My ex got into 3 MLMs and turned our house into a warehouse of product she ordered "to sell" so she could keep advancing up the ladders... Tens of thousands of dollars of CRAP.
As crazy as it seems, Dave is actually still being *too fair* to MLMs. The average pyramid scheme participant actually makes *more* money than the average MLM participant.
He’s afraid of talking shit about any legal business. But he refused to be compared to them. IMO he knows it’s a scam but is afraid of insulting some rich assholes he knows.
I once overheard an MLM newbee training session in a hotel conf room adjacent to mine. This young gal was telling these aimless kids to "cry like a baby" to their relatives until they got what they wanted from them. They were also practicing their guilt tripping on mock calls to relatives. It was disgusting. I wanted to walk over there and tell those kids that they must have greater self respect to succeed in life. I forget which MLM it was.
Yes, Dave used to be being too soft on this because he have friends on "legitamete" MLMs, is good to see that is being more vocal against those schemes
I've had a negative experience with MLM when I was in my 20s. It almost caused strained relationships, and the people that would supposedly help me and my business to succeed would blow me off. Little did I know at the time that I was naive as well. I resonate with this video, for sure. Steer clear of MLM, work a career that you love that pays well, live on less than you make, dump your debt, and invest.
My experience with MLM: it becomes incredibly difficult to have truthful relationships and not feel like you have to turn every friend and acquaintance into a new recruit. You’ll become the “MLM person” and if not careful, you’ll destroy every relationship around you. Some people make money (few), some don’t (most). I got out of it because it was exhausting to not be able to have honest relationships without bringing the MLM subject up and constantly chasing people around like a Jehova witness. They’re not scams, but are definitely not for everyone.
That sounds a lot like a scam to me, bro. The vast majority of people lose money, and everybody doing it harms their own social life. That sounds horrific
Listen, I had a lady for MONAT hop into my DM asking if she could use a picture of my hair saying I used monat. I said “I don’t use monat” & she still wanted to! Those people are a mess
He is right about using up the "call list" I had friends in MLM on social media and they turned the friends list into a client list. All they ended up posting about was flipping face creams....
I think my favorite part about MLMs is they produce these people who are so clearly trying to recruit you into them that it’s laughable. I love denying their offers for “lunch to talk business” by saying “sorry I have no interest in a pyramid scheme”
I was once dating a guy who sold household products through a popular MLM. Once my brother and his wife invited us to dinner. After dinner my date brought his kit of stuff and started a sales presentation! I later apologized to them. lol that relationship did not last much longer. I also went with him to one of their "rally" meetings and it was pretty much a worship service of the stuff.
@@maxpendley4357 It is not an MLM. He just doesn't want to strongly denounce MLMs too strongly because MLMs are popular among conservative stay-at-home moms which are his primary demographic. MLMs thrive in church and synagogue communities.
This is a huge blind spot for Dave unfortunately. Doesn’t undermine his other points though and it’s a strawman and red herring for people to try and make it seem like it.
@@futuremillionaire72True, but at least Dave gives away a great free product with no need to join. Baby Steps is all out there for anyone to do without buying a single Ramsey product. So it puts him at a higher threshold in my eyes than any MLM I have heard of so far.
Heavy recruiters do make a lot of money but they’re making it on the backs of people who are filling their basements with auto shipments. Every time an underling gets an auto shipment, the upline gets paid.
Cutco makes fantastic knives. The problem with Cutco is that they sell at a high price point that few are willing to pay. Your friends and family generally aren't interested in shelling out $100s of dollars for knives because they "might" be better.
I'll never understand why anyone in 2023 would join an MLM. Anytime a person would reach out to me to try and recruit me or try to sell products to me, it would negatively affect my relationship with them.
I appreciate Dave being forthcoming about this. Over the years, he hasn’t put MLMs in the hot seat like he did in this video and I appreciate that. Coming from someone who was once in an MLM, your suspicions are right, but like Dave and Dr. d said, it’s not your business really.
Yes they are. People that sell those are almost as bad a timeshares. If you're reading this and you "work for" an MLM, I hope you feed bad because you should.
I am so sad when I run into someone who’s gotten sucked into this. They are excited about getting wealthy and retiring early, but no one can reason with them. Run into them ten or fifteen years later, they’re depressed and tell you they’re still working their day job and will have to do it into their late 60s.
My mother sold amway in the 1980s for a couple of summers, she still gets checks every month averaging 7000-12000 every month an hasnt even sold or done anything with amway in over 35 years, some lady she signed up went absolutey crazy with amway and is making 10 million a year and snce she signed her up shes getting checks all the time. one year she even got a check for 27,000
I started cleaning windows on the side and now make a living running my full time Window Cleaning Business. I'd avoid the selling game with MLM and online sales unless it's YOUR product.
First you need to be a customer of the company regardless of whether you try to build business. Next, you should not have a lot of upfront fees or products you have to buy, store, and sell. The best ones are where you’re simply enrolling people to be customers and they buy what they want and need. You’re not having to go back to them to continually sell individual products.
Ramsey had to tread carefully because he used to advocate for them. Now, he’s erring on the side of caution. He knows those people at the top that run those MLM scams.
There are literally better odds at a casino. Less than 1% of MLM retailers make more money than is put in (that number is even lower if you consider what people make in their first year). Literally betting your savings on red in roulette carries better odds of return (48-49%).
My buddy had me sit though one at his house. They only showed one side of the pyramid. It was selling books, and CDs on religion, finances, foreign languages etc. There was a yearly fee, plus a monthly fee. I don't think the sales person appreciated me. I told him to mirror the half of the pyramid and asked him if it was a pyramid scheme. He said no, then I said you want me to sell something that people can get online for free, and he said this is better information. I told him no and I told my buddy to say no. However my buddy signed up and about 6 months later canceled it because it was costing him too much.
Crazy this topic came up today. Car had some repairs this morning and was feeling desperate. I was talking with my friend in Amway today. Him and his wife actually succeeded and replaced their income by age 32. For a second I thought maybe that's the route I want to go. But this was a good reality check. I am not that guy that loves sales and recruiting. So I would not be that 1%. I'm not against them, but I am going to stick to the slow and steady race. Will be out of debt in Feb. 2024 and continue with the baby steps.
The 1% of people who make money on Amway, do so by selling seminars and training books to their underlings, not by selling the actual product. Amway is unethical.
What percentage of people lose their jobs with no severance pay? What percentage of people lose everything in their 401K? What percentage of people work for 30 years with no pension? CUT IT OUT!!!!!!
@@BobConnor-n2gI doubt they use Cutco also, so what’s your point? 🤷♂️Lol. I’m not praising Cutco. They are better than Walmart. But definitely over priced.
Life Insurance industry is similar to the Real Estate industry. Majority of companies operate as meat markets focused on “recruiting” as a way to access a reps natural market. It pays to be patient and only work with companies that will pay you first and bring you their own prospects.
Dave: "people blame Trump for everything" John: "people blame every politician they dont like for everything" I love the moments where John pushes back on Dave Ramsey's views in just the most subtle way that wont get him kicked off the show.
Ramsey dances around the MLM issue because he has friends running MLMs like he's mentioned in the past. Thats why he isnt calling them what they are....SCAMS!
I can agree with him tho. I have a friend that is a genuine good person and is successful at it. But he is a natural sales and motivator type of person. He is in the 1% and for the 1% its amazing, but the 99% its miserable.
It's a truly dreadful industry and gets a lot of hate for good reason. I became brainwashed and joined some over the years. 97 percent lose money within the industry.
I had a lot of friends get sucked into Worldventures. They became scary a cult like. If you didn’t but what they were selling they would literally curse you out, call you names and think YOU were crazy. 😕
Dave's life insurance analogy is spot on. There's nothing illegal about many network marketing companies (some of course are, like in any business). It's just like saying the CEO of a company is the only one who makes real money compared to the newest person at entry level. Well, no kidding. People just tend to be skeptical of any business model they are unfamiliar with, because they don't understand it.
You’re leaving out the facts Dave shared about MSMs specifically: the vast, vast majority of people involved lose money. That has nothing to do with a misunderstanding of the business model. It’s the whole point of the model.
@@cathyl7944 well if the point is to cause people to lose money then why is it a multi-billion dollar industry - with people making money? And why are there still people who participate in it?
@@JamesCarian No, it typically means emotional thinkers who lack the ability to perform any due-diligence. The victims of MLM are often even unaware of the term MLM, or that they're in one, including those who have left one.
I know Dave HATES Whole Life Insurance. I do too. Soon after I graduated college, a high school classmate of mine gave me his preposterous pitch. I didn't want to hurt his feelings. It was DAMN hard to get him gone.
Even *if* twenty-something percent of people turned a profit, that to me is in no way validating MLMs, it’s just telling me that 2 people out of ten are great salespeople. But if you’re a great salesperson, you can do the same thing with a legitimate business you start up and you’re not limited to a single distributor/wholesale partner.
Ramsey created his own amway. This is the only way to make money with mlm scams. Create your own. The only way you can make money with a con job is to be the con artist yourself of course. Kudos Dave.
I highly recommend listening to The Dream podcast series one. It’s a brilliant explanation and expose of the MLM business. Don’t go near MLM’s warn your family members.
Would you recommend using products for an MLM? Primamerica approached me to start an IRA account. I was doing research on what they get out of it and came across this video.
Primerica is usually an insurance company. Their products likely have layers of sneaky feea. Safer to stay away and open an IRA with Fidelity, Schwab, or Vanguard.
Primerica is a middle man commisons company. They introduce you to the products and get a commission from the company as a thank you for bringing them business. Fidelity is one of those companies that works with Primerica
I have my IRA through them and a few other accts. For the most part the funds have done well and I was able to buy C shares (no front load) and also put a roll over in the managed acct which is .8% fee. yearly an no other costs. Been about 7 years now and no issues, however, as always be sure to do your homework remember no one is going to care about your money as much as you.
MLM isnt about growing a hierarchy, it's about selling to that hierarchy. Seminars, conferences, fast start schools and conventions are the real money-makers.
These opportunities have such a high failure rate, if you build it it will most likely fall apart on you down the road. These statistics are from the FTC . Choose a solid company if you decide to proceed with one.
Dave knows some wealthy people in MLMs so he hates to say anything nice about them. They are just a worse version of your traditional business. They take advantage of people at a much higher rate than a typical business.
The key to be successful in anything is to do unto others what you want others do unto you. Once in awhile, theres going to an mlm product that actually works and improves lives, if you gain benefit from the product, go ahead, but if theyre just offering the money, forget about it.
The vast majority of people who start a business lose money. I think it's higher with MLM's because people that join them generally don't treat them like a real business.
lol I tried it once with a popular cosmetics MLM. I did not last long before I saw the light. They wanted me to send it all back and give me almost nothing. I sold it for half price out of the trunk of my car. Someone reported me and they contacted my sponsor (but she already knew I was doing it). Not much they could do lol. My sponsor was making big bucks and had tye pink car... *until* she got sick and missed a couple of months making the quota and they dropped her like a hot potato and took it all back.
Yup, something that isn't told upfront about the car, the person has to sign a lease for the car.....and the MLM only pays the monthly lease payment as long as the person meets the quota. Once the person doesn't, the MLM stops paying the lease, but the sucker who signed the lease is still on the hook for the monthly payments.
How can you profit from MLM with the money you make they will then force you have to reinvest it and buy more products to earn more and level up. You will be stuck with products in your garage that no one likes to buy even at half the price just to recover some of the money you have invested. It is CULT.
In my opinion, all jobs in general are mlms, not saying the ones described are better or not but either you’re at the top making the most bucks or you’re down the pecking order getting less and less until you’re at the bottom. You’re also providing a product or service for said job. Again just my opinion.
MLM companies also treat their corporate employees terrible I had 3 days of training at market America and they all stopped training me my co workers even stopped talking to me for 2 weeks I just sat there at my desk and stared at the wall until they fired me. They were super rude firing me too even lying to HR about me getting a week of training when at most it was 6 hours.
Dave has said in past videos that almost the same percentage of people who do day trading make a profit, but because he "knows people" who do MLM's they are ok. If you go into day trading with the same probability of making it then you're a gambling know-nothing, nitwit who has problems. If you do something else with the same probablity of making where dave knows a few people that made it however, then no, you just might be one of the good ones. WOW, JUST WOW.
I got sucked into a joke. YTB. "Your Travel Business". I am a former employee of NW Airlines who had quit due to staying home to raise my own children. I felt bullied by the girl who signed me up, forcing me (which I would not do) to call and be a pain in the butt to all my relatives. Every day she badgered me. I quit. I can't be a fake friend and call upon my friends to be suckers. It was awful. I didn't lose much $. Thankfully. I didn't bother my friends and family. I made an announcement that I had my own travel agency now and if they wanted to book through my site they could. It wasn't long after the head honchos were living in their beautiful Florida estates that YTB was done. Out of business. Just stay the heck away from MLMs and MLM people.
Selling stuff you can buy at a store because some how its better than what you can purchase at the store. Yet do you really need better than the store? One product I always think about is Amway laundry detergent. They argue that it will go further because it's more concentrated, but I use under the recommended amount with normal stuff on my cloths anyway. I'm not grinding my cloths into ground everyday Why do I need to hassle ordering detergent when it's right there where I buy groceries? You don't think the Tide people never looked at what what amway has been doing for the last 60 years? Do we need door to door salesmen that recruit their own competition in 2024?
In life ins. the MLM actually sells leads as their products, so the upline sells this product to make all their money, not at selling life ins. but selling leads. It is nothing but a scam.
Anything to do with timeshares are a scam. By the time you're looking to get out of one, you have already been scammed out of your money anyway, it's just a matter of who gets it.
I know a few people in my area who recruit homeschool moms and church ladies for Tupperware and they make millions. Literally. Millions of dollars. It's crazy.
@@jimroscovius I was referring to how most people using credit cards will go into debt, just as most people in MLM’s will lose money. But yes maybe it isn’t the best comparison. Still, Dave seems hesitant to address MLM’s directly.
Short answer: Yes. It's a sales job that's 100% commission and they always sell a bunch of crap that's not special and no one wants. Even dropshipping is better because at least you don't have to buy a bunch of inventory upfront that won't sell and fill up your basement with bs.
Dave's way too nice. Nobody makes money doing MLM. Nobody. A few people at the corporate level make money with their speaking engagements and selling books. That's it.
Most recruiters will tell you how they are making big money and you can too. Just ask them for proof of their earnings and they will tell you that its personal information and when you tell them its due diligence since they positioned it as a business opportunity then you get blank stares. If you want to end the conversation just ask if they are declaring said funds being eared to the tax authorities and they don't want to talk to you anymore
I dodged a bullet a few years back a friend wanted me to buy Into that shit and I'm so glad I didn't fall for it , I hope they saw the writing on the wall as well
The key to being great with MLM is recruiting someone under you who will build a large and long-lasting team. You can milk profits for the rest of your life.
My crazy sister did this selling 1000$ air purifiers she sold 80% of her goal of getting a free air purifier so the person above her got like 7 commissions and she just spend all this time and money and was forced to buy her demo vacuum i was one of the people that said no i wont watch ur presentation
Amway, actually sold good product, but from what I remember MLMs are simply high - pressure sales models. And yes VERY hard to make money in, from watching a couple of family members who tried Amway, in the early 80s.
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Born and raised in Utah, MLM capitol of the world. Yes they’re all scams
They are brainwashed to believe. It is also the pyramid capital of the world.
My wife and I were a part of an MLM for 10 years and we lost over $120,000. Don’t ever get involved with one.
How did you lose so much? I thought people usually only lost a couple thousand
@@janeddooee Cult frenzy syndrome. It's highly contagious in large crowds.
@@janeddooeeHe stuck with it for 10 years.
@@janeddooee As backwards as it sounds, they probably lost 6 figures in the MLM by _moving_ _up_ .
@@bigscores7237 woah
My ex got into 3 MLMs and turned our house into a warehouse of product she ordered "to sell" so she could keep advancing up the ladders... Tens of thousands of dollars of CRAP.
You're lucky you only have one wife to put up with.
But The Four of Us do rather well.
Mygod
She liked buying but not selling/working😊
As crazy as it seems, Dave is actually still being *too fair* to MLMs. The average pyramid scheme participant actually makes *more* money than the average MLM participant.
He’s afraid of talking shit about any legal business. But he refused to be compared to them. IMO he knows it’s a scam but is afraid of insulting some rich assholes he knows.
Yeah and he's quick to talk down about trading. Definitely have a much better chance in trading than you do in mlm
I once overheard an MLM newbee training session in a hotel conf room adjacent to mine. This young gal was telling these aimless kids to "cry like a baby" to their relatives until they got what they wanted from them. They were also practicing their guilt tripping on mock calls to relatives. It was disgusting. I wanted to walk over there and tell those kids that they must have greater self respect to succeed in life. I forget which MLM it was.
Might have done some good if you had
If a job interview is in an hotel, it is a scam.
If you have to pay for a job, it is a scam. Student loan is not an exception to the rule.
@@bpeper1365or maybe they would’ve sold him
Its all of them. Only thing that actually works 4 them
They are complete scams. You are a fool if you get involved in one.
Yes, Dave used to be being too soft on this because he have friends on "legitamete" MLMs, is good to see that is being more vocal against those schemes
Yeah the moral part isn’t even about if you personally make money or not. It is about is the product recruits or items.
I knew people who got involved with the term life insurance craze of the 1990s. A couple of them made good money as a side hustle.
I've had a negative experience with MLM when I was in my 20s. It almost caused strained relationships, and the people that would supposedly help me and my business to succeed would blow me off. Little did I know at the time that I was naive as well. I resonate with this video, for sure. Steer clear of MLM, work a career that you love that pays well, live on less than you make, dump your debt, and invest.
They’re predatory and scummy.
My experience with MLM: it becomes incredibly difficult to have truthful relationships and not feel like you have to turn every friend and acquaintance into a new recruit. You’ll become the “MLM person” and if not careful, you’ll destroy every relationship around you. Some people make money (few), some don’t (most). I got out of it because it was exhausting to not be able to have honest relationships without bringing the MLM subject up and constantly chasing people around like a Jehova witness. They’re not scams, but are definitely not for everyone.
That sounds a lot like a scam to me, bro. The vast majority of people lose money, and everybody doing it harms their own social life. That sounds horrific
I recommend that people start a blue-collar business or IT business or some type of “service business” if they want to make money. Not doing MLM
I care too much for my family and friends to put them through that. But my husband is in an MLM and hasn’t made a dime on it 🤦🏼♀️
If you have to pay to be a part of the MLM monthly. You're the product.
You pay websites lol
Exactly
Listen, I had a lady for MONAT hop into my DM asking if she could use a picture of my hair saying I used monat. I said “I don’t use monat” & she still wanted to! Those people are a mess
He is right about using up the "call list" I had friends in MLM on social media and they turned the friends list into a client list. All they ended up posting about was flipping face creams....
I think my favorite part about MLMs is they produce these people who are so clearly trying to recruit you into them that it’s laughable. I love denying their offers for “lunch to talk business” by saying “sorry I have no interest in a pyramid scheme”
I was once dating a guy who sold household products through a popular MLM. Once my brother and his wife invited us to dinner. After dinner my date brought his kit of stuff and started a sales presentation! I later apologized to them. lol that relationship did not last much longer. I also went with him to one of their "rally" meetings and it was pretty much a worship service of the stuff.
I take them up on the lunch to talk business as long as they are paying. Then I try to pitch them why they should quit :D
If only Dave denounced multi-level marketing as strongly as he does using a credit card and paying it off every month.
It’s because Dave’s certified financial advisor program itself is an MLM, so how can he denounce them?
@@maxpendley4357 It is not an MLM. He just doesn't want to strongly denounce MLMs too strongly because MLMs are popular among conservative stay-at-home moms which are his primary demographic. MLMs thrive in church and synagogue communities.
This is a huge blind spot for Dave unfortunately. Doesn’t undermine his other points though and it’s a strawman and red herring for people to try and make it seem like it.
@@futuremillionaire72True, but at least Dave gives away a great free product with no need to join. Baby Steps is all out there for anyone to do without buying a single Ramsey product. So it puts him at a higher threshold in my eyes than any MLM I have heard of so far.
@@justoguillermomontoya3821 The specific type of fallacy is called the "poisoning the well" fallacy.
i am just shocked mlm ads are allowed to be advertised as much on all platforms right now.
Don’t do it people. Just don’t do it.
The funniest part of these things is that you have to announce to all your friends on social media that you fell for an MLM pyramid scheme
Heavy recruiters do make a lot of money but they’re making it on the backs of people who are filling their basements with auto shipments. Every time an underling gets an auto shipment, the upline gets paid.
I did Cutco one summer in high school. The knives are fantastic. I still use them now 15+ years later. But yeah, I lost money.
Cutco makes fantastic knives. The problem with Cutco is that they sell at a high price point that few are willing to pay. Your friends and family generally aren't interested in shelling out $100s of dollars for knives because they "might" be better.
I'll never understand why anyone in 2023 would join an MLM. Anytime a person would reach out to me to try and recruit me or try to sell products to me, it would negatively affect my relationship with them.
The same people who buy timeshares. 😕😡
Yes!! Like how are we still falling for this as a society??
I appreciate Dave being forthcoming about this. Over the years, he hasn’t put MLMs in the hot seat like he did in this video and I appreciate that. Coming from someone who was once in an MLM, your suspicions are right, but like Dave and Dr. d said, it’s not your business really.
Yes they are. People that sell those are almost as bad a timeshares. If you're reading this and you "work for" an MLM, I hope you feed bad because you should.
I am so sad when I run into someone who’s gotten sucked into this. They are excited about getting wealthy and retiring early, but no one can reason with them. Run into them ten or fifteen years later, they’re depressed and tell you they’re still working their day job and will have to do it into their late 60s.
My mother sold amway in the 1980s for a couple of summers, she still gets checks every month averaging 7000-12000 every month an hasnt even sold or done anything with amway in over 35 years, some lady she signed up went absolutey crazy with amway and is making 10 million a year and snce she signed her up shes getting checks all the time.
one year she even got a check for 27,000
At the expense of others. Not a mutual benefit.
Find that extremely hard to believe
I started cleaning windows on the side and now make a living running my full time Window Cleaning Business.
I'd avoid the selling game with MLM and online sales unless it's YOUR product.
Wanna lose your friends? Be part of an MLM ….
Next time he visits his friends condo he will see their guest bedroom stocked to the ceiling with Herbalife boxes.
First you need to be a customer of the company regardless of whether you try to build business. Next, you should not have a lot of upfront fees or products you have to buy, store, and sell. The best ones are where you’re simply enrolling people to be customers and they buy what they want and need. You’re not having to go back to them to continually sell individual products.
It's horrible they lie and lie to you while stealing your money
Ramsey had to tread carefully because he used to advocate for them. Now, he’s erring on the side of caution. He knows those people at the top that run those MLM scams.
I wish Dave Ramsey would have the balls to talk about those scumbags just like he talks about idiots with big car loans they can’t afford.
He did? Holy crap. When was this?
There are literally better odds at a casino. Less than 1% of MLM retailers make more money than is put in (that number is even lower if you consider what people make in their first year). Literally betting your savings on red in roulette carries better odds of return (48-49%).
99% of people LOSE money when they join an MLM. Don't know why people think they're better than those odds.
I avoid friends who join MLMs. Saddens me every time I see someone fall prey to them, but I won’t participate in that obnoxious industry.
My buddy had me sit though one at his house. They only showed one side of the pyramid. It was selling books, and CDs on religion, finances, foreign languages etc. There was a yearly fee, plus a monthly fee. I don't think the sales person appreciated me. I told him to mirror the half of the pyramid and asked him if it was a pyramid scheme. He said no, then I said you want me to sell something that people can get online for free, and he said this is better information. I told him no and I told my buddy to say no. However my buddy signed up and about 6 months later canceled it because it was costing him too much.
Crazy this topic came up today. Car had some repairs this morning and was feeling desperate. I was talking with my friend in Amway today. Him and his wife actually succeeded and replaced their income by age 32. For a second I thought maybe that's the route I want to go. But this was a good reality check. I am not that guy that loves sales and recruiting. So I would not be that 1%. I'm not against them, but I am going to stick to the slow and steady race. Will be out of debt in Feb. 2024 and continue with the baby steps.
The 1% of people who make money on Amway, do so by selling seminars and training books to their underlings, not by selling the actual product. Amway is unethical.
Short Answer: Yes
What percentage of people lose their jobs with no severance pay? What percentage of people lose everything in their 401K? What percentage of people work for 30 years with no pension? CUT IT OUT!!!!!!
There is only one consistent method for getting rich quick, convincing others that you have the secret to getting rich quick.
I use to work for Cutco for a summer. Definitely would not do it again. But their knives aren’t terrible. Maybe over priced, but better than average.
I remember someone trying to sell me Cutco. I told it was Ginsu or nothing!
But how many professional chefs use Cutco? I doubt if they do.
@@BobConnor-n2gI doubt they use Cutco also, so what’s your point? 🤷♂️Lol.
I’m not praising Cutco. They are better than Walmart. But definitely over priced.
Life Insurance industry is similar to the Real Estate industry. Majority of companies operate as meat markets focused on “recruiting” as a way to access a reps natural market. It pays to be patient and only work with companies that will pay you first and bring you their own prospects.
I think if there wasn’t a Christian leaning to these schemes.. then Dave would be on a rant rather than a discussion
Dave: "people blame Trump for everything"
John: "people blame every politician they dont like for everything"
I love the moments where John pushes back on Dave Ramsey's views in just the most subtle way that wont get him kicked off the show.
How is that pushing back?
I’ve herd Dave say “people blame Biden for everything”
@@lauraschwed1545of course Dave himself is among that group.
@@justinstone4476it is pushing back by not promoting or knocking one side or the other.
That was a pretty generic thing to say. Lol
MLM=Moms Losing Money
Ramsey dances around the MLM issue because he has friends running MLMs like he's mentioned in the past. Thats why he isnt calling them what they are....SCAMS!
Exactly! if 99% of a fast food company's employees didn't make any money he would call them out as a scam, but his morals are compromised.
He said most people lose money, so what's your beef?
I can agree with him tho. I have a friend that is a genuine good person and is successful at it. But he is a natural sales and motivator type of person. He is in the 1% and for the 1% its amazing, but the 99% its miserable.
I've never heard him say that he has friends RUNNING an MLM but he that he has friends who are high up in Amway.
@@jimroscovius not enough outrage
It's a truly dreadful industry and gets a lot of hate for good reason. I became brainwashed and joined some over the years. 97 percent lose money within the industry.
Dave has one of the most accurate assessments on MLMs tbh
I had a lot of friends get sucked into Worldventures. They became scary a cult like. If you didn’t but what they were selling they would literally curse you out, call you names and think YOU were crazy. 😕
Wow Dave did a complete 180 on MLMs. I don’t know if anyone remembers this but a couple years ago Dave was defending MLMs
Dave's life insurance analogy is spot on. There's nothing illegal about many network marketing companies (some of course are, like in any business). It's just like saying the CEO of a company is the only one who makes real money compared to the newest person at entry level. Well, no kidding. People just tend to be skeptical of any business model they are unfamiliar with, because they don't understand it.
You’re leaving out the facts Dave shared about MSMs specifically: the vast, vast majority of people involved lose money. That has nothing to do with a misunderstanding of the business model. It’s the whole point of the model.
@@cathyl7944 well if the point is to cause people to lose money then why is it a multi-billion dollar industry - with people making money? And why are there still people who participate in it?
@@JamesCarian Because MLM preys on the naïve.
@@johnd9541 who is "MLM"? And the naive...you mean the unwilling?
@@JamesCarian No, it typically means emotional thinkers who lack the ability to perform any due-diligence. The victims of MLM are often even unaware of the term MLM, or that they're in one, including those who have left one.
Absolutely, yes they are.
I know Dave HATES Whole Life Insurance. I do too. Soon after I graduated college, a high school classmate of mine gave me his preposterous pitch. I didn't want to hurt his feelings. It was DAMN hard to get him gone.
Why does he hate whole life? It’s a cash investment.
@@2jcward Because his earlier radio show co-host was Roy Matlock Jr of A. L. Williams (Primerica).
When I was a home improvement sales person the amway people would schedule estimates just to try to recruit to self for them.
4:20 It sounds like Dave is referring to the late Bob Proctor. His story was exactly that and he supported MLMs.
I think he was referring to jason frenn with amway
Even *if* twenty-something percent of people turned a profit, that to me is in no way validating MLMs, it’s just telling me that 2 people out of ten are great salespeople. But if you’re a great salesperson, you can do the same thing with a legitimate business you start up and you’re not limited to a single distributor/wholesale partner.
Ugh it's the worst when a friend tries to sell me something or asks me to join their team. I know they mean no harm... But ugh it's the worst
Ramsey created his own amway. This is the only way to make money with mlm scams. Create your own. The only way you can make money with a con job is to be the con artist yourself of course. Kudos Dave.
I tried some MLMs. NEVER again. Did I mention never?
In my younger years I tried one. They are simply the biggest waste of time and resources ever.
I highly recommend listening to The Dream podcast series one. It’s a brilliant explanation and expose of the MLM business. Don’t go near MLM’s warn your family members.
I’ve never met any rich MLM person in my life. Amway Avon etc
Been there, done that…twice…never again
@canadiankels needs to show them her spreadsheets for the Canadian data she has! Stay away from MLMs!
They may not be a scam, but certainly they are cults
You know what else is a cult? The USA
Hey true that....Cutco knives are awesome!!
Would you recommend using products for an MLM? Primamerica approached me to start an IRA account. I was doing research on what they get out of it and came across this video.
Primerica is usually an insurance company. Their products likely have layers of sneaky feea. Safer to stay away and open an IRA with Fidelity, Schwab, or Vanguard.
Primerica is a middle man commisons company. They introduce you to the products and get a commission from the company as a thank you for bringing them business.
Fidelity is one of those companies that works with Primerica
I have my IRA through them and a few other accts. For the most part the funds have done well and I was able to buy C shares (no front load) and also put a roll over in the managed acct which is .8% fee. yearly an no other costs. Been about 7 years now and no issues, however, as always be sure to do your homework remember no one is going to care about your money as much as you.
MLM isnt about growing a hierarchy, it's about selling to that hierarchy. Seminars, conferences, fast start schools and conventions are the real money-makers.
These opportunities have such a high failure rate, if you build it it will most likely fall apart on you down the road. These statistics are from the FTC . Choose a solid company if you decide to proceed with one.
Dave knows some wealthy people in MLMs so he hates to say anything nice about them. They are just a worse version of your traditional business. They take advantage of people at a much higher rate than a typical business.
The key to be successful in anything is to do unto others what you want others do unto you. Once in awhile, theres going to an mlm product that actually works and improves lives, if you gain benefit from the product, go ahead, but if theyre just offering the money, forget about it.
The vast majority of people who start a business lose money. I think it's higher with MLM's because people that join them generally don't treat them like a real business.
lol I tried it once with a popular cosmetics MLM. I did not last long before I saw the light. They wanted me to send it all back and give me almost nothing. I sold it for half price out of the trunk of my car. Someone reported me and they contacted my sponsor (but she already knew I was doing it). Not much they could do lol. My sponsor was making big bucks and had tye pink car... *until* she got sick and missed a couple of months making the quota and they dropped her like a hot potato and took it all back.
Yup, something that isn't told upfront about the car, the person has to sign a lease for the car.....and the MLM only pays the monthly lease payment as long as the person meets the quota. Once the person doesn't, the MLM stops paying the lease, but the sucker who signed the lease is still on the hook for the monthly payments.
How can you profit from MLM with the money you make they will then force you have to reinvest it and buy more products to earn more and level up. You will be stuck with products in your garage that no one likes to buy even at half the price just to recover some of the money you have invested. It is CULT.
In my opinion, all jobs in general are mlms, not saying the ones described are better or not but either you’re at the top making the most bucks or you’re down the pecking order getting less and less until you’re at the bottom. You’re also providing a product or service for said job. Again just my opinion.
MLM companies also treat their corporate employees terrible
I had 3 days of training at market America and they all stopped training me my co workers even stopped talking to me for 2 weeks I just sat there at my desk and stared at the wall until they fired me.
They were super rude firing me too even lying to HR about me getting a week of training when at most it was 6 hours.
Dave has said in past videos that almost the same percentage of people who do day trading make a profit, but because he "knows people" who do MLM's they are ok. If you go into day trading with the same probability of making it then you're a gambling know-nothing, nitwit who has problems. If you do something else with the same probablity of making where dave knows a few people that made it however, then no, you just might be one of the good ones. WOW, JUST WOW.
I got sucked into a joke. YTB. "Your Travel Business". I am a former employee of NW Airlines who had quit due to staying home to raise my own children. I felt bullied by the girl who signed me up, forcing me (which I would not do) to call and be a pain in the butt to all my relatives. Every day she badgered me. I quit. I can't be a fake friend and call upon my friends to be suckers. It was awful. I didn't lose much $. Thankfully. I didn't bother my friends and family. I made an announcement that I had my own travel agency now and if they wanted to book through my site they could. It wasn't long after the head honchos were living in their beautiful Florida estates that YTB was done. Out of business. Just stay the heck away from MLMs and MLM people.
It is not moralizing by calling it what it is, a pyramid scheme.
Selling stuff you can buy at a store because some how its better than what you can purchase at the store. Yet do you really need better than the store? One product I always think about is Amway laundry detergent. They argue that it will go further because it's more concentrated, but I use under the recommended amount with normal stuff on my cloths anyway. I'm not grinding my cloths into ground everyday Why do I need to hassle ordering detergent when it's right there where I buy groceries? You don't think the Tide people never looked at what what amway has been doing for the last 60 years? Do we need door to door salesmen that recruit their own competition in 2024?
Can anyone tell me please if HGI (Hegemon Group Financial) is scam?
MLMs are mathematically impossible to be successful in unless you are in the top few percent. If you want to sell products, sell products.
In life ins. the MLM actually sells leads as their products, so the upline sells this product to make all their money, not at selling life ins. but selling leads. It is nothing but a scam.
Are the people that charge you to get out of a timeshares a scam?
Not if they get you out.
Anything to do with timeshares are a scam. By the time you're looking to get out of one, you have already been scammed out of your money anyway, it's just a matter of who gets it.
I know a few people in my area who recruit homeschool moms and church ladies for Tupperware and they make millions. Literally. Millions of dollars. It's crazy.
MLM means trying to monetize your family and friend circles
Dave knows people who are liars, if not criminals ........who make 7 figures
Being "in" the MLM industry is not the same as pursuing an MLM gig.
Is Premier Financial Alliance, Inc, known as PFA, a MLM scam?
Dave won't apply the same logic he uses for credit cards to MLM's....
Apples and oranges.
@@jimroscovius I was referring to how most people using credit cards will go into debt, just as most people in MLM’s will lose money. But yes maybe it isn’t the best comparison. Still, Dave seems hesitant to address MLM’s directly.
Short answer: Yes.
It's a sales job that's 100% commission and they always sell a bunch of crap that's not special and no one wants. Even dropshipping is better because at least you don't have to buy a bunch of inventory upfront that won't sell and fill up your basement with bs.
What about demonstrating fire safety equipment?
Dave's way too nice. Nobody makes money doing MLM. Nobody.
A few people at the corporate level make money with their speaking engagements and selling books. That's it.
Most recruiters will tell you how they are making big money and you can too. Just ask them for proof of their earnings and they will tell you that its personal information and when you tell them its due diligence since they positioned it as a business opportunity then you get blank stares. If you want to end the conversation just ask if they are declaring said funds being eared to the tax authorities and they don't want to talk to you anymore
I dodged a bullet a few years back a friend wanted me to buy Into that shit and I'm so glad I didn't fall for it , I hope they saw the writing on the wall as well
Dave's earlier radio show co-host was none other than Roy Matlock Jr of A. L. Williams (Primerica). Of course Dave recommends term. lol
The first tiny handful of people do GREAT, the vast majority are left holding the bag.
The key to being great with MLM is recruiting someone under you who will build a large and long-lasting team. You can milk profits for the rest of your life.
My crazy sister did this selling 1000$ air purifiers she sold 80% of her goal of getting a free air purifier so the person above her got like 7 commissions and she just spend all this time and money and was forced to buy her demo vacuum i was one of the people that said no i wont watch ur presentation
Have had 3 different people try to sell Primerica bullshit to me
There's a Dragnet episode on MLM's
Amway, actually sold good product, but from what I remember MLMs are simply high - pressure sales models. And yes VERY hard to make money in, from watching a couple of family members who tried Amway, in the early 80s.