Are MLMs Really Legal Pyramid Schemes?

MLMs are garbage designed to funnel money to the top of the pyramid. Over 95% of everyone in any MLM, no matter which company it is, make less than minimum wage.

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 dated a guy whose parents were really into this stuff. They had all these ad magnets on their little pick up. They just wreaked of sad pathetic, money hungry loser. I look back and I'm so happy I didn't end up with that guy.

Someone needs to call in and ask why Dave isn’t more harsh on mlms. Right fully so he calls time shares the largest legal fraud in America, I wish he would say the same about mlms.

All MLMs are bad. They're worse than straight-up losing money in a ponzi scheme, because the victim is convinced that they are working an actual job. Anyone in an MLM is basically wasting however many days, months, or years of their life that could have been spent on advancing a real career or learning real skills.

Life has many pitfalls, and we have to dodge as many of them as possible. MLMs are one of them

Yes they are legal scams.

Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. A trader made over $350k in this recession influenced market.

MLMs hold out the promise
But they don't teach proper financial principles. The baby steps are better.

A better side hustle would be lawn care business!

MLM use a lot of cult tactics and are absolutely AWFUL. They destroy so many lives. Their damage is truly understated in so many ways. I have no idea how they are still legal.

Pbd biggest mlm scam

The math don't math in this business model. Got the scars to prove it. I do not recommend it at all.

You have to consider the damage you'll do to your relationships with friends and family.

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. 😕

And BTW the business model is genius. Here are 1000 widgets. Please buy them at a 2x cost markup. Now you have paid $5000 for 1000 widgets, you use one and store 999 in your garage while you try and off load them. I think there is a term for a MLM seller that has thousands of dollars of product int their garage, lured by the promise of moving up the ladder from buying more products, and no time or skill set to offload the merchandise. Wasn’t there one that was selling workout pants and a bunch of women got scammed?

You better be able to make money off of selling the product. If you recruited 5 people to work under you. They would need 25 people under them, they would need 125 to be successful. Those 125 need 625…..etc the numbers get staggering. The issues also is that mom is not new and still has a bad reputation. I think you’re better off trying to flip things at good will.

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.

I think Dave either has close friends or some sort of vested interest in MLMs that he doesn’t want to outright say they are scams. It kind of reminds me of how Trump used to act whenever Putin was bought up. He refused to say anything bad about him lol

Dave’s take on MLMs is an ick

You can spend much less and sell used products from garage sales and thrift stores online for much higher profit. It just takes more discipline to source your products.

I'll save you the trouble of watching the video. The answer is "YES!"

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

They’re absolutely pyramid schemes. They skate because theoretically you can make money with them by selling the product. But any actual money made all requires recruiting people to an upline. The idea that you’d earn your living with product is silly on its face because whh would anyone continue to pay you retail to consume the product they like if they can simply join as well to receive discounts for the product? The entire profit schedule depends on an upline. But because you can sell product theoretically they skate by. But the immense majority of any revenue or profit an MLM generates is from the upline, seminars and self help materials. And the issue is that the target market is almost always people who can’t afford to get hosed.

Wonder if he was talking about Robert Kiyosaki ???

it's so easy to have a financially balanced life. just learn and practice the wisdom of salomao's proverbs, which are in the bible

Sounds like the guy who wrote in is worried about his friend. I'd be worried, too.

Lady in the grocery store tried to get me to join a life insurance mlm couple weeks ago. No thanks

Vice does a great job on exposing the predatory side of MLMs in their video " Why Women are Leaving their Side Hustle: Leaving Lularue". Im a little disappointed that Dave went "easy" on the topic of MLMs considering that they can cause financial ruin.

99% of people LOSE money when they join an MLM. Don't know why people think they're better than those odds.

I quit my insurance sales job after they pressured me to keep trying to recruit my in laws- soulless bastards

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.

I quit my insurance sales job after they pressured me to keep trying to recruit my in laws- soulless bastards

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.

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.

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.

MLMs are for dumb * desperate people. All the people I know who got into one fit this description.

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.

It's a scam! They prey on the people pushing their producta by forcing them to buy the products they sale causing them to go in debt just to move up. Most MLM reps only make money buy hosting conferences, which you have to pay for to attend. It's worse than a pyramid scheme.

To me, talking about managing a high turnover environment. I mean, that's one thing if it's fast food and it's just high schoolers or whatever, but Dave said himself this is people getting in expecting it to be something it's not. Why would anyone want to get into something full of this much toxicity? But thank you for making my decision for me in a video that I didn't expect to mention it. I'm looking for a change in jobs, and selling life insurance was on the table. Now it's not!

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.

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

Plot twist, Ryan's in love with that guy's wife

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.

AMWAY

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.

Obama sucks

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.