always guys who didn't have to work while they went to school. Like...you estimate that you can only stomach working 15 or 20 years of your life? Get out.
Utterly disappointed in Dave. An MLM is an unethical business model and it destroys lives. Honestly, it sounds like Dave was not prepared for this conversation. Explains why there is 266K views and only 8.7K likes.
Unethical??? Why do many large companies incorporate the MLM business model within their business?? Why do people like Warren Buffet invest in Multi Level marketing companies??? Obviously you have not done your due diligence
The skill set he’s talking about is scamming people and manipulation
Nah just selling.
h1ghnezz lol, ya selling a false dream.
@@Adam-mj5hl how do you mean that
Selling people is the definition of scamming.
Or by being delusional enough to believe that you are helping those you are recruiting because you don't understand the true economics of your business
I have a particular set of skills to annoy, harass and antagonize all my friends and family with a worthless pyramid scheme.
Pyramid scheme it is not. Work for ANY company and it is structured as a pyramid. You have zero chance of reaching the top. In MLM EVERYONE has equal opportunity to reach the top.
MLMs are just Time Shares for poor people. They sell you something that sounds great but it’s all just a way for a wealthy company to take advantage of people who don’t know better.
If this guy wants to be retired by age 50, it won't happen if he's doing multi-level marketing. Every MLM company I've seen has a few people at the top making millions and the rest are making almost nothing or losing money. The concept is just doomed by design. Why it still goes on, I will never understand. The next person who tries to recruit you for multi-level marketing, ask them how much extra money are they making? I guarantee you will get one of three answers 1) no response at all, 2) claiming they are just getting started and expect to be making real money soon or 3) claiming they don't share any of their personal finance information with others.
Family members were part of Amway. We were sitting down at an amusement park and they started talking about their Double Diamond upline. The upline was moving. "Why are they moving?"
Ans: Because their landlord sold the the house they were living in.
Why didn't they own their house?
Ans: It was not their dream house.
Hmmm. Double Diamond should be well into the "Able to own your own house!" Category.
Another possible theory of Dave's reluctance to criticize MLM's is that many of his listeners are most likely involved. If he calls them out for the scams they are, he becomes a 'Dream Stealer' and they tune out.
“Dream Stealer”? What’s that?
@@totalnewb123 Common phrase used by Uplines. Anyone talking sense is trying to 'steal your dream'....
I really don't understand Dave's accepting attitude of MLMs. They're scammy, slimy and a huge waste of money and time. They're right up Dave's alley for things he should ridicule for their stupidity, yet he doesn't...
Chris House cuz he's smarter than you
Wyatt Chartrand no you are lol mlm is not a scam it's just annoying tedious work. A pyramid scheme is when a recruit pays to join and no real product is being sold everyone makes money from the recruiting and that's illegal
He knows you can make money from mlms. The people at the top make the money.
Because he has friends that make millions meaning he knows the people who started or were the first recruits. Everyone else will fail. He won’t bash it when people are relying on him not too
"They're scammy, slimy and a huge waste of money and time." Same description of the summer sales program I did... finally realized after the fact.
Dave says that credit cards are the cigarettes of the financial world; MLM's are the reverse mortgages of the business world.....
It’s a scam but he can’t say it lol
Is the IRS, Credit Card, Loan, Banking Industry companies too a scam ?
@@davidsamuel6018 it sure is
Why can't he say it?
@@xxitzsmellyxx For legal reason that's a joke! For legal reason that's a joke!
If it's a scam, everything is a scam bc you can lose your job too...so be realistic or keep your mouth shut.
He says right off the bat why only 1% succeed and the specific strategy needed to succeed.
If you can get people to sell, you can reap their rewards.
Get all the sellers to sell for you and you can work part time just reaping what they sow.
Usually only 1%
it takes a certain kind of personality - thick skin and social skills. most people think they're tough and persuasive, but they're not million-dollar tough and persuasive
its Ironic because I was driving for Lyft and one of my passengers tried to sell me on Amway
🤣🤣🤣🤣🤣😜What an oxymoron
Looking strictly at the numbers, you probably should've listened.
In order to "retire" as a full-time Lyft driver, you'd need to take standard fares all day long for 72 years.
But even if you go only to the top of Amway's sales plan (ignoring the team aspect completely), you should be able to gross $1.5 million (the low end American retirement fund amount) within about 7-8 years.
And you don't have to put gas and new brake pads onto an Amway business--not to mention no one can throw up in your car either!
The good news is you're more than welcome to do both though. Money is money, in my opinion.
@@kingoffuzziethieves plus you have unlimited people to sift through as a lyft driver. This guy in my city went from 0-15k/mo in a year driving lyft fulltime then hosting a plan showing every friday. His whole team started doing this and he had liek 5-6 3k/mo earners in 6-8 months. It was crazy to see the come up for these guys, one was 21! MLM is only a scam if you dont work it consistently and dont qualify people.
😂
Carry on driving for Lyft until you retire
Pyramid schemes are some of the biggest scams ever. If you're not the scammer at the top you're being burned. My cousins thought about getting into one and they had to purchase the product out of pocket in order to sell and they don't keep much profits. I'm glad they avoided it.
If you are considering a MLM and a Network Marketing business a scam by default because it's structure is shaped like a pyramid then you are not educated enough on the matter to determine it's a scam. Because there are SEVERAL distinguishing factors between a MLM/NM company structure and a pyramid scheme. But here, can you explain to me what the differences are? If you can't it means you aren't educated on the differences so you wouldn't know a legit company structure if it reached out and shook your hand. This is not an insult. This is a encouragement to educate yourself so you can discern the difference.
@@singingcowboy674 why dont you explain the difference instead of calling him out
@@droneboy5415 Because he is predisposed to figuring any explanations are deceptions and therefore rather than doing his own research he would simply dismiss it out of hand.
How about 38% profit margin on personal sales??? Plus commissions on my downline sales. I hold zero stock.
Im real surprised by Dave's response. I woulda thought based on how he perceives money in general that he would wholeheartedly advise people to not jump into a pyramid scheme. I wonder if he gets paid to speak at any of their seminars?
Don't forget, Dave's earlier radio show co-host was Roy Matlock Jr (of AL Williams/Primerica). Still seems he has connections too
Dave is too smart to involve himself on paper.
He rubs shoulders with a couple speakers like john c maxwell, and more network managers
MLM makes you believe that you can sell and recruit people to make money. The nasty truth is you’re the customer who’s buying products that you don’t need with hopes of selling them to someone.
Why join a company with a product you don't use yourself???
I think most don’t understand that these MLMs are only for salespeople. If you’re not into sales or have no desire to learn how to sell, don’t do MLM.
*Side note, if you’re selling to family and friends you’re doing it wrong.
I use to be in an MLM at 18. Learned a whole lot and got my first taste of what the sales world is; it can be brutal. But it gives you a thick skin. I quit because music always called me back with it’s urge to create.
It's a known fact that around 98% of people who join an MLM do not earn enough to replace a full-time job...Between 50%-65% leave within 12 months with most in debt.
Why in debt?? Filling their garages with stock to qualify??? Leasing a fancy car and renting a mansion to "fake it until you make it" Do these things and you WILL fail. You are only bullshit*ng yourself.
It boils down to learning some business skills to be successful in whatever you do
This.
So what does that have to do with how awful MLM's are?
Thanks Michael. Your comment is good.
Correct.
MLMs are the worst
Dan, take a hard pass. Amway makes its money on recruiting and not selling products. How much comes from recruiting and how much from selling? I don’t know because MLMs never report it. They prey on the hopes and dreams of desperate and adrift people. As a new recruit you will be paying the following:
• Registration Fee:
• Starter Kits:
• Annual Renewal Fee:
Does a real job make you pay to be employed or does it pay you? There is money to be made but it won’t be by you. Go and play the drums and think about another plan.
So filling your car with gas, taking a bus or a train to "work" and paying out of your own pocket to make your employer rich is what??? I wonder why millions of "workers" struggle just to survive. MLM is a legitimate business model in which EVERYONE has equal chance to reach the top UNLIKE traditional businesses.
"Multi-level marketing company" is just a fancy way of saying pyramid scheme
Yes but why are pyramid systems bad? Yes, you give a part of your profit to someone over you but you get a part of x amount of people. It's more or less a way to motivate the marketers to do something.
rraannddoomm because all pyramid schemes will inevitably collapse. The main feature of pyramid schemes is that the only way for a seller to became profitable is to become a supplier to other sellers, so if 1 person supplies to 5 people and those 5 people supply to 5 more people each you'll have 25, those 25 people supply to 5 each and you'll have 125, after 14 cycles of this you'd literally run out of people on the Earth to supply to, at that point the pyramid collapses and everyone loses their money. It's simple Math.
This is why pyrimidine schemes are ILLEGAL in almost every country on Earth including the Unites States. MLMs like Herbalife and Rodan&Fields are pretty much operating in a legal gray area.
No , I made money when I did it ,
You do t have a clue...
“I’m not gonna talk you out of it” meanwhile spends the 8 minute segment talking him out of it.
Credit cards are scam but MLM are ok 🤯
Both are legit If you understand it fully
Shame on Ramsey for not absolutely condemning the absolute fraud of Amway.
Funny how people say MLM is bad, it's a pyramid scheme, don't get into it and yet the majority of them are ok with being in the true pyramid scheme of them all: a job.
People typically aren't thinkers or leaders, yes, a job is the biggest scam around, especially if you consider the ones that offer few, if any benefits. Others, like Sears, allows employees to devote the better part of their life, 25-30 years before the company decides not to pay a pension as promised.
Peter McNally a job doesn’t require you to pay them more than you initially make to be employed by them. A job doesn’t require you to purchase tools and apps on a monthly basis to remain employed. A job doesn’t require you to attend rallies for story telling and motivational speaking to remain employed. In a job, you are paid for the work you give. In a MLM, your work directly benefits those above you, while you get less than 1% commission for every dollar YOU generate. You are the product. You are the source of income. THAT is the pyramid, not a job.
@@Dero_milsurp There are jobs that do require people to pay for their background check before getting hired, and it's not even a guarantee that you'll get the job. Also, some jobs do require you to go to training seminars, for instance, most corporate positions, union jobs, and even fast food restaurants. Plus, a lot of jobs do required to pay for tools out of your own pocket, hence mechanics, carpenters, and even warehouse positions. And, most jobs have a dress code you have to abide by, so you'll have to purchase the clothing required in order to meet it. In a job, you're helping the owner make money, and he/she are giving you a very small cut of the profits because it's the law, which they in turn can write off on their taxes at the end of the year and get back in their returns. I'm not defending MLM businesses, because they have many flaws within them too. I'm just saying don't knock on them all the time and give jobs the pass because they're not innocent either. In this day in age, it's best to be self-employed, whether it's in MLM or in a traditional business. I go for the latter.
There’s people who have been in Amway for years and years, but have lost more than they made. Also, you can’t be in Amway part time if you want it to work. It’s a full time thing.
“There’s nothing evil or wrong about this”? Really Dave?
Sarah Bullard There is nothing evil with mlms. It is how you you recruit and how you sell that makes you evil or good. You can be in mlms and still be ethical.
Exactly my thoughts! I can't think of any ethical MLMs that I know of.
Sarah, do you tell potential recruits they have a 99.7% chance of losing money? If not, you're being unethical, because that is the industry figure.
LISTEN at 3:40 to 3:52 . Dave is saying that he knows 5 people that became millionaires. He also met thousands that quit in 3 months. He is NOT saying to join Amway. LISTEN!!!!
That’s his business model! Use his services! Join his team! I wonder how much it cost to be an advisor going thru him. Same thing
HA HA HA. THREE MONTHS??? Who the hell can build a business in JUST three months??? Try three YEARS and you might get somewhere.
@@stevenhull5025 - For Amway, it will likely be more like 3 centuries. 99% actually end up losing money in MLMs.
The guy with the million dollars in this scam is the one at the top collecting all the cash from the dummies 🤣
MLM’s are a win if you don’t mind exploiting the people you hold most dear! Have at it....enjoy their money you scammed.........
Why the people dearest to you? Ask someone on Instagram lol
You don't have to promote your business to family and friends to be successful in mlm. You can always create a business account/page on instagram/twitter,RUclips etc and find entrepreneurial minded people to become new customers/business partners in your online business. Also there's many other ways to build your online business as well.
@Bryan Badass Dass lacked discipline, lacked budgeting, invested in something that is not a real interest of yours, invested in more then the minimums. Invest as much as you want but get a game plan, execute it and get a plan b.
@Bryan Badass Dass No, but a recruiter should always make sure new prospects like the product or service and invest more time and less money. Businesses need more time then they need money.
Dave really needs to undertake an ethical evaluation of MLM (this income disclosure obviously stinks). It's fantasy to think some star will rise in an MLM. To do that, you have to start one. I don't like how Dave seems OK to churn a downline for those poor peoples' last $399. Predatory.
It's very unchristian.
I know this is an old post and I'm not defending Dave, but when you live like a hammer, everything looks like a nail. Dave is focusing here primarily on the business aspect and not considering the ethical issues.
Affiliate Marketing through blogging is way better and easier than MLM. It is an introverts dream business. But like any business it takes hard work, 💰, and patience.
"Hi Dave, I'm calling to ask if you think losing money in MLM is a good idea"???? The only answer is "No", Dave.
Dave's very diplomatic and doesn't want a lawsuit. I have a family member that's been in MLM for over 20 years that sells financial products. She's in her 60's has never owned a home or a car and the only reason she's surviving is because she's stolen money from her elderly mother. Yet she tried to recruit my teenage son to join the scheme. My husband and I have cut off contact with her.
Even if you’re successful, you’re fraudulent because you’re selling people false hope and worse…….. taking peoples money that they can’t afford to lose and will never see again!
To me it seems like the law needs to be followed. The 80 20 law says that an MLM company needs to make 80% of its sales revenue from retail end users not affiliated with the MLM (distributors). That would signal real market demand for the products and not artificial demand created from distributors buying products then recruiting more distributors to buy more product making them the legal definition of a pyramid scheme. The problem is that there is so many levels of commission built into the sale price of each product that they can't compete in the free market and have to sell the product along with the "business opportunity" for a sale to happen so they have to operate illegally according to the 80 20 law. This information can not be refuted because most MLMs conveniently don't track it because they don't have to and would be shut down if they did.
Red Flag: Want to Get paid for the free advice you give to other people?
Well, your listening to Dave Ramsey for free and hes getting paid?
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 RUclips. 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 competing. 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.
Mulut Lewat Mulut This was one of the most credible comments left under this video. I wholeheartedly co-sign. I also certainly acknowledge that there are so many in the network marketing profession who over-hype their business in order to recruit. It gives MLM a bad name. But those of us who do this business right run an honest and viable business. People like Eric Worre, Ray Higdon and the late Jim Rohn are folks that we teach our teams to emulate so that we run our businesses the CORRECT way.
Addressing the attrition in MLM: 95-99% of ALL businesses fail, MLM or not. But unlike any job in corporate america, Network marketers are incentivized for helping others achieve success. In certain jobs, we rarely are incentivized for helping others and sometimes it makes us replaceable. MLMs teach leadership, personal development and professional development skills. Most serious MLMers are in Toastmasters. And many of us, myself included, have used our earnings to give back, launch other thriving businesses, and support others who are looking to run their own businesses. Like others in this chat, I was very much against MLM‘s until I met successful 6 and 7 figure earners who took the time to teach me the science. I was open to hearing their POV. Everyone is entitled to their opinion and I certainly acknowledge that many are turned against this profession. It’s not for everyone. But it’s not a flawed business model. Unfortunately it’s a factor of a small number of flawed people.
Thank you, good to see a sensible comment. Well said
Well, that was quite a pitch.
Thanks for taking the time to share your thoughts on this subject which I agree with 100%. Every business must continually grow or they become a statistic in the dustbin of history. Business is business! In Network Marketing, individuals with no special certifications can leverage their time through the talents of others who are willing to assist with their referrals while they are new and learning. In any industry like real estate, financial planning, doctors, lawyers, Subway, etc., FEW ever hit the TOP 1%. Getting Rich is NOT a primary goal of most people buy they want to spend more quality time with their loved ones, take vacations, enjoy the good life without accumulating bad debt! In life, there are always risks involved with running your own business but rewards are available for those with the greatest desire and success habits. Network Marketing is no different than any other business except that it has the power of leverage and time freedom.
MLM is not easy, you have to put in the hours, learn and become a professional.
Just like any other business, people think they just show up and win money without doing anything and then call it a Scam 🤷🏼♂️🤦🏼♂️
At last, someone who lives in a realistic world.
Absolutely, MLM is a SCAM! There is a local business man, if you could call him that, that loves taking others money. He isn't a hard worker but finds suckers that give him money all the time. Now he is being sued!
Ramsey went soft on MLM. Yes it is a scam.
He isn't buying the lies.
TYPICAL AMWAY ENCOUNTER
Old stranger: *calls you out of the blue*
You: "umm hey?"
Old stranger: "Hey uh... it's been a while I hope you're doing fine"
You: *awkward pause* "yea"?
Old stranger: " so are you looking to make an extra source of---"
You: *Hangs phone up in face*
Tyler Ellis “HOW WOULD YOU LIKE TO MAKE AN EXTRA $500 a week”
Legit lol
I don't do that. WHY would I?
Amway is better than your social security
Thats EXACTLY how the call goes😩
I got “recruited” to Primerica when I was like 19. I was in college making minimum wage and was desperate for money. I paid for my insurance license (which was very expensive for me). I, of course had no one to sell to and was to naive to figure that out ahead of time.
I am by my nature a TERRIBLE salesperson. I’m not pushy and hate selling people products I don’t feel they need.
That makes you a decent person, if that's any consolation.
You were the wrong target market they recruited because you don’t have a market in which you can talk to about your product. Thus, you need to go cold prospecting and cold prospecting sucks!!
You were in Primerica and paid for your insurance license?? Hmmm...
Initially all you pay upfront is a small fee to get you in the system to obtain your agent ID and studying material to pass the state exam. Primerica pays for all other fees for you to obtain a license and reimburses your investment back plus more once your license hits the state. So the information you're giving is incorrect. Unless you paid to obtain your life license on your own outside of Primerica because you can but it be way more expensive that way so it sound like that's what you did instead?... except you were a naive broke college kid at the time who was clearly misinformed. By what Im reading you also didn't see the value in properly protecting families in case of a death. So even then you didn't think a family deserved to know the importance of having life insurance? My 17 year old nephew even knows the importance of having it. No one wants to struggle paying for a funeral. My spouse has been in Primerica since he was 19 and is now 29 even he was naive enough to know the importance of what we do for families. We make unbelievable income. You were just not hungry enough for someone who was broke in college.
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.
MLM is about selling........to new recruits, which is the hallmark of a Pyramid Scheme.
@@johnd9541 there are people within certain MLMs that just sell the products.
@@eddycarpenter8989 Yes, and majority of their sales are ultimately made to the people they or their recruits recruit, in the form of starter kits or purchases made to maintain their "Active" status in the pyramid. Self consumption is the hallmark of MLM, and also the prime reason they are determined to be Pyramid Schemes.
@@johnd9541 Sounds like you were involved in an MLM and then busted out because you lacked direct sales skills
@@eddycarpenter8989 Actually no. I'm a forensic financial analyst who specializes in Annual Reports and other financial statements, including MLM "Annual Income Disclosure Statements", or as I refer to them "Pink elephants and Unicorn glitter".
The bad part about MLM's is that these things too often take on a level of enthusiasm that makes them start to feel like a cult. You start to look at everyone you interact with as a recruit and you have no relationships in your life anymore that aren't transactional. They break down their manners and decorum to the point that no one wants to be around them. - Dave Ramsey
SO SO TRUE