The Dangers of Multi-Level Marketing (MLMs)
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The Dangers of Multi-Level Marketing (MLMs)



every one date we are gonna be talking out MLMs or multi-level marketing a concept which sounds way more legit than it actually is because trust me it is dodgy as hell dude the average person when you first hear about MLM is almost level marketing it can sound like a legit business kind of idea or opportunity that you know is gonna net you Millions and make you your fortune but it's not when you break down what an MLM is it is basically just a pyramid scheme masquerading as something way more legitimate than it actually is I thought by now you know like 2018 people would be more aware of MLMs and pyramid schemes and kind of stay away from but it turns out more and more people every year are getting involved in multi-level marketing especially in the UK I think one statistic said there's something like 500,000 people involved in multi-level marketing schemes in the UK at the minute and as of 2016 about 75% of them were women more and more are popping up all the time they're getting more and more prolific and I feel like we need to kind of talk about them more especially in the UK where they kind of ignored a little bit I think and so more and more people are getting involved and more and more people are losing money because of them people get involved in MLMs like to call themselves self-employed or girl bosses or boss babes and they like to pretend that entrepreneurs and they're there and they're this and they can sound like a very appealing lifestyle but it's not what you're actually gonna be getting and so today I thought we should talk about it in a global digital economy more and more of us want the freedom to work for ourselves with commitment determination and willingness to learn anyone can create an outstanding sustainable income from this network anything from 1,200 to 10,000 pounds a month and more the potential really is uncapped are you looking to get more out of life earn extra income have more control and flexibility if you're looking for those things on your terms and way maybe the because Amway can be exactly what you want it to be providing you with a flexible opportunity that puts you in control I was really looking for a legitimate way to work from home somehow spend more time with my family but I still needed the income at first when I started building my business I was hopeful that it could be what our family needed I was hopeful just to replace income that I had made previously because that's the thing with MLM they make it sound appealing they make it sound like you're gonna be this independent business person who's gonna work their own hours and do their own thing make their own money and that's how MLMs get you they suck you in when you're vulnerable maybe when you've lost a job make when you're short on money maybe when you're in debt that's how they get you and they prey on the vulnerable they prey on the ill-informed and that's why I want to talk about this today to make sure no one is ill-informed anymore and no one is left vulnerable to these guys and their scams but before I get into like any intense criticism and talk about why MLMs are bad let's take a look at what a multi-level marketing scheme or what multi-level marketing is have you ever seen an image like this pop up on your Facebook feed your Instagram feed Twitter any kind of social media profile have you ever seen something like this would you be interested in a lit lit opportunity you could be home all day and not feel guilty about bringing in that dolla dolla dolla join my lip sin steam if you've not seen anything like this you're lucky but many of us have myself included and if you have seen this you've just been pitched to by someone involved in an MLM and you need to run run for your life multi-level marketing sometimes known as network marketing is very very similar to a pyramid scheme although on the surface they seem more legit because there are actual products being sold the problem is the same basic principles are there in terms of recruiting more people to earn more money and recruiting more people to earn more money and they recruit people to earn more money it's still a pyramid scheme in that respect and the products involved are often poor quality or lacking any real value is just they have to have those products to sell to make them legal this is a really great diagram from Phaedo which shows the basic structure of an MLM and I'll tell you this now only these top-level people are diagram have any chance of making any real money here the rest of them are pretty much screwed so to go into a little bit of detail you basically you start with this company and they make some cheap crappy product right it might be knockoff perfume it might be cheap tacky makeup it might be leggings or thinner than tights you know who I'm talking about it might be some kind of herbal supplement or weight loss product it could be like vitamins or essential oils something like that there's a whole whole bunch of them out there I'm sure there's a lot you've heard of I don't want to name any in particular but you know who I mean so you start with this crappy product but let's be completely honest here the product does not matter they all work the same way one thing I do find interesting though is that I have found this trend among the products and that they all seem to play into some kind of vulnerability they kind of prey on specific vulnerabilities for example if you're feeling insecure about your looks about your weight about your health if you have health or medical problems they kind of prey on this it's kind of like a trend amongst all MLM products that I've seen so far I'm sure there are a few exceptions but you know so basically the company at the top is making this product they recruit people to sell their product they don't get a salary but instead they kind of work on Commission and they get a certain amount of money for each product that they sell these people could now go on to recruit other people to also sell the products and they earn a little bit of their Commission and they earn money for signing them up and so on and so on you get people gone and recruit people sell the products and seeing you end up with this big big massive web like on the diagram we just saw the problem is that unlike in like a legitimate business like in a shop or something like that instead of being encouraged to like go out there and find the mark and sell to certain people who are looking for this product and so on you're actually just encouraged to sell and to recruit to people within your like family and friends which is why a lot of people turn to like Facebook and Instagram to market their stuff and this is how like social media feeds end up like just filled with like offers trying to sell you like trash but things that you don't need and you never ask for and that's why you know that girl you went to school what ten years ago who suddenly pops up and she's like hi Beth how you doing yeah by the way um do you need vitamins like I've no she look a bit unhealthy and um I know it's just I'm a small business owner now I'm self-employed I am an entrepreneur and I just thought maybe I could help you babes you know you're looking like a lava tubes but you love a pasty is what I could help never do that points again I'm sorry but anyway it's more to it than just like you know a big kind of recruitment drive and like layers of recruitment there's more to it than that because often the people who are recruited have to invest some of their own money into kind of like a starter selling kit so this might be to buy the products in the first place often they kind of make you pay for training resources which aren't exactly legit or very good they have to make me for marketing the kit materials which can include like templates of like posts to send out to your friends and put on Facebook groups it can include like little diagrams and pictures and graphics depart on Instagram and Facebook and stuff like that and you're paying like extortion amounts of money for kind of nothing basically these starter kits so these are normally kind of like you know there's some kind of buy-in price of like a hundred pounds or a hundred dollars or something like that sometimes they go up to like extortion it amounts like $7,000 and stuff like that it's ridiculous how much money they get you to put into this with the prom and set oh you'll make it back paid story yeah so because you're investing this money and because the people at the lower levels really don't make that much money it's very hard to sell these crappy products especially to your family and friends who probably don't care that much you're both losing your money and potentially ruining relationships with friends and family and it's just not worth it to me it just doesn't seem like a good idea does it so I found this absolutely heartbreaking post that been posted on Facebook I had that was then posted to Reddit and that's how I found it it's a woman who was involved in a multi-level marketing scheme and well just read it for ourselves it's heartbreaking really okay guys hi first time posting I'm in a real pickle and how to fit this carefully I spent our honeymoon fund and now I found fiance is ready to kill I didn't mean to I thought I'd make it back I just kept spending you got to spend more to make more you know I start my own business selling makeup it was an MLM and it didn't cost very much to start that's how they get you but I had to keep buying and marketing and buying and marketing more and more car sell what you don't have right can't reach people if you don't market right I thought I was doing everything right and long story short I spent our honeymoon fund thousands of dollars he saw so we aren't speaking he left me yesterday I went to go stay with his brother and I'm not sure if or when he's gonna answer my calls I don't know what to do he didn't say the wedding's off but we only have a week and a half till the big day I'm panicking I have no idea what to do I really asked this one up help me so this is a story of a woman who literally spent money that wasn't hers to spend on getting involved in a multi-level marketing marketing kind of scam or scheme because she was told she could make it back and now the money's gone she's not selling any products she's not launching to recruit anyone and she's kind of screwed because she's all lost so much money that was it really has to begin with I'd like to say this is just like one example of like all this can go wrong this can happen but sadly these kind of stories aren't the exception they're the rule few more examples here right this is a post from a woman and well I'll read it to you first she says have you been wanting to join it works which is a MLM but just can't seem to find the 99 dollar investment to get started all this post is for you when a group of VIP distributors who make an average of a hundred thousand-plus per year were asked this question this is how they responded I'm curious who didn't have the $99 to signed up sign up but found a way what did you have to do to get the $99 and then it's a list of responses to that question so how people found the money too and like had this initial investment in this MLM and basically it's all these women saying that they didn't have the money but they found a way to do it and so this woman is encouraging other people to go out and do these same things and just to read a few off the list I used a birthday check from my grandparents maxed out my credit card I borrowed it I borrowed it twice I was overdrawn in my bank account and didn't realize until I deposited the first borrowed cash my boyfriend let me borrow it we used out this one really gets me we used our rent and health insurance money in the account for the kit and booster then sold a whole box of wraps before they came ran to the bank that night sold another box the next morning and to face raps ran to the bank checked clear the same day and didn't bounce by some miracle credit card grocery money hubby said we were gonna die because we wouldn't have food lol borrowed it from my grandpa used my electric fill money over through my account and replaced it later by borrowing literally had no money at that point in my life use my credit card for the kit and $500 boost kit to hide my electric bill wait and so instead of taking these as warning stories she says no more excuses stop watching and start changing your life please don't do any of these things do not get into debt for an MLM please don't it's irresponsible it's stupid and you're not guaranteed to make your money back at all I know like there's a whole thing in business where it says oh gotta invest money to make money it's not the case with MLM chances are you'll invest money and you'll lose it because you won't make it back unless we honest any money that you do make back is just money that you're essentially taking off your family and friends for crap products do you really want to make your money that way what makes you special that you think that you know your family and friends can go out and do a 95 job and then you can just take a portion of that money and in return give them some pills that aren't gonna do anything or a bit of knockoff perfume so if you are still a bit confused about what an MLM is here's a nice little simple explanation from the BBC actually who explained it really really well in this clip firstly let's explain what multi-level marketing is using our fictional MLM company fantabulous Ness fantabulous Ness make their own perfumes called live your best life and positive dreams fictional Amy is recruited by her old school friend Karen to join her team so Amy joined up by paying a hundred pounds for a star ticket and Karen makes money for recruiting Amy Amy makes money by selling perfume to her own customers like her sister Jane and her best friend Lily and Karen gets a cut of those sales to Amy also builds a team she makes money for recruiting her sister Jane and every time Jane sell some perfume Amy gets a cut of that sale and then Karen also gets money from the recruitment of Jane and her sales the more people below you the more selling the more recruiting the more money there is going up the chain so to summarize basically you've got big initial investments usually you're selling to people who really don't want to be sold to and there's a little chance of making your money back and you're selling poor quality products anyway that don't really do anything chances are you're not gonna make your money back never might make a real living wage never mind become this millionaire that you kind of dream of right so why do people still fall for MLMs why do people still get involved is really sad because multi-level marketing is a multi-million dollar industry like I say in the UK alone there's over 500,000 people currently involved in MLM 75% of them are women in the u.s. it's even more the numbers there are ridiculous I don't know not to top my head but it's a stereo mount why why are there so many people why is no one doing anything about it why are people not speaking out about this more why are people still falling for this well I've got like a couple potential reasons for this and I started looking into this and actually all the big comparisons I found was people saying that people who are already in MLM and who are they kind of like higher positions they've been compared to vultures they say that they look for vulnerable people and look for ways to exploit people and then they are ruthless they just go in there and take what they can these people are so quick to exploit any tragedy whether it's losing a loved one losing your job being in debt they jump on this with promises of making thousands of dollars or thousands of pound a month with promises of you being a hashtag boss babe in a fast changing world in which nothing is certain it's important to find some way of safeguarding your future and that of your loved ones people often start to wonder if working for someone else is for them salary comes in bills to pay not much left and on top of that there's enough time for family sound familiar this may be your opportunity to make a difference in your life I found these posts on reddit that kind of like sum it up a little bit so this was a private message that someone had sent to them and she said hey girl say you got a new job how exciting thank you it's about time lol how are you feeling about leaving leaving the little lady all week oh you must be so nervous that's a bummer but longer would you like she's 10 months today and it's been a long long nine months four they're here and besides I gotta work from home once a week so I'm not too far from her well would you be interested in a little it opportunity you could be home all day and not feel guilty about bring Nana dolla dolla dolla yikes and hey I don't feel guilty about making money and even if I found a job no peddling poop on Facebook to people who don't want it no offense I'd still want L to be in daycare with the other kids their age like I I appreciate the mom guilt how I'm not child understand that I had to go to work and bring in a natural paycheck and so if going into debt to sell snake oil to my friends oh my gosh well the good thing is I can use my salary to save for the therapy she's gonna need when she realizes how well with me and her father provided for her even if it meant not being up her bum 24/7 for her whole life thank you for thinking of me though um I need me to offend you Kim you don't need to rude to me sorry I offered you a chance to be a loving mother and a provider I'll not bother you again so again they're kind of like trying to prey on this new mother being like oh if you go and have a real job and leave your child in gate daycare then you're a bad mother like it's it's preying on people's vulnerabilities and their insecurities and it's just not fair this next post and again it's a Facebook one it's from a woman trying to sell and she says today only doing a flash sale on the most amazing these oils are natural perfectly safe and will turn your wife around I give some to a friend who had serious depression and suicide thoughts and they snapped right out of it no more negative thoughts only $39.99 for a full pack to last you two and jelly coming back for more yeah please don't listen to this woman this is really really bad like don't ever think that essential oils are just suddenly going to cure your depression or anxiety or any other mental health issue it's not I'll be honest there's no proof they work don't try it anything is I've seen quite a few posts like this so like not just this one and wonder who this woman was like Oh throw away your medication and use these essential oils no that is so dangerous don't do that don't listen to that and stop treating you serious health issues like mental illness to push your products because that's just not fair again you're taking advantage of someone's vulnerability and seriously forty quid for two weeks may I get two months worth of my antidepressants for eight pounds I'm gonna take the medicine that works over this trash any day thank you and again talking about exploiting kind of tragedies and horrible situations this one really disgusts me so it reads what is awesome about unique makeup is that it's water-resistant so I can go to a funeral go to my brother's grave or cry for anything else and know my makeup will not run or come off just exploiting your brother's death to sell some makeup yeah that's nice seriously this stuff is ridiculous and it does disgust me right 90% of it is full of greedy vultures behavior and so others compare like the people in NLM's to be like in a cult so it's possible that the people who are already involved don't really realize how much how much they're exploiting other people they don't necessarily realize how crappy the products they're selling are they don't necessarily see anything bad in what they're doing because it is kind of like they've been manipulated and brainwashed potentially I think when you go into MLM it's very much like a cult everyone's buzzing each other up and you're getting quite excited and of course there is the possibility that they've just already invested so much time and money into this MLM that they don't necessarily want to just cut their losses and let go they already feel like yo just just another week another month another year another 100 pound another thousand pound and I'll get there like they've already invested so much they don't want to give up yet you know they've got someone up on stage who's telling you that for years and years they like struggled with their business and then all of a sudden they focus really hard and suddenly they turn in 5 10 15 grand a month and you're just sitting there thinking yeah that's gonna be me my first check with Mel would go with $75 and we kind of chuckled a little bit and we were like okay we have worked really hard and we got a $75 check but the next month our check was sixty two hundred dollars you're trusting the process that I would reach the goal and Susie kept saying you know you're doing the right activities it's going to work and it did Ellie told us she felt pressured to fulfill a minimum spend each month which could be products or recruitment the more they spend the deeper they get into into the belief that success is just around the corner so I went to my upline and told them all struggling and putting everything on the credit card and they just told me it would pay off and at the time I thought they were helping me out by encouraging me to continue and then of course there are the people who were just going out of their way to manipulate you and make it seem like it's this wonderful amazing miracle job that's gonna save your life it's gonna change everything and these are often the people you find posting on social media so if you ever been on Instagram and looked up like you know the hashtag boss babe and kind of stuff and the whole like hashtag like from home all that kind of thing like you will see these posts everywhere yeah so you have post like this with this woman who's like 400 million a year with zero debt in five years built on a mission to uplift empower and validate women this company is so much more than makeup pretty amazing ask me how to be a part of something wonderful so like they're not talking about the downside they're not talking I'm about any of the costs they're not being upfront about any of the cost they're just making it sound like it's this you know amazing wonderful great thing where you're gonna make millions from doing like five hours work a week this next person who says what would you say if I told you that you could be earning from five thousand euros to two hundred and fifty thousand euros a month just by using your phone or laptop every day how many hours you put in is up to you now this might just be me but I probably wouldn't take business advice from someone spelling phone with an F but that's just a personal preference and I've got to say it to be honest I reckon you can make this much a month just by using your phone or laptop I mean I well I don't make anywhere close to this but one day I could through doing YouTube and stuff but that's different you know I'm actually creating something that I know is quality yes I work from home and have my own hours but I still do like a 40-plus hour workweek some nights I'm working till like 9:00 10:00 11:00 p.m. and some days I can take off if I want which is nice sometimes I work weekends sometimes I don't so my point is this stuff is possible you can learn this much working from home on your own terms with little investment but it's not through MLMs they are offering women a dream they're offering them the chance they say to earn a lot of money for very little work while staying at home with their children it's a lie yeah it is it's a lie that's all there is to it think about these five hundred thousand people who are involved in MMS in the UK right only a handful of those ever going to be super successful making thousands upon thousands of pounds a month I know there's $1 I've know in the UK only a handful of those that couldn't be making these like thousands of pounds a month and not even that only a handful if there's 500 thousand they're even gonna be making a basic living wage most people don't even make minimum wage on this stuff for the amount of hours they put in and the amount of investment they put in the profit they get back is not even close to minimum wage I think the equivalent is something like two pound an hour at best best it is ridiculous I know it sounds like an embroidered on my thumb but it is and it's like a post I saw I'm ready of his person he was like oh yeah so I didn't emmalin's like this many months and this is how much I worked up my hourly rate was that's like yeah so that it's just one example but it's a kind of typical example yeah people that you see paraded before you at the rallies on social media in the lifestyle videos they are a tiny tiny percent so if a handful of people are making thousands of pounds a month a handful of people are making a basic living wage there's also hundreds upon hundreds of thousands of people who are barely making enough money to live who are getting into debt who was struggling who are spending more and more money that they don't have on products that they don't need and can't sell and they're ruining friendships and relationships and family relationships along the way and I just don't think it's worth it they show all these big success stories on social media but that's not the truth of it that's not everything there's a really horrible dark side that you don't see enough of and that's kind of why I wanted to make this video to bring that to light because this isn't some miracle job chances are is something that's just gonna put you in debt I was actually really apprehensive to make this video so if you follow me on twitter you'll know that this is something that I've kind of had in the pipeline cook quite a while and it's something that I've done a lot of research on and been working on for quite a few weeks maybe months now I'm not sure and and I was already start filming the video a while back when a girl I knew from school got involved in an MLM and she added me to a Facebook group with like seven hundred other people to sell this like really cheap tacky makeup range that is extremely overpriced and knockoff perfumes where she's like seriously she's like claiming like oh you can buy this like Chanel number five perfume for 18 pound 50 and then like you go on the website and like it's not Chanel is it it's like fm number four five six that's what you're buying apparently it just smells like Chanel is the knockoff perfume anyway sorry I'm bitter about guns like knockoff Forex like that I just they annoy me it like yeah she kind of Joop like it's a fine but don't promote yourself as being the original Chanel number five kind of thing or Chanel man was L that was it that was the perfume um I'm just making these notes I know nothing about perfume I use a lady gaga perfume I can't speak so basically I was eyes added to this group and I was like damn I was asked to submit my video about this and now if I make the video now it's gonna seem like I'm attacking her personally and like I don't know what to do and you know I'm from this tiny town in South Yorkshire where everyone talks to everyone and I mean I live in London at the minute but my family still up there like my parents and and this girl who literally hasn't spoken to me and I think like seven years she still lives up there as well I think and her mum used to work with my mom or maybe she still does I'm not sure but the point is everyone knows everyone and everyone talks to everyone and I didn't want to make this video and then have like people be like oh did you see the video Rachel made up out like you know these NLM's and now you're doing this and it's just an attack on you I didn't want it to come across that way so I I stopped making this video for a while and I went away and I completely rethought about how I want to approach it and I I did more research and I rewrote my script and now I'm here today doing this and I soaked my mom and ask for her advice and she said don't do it and I spoke to another guy who I went to school with Oliver who's absolutely lovely and he has a little YouTube gaming channel as well which I'll link in the description below and he was like just do it so I got very conflicting information from them so I just decide to compromise and that's like well you know what I'll wait a few weeks and then I'll just do it so here I am but the point is that like I feel like I do need to kind of like come out and say this and say that this is not a personal attack on anyone involved in an MLM especially not people who I knew from school this isn't an attack on you but it is me expressing concern I mean saying please don't lose your money in this stuff like we might not have spoken in seven years but I still don't want to see you get hurt or scammed or lose your money I do care about people involved in this stuff specific people and I don't want to see them get hurt and that's why I decided that even though this might be a little bit controversial I'm hoping it doesn't cause any problems to my mom I still wanted to talk about this stuff because it's very very important and regardless of who I know who may be involved in stuff I'm still gonna call out dodgy business practices because I don't want to see other people get sucked into this stuff now I'm not telling anyone what to do I'm not telling anyone what not to do I'm not saying you should quit this now I'm not saying you should cut your losses now I'm just saying please do a little more research and look into this and be very very careful with how you invest your money in the future I do now want to talk a little bit about some of those looks like MLM horror stories that I see and like I'm a little bit weak on them horror stories because they're just people recounting their experiences and these as I said I'm not the exception these are the rule like 9 times out of 10 this is what happens to people and this is what I want warned about so let's take a look at this little clip from and a little short that BBC picked together on emmalin's Elly says she got into 10,000 pounds worth of credit card debt in two years the most I ever made in a month was 400 pounds so seriously 400 pound a month was the most she made back and she is in so much debt she's not gonna be able to pay that off by selling MLM products like no chance that it's not a wage you can live on not comfortably anyway not without relying on someone else and being in that much debt you just screwed up your credit for years to come good luck getting a mortgage any other credit cards getting anything like a phone on a payment plan you're absolutely screwed came out of it 2,000 pounds was in debt it's been an absolute struggle I've had fall outs with my partner over it because I used his credit cards to them I've been through pain as nothing but to me it's everything worth losing so much money and I actually went behind in the partners back so and me and him hadn't get on for a while because well obviously still not blame me it was me that lost the money and then there's this I found on reddit again this is absolutely heartbreaking just to read this to you yeah I paid $7,500 for my onboarding kit and I'm still sitting on most of it I can't get out I took out a loan and still alive thousand dollars on it doesn't give advice and says honey so what you haven't be done with it it's a very bad thing I can't sell that's the problem I went as low as I could 35% and couldn't even sell one thing that's absolutely not surprising at all it's taken over my house and ruined my marriage destroyed my relationship with my kids it's been a nightmare and the worst mistake I ever made I really really talked back to one person I push it off the side right now trying to ignore it but it's been bad this person says you know can I put this on reddit to warn people and the inertia person says go for it everyone should be warned I was told I've made my money back in six weeks tops it's been a year and I'm more in debt than ever in order to keep actively used to have the place of all and monthly so I bought pretty for this twenty three thousand dollars worth of inventory this year sold for I was personally my group multis in homes bender events working 7 P plus hours a week for nothing I dealt with a sponsor who since quit tell me I was so horrible she wants to ruin her car into a tree and treat me like nothing more than poop on the bottom of her shoe people don't buy sterile inventory you need to order more to sell more YES on mod pad up their bonus checks while I go bankrupt l are the MLM won't even take my step back since most of its capsules so it's nothing but bonfire fuel at this point I can't give this poop away and so I think that is just a kind of typical horror story warning to people saying don't get involved in these things please you will end up sitting on inventory like this you are pressured to spend money that you don't necessarily have with promises that you'll make it back in this time you'll make it back in this time when chances are you won't it's horrific and saddening and I just kind of want to put this out there as a warning to people and so with that I do just kind of want to end this here and ask what do you guys think of ml ends have you ever been involved in one do you know anyone who was and if so what advice would you give to people who are either looking to get involved in one we're looking to get out of it um honestly I just say to anyone who's involved in it now just like cut your losses and get out please you'll take a little dip now maybe but it's better than getting into more and more debt in the future the last people who get involved in these things the less power they're gonna happen the worst influence and the less pressure they can put on people also I don't understand how anyone can build a relationship with someone just to sell them things and oh what's that you like my t-shirt haha well if you must know they're available in my Mitch store right now now I just wanted to make a joke here about that but in all seriousness like you have much available if you want to go check it out this is my gorgeous autumn embrace t-shirt and it comes in a whole range of colors and sizes and styles and I have others like mine let's have a giggle t-shirts which I love my have little evidence t-shirts loads and and of course the classic that's not how are you science t-shirt and in response to Ken Ham because Ken Ham and if you don't check out on you my match it's available right now in my still starting from like 11 pound it's all really good value or I want to make it as like affordable for you guys as possible and it's available to ship worldwide as well and so I absolutely love this stuff of course I went for pink for this to support my favorite couple in the world who doesn't love Adam and Bruce and meant to be gather anyway I'm done and don't selling myself out now and promoting my merch saw I'm done I'm shutting up I've been quiet and in all seriousness let me know what you think of MLMs aluminum's and response to my last video my shout-out goes to I hope I'm pronouncing this right necro by Nick Rafi he says I asked you what would you respond to the girl in the dating profile and this guy said message here Scorpio more like scorpy know anyway if you fancy a shout-out in my next video tell me about your personal experiences with MLMs or people who have tried to sell you on like an MLM or MLM stuff let me know what happened how it went and I'll give you a shout-out in my next video but for now thank you so so much for watching today please don't get into debt please don't get involved in MLM and also buy my stuff also thanks for watching bye thank you so much for watching today if you enjoyed this you can check out more for me on the here in our podcast that one comes and screen I also have much available now if you want to check it out there is a link in the description below I've absolutely love love love all my designs so please go check them out and really really faces them also a huge huge thank you goes out confirm your support and visceral on PC on this month you guys are all incredible an extra big special thank you and the hook goes out to gamba and a chauffeur Deshawn Mart Donna Rachel be Roya Jaden Shepard pics later skeptic Jay Lee more religion SPS son Michael Miller lesson – PP gift I'm Greg glass and to everyone else who is shown on this end screen and mentioned down in the description below thank you so much you guys are incredible

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32 thoughts on “The Dangers of Multi-Level Marketing (MLMs)

  1. It's worth going into some depth on the economics about exactly why the overwhelming majority (~99%) of "entrepreneurs" don't become rich via MLMs, and why only a handful can build a sustainable (albeit hectic) lifestyle with them.

    The typical business structure of an MLM will involve "levels" of salespeople, with your level being contingent upon the number of sales in your downline over a certain period. Career advancement in an MLM is contingent upon making lots of sales, which is what pushes you up the ranks.
    Once you reach a ridiculous output flux (say, 1000 units sold per week) you reach the level of "propagandist," where you basically get out of the business of selling overpriced shit and instead get in the business of convincing large auditoriums of people to sell overpriced shit. These cultish gatherings typically have a ridiculous entrance fee and the sale of overpriced DVDs that you produce, which supposedly tell the "secrets" of getting rich quick but are in fact platitudinous garbage. At this stage of your MLM career, your profits come chiefly from the tickets to your speaking engagements and the sales of these worthless DVDs. You spend the rest of your career pretending to be much richer than your actually are, doing company-funded photoshoots in Hawaii and expensive mansions, but in fact you live a middle class life where you're always hustling just to stay afloat.

    Anyway, very few people reach even that stage, and the reason for this is that the sale of the inventory is economically unfeasible in an open market. You could be selling the MLM's organic "soap" for 20 bucks apiece, but will end up selling almost nothing because no one will buy a freakin piece of soap for 20 dollars.

    In an open market, the overpriced products that MLMs trot out cannot compete. This is a crucial detail and in fact is the key to understanding MLMs, because the entire business structure exists in response to this economic reality. The reason why the different "levels" of the organization exist is to incentivize the sale of their products by any means necessary, and most of the time, this means buying the products yourself. According to research, over 90% of all MLM products are purchased by people in the downline. They purchase them in order to achieve a sales quota that will allow them to advance levels, but the barrier to entry for the "propagandist" level is so high that most people either give up or go broke buying from their own inventory.

    The only reason why MLMs make millions is because their employees are the ones buying their products, and for most people, it is simply not possible to buy (let alone sell) enough product to become one of the chief propagandists. This is why almost everyone who enters into an MLM will fail.

  2. A lot of people saying: uh i've Lost some dollars. Uh, i've been a lot of time in a mlm. Idiots, this os a business, you have to be patience. If you open a restaurant, till the year number 5 you will not see any profit. You just have to work. Easy, as in any other business.

  3. The apps that pay you for searching and stuff actually sell the info you provide. They send you a small cut of the money they earn in order to intice you to continue using their services.

  4. It’s fun how all these please dissing MLM all sounds the same. Someone please come up with something original and up to date.

  5. I had a friend/classmate in college who was involved in a networking scheme that had some MLM aspect to it. I don't know if he sold anything. Well anyway, because of that involvement, he tended to miss a lot of classes. The rest of us in our group were both concerned and miffed by this. (For my part, I just missed seeing him) In the end, while the rest of us graduated from college in 2016, he graduated only this year.

  6. The industry makes money in two main ways:

    1) Using discounts to tempt new members to buy products in bulk which they have no hope of selling. The products often have expiry dates.

    2) Pressurising downlines to purchase over-priced training from uplines.

    Very little of the revenue is from legitimate retail sales.

    It's a particularly unsuitable model for the UK, where people don't like to mix business with their social lives. So as well as losing money, you risk damaging your relationships…

  7. MLMs area ponzy & pyramid scheme, they are almost if exactly are cult like some are use the BITE system

  8. My mom was in a few mlms as hobbies
    She never marketed as alot o em do
    Like instead of the cures whatever bull she just went "it smells nice"
    She was in this one thing michee purses, she joined because she liked the purses and wanted the seller discount, they actually werent bad, real nice neat idea, it went out of buisness abruptly. Neat idea wrong sales idea yknow? Maybe just being a regular purse company would of been better. Also not selling the god awful jewelry.

  9. I don’t blame the honeymoon chick’s fiancé. It’s one thing to join and MLM and lose money. But to spend the honeymoon money, something that’s coming up soon? Smh

  10. I was involved in an MLM. I failed horribly. I loved the products for myself and I had great experience with the products but I cant create an "authentic" friendship with someone when I know I'm gonna ask them to buy something. That's not a friendship. When I asked my online for help the response. "Well what do you think I do?" Uhhhhhh yea that doesnt help. I stopped responding to messages and just cancelled my membership bc I was spending money I didnt have to invest in "my company" which I just didnt believe in.

  11. Tupperware IS an MLM , so is MaryKay , so is Avon .. these MLMS HAVE MADE people… women in particular a LOT of money. Tupperware put my 3 children through private school in Chicago… annnd I had a ball during it!! You are soo wrong. Being a sales person is the highest paid profession…. if your good. MLM is what you make it .
    People join mlms and then go sit down… they don’t treat it like a business.

  12. $2,000 water machine… My sister in law just got catch up in one. she took out a loan and quit her job

  13. When I was younger I got invited to a lot of these recruiting events .. because of my "friendly" personality and also because Iwas very outgoing and knew a lot of people. I never joined though because I didn't want to have one more thing to do and I didn't want to organize parties at my home …. I did get involved with Primerica ..I bought into their "helping others/financial literacy" ….didn't last very long… I just didn't want to keep paying to go on trips and for seminars and classes …plus I wanted my free time back …. I never recruited anyone …I didn't want to

  14. As a latino, my community is the easiest target for mlms. The reason for that is the fact that latinos are almost always in a shitty situation. I'm sorry to say this about my people but the lack of education makes us very gullible and for the most part, desperate. Most of our jobs consist of brutal construction work that makes us too tired to spend time with family or minimum wage jobs that don't allow us to spend our money freely. So of course you'll have a bunch of gullible hispanics hold on to something that promises them a better life and it really makes me sad 😥

  15. In our transgender support group there is a trans woman whose parents tried to "cure" her of feeling like a woman using some magnets and juices sold as "health products" through some weird ex-Yugoslavia-wide medical related mlm.

  16. I did younique for about a week. Bought the kit, sold a bunch and quit. Imade my money back, but it isn't sustainable. I still have a bunch of their stuff, and I wouldn't call their product crap. NEVER try and sell the stuff, but I'd buy some of the product I got again.

    Basically what I'm saying is I wouldn't say all of the product is always crappy.

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