Is Multi-Level Marketing A Scam?

Is Multi-Level Marketing A Scam?

thanks for joining us America we're glad you are here Dan is in York Pennsylvania hi Dan how are you good how about yourself Dave better than I deserve what's up I'm calling to get your opinion or your thoughts on in network marketing or level multi-level marketing namely the company Amway okay all right they're the oldest and I guess they're probably still the largest they've been around for a while site the last I heard they were like number 37 and number 38 in non entrepreneurial companies oh I know total companies or MLMs I heard entrepreneurial companies so it might be multi-level company I don't know what I don't know how you measure what an entrepreneurial company is mine might be an entrepreneurial company and we're not an MLM so I'm not sure about that I know Amway is probably the oldest they used to be the largest I'm not sure if they've dwindled down or not but anyway they they're kind of set the standard back in the day okay like when I was a kid so how old are you I am actually gonna be 24 next week okay and what do you want to do with your life when you're 50 what do you want to be doing I want to be retired okay you want to do nothing well not doing nothing but I'm going to pursue some kind of teaching career and music I'm a drummer I've been playing my drums the whole life and that's really what I'd like to deal with as I'm living okay so you would love to be a professional drummer and make a bazillion dollars doing that if you could just write your own script right now sure okay that's why that's what I'm asking multi-level is selling and the people that make good money in multi-level like a hundred thousand dollars a year or more are sales managers and recruiters what you do for a living if you're making six figures in a multi-level or a net work marketing program is you are recruiting people training them and replacing them because the fallout is huge right because by and large they hire people who are not people that want to be salespeople and most of them don't make it so your turnover is very very high and you are constantly recruiting hiring training recruiting hiring training if that's what you want to do for the living for a living for the next ten years multi-level network marketing could very well lead you into a six-figure income and you would be in control of your destiny that's the good news the bad news is it doesn't sound like that's what you want to do yeah I was really hoping to do it as kind of as a part-time job as I'm working full-time at my wife's working full-time the kind of propel ourselves through the baby steps here's the thing you're amazing the way they pitch the stuff in network marketing is you see becoming wealthy and retired because you actually mentioned that earlier right when I ask where you want to be I want to be retired you saw yourself as wealthy doing multi-level you don't accidentally part-time turn a multi-level thing into a million dollars right it doesn't just it doesn't just like you show up and you go get through your friends in this thing and it turns into a million dollars it's seven to ten years of very hard work as a master recruiter trainer and manager of sales people those are the people that make seven figures I've got several friends that make a million dollars a year and I've got a like a thousand or two thousand or ten thousand people that I've met that we're in it for three months that are not anymore okay but I actually know more than five people in network marketing they make that have made a million dollars a year at one time or another but they didn't do that part-time and they didn't do that part-time for three years and then full-time for two years they became professional motivators professional sales trainers professional managers and hires or sales people and they have Rhino thick skin because people come and go every 20 minutes right and they don't get their feelings hurt when everybody's mad and turning they just go get another one they just go get another one and that's that business there's nothing evil or wrong with the business but if you think you're going to hire three people and they're all three going to be with you ten years from now you are kidding yourself in any business for that matter but multi-level for sure okay you know I've had I got 700 folks working here I've got 30 of them that have been with me more than 15 years out of 700 and I got I got probably 400 they used to work here sometime during the last 25 years that don't work here anymore you know so then that's a traditional business model that's not a high turnover bought business model that's where I'm actually paying people a salary they don't have to sell anything they just show up and get money you know and so it's a different thing so you got to decide what you want to do and if this is in line with your career goals and with your personality style and what you want to do for a living and you don't mind the high rejection and you don't mind motivation and you don't mind turnover and you don't mind that stuff you can do very well at this and again I've got some friends that have just over the hill over here I got a friend that was a whatever they call him a double black diamond or whatever it is in in Amway and he's made million dollars a year and am way four years four years and does very very well but you know for every one of those there's ten thousand that stayed two months and left and made all their friends mad right and so because they call on all their friends and try to sell them something they didn't want or something like that I don't know so have some class if you're going to do it and if you're going to do it lean into it and say this is going to be my career as a part-time job look at it and just go okay what's the typical person make in three months and get some real numbers not what you can make if you're a superstar but what is the typical person making three months you probably make more Drive and lift right probably then I mean check it out for yourself if you're good you might have a good little salesman down inside that drummer I don't know you know and you you know I'm not talk you out of it I'm just saying don't just say oh I'm gonna go make some money because these people all make money that I'm talking to because that's not the way it works it is a there's a particular skill set that you will develop or have to to become wealthy in those world in that world and there's nothing wrong with it at all but to you know teachers got in this and a an old teacher got in this look at this old teacher maybe well that'll teach her there not being a teacher anymore they became a sales manager and you know this guy used to be a you know he used to be a construction worker and look what he's doing now when he's not a construction worker anymore now he's a sales manager that's what he does for a living and you know so when they put up the examples of quote regular people unquote who become wealthy they did not use regular people's skill sets to become wealthy they use the skill set necessary to grow that particular business and a construction worker can become an IT professional if they want to be a teacher can leave and become a doctor if they want to be you can change careers and become successful in another career and that's what's happened there it wasn't that you know that this teacher used to make you know forty two thousand dollars a year and now look they make four hundred twenty thousand a year yeah well they're not a teacher anymore they're sales manager what they do and high turnover situation so that's what you're facing and my family's good people they're good good folks around there they need a lot of people the Lord they're strong Christians most of them so I'm not mad at them but you just need to know what you're getting in on and what it's gonna take for you to succeed and whether it fits your goals long term is this your career goal or not this is the Dave Ramsey show

28 thoughts on “Is Multi-Level Marketing A Scam?

  1. Dave is NOT right about this. MLM does not lead people into six-figure incomes. Only about one percent of people in MLMs make any decent money. Even if you work very hard for 7 to 10 years.

  2. Amway is a wealthy corporation but the wealth is at the top, only. Joining Amway won't make you rich. You will be at the bottom of the pyramid.

  3. This guy would do better pursuing his dream of being a drummer.
    I'm a hobby drummer, and I could make a decent tiny bit of cash for a good weekend when I had the right band, or some songwriters needed me to do some studio tracking.
    If you're in the right city and are willing to play whatever for a few musician friends, you can easily get into gigging consistently and do some busking on the side.

  4. I don't have anything against the business model of MLMs per say. However most of them use deceptive tactics to recruit people and keep them from quiting. I went to a seminar once for a MLM under the pretense that I was going in to a job interview (I had responded to a job ad for an advertising position). The whole seminar was very odd and cultish. They had a pretty big guy standing in front of the only door out to scare people from getting up and walking out. I believe the company was called Market America.

  5. Possible to be a scam but if you have the right company and product and right mind set everything good is possible I feel like our jobs can and are mlm why because person at the top make all the money and us employees at the bottom will never make as much as ceo at the top think about that

  6. The guy with the million dollars in this scam is the one at the top collecting all the cash from the dummies 🤣

  7. Dave, thank you for being respectful and speaking the truth. I been apart of the company, running my own business since I was 16. You're right, you need to be persistent. It's not about you put in effort and make a $1mil. You have to go core with it as we do train. I'm 19, almost 20. We do look for those that have what it takes. Nothing to hide and nothing bad either.

  8. Not all MLMs and networking marketing opportunities are scams. I joined Coastal Travel close to 2 months ago and about to close my first sale working part-time and will probably have a couple of other prospects come on board with me soon. If you have a solid system put in place, the training and support is there, and you are a diligent worker who focuses on the process, the results will come. But you got to do the work to succeed. It is not a get rich quick scheme and not everyone is qualified to do this type of work.

  9. WOW!!! Really Dave Ramsey????… You out down credit cards and yada yada yada debt free etc …. But you don't say that it is a scam???? ….you go hard-nosed on everything else ….but not this ???? there is sooo much info on YT about these MLM businesses (?). This business flourishes by recruiting not by selling product …how many people are buying their own products to make their monthly minimum????. I see that you are not as tough as you pretend to be. LOL!!!

  10. For people who criticize the Network Marketing profession: have you actually tried it and worked the right systems? If you haven’t, SHUT UP! If you have done it and tried the right systems, how long have you consistently tried it?

    True, there are many, many people who, unfortunately, try to over-hype the industry’s money potential. They say that you can make thousands and thousands of dollars in a very short period of time with little effort. That’s not true. You CAN make thousands and thousands of dollars in a relatively short period of time, but it takes a huge amount of energy and commitment from you to make that happen.

  11. He can say what he wants, but look at what he does.

    He doesn’t use or participate in MLM.

    That should tell you everything you need to know. The reasons why he says what he says are for the conspiracy theorists.

  12. Those 3k people are called "marks" and thats how the others made their money. The high turnover is because its a scam.

  13. MLM is not for whimps. It’s a great business model if you area’ t afraid of hard work and can stick with something.
    If you can not be lured into inventorying to get garage qualified. If you are offering something people NEED.

  14. MLM’s feed on people in their 20’s. It’s always amazed me how Dave does not call pyramid schemes out for what they are.

  15. You know if AMWAY didn't lie to everyone about what it's like working there for the purposes of recruiting people then I might have a sliver of respect for them. As it stands though, they wouldn't be where they are today without selling a lie to everybody.

  16. There IS something evil or wrong with it. You LIE about profits to recruit people and waste their time and money. 99% DON'T make money.

  17. He said youll make more money with Lyft but actually theres a new company out there called TRYP and this company is a MLM but also it is the top paying rideshare company out there, you keep 100 percent of the ride money. Do your research this is a great company.

  18. I did an MLM for a while. The thing that really hit me as a surprise and made me quit MLM is that if someone in your "team" is failing, you need to cut them and replace them. You can't take your "lowers" with you on the way up… You are competing with them. I failed at MLM because I wasnt willing to cut my struggling friends and leave them in the dust, even tho i was good at it. So because of that I ended up failing like they did because i wouldnt leave my friends in the dust. I was surprised that I had the skills and contacts to be good at MLM but there was a heartlessness and selfishness required to make good money.

  19. just straight up and say it's a scam because it 100% is!!! Amway is the worst of them! Better known as Scamway

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