I cringe everytime I hear a MLM independant distributor say he or she is entrepreneurial.. No, you're not.

"He's not the entrepreneur type like me" Working a pyramid scheme doesn't make you an entrepreneur

I cant tell if a mlms are cults, or scams, or both

I walked away from a friend who got into that because every time I spoke to her it became about trying to sell me something. It was always "if I move just a few more units I reach the next tier."

MLM people need to stop calling themselves entrepreneurs...

THESE GIRLS ON FACEBOOK SELLING IT WORKS ARE SO OBNOXIOUS. DONT DO IT. IT DOESNT WORK.

Dave is missing the part where you pay to get the job in mlm. There's more evil in mlm than what Dave said.

I tried it works. IT DOES NOT WORK. ALL YOU DO IS GET RIPPED OFF. DO NOT DO IT.

Should have been a 3 second video "NO"

Generally speaking... "just say NO"! It's true that most MLM is just bad...

what Dave is telling you is follow your heart not mlm

The thing about multi level schemes, is that the people on the bottom level (the biggest level) don't make money. You make money by leeching off those below you.

99% of people who get involved in MLMs lose money. Would you invest in a stock that loses value 99% of the time?

Never met a wealthy person that said my key was network marketing.

If you want something GO FOR IT! Don't let no one stop you. If you use MLM as your vehicle to make money go for it but make sure you treat it like a business and are actually passionate in what you are selling.

Sales is generally dishonest.

Dave gives a very diplomatic answer to the MLM questions.... it's a long winded, coaching you, answer, that basically says 'Don't do it'. I think he describing it in such detail so that there's no misunderstanding & no one can counter his argument.

Dave gives a fair and balanced presentation here. This is the reality of MLM. It is NOT illegal. MLM is not the same as a pyramid scheme (just ask the FTC). BUT... MLM is hard work and not a good fit for most people because of the turnover that Dave mentions. Glad to hear someone tell it straight!

Not just the majority don’t succeed, over 95% of people in MLM’s lose money, according to companies’ OWN financial disclosures. That means people have PAID to work. The tide is turning against these scams and cheers to WA State Attorney General for going after LulaRoe!!!

It's true, I agree that MLM is a very difficult industry to be in. It's like building your own company: you hire people, train people, motivate them consistently, make your own personal sales etc. I know because I am in an MLM industry. But I'm happy because I continuously flexing my entrepreneurial skills :) I got out of my 8 to 5 job and now own my time and earning more :)

If you really want to sell, go into real estate or insurance or cars! All the hoorah of sales minus the cult attitudes...

A high turn over tells you something.

Don't do it. There are so much better things you can do with your extra time. You'll be working for someone else's bottom line.

If you do MLM, don't pitch it to your friends and family as "walk in the park" work. Don't pitch it to them that you'll help them out unless you really mean that you'll train them and help them until they become successful or they tell you that it's not for them. I've seen multiple times that friendships and even family relationships have been severed because the MLM salesman lost interest the second they hooked a sucker. If you aren't willing to be a mentor, and seriously so, then don't do MLM. The folks that make it big doing MLM, spend as much time making their downline successful as growing their downline. (AKA - If you churn people, and they no longer speak to you in a few months, you are not that person.)

The first piece of advice I would give it to lose the word "LIKE" in every sentence !

MLM makes me cringe but I agree with Dave. It’s not unethical. Companies use mlm rather than pay for leads and marketing. I’ve done sales and used different networking methods. If it makes you feel uncomfortable then say no and move on. Companies have a right to sell their products

ShitWorks

I think Dave answered this question very well. I think churches in particular seem to have lots of these "MLM Sales" people. These are the people I tend to run from. I want to be their friend but I have goals and I don't want to have to say "I'm not interested" during every conversation.

I can’t believe Dave Ramsey actually endorses it! If it hurts friends and family why do it?

There are other approaches than training sales people who are not sales people, lack of marketing and sales skills are the major reasons why most people fail in MLM's. You can market products or services sharing facts and benefits using Facebook business pages by writing valuable content and sharing reasonable results to a highly targeted audience...your message must be relevant to your audience. Sharing will get you further then selling and linking people. If you have very little success in these skills or do not have a golden rolodex of highly successful people it is very difficult to succeed. Run from the hype and review facts! I applaud Dave for telling the truth here.

Anybody that wants to go into business must understand that selling is an unavoidable component. Any other way of making money is to study for a high profile career like an accountant, doctor etc and then you can earn some big bucks and live comfortable. But even this won't make you wealthy, you'll just live comfortable. If you really want to earn big, then you have to study the art of selling and for those that refuse this path but want to make money, forget about your money making dream. Making money is what Dave correct fully explained... 1. Recruit , 2. Train and repeat this process all the time... there is no other secret. MLM requires the same set of skills and those that persevere will make it...

You are not an employee or entrepeneur if you do a pyramid scheme. you're a pigeon

Funny how people say MLM is bad, it's a pyramid scheme, don't get into it and yet the majority of them are ok with being in the true pyramid scheme of them all: a job.

Great response, Dave.

Only a fraction of people make decent money as a MLM. Most people are better of flipping burgers.

I love how Dave Ramsey breaks this down. He’s not bashing MLMs as scams. *MLMs are a legal pyramid business model, but he does call out the network marketing recruiting hype and typical brainwashing tactics for what they are: LIES.* He’s giving people a realistic glimpse into what it takes to actually make it in network marketing without dismissing it entirely. _It isn’t a part time gig. It’s doesn’t happen overnight. It doesn’t happen by accident. And most importantly it doesn’t happen for most people._ You’re signing up to be a professional recruiter and professional sales manager in a high turnover business. Most people really don’t want to do any of that. _I know I don’t._

Ask yourself one question: “why does my up-line need to pay *her* up-line on *my* sale?” You’ve never met this lady why does she get a commission? And why is she paying *her* up-line a cut? Real salesforce training people get *paid* you got that talent get into selling industrial equipment or commercial buildings worth millions not diet shakes.

I like how Dave just casually tries to recruit her into his multi-level marketing scheme.

As an MLM enthusiast people really need to stop overhyping themselves as straight up entrepreneurs. Most MLM companies are in the category of Direct Sales. Which is fine, sales is fine. Embrace it instead of deminishing it.

All u need to do to find out if your *boss or owner actually owns it is to ask who besides you has the ownership and access to the business finances. If they dont actually own the finances part then they really don't own, just manage it

Honestly, you have a better chance at robbing a bank than you do making it with MLM, unless you start at or near the top of the pyramid. It's just reality. Many people learn this the hard way.

His doubt is well placed. The vast majority of people never make any money in MLM schemes.

Same thing happened to me!! My boyfriend was like yeah no to the multi-level thing, he was SUPER encouraging to say you're settling for this because it came across your path, but it's not your end goal and you should pursue your dream business! Funny how men/ helper fits can really help us look at the situation from a broader perspective and really evaluate why we are trying to jump into something we aren't passionate about.

Look up ALWAYS MARCO and his videos on WFG and ACN. He exposes the scam

Thanks for posting this Dave! Now I can link it to Eric Worre's rant about you.

Dave doesn't like the "hype" behind it. I get it! That's basically the point behind his rant. It seems as though he got tired with amateurs approaching him and trying "get him in" their business. I get it! This is not what the professionals of the industry do. I give him credit. He said some truthful things about network marketing. This, however, was a very lazy answer, in my opinion. If your interested in network marketing, study the best of the best! Study the profession, study the industry and then compare that to traditional business statistics. God bless traditional businesses but there is way more risk in that venture than in network marketing. The man himself is a network marketer. He created a product or system/service and he markets those products to people to help better their lives and he does this through other people/coaches/employees. And hey, he's got great products, I might add. If you are seriously considering network marketing, do your do diligence! Don't just "google" it and call it good. Study the real facts of the industry and listen to the titans of entrepreneurialism like Jim Rohn, Zig Ziglar, Les Brown, Bob Proctor, Tony Robbins, Warren Buffett, Robert Kiyosaki, Richard Branson, Donald Trump, Grant Cardone (just to name a few) who all endorse and support network marketing. I'm not suggesting that Dave doesn't support network marketing, he said he does! I just believe he has had one too many encounters with amateurs inside the profession that have left a bad taste. Hence his lack luster response to the caller. Of course, all in my humble opinion.

Key word HIGH turn over , and burning bridges with friends and family. So the odds are very against you.

Why does he even take these calls? 99%+ of the people never make any real money with an MLM (a few thousand dollars a year at best) and most lose money at it. For all those on here that say MLM is so great, how much money are you making at it? Because I usually get 1 of 3 answers to this question: 1)no response at all, 2)"I'm just getting started but the big money should come soon" or 3) "I don't share my personal financial information with anyone". For these reasons, I think MLM is pointless.

uncle ramsey knows best

If its my business " HAVE TO HAVE MY NAME ON IT OR AT LEAST MY MOTTO" Not somebody's else name . Easy to recognize it , dont fall on the lie" It's your business "

Multi Level Marketing is a business marketing / sales strategy. But that's not really the business. The business is whatever you actually sell, who you sell to, and at what price, and whether folks find value in that equation and would want to voluntarily make that trade over and over again. If the business makes sense without the multi-level component, then it MIGHT actually be a good business to be in, depending on how the company is managed and what kind of deal you get from the way they structure the pay plan. The problem is that in many cases, it DOESN'T make sense without the "entrepreneurial" profit motivation attached ... and THEN that's where it becomes a scheme.

I wonder if she is referring to her husband as not being very entrepreneurial because that is how it was pitched to her in preparation for her trying to talk to a potentially quote- spouse on quote about this

There's something I don't understand in a lot of these comments, people are complaining that those that sign up in an MLM are losing money. From that I understand, in a lot of MLMs, is you are buying product that you already want/need and then others who you recruit do the same and it duplicates itself in that way. I have a membership with YL but I don't have to share with others about it I can just get my products and leave it at that. I also have the option to run it like a business. It's not a get rich quick scheme. People who are successful with it put a lot of effort into it and are not obnoxious about it. The obnoxious ones usually give up after a short while because they haven't been trained how to share appropriately. That's what I have personally noticed anyway.

I hate that he says your job in a pyramid scheme(I refuse to call them an mlm) is to recruit sales people. If the only way for the recruits to make money is to recruit people themselves then they are not sales people! The only sales for the company are the employees buying product from their up line. These companies are scams and you try to become successful in one everyone you know will grow to hate you

Should I join a pyramid scheme Dave Ramsey? It's my favorite shape

That "Okay" at 3:00 hit her like brick... lol .. sorry lady dave is right tho...

Nobody in an MLM is an entrepreneur. Start a real business if you want to call yourself that.

He might be cynical too because of the its a scummy marketing and selling strategies these companies push and the products are often overpriced or dont work.

Think about it David. You are saying the makeup or nutritional business has little, almost nothing to do with makeup or nutritionals? It's the recruiting business!!! By your own admission the product is incidental. Then you contradict yourself by saying it's not a pyramid scheme because a product is sold. The ftc misdefining and legalizing it, doesn't make it any less immoral. The members are the ones buying the products and they do it because they are taught to "to show others you use them". You know what as well David. Noone has ever tried to sell me a product of an MLM company (except the upline of the one that recruited me into the business first). But I have been approached countless times about MLM business opportunities. MLM is a pyramid scheme. The FTC can't change that by declaring it. Being a legal pyramid doesn't make it not a pyramid scheme. It's inherently wrong and anyone profiting should immediately stop and repent.

Not all MLMs are created equal. There are many legit and robust out there with very little investment. But you need to work hard and run it like a business. Recruiting is necessary just like hiring employees but on commission only

The only way to get rich on MLM is to start your OWN!. Once top 1% is in the game, nobody else have a chance, they can only come there to finance the existing members. And they NEED a constant stream of new memebers to support them. So either start your own pyramid or go with some legitimate business which does not profit on scamming gullible people why think they're going to be rich.

By the time you're in a job where they legitimately ask you to sell to your own family and friends with a straight face, you really need to just sit down by yourself and think for a loooong time.

Haha... I can see from the comments MOST OF YOU didn't watch the video or at least even listen to what Dave Ramsey shared. He clearly said "it's a legitimate way to make a living and has friends who make a million $$$ a year in the industry" AND you have to work hard at it. Here's some news folks. Anything you want to be successful at, you're gonna have to work hard at it and have laser focus. Also keep in mind, if you opened an insurance agency, salon, health club or car dealership, you'd have to build a team, to sell your products and services... and if you and your team didn't develop those skill sets, there would be a high turnover rate in those businesses also (as there is)....

Lol...everyone posting negative Comments here About MLM are those who don't fit the work for networking. Those who are good at it will succeed and that is not just MLM it is any job you do. So MLM is good for those who fit the job.

She needs chelseas business boutique book. Im glad he offered the tickets

I agree on Dave's perspective because that's a perspective of a person who's probably been pitched by his friends a handful of times. The way he thinks about the profession is relevant to network marketers. The only criteria he seemed to not understand is that ALL businesses have high turn-over sales people. I mean, if you are going to put up a business, how can you train sales people if you yourself don't have a good background about it. That's what's unique about the profession, the support of a team and mentors.

Out of respect of a friend of mine invited me to their meetings speaker says he was poor overnight became a millionaire I wasted my time there.

I like MLM but no more it works reps please

It Works WILL NOT work lol. Only a handful of MLMs out there people have a chance at.

MLM is all about recruiting people and letting them think it is about selling a product. Recruit people to make money.Sell the product to lose money. Do NOT tell the recruits the real deal lol.

Go to the People that go Public on the New Your Stock Exchange.

I must applaud you Mr Ramsey 👏👏 because you show the world how dumb these anti MLM people really are and should stay in their homes or crawl under a rock and never come out , because they know nothing about business or how things work. I'll give some Examples and some answers. Example: 98% of people fail at MLM Answer: welcome to the real world , 98% of people fail at everything. Not just MLM Example: if you have to buy from the company to resell ,it's a scam Answer: dude , every single industry and business buys and sells , if you work at a dealership, the owner of the dealership buys cars to sell them marked up for a profit, if you're a contractor, you sell yourself and your services, a mechanic, doctor, lawyer as well, if you work at a retail store , the owner buys stuff for the salesman to sell. The all time favorite of mine. Example: why do I have to pay/invest to start in the business. Answer: no business is free to start. Even jobs aren't free because you have to get there to work wether it be by bus or car which you pay for to get there, gas, insurance, clothing etc , you pay for all of that. I can keep going but it's getting to long.

Your husband is right to be skeptical and you should be too ...99% of the people in MLMs never make any liveable wages from them (if they make any money at all) and of the 1% that make real money at it, it is mostly just the people that started the MLM and a few others who got in early. Get some part-time job on the weekend if you want extra money, you'll do better, I guarantee it. MLM is a scam in so many ways. Why does Dave take these stupid calls?

Does anyone know ANYONE who BUYS stuff from MLM ripoffs?!?!?! Why doesn't Dave ask them that?

A lot of my over weight friends sell it.

I was in it works and nothing they had worked but maybe a very few things. That’s why I stopped

"I want to talk to you about a new business idea. Cutting edge. When can we meet?"

i work for a distribution company... they buy a product from a manufacture company for a price, they sell the item to retail company for a price, than they sell it for a price to comsumers.. is that consider a mlm...??

Think about it. If you have a 99% chance of losing money from doing something, then why would you do it? That's the MLM model.

she wasn't even able to state what the company was selling

Spit it out already!! Lol!

Y’all kill me I watched another one his videos talking about amway. I do amway. Most people speaking don’t have the insides to speak on this. The thing about network marketing is it’s a business system . Dave don’t teach y’all what business systems are. Robert Kiyoski does. The reason Robert talks about Dave is stuff like this. Dave teach y’all to get out of debt, but Robert teaches you can get rich by getting into debt.. it’s all the type of entrepreneur you want to be . Business Systems are not self employed. Big business systems : franchise, corporate, and network marketing. If y’all read the cashflow book you know what I’m talking about. The funny thing is on his other video about amway he said his business was also high turnover , or people he hired were not there.. business on any platform is not easy.. business systems help you leverage your time , vs small business you have to always be there..

I actually combined 2 different powerful MLM's together because they compliment each other. I am able to offer more of a product line to my customers or clients. I also love Network Marketing businesses that have extremely powerful wonderful healthy living products that fulfill our bodies needs while creating a greater positive impact, not only in our own lives but for all those around us as well. But if you want to build one business up its better to choose which because using 2 or more just means you're offering your clients more options for products that they may need. I personally, in my own life use 3 different MLM companies for products I need because they work and they make my life easier as a whole. If I really love something and its good for my life and health, I am going to buy it no matter what. So I built my Network Marketing business around my own life and it works for me. I really love it, the 2 MLM's I combined also changed my health completely and there is absolutely no price for that.

It's not a pyramid scheme, it's an upside down triangle!

What is it that Eric Worre does? His videos are vague, & he often contradicts himself. Does his firm sell products/services, or do his employees troubleshoot and coach the workforce of other businesses to increase their productivity?

Save your relationships and your money. You're more likely to earn money at McDonald's flipping burgers. Seriously. At least it would be a more reliable paycheck.

I was with it works about 4 years. I tried the product and got amazing results! I’ve seen others have great product results too. I did it part time...within 5 months I made more than I brought home from my full time job. It was great for me...I paid off my car & all my credit cards (25k in 3 years) and was able to buy a beautiful pool home. I got let go from my job (of 10 years) because the closed and I’m so glad I had the business to fall back on! I did IW from home for 2 years. One of my top people quit and the ppl under her quit. it is sales and recruiting and I didn’t really like doing it. You’re on your phone all the time! People come and go...if the ppl under you don’t work you don’t make $$. “Work” is mostly social media and phone. It’s not bad if you want to make some extra money.

It Works is a terrible company. Please don't get involved. They are almost as bad as a time share salesperson.

smh at all of the people in the comments defending MLMs.

She should simply begin divorce proceedings against her husband and invest her share of the assets in weight loss and skin care MLM products. Why let your husband prevent you from achieving your dream ?

Is herbal life a MLM

It Works did not work for me. The products were a big waste of money...

Can anyone get free tickets for the Business Boutique seminar , or is it only for middle - aged Divas of all races and especially Filipinas and Hispanic women ?

This woman has already joined by the time she made this call.

It's not surprising that people bash MLM. I mean, for those who believe in the concept of the sky father, Jesus was bashed and beefed by the intellectuals as well. But if I may just ask, If we were to draw the pay hierarchy and organisational structure of your job or company you work for, would it look like a cube or a pyramid?

DON'T DO IT, ANYONE!

IT DOESN'T WORK

Smart man

I Have read many of your books and have shared them with people I care about, as Total Money Makeover was shared with me. I Love your financial advice. BUT NOT THIS ADVICE.

DON'T DO IT!