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  • MLM's nearly always lead to certain loss for new recruits. The founders and a few are at the top of their pyramids of participants are enriched at the expense of a multitude of downline participants, approximately 99% of whom lose money. The sale of products is distributor-driven, not market driven. Most products are sold to new participants to get in on this "ground floor opportunity." Very few products are sold outside the "business". One more reason MLM is a Pyramid Scheme.

  • If the MLM has 3 of the 5:

    1. More than 5 commission levels 2. Incentivized purchases where you have to buy or move a certain amount of product to get commission. 3. Most of the commission goes to the upline. 4.Promotions are based on recruiting or Recruiting based sales numbers unattainable through direct selling to consumers. 5 Endless chain recruiting until infinity.

    If the MLM has 3 of the 5, IT IS NOT DIRECT SELLING, IT IS A PRODUCT BASED PYRAMID SCHEME! Here the product is a front.

  • I'll put 500 in your downline within your first week of signing up, gauranteed.

    124works.info

  • haha these mlm scamming dorks are good for hours of entertainment, though the look of desperation can be sad!

  • Point 3 at 1:30 isn't quite accurate. Pyramid schemes can have products.

    All pyramid schemes are MLMs.

    Not all MLMs are pyramid schemes.

  • Looking for an opportunity to make part time/full time income? Work as many hours as you like driving referrals to fortune 500 companies that pay referral/advertising fee. Get paid daily. This is an opportunity to be your own boss, set your own hours and run your own business. Only requirements are internet/email access, this is not MLM, and there is $0.00 start up fees. apply at dailyincomeopportunity.ws

  • so many dumb people lol

  • This is a great video, thank you!

  • @sbohandley - That's simply inaccurate and absolutely not true. My wife purchases Mary Kay products all the time and we are not distributors. I have family that purchases Herbalife products, none are distributors. Large companies purchase Amway products, none are distributors. I not only purchase but also distribute for my company. Once again, someone that has little information and is completely ill-informed gets on here and makes comments that aren't true. It's sad.

  • @JeremyKaehler I would believe the research of Dr. Jon Taylor and Robert Fitzpatrick, that says that MOST of the sales made in MLM are done by the distributors themselves. This is because MLM's products are overpriced and inferior quality than the store. Who in their right mind would surrender their free choice and submit to this hassle?

  • @MLMsellsSnakeOil Sorry friend, once again, inaccurate. Most sales made are done by distributors...kind of the point isn't it? Just like most pharmecuticals are sold by reps for there company. Just as sports equipment is sold by distributors to sports teams. Just as your favorite beer is sold to your local gas station by a distributing company. What's your point? Most people become distributors for companies (many don't, and it isn't required), to have the ability to earn money...

  • @1074kaehler MLM products must be priced high enough to support a bloated network of distributors, so prices are seldom if ever competitive with alternative retail outlets. MLM products are sold primarily to recruits to "do the business," rather than to persons outside the network of participants. People who shop around and are not buying products for the "opportunity" are not likely to become MLM customers.

  • @MLMsellsSnakeOil Sorry friend, once again, inaccurate. Most sales made are done by distributors...kind of the point isn't it? Just like most pharmecuticals are sold by reps for there company. Just as sports equipment is sold by distributors to sports teams. Just as your favorite beer is sold to your local gas station by a distributing company. What's your point? Most people become distributors for companies (many don't, and it isn't required), to have the ability to earn money...

  • Another lie revealed:

    FHTM is no longer authorized to use the DuPont name, logo, or trademark in any way. FHTM should immediately discontinue the use of any materials containing the DuPont logo. Our right to use DuPont’s name, logo and trademark was revoked because FHTM abused the system by creating and distributing unapproved marketing materials that displayed the DuPont logo.

  • MLM = SCAM SYSTEM

  • MLM isn't illegal because the courts didn't know the difference between TOTAL and MARKET SATURATION. Huge difference. Also, because there is a product involved the courts failed to see that it shouldn't really make a difference and that the product is just a FRONT. Directly or indirectly most of the MLM's I have seen are about recruiting where most of the sales commission is from inside the MLM and is given to the upline.

  • Just because something is "legal" doesn't mean it is good for the masses. MLM is a psudo business that countries are starting to Ban. It matters not that there is a product involved, because it isn't sold to anyone outside the Pyramid. in MLM THERE IS NO "Legitimate Customer", the salemen in the scheme are also the customers. Paying uplines for the people they bring in is a LOOPHOLE in the law and how MLM circumvents being classified as a ILLEGAL PYRAMID, instead of a legal product based one.

  • @sbohandley This statement is just pure ignorance. There are thousands of Direct Sales companies that sell billions of dollars of products and services tot he end consumer. I have over 20 non-consultant customers in my business, and our company has 10's of thousands and soon, millions of customers who choose not to be consultants.

    sbo - Ignorance it not a virtue. Know of what you speak before you publicly embarrass yourself. Honestly...I'm just trying to help.

  • @sbohandley there ARE legitimate customers; doing the actual business part is optional, thats why its called an opportunity. just because it is a strange business model doesn't make it bad. know your facts before you embarrass yourself kid.

  • @sbohandley , I'm not sure what MLM company you are familiar with, but I can tell that you really haven't done much research. First of all, there are hundreds of MLMs that offer legitimate products to customers (and not just distributors). Companies such as Avon, Mary Kay, The Pampered Chef, Herbalife, YOR health, Cutco and even renowned companies such as Sprint, Coca~Cola, Comcast, Viridian, etc., are all companies that are MLM or have used MLM to sell their products (just to name a few).

  • @sbohandley , I'm not sure what MLM company you are familiar with, but I can tell that you really haven't done much research. First of all, there are hundreds of MLMs that offer legitimate products to customers (and not just distributors). Companies such as Avon, Mary Kay, The Pampered Chef, Herbalife, YOR health, Cutco and even renowned companies such as Sprint, Coca~Cola, Comcast, Viridian, etc., are all companies that are MLM or have used MLM to sell their products (just to name a few).

  • @suckerface4 Avon, Mary Kay, The Pampered Chef, Herbalife, YOR health, Cutco are ALL recruitment driven, product based Pyramid Schemes.

    NONE OF THESE ESPOUSE DIRECT SELLING AND OFTEN HAVE OVERPRICED INFERIOR PRODUCTS.

  • @MLMsellsSnakeOil - Your misunderstanding and ignorance is astounding. Are you aware that in the past 6 months, the NY Times and USA Today, both had huge inserts explaining why MLM wasn't a pyramid scheme, and why so many Americans are flocking to it? All business is recruitment driven. The only difference is, in MLM, the company pays you off of your customers. YES, you are always looking for people that want to build a business. WHY? You have to understand leverage. You simply do not.

  • @1074kaehler Please send me a link to these articles I would like to review them. Look, MLM isn't considered a Pyramid scheme, because those have no product and are illegal.  MLMs, have been found to be the most harmful of all the types of pyramid schemes, by any measure - loss rates, aggregate losses, number fo victims, and degree of leverage. MLM loss rates (approximately 99.6%) – are far worse than for illegal no-product schemes, or even than most games of chance in gambling casinos

  • @MLMsellsSnakeOil - ...it's a paradigm shift that you simply refuse to look at. Is Bill Gates rich because of Bill Gates, or because he has 70k+ people working for him? If you start a sales force in any industry, would you rather do it all on your own, or find others that will help? Would you rather have a sales force of 1, or of 10? 10, right? Why? Because if you sell 10 people, and they sell 10 people what happens? It's that simple. There are good companies, and bad ones of course, just like..

  • @1074kaehler MLM'rs have been saying this is a "shift", for over thirty years, but MLM still accounts for less than ½ of 1% of consumer purchases - in spite of the fact that the number of MLM companies has totaled in the thousands. MLM's come and go, as do new recruits, over 90% of whom drop out. Significant long-term MLM industry growth is a myth .Most MLM compensation plans are weighted heavily towards those who got in early or scrambled to get to the top of a pyramid of participants.

  • @MLMsellsSnakeOil - Okay, you roped me into a conversation with someone who thinks they know it all. First, MLM has been around for 50 years, not 30. Secondly, where do you get your 1% figure from? Please show that to me. Out of the top 100 companies GLOBALY that sell consumer goods (we won't even include food!)...let's see #7-Avon, #15 Amway, #35 Mary Kay, #61 Tupperware, #65 NuSkin, #56 Blyth, #96 Herbalife...primeamerica, pampered chef, merle norman, xango on and on and on...

  • @1074kaehler The 30 year time frame wasn't reflective of how long MLM's have been in existence, but was a given window of time that MLM has not conquered any more of the market share. My numbers are from Dr. Jon Taylor (Consumer awareness institute) where he studied reports that MLM's file to the FTC, many different MLM's, interviewed drop outs, as well as interviewing tax accountants with tax data. The expenses were also factored in. For EX 0.58% of Herbalife made money= 99.42% loss.

  • @MLMsellsSnakeOil - MLM's DO come and go, JUST LIKE ANY TRADITIONAL BUSINESS OUT THERE. Please visit the Social Security Administrations website and do some studying. Please visit the Business Administrations website and do some studying. 95+% of all business (non-mlm) fail within 5 years. Guess we should make sure no one wants to be an entrepenuer, there chances are slim! Thousands come and thousands go, on both sides. Do you realize why? Or is it just 'mlm's' are bad? You simply are uneducated

  • @1074kaehler 95% of businesses don't fail. A lot do, but it is nowhere near as high as Network Marketing distributors dropping out of a program. But, at least those businesses were not exploited by being at the bottom rung of a chain recruiting scheme, which assumes infinite and virgin markets- neither of which exist. MLM have no controls for market saturation and is in a state of constant collapse. New recruits aren't reflective of new business, but exist to replace the dropouts.

  • @MLMsellsSnakeOil - You either have had bad experiences, chosen bad companies, or had some really bad mentors. It's that simple. You don't understand traditional business let alone MLM. You throw a couple bad facts out there like you know something! And your completely inaccurate. Donald Trump, Robert Kiyosaki, Bill Gates, Oprah, even Warren Buffett, not only accept this industry, but when done right, highly recommend it. Some even own there own. So what is it you figure out, that they haven't?

  • @1074kaehler I have never did a MLM. But, have been badgered enough... When I started looking into how people are exploited with this system and seeing the aggregate losses, is when I decided to speak out as a consumer advocate. BTW, do you really think Trump, Buffet, and Kiyosaki would be dumb enough to join the bottom rung of a product based Pyramid Scheme, going around peddling $100 a bottle juice/snake oil? Perhaps it's the fact they own MLM's and don't want to look like hypocrites...

  • @MLMsellsSnakeOil - Buffett bought one, Donald owns one and advocates for another, and Mr. Kiyosaki, actually states 'if I had it to do all over again, I would start a network marketing business.' I guess those three men like to lead people down the wrong path. You got your info from one man who interviewed drop outs? Way to go! And as far as being 'badgered', it is clear that you have no actual knowledge or personal experience, rather are upset with what has happened with you personally.

  • @MLMsellsSnakeOil - I hear your argument, and understand where you are coming from. Unfortunately, you simply aren't aware of 'the rest of the story'. You are pissed about being harrassed by an unprofessional networker. If I were you, I would have a bad taste in my mouth as well. And yes, I have been there. But in all reality, we can throw facts back and forth all day long. The industry has created more individual wealth than any other industry. And it's something the average....

  • @MLMsellsSnakeOil - ....person can do to add income to there budget. And that's what many do. And to say that a accountant says they don't make money is hilarious! Do you understand the tax advantages of having a home based business?? It's one of the greatest things about it. Obviously something else you don't understand, or you wouldn't use that as 'evidence', but as another proof of the benefits of being a part of a good company. Enjoy your outcome with whatever you do!

  • @1074kaehler If people make any money at all in MLM, it is before expenses are accounted for. The only advantage I have heard MLM is some Tax write offs. But, is the couple hundred dollars a year you get in Tax savings worth all the time you waste applying the three foot rule and annoying everyone? Not to mention the high social cost of trying to exploit your friends and family for money pursuing the "warm market". Yup, those tax savings are really worth being declared "Persona Non gratis".

  • @MLMsellsSnakeOil - Once again, your lack of understanding shines through. Some tax write offs? A couple hundred a year? You have much to learn. High social cost? Once again, this all goes back to you being poorly introduced, improperly trained, and having little success. "If people make money..." I know many, and am proud to be one of them. You obviously had a bad experience and are scarred. Should have been a little more coachable. What do you do in the 'real' world? Actually, don't answer.

  • @1074kaehler If you really want to know, I am a stay at home dad with 8 month old little girl. My wife is a Pharmacy District Manager with a large pharmacy chain. She is in charge of 29 Pharmacies and 70 Pharmacists. Last year, her Salary was $135,000 with a $25,000 profit sharing bonus. We live in a beach town in the South, and I live within a short drive on my Golf Cart to the local state park/beach. As you can see, I have more enjoyable things to do with my time and money than MLM....

  • @MLMsellsSnakeOil - Good for her. So your wife has a lot on her plate, deals with problems daily, and has to oversee 70 pharmacists! She makes about 160K a year, spends numerous hours dealing with her job, and gets raped in taxes every year. Hmmmm. I think I will take the same money (actually more), work much less hours (wasn't like that in the begining), keep most of what I actually make, and enjoy just as much time with my kids and not have half the headache. Wow, I must be insane.

  • @MLMsellsSnakeOil - Unfortunately, you had a major let down. Numerous reasons for it, none of which you understand. And if you took the stance of being a know it all, without any knowledge, I understand why you look at it the way you do. I find two people that speak about against MLM companies. Those whom have never tried, and those who have failed, without ever learning what it is really all about. It saddens me to come across people such as yourself. If only you actually knew. Stay blessed.

  • @1074kaehler What I find Hilarious is that you and others like you never admit not making money, because it would hinder your efforts to recruit other no money making consultants, in the hopes of making money off their efforts. It's Brilliant! The scam perpetuates itself when you quit your day job, your downline disappears and you end up broke. So yes, I have never tried MLM, but I have never tried jumping off a tall building either. Only a retard would do something they know is bad for them..

  • @MLMsellsSnakeOil - I can admit not making money. Failed miserably in two companies. My highest check was $8.14! Problem was, I knew to many people that had success. So, instead of quitting like most people do, I went to work studying. Learned the industry, the keys to companies within it, and what to look for in them. I realized that the industry wasn't bad at all, quite the opposite. But tough. The fact remains you are uneducated on the industry. It's that simple....

  • @1074kaehler You can admit PAST mistakes, but that you would never admit to not making money now as that would hinder your prospects of recruiting others into the faux franchise you now are involved in. Look, you can hardly call my arguments "uneducated". I have read several works by Dr. Jon Taylor and E books on MLM, on of which was "False Profits" by Robert Fitzpatrick. If you are involved in direct selling, I applaud what you do. If you are into Pyramid Chain recruiting- shame on you!

  • @MLMsellsSnakeOil - Direct selling is the same DAMN thing! What don't you understand? Do you understand how Pampered Chef and Mary Kay work? You know how you get your 'pink cadillac'? You MUST find other people that want to distribute underneath you! You then get paid a percentage off there parties etc etc! It's the same damn thing! Or you can just buy the products! But to build an actual business, it takes leverage and work. Ebooks? Really?....

  • @1074kaehler WRONG! Direct selling is where you get paid a commission of atleast 40-50% for selling a product to someone who is a fellow distributor. There is some degree of territorial protection where the distributors are not out recruiting their own competition and the company prevents the market from becoming over saturated. This way the distributors can make a decent amount of money direct selling the Product. Companies like this are not defined as Pyramid Schemes.

  • @1074kaehler Network Marketing is NOT direct selling, because it is chain recruitment driven. You don't make any money selling the product, you make your money recruiting distributors who also are the consumers. In a city of 10,000 people, 5 distributers could service the market with out total saturation. But, in MLM the goal is to have 10,000 distributors. You have no territorial protection and when you join there could already be 10 other consultants on your block.

  • @MLMsellsSnakeOil - Once again, you are wrong and inaccurate. Most companies allow you to just sell to customers. Actually, I don't know any that don't. They do not have to sign up as a distributor, nor are they required to purchase anything. Without customers, your business will surely struggle. However, if that individual would like to sell, or introduce the product to someone else they can also receive commision from it. It's that simple. You don't make any money on 'recruiting' distributors.

  • @1074kaehler Yes, Most MLM companies allow you to sell to customers. But, the commission structure is so low that it is not worth anyone's while to ever do this, the only money is in chain recruiting. Forget the product, that is just a front for laundering the money. You INDIRECTLY make money "recruiting distributors" because the margins for direct sales are so low, and like I said above the only money is to recruit a downline. This is how MLM companies skirt the Pyramid Scheme laws.

  • @MLMsellsSnakeOil - RECRUITING PEOPLE DOESN'T PAY A DIME IN ANY LEGITIMATE NETWORKING, REFFERAL, OR DIRECT SALES MARKETING. WHAT DON'T YOU UNDERSTAND ABOUT THAT? You are flat out WRONG. What company are you referring to? I know most of them, and am very well versed on compensation plans across the board! Your don't 'indirectly' make money doing anything. You simply are taking something, falsifying it, and twisting it. Give me ONE example of a legitimate company that operates this way?

  • @1074kaehler SELLING PRODUCTS IN MLM DOESN'T PAY A DIME AS THE OVERHEADS ARE NOT HIGH ENOUGH TO COVER YOUR COSTS, WITHOUT CHAIN RECRUITING. If I am a Arbonne Distributor and make a $50 sale on lotion, my commission is 4%=$2, my DM makes 8% of the sale and the EDM Makes 8%. So, the person who does the work, doesn't get paid as much as those above in the Pyramid. 4% commission is so low, that the only incentive to make money is to recruit. Do you understand this?

  • @MLMsellsSnakeOil - In many instances, customers will pay you more per purchase. The only difference is, as James Paul Getty said, 'I would rather have 1% of 100 peoples efforts, than 100% of my own.' You simply just DON'T UNDERSTAND THE INDUSTRY. It is mind boggling to see how far off you are, yet you throw it out there with some type of ignorant confidence, and are completely wrong. Skirt the laws? It's been investigated more than any industry on earth! You just don't understand it.

  • @1074kaehler The Amway decision of 1979 ruled in favor of Amway because the courts didn't understand the difference between market and total saturation. In a town of 100,000 people, the notion of total saturation of 100,000 distributors would be absurd. But the market could be said to be saturated with 10 or 20 distributors, after which adding more distributors would mean less and less opportunities for them to thrive in the market because the market is too saturated.

  • @MLMsellsSnakeOil - You make money on anyone purchasing products. If products are not being purchased, money is not being made. Recruit all the distributors you like, if the product is awful, and they cease to purchase it, you will not be compensated. It's that simple. You can go and try to sell product to the world. Or you can find a couple people who would like to do the same, train them, and be compensated for it. Does your wife make her money by not training and teaching others how to run...

  • @1074kaehler Once again, in MLM there are very few real customers to buy the product. Most of the sales are made by the bottom line distributors and that money is funneled up the Pyramid of participants. With more than 5 commission levels to pay out, most MLM products are overpriced and of inferior quality. When MLM's recruit, it is never about the product and always about the "opportunity". This is so much the case, that the product no longer seems relevant.

  • @MLMsellsSnakeOil - ...successful pharmacies? Is that not part of her job? Does the manager of one of her pharmacies make more than she does? No. She is paid on the production of her people below her. And if that begins to fail, guess what happens? I owned two franchises', and by the way, you don't buy a McDonalds, you buy the actual land a McDonalds will be built on. Your comparison agains direct selling is far from accurate as well. Only SOME companies have territories, and not how you think..

  • @1074kaehler My wife's company pays good wages+ benefits. She, nor her employee's are not expected to chain recruit their friends, family and everyone else within 3 feet of them. They don't pay fee's or have to sell or buy a certain amount of product to be able to collect their pay checks. Companies protect territories because if you become over-saturated, the outlets cannibalize each other and none of them make any money. MLM is like working at a car lot, with a salesman next to every car...

  • @MLMsellsSnakeOil - No, they are expected to sell as much product as possible to everyone whom walks into the door. Once again, you make reference to the way some companies distributors choose (wrongly) to move there product. It has nothing to do with the industry. Unlike you, I have work to do. You have no foundation to base any of your comments on. You are a bored person, who in all reality, does absolutely nothing in any business world. I have taken to much time discussing this with you.

  • @1074kaehler Once again, MLM distributors recruit their own competition. How does this make any sense? It doesn't make sense for a direct seller to recruit their own competition, unless selling pays less than recruiting. This is why MLM isn't about the product, because the structure of their organization pays less importance to selling than recruiting.

  • @1074kaehler BTW, I asked you what company you were involved with, and you have ducked ever giving me an answer. What are you afraid of? Let me Analyze it, and if I don't think it exploits people I will say so. The MLM industry is in bed with the GOP, gives them tons of money and under Bush they stopped prosecuting Pyramid Schemes. Bush has appointed someone heavily affiliated with Amway to head the FTC. The fox guarding the chicken coop!

  • @MLMsellsSnakeOil - ...it is actually more of a title for many direct selling companies, and is a big disadvantage to many. For instance, Mary Kay has 'regional managers', but to become one, do you know what the qualification is? You must have a certain number of distributors, sponsored by you, in your area. Hmmmm. Look, you don't own a business, you aren't a member of MLM, and your knowledge is shoddy on both. So, why do you continue to throw around insults and misinformation, when you....

  • @MLMsellsSnakeOil - ...clearly don't understand traditional business or MLM? A stay at home father (which is a good thing), that has no experience in MLM, and doesn't own a business either, who's wife is a manager for a string of pharmacies, has nothing better to do with there time than get on a thread and post inaccurate information about a business he doesn't understand, because he read the writings of one person, and got his hands on some ebooks, and looked online? Stunning. Best of luck to u

  • @MLMsellsSnakeOil - There ARE scams out there, and most of them are online. What you don't realize is, there are ALSO legitimate companies, with great systems that you can make great money with! You just lump everything together and call it a scam. And then say, 'good for you' if someone is in direct selling? Seriously? Direct selling requires you to stock, store and deliver products. You just don't get it sir. Continue to read your ebooks, there doing wonders, let me tell you. 

  • @MLMsellsSnakeOil - ...you've never even been in the industry. You just bash it. That makes a lot of sense. Someone with a mental disability does something bad to themselves because they don't have the knowledge of what is bad or what is good. Sound familiar? I think owning a franchise is an awful route. But I don't bas the ones that do. So why don't you let the companies, and there distributors continue to thrive, and you can go on making whatever it is you make? Stay offline and learn somethin

  • @1074kaehler If a company has: 1.Endless Chain recruiting till infinity. 2. Advancement via recruitment or sales numbers unattainable without recruitment 3. You have to pay fee's, buy product and sales quota's to qualify for commission. 4. Have a compensation structure that exceeds 5 levels. 5. Most of the commission goes to the upline. If you have THREE of these, it is a product based Pyramid Scheme. THIS IS NOT DIRECT SELLING! What is your company? I want to examine it- if you're not afraid

  • @1074kaehler A real franchise has territorial protection. That is why you never see 4 McDonalds on a given street corner. In MLM, you have no such protection. There could be 10 other distributors across the street. You can sell a franchise, you can't sell a MLM faux franchise. In a real franchise, you keep a large chunk of the money. In MLM, most money made off products goes to an upline.

  • @sbohandley , Secondly, paying distributors to bring in new recruits is NOT a 'loophole' it's actually illegal. And that is a main qualification in determining it's legitimacy. Any legitimate MLM only makes money from the sales of products alone. Of course, the distibutors should buy the products so they know what they're selling, but I am part of a MLM that doesn't require you to purchase ANY products to be a distributor. The truth is that many distibutors start out as customers first.

  • @suckerface4 It doesn't matter that MLM's don't pay for recruits. They circumvent this by setting the commission structure up that a distributor can't get promoted or make any money direct selling. This occurs when most of the commission goes to the upline and they get a higher rate of commission for the sale YOU just made....

    If what you do is legitimate direct selling, where it isn't chain recruiting based and most of the money doesn't go to the upline- than that isn't MLM.....

  • @ anyone else who doubts, Before you open your mouth and speak out of ignorance, open your mind. They are actually teaching MLM at universities now. You should always be wary of those who are in fact illegal, but don't be so close-minded as to think that just because one is bad then they're all bad. That mentality of thinking is what holds us back in life, creating problems like racism. A good MLM offers useful products, if you can make a living off of adding value to peoples lives, is that bad?

  • @suckerface4 Any University that teaches network Marketing, has Ass Wipe for a diploma.

    You know, everyone always confronts my disparaging remarks about the industry, with stuff like "there are good MLM's". I have yet to have anyone tell me what one is, or defines one.

    I have no problem with Direct Selling, but that is not what MLM is. When you don't make money off the products you directly sell, you make money off an downline and an upline makes money off you- That is a Pyramid Scheme!

  • This is a mirage. In a legitimate franchise, there is territorial protection. If you open a MacDonalds you will be guaranteed that there will not be 4 other Macdonalds across the street. Also, you get advertising as part of a franchise fee. Rarely do MLM's give you any advertising. Also, "Legitimate MLM is a Oxymoron. They are recruiting based. Nobody makes money at this, direct selling. You make your money off a downline, your upline makes money off of you. Get it! It's a Pyramid!

  • Today a friend of mine invited me over to a small meeting where a "Graduate studying his masters" gave a lecture on how to make money with Goldmine International. I wonder how i even believed for a second I could make money with this and not realize it's a Pyramid Scheme.. :/

  • What a superb breakdown. MLM gets unfairly lumped in with pyramid schemes but you clear this issue up beautifully.

    Spread the word folks!

    Ryan

  • @ryanbiddulph True. Money is made from actual sales with no frontloading, headhunding and no attempt to retail The issue we have is that many of our people want to join just to get products wholesale and not promote. When the Amway Plan was compared to Kostco in 1979, the difference was clear cut. There is NOTHING with sales generated only from members. Its NOT ideal because most MLMs focus on retail sales too starting out. As long as it has no head hunting/front loading fees its ok. NO DEBATE!

  • FUCK MLM !!!

  • thanks great video

  • ITS NOT A PYRAMID SCHEME ITS AN INVESTMENT

    OF 600 DOLLARS

    WHICH YOU WILL TOTALLY MAKE BACK

    AND NOT ALIENATE EVERYPERSON YOU EVER HAS A RELATIONSHIP WITH

    MAKE CASH AND NOT FAIL IN A SILLY "RESPECTABLE CAREER" AGAIN

    ARE A SURGEON, ARE YOU A PRESIDENT OF THE UNITEDSTATES

    I USED TO BE BOTH AND ALL THE SELF-RESPECT AND CONTRIBUTION TO

    SOCIETY MADE ME SICK

    BECOME A LEECH AND SCUMBAG TODAY JOIN THIS MLM

  • Great Presentation

    Tim Sales is one of the best.

    Be the Best!

    Simon

  • Avon...Your Joking!!

  • For anyone who says negative things about multi level marketing/direct sales, I just say, Avon is multi level marketing, and no one has a problem with Avon

  • @SunstateUS lolz, that's because no one has careers in AVon, besides the people who work in their factories lolz....

  • i think the only crime legit mlm can be accused of is making it seem easier than it is. To succeed you're going to need good sales skills and an understanding of people which takes time to develop and why "amway" sells tools to its members to learn. If people really understood what it takes to succeed, i'm sure alot of them would have never signed up and the reason 97% reportedly fail...

  • @delli2011 based on this comment I am replying to, you should watch the tim sales video "do most people fail"

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  • delli2011, thanx for setting supenmanu straight! no offence supenmanu. some people just blow my mind. those of you that are still confused about the difference between a mlm and a pyramid obviously didnt pay attension. if you value what tim sales teaches and value your own time, then actually hear what he's saying. tim sales speaks the truth! no debate! either you're a believer or not! pick a side!

  • this is unbelieveably shady, I wou'ldn't touch this with a 10 foot pole, how often do people buy directly through a internet site from there friends? never, you are wasting your time with this and probubly some money

  • @assman12354 i do it all the time, but with complete strangers... ebay and amazon.com two of the top internet sites on the internet...

  • @delli2011 you do what?

  • @delli2011 dude, that's not mlm, that's single line marketing, or basic business, you sell through amazon and you make money off it....it's not mlm....

  • @roble98 yah i know, its basic affiliate marketing... sorry, what was i referring to? maybe the fact that people have become millionaires by using amazons affiliate marketing that gives people 15% of the profits.

  • This is absurd. In more politically correct terms, this video is stating an MLM is a pyramid scheme made to fit within the constraints of federal law. The argument in support of this scheme is, of course, that because MLM is legal it is therefore ethical and correct. FAIL.

  • can someone explain this to me in plain english..

    my friend is being recruited to something to this.. and im worried...

    he has till next week...

  • He gives the wrong definition of a Pyramid scheme. Because even with a real and interesting product it can still be a Pyramid scheme. If you have to pay money at the beginning just to work for them and then make your money by selling the product AND recruiting people, then it's a pyramid scheme. Only if you either don't get money for recruiting or don't have to pay money to start working is it not a Pyramid scheme (it can also be like labor for which you don't get paid at the beginning.)

  • @Supenmanu In this post of yours, you demonstrate vividly that you do not know whereof you speak. When one comes into MLM, one does not go to work for a company. One BECOMES a company, in business for oneself. When one goes into business, there are ALWAYS startup costs.

  • @LarryABlake: I didn't say that it's a Pyramid Scheme if you have startup costs. I said: If you have to pay money at the beginning just to get started AND get money for recruiting others (who also have to pay the startup fee), then it's a pyramid scheme. In other words if ONE of your MAIN ways to sell the product is to get others to buy the product by promising them they can sell it again, it's a Pyramid Scheme. Of course i am not attacking anyone - i am just giving the correct definition.

  • @Supenmanu In that case, of course, that's pretty close. The truly good MLM companies do not provide any kind of commission or profit for the startup kits. I also do not believe in selling for the sole purpose of recruiting, nor do I believe in signing up for the sole purpose of recruiting to the neglect of selling. But I did misunderstand what you were saying, and for that I apologize.

  • @LarryABlake: Well yeah, then i guess it depends on the company if MLM is a Pyramid scheme. If you have a "good" MLM company that focuses mainly on selling the product to the end user, it's not a Pyramid Scheme - it depends entirely on how the company handles it.

  • @Supenmanu, lol, you're confused. This industry is not a job its having your own business. Try opening up your own company but tell people you will not pay for start up fees, you will not pay them rent etc and watch how people look at you.

  • success in MLM comes to those who think with an entrepreneurial mindset rather than an employee mindset

  • Actually you don't need to be great in sales per say. You make money by duplicating ur efforts and not everyone is a great salesman/woman. The power is in the relationships, networking and duplicating. People do make millions in this industry no matter how late that have entered. In fact i have found some making great incomes many yrs after the founders got into it. If they can do it and use same system so can u.

  • Comment removed

  • Multilevel marketing, which is commonly referred to as MLM, is a type of compensation plan found in direct selling. A direct selling company that offers a multilevel compensation plan pays its representatives based on the individuals product sales as well as that of their downline, which refers to a group of people that consultants bring into a company to generate sales, their recruits, and so on.

  • @mrsinclair1977 Network Marketing is a term sometimes used to describe direct selling, and often used interchangeably to describe the sales model or a compensation plan. Using the term direct selling for the sales model or multilevel/single level marketing for the type of compensation plan is more clearly conveys each term.

  • @mrsinclair1977 Personally, I think MLM is a great concept. If you think about it EVERY business model uses leverage of other people's time and money to make a profit. MLM brings the concept of leverage down to the ground level. Instead of just the owners of the company benefiting from leverage, everyone in the sales force gets to benefit. MLM gets a bad rap, I think, because of the abuses some have perpetrated against the lower tiers.

  • Comment removed

  • mlm is a pyramid scheme

  • @XXXXXpimptaddyone

    Those wealthy people are just a sample of some of the more well known figures in the business industry, and i can assure you many more qualified and better educated people then you endorse this industry you label as a scheme, out of your ignorance.

  • @XXXXXpimptaddyone What does having a high education have to do with whether you succeed in business or investing really anyway? How many bankers you know that ask you for your report card? They look at how smart you are with your money not how good you are at your job or how much it makes you.

    So again do you honestly think you know more about business and investing then Robert Kiyosaki, Donald Trump or Warren Buffet? who all endorse this business and its model?

  • @mrsinclair1977 I am smarter than those people. I have a 200 I.Q. and you are white trash.

  • @XXXXXpimptaddyone First of all i asked whether you thought you knew more about business and investing then them? NOT whether you was smarter, so for someone who boasts and IQ of 200 you didn't pick that up well did you?

    2nd of all, you sir work for those people you claim ur so much smarter then, which again shows they understand business better then you do.

    Get yourself some help sir you have serious anger management issues, petty name calling is hardly a sign of an intelligent mind.

  • @XXXXXpimptaddyone Dude, grow up.

  • For extra worth.

    Some of the richest most respected companies and people endorse this style of industry. Such as Robert Kiyosaki best selling author, investor and financial expert. Donald Trump who also now owns a MLM company himself. Warren Buffett who owns 3 direct selling companies and Richard Brandson who owns one or 2 i believe.

  • god, i cant stand these uneducated MLM morons. they keep using bullshit corporate buzzword languange. Selling overpriced shit from your home is not "owning a business". You are a telemartkert, a cold caller, a disgusting commsioned punk who stalks and harrasses productive citizens with real jobs. mlm is a pyramid scheme. Most people detest MLM scammers. they want nothing to do with you. So people want leadership from a college dropout mlm douchebag? Look in the mirror, no one likes you.

  • @XXXXXpimptaddyone Such ignorance you present without any actual facts. There is a huge difference between legit network marketing and those scams your talking about. By the way MLM refers to a method of compensation.

    You want to know whats funny, he makes a lot more money then you do and has succeeded. If what he does works and what your doing is less effective who is the real idiot ha?

  • @XXXXXpimptaddyone

    I would rather listen to successful people then you who works your self hard to make someone else rich. Most people work for 40yrs and seldom in the same job and still end up earning less then the median wage and most cannot even retire at the age that's been chosen and you claim this is a scam? If you think jobs are safer your less educated then you think sir!

  • @mrsinclair1977 99% of mlm people don't make money and they cant retire. Most sales jobs are shit jobs where idiots try to scam people. selling overpriced crap via pyramid scheme companies means one thing.....you couldn't get a real job and you don't have a college education. The moron in this vid is a stupid worthless guy without an education. I despise sales people; always talking never accepting no.

  • @XXXXXpimptaddyone So what do you think you know that Robert Kiyosaki, Donald Trump and Warren Buffet don't know? ALL of these people endorse this industry and no offense but they know a lot more about what a real business and investment is and how to get rich then you do sir.

    The 99% idea you think of is incorrect by the way. Its actually about 80-90% fail which is about the same in every business and thats not cause it dont work or is unethical by the way.

  • @XXXXXpimptaddyone By the way,

    Its also a U.S.$114 billion dollar industry, one of the fastest growing industries in the world and has made MORE millionaires then ANY other industry in the world. These are facts and not just my opinion so if you don't believe me go and look it up yourself as i did and you will see i know what i am talking about, since i did look into it.

  • @XXXXXpimptaddyone So what do you think you know that Robert Kiyosaki, Donald Trump, Richard Branson and Warren Buffet don't know that you somehow manage to know about this business? They clearly endorse this industry, and they know alot more about business and investments then you do sir. So are they also uneducated idiots your talking about, with no understanding of real jobs as you put it?

  • "Lots of people want to ride with you in the limo, but what you want is

    someone who will take the bus with you when the limo breaks down."

    wishing u much blissful energy and light force!

    Justin

  • tops

  • Hey guys! ---- If you join Kevin Trudeau's Global Information Network affilate program (the free one), here's a code you can use (you need to be referred). I'm making lotsa money! :D Affiliate Code: CASHNOW

  • It's all about the marketing strategy.

  • reza have u ever try do a business from scratch? My friend ask me a year ago what can we buy n sell. he say willing invest 1 thousand on it. i was clueless where to start like him. i found all my answer to business when i receive a call from a company. if a buy n sell its business. mlm is believe as scam because you are jealous of the guy get it all n not thinking for the business person below him.

  • @cmale123

    I call MLM for what it is. The type of bonus promised to the sellers don't add up. You go 6-7 layers down the branch and you pay over 100% accumulated bonus on sales. How could that be?

    MLM works only for the top guys in every region who make a ton of money off the ill-informed members. BTW, I'm not jealous because I have 6-figure real job (director level) in telecommunications. I was approached by a family friend who had fallen in trap like many other thousands.

  • @mtahuri MLM works best for the top guys. Specifically for the guy who OWNS the product. However, it can benefit a regular guy or gal pulling themselves up by their bootstraps, although it won't make them millionaires. The really BIG money will always be in PRODUCTION of the retail product, but if you are great in sales and build a great sales force you can make money. MLM gets a bad rap from the folks who run a "buy from yourself and teach other to do the same" scheme.

  • @AJMReviews Thank you for ur positive outlook though. But i have found people still haven't grasped the true power and effect as yet of this fast growing business model Look up Robert Kyiosaki's "the business of the 21st century" This goes through the REAL reasons it works. This is not a sales retail business it is a relationship business.That's one of things i like about it, even though the products and so on are very important and u don't make money unless u sell them.

  • @mrsinclair1977 Well said. Competitive pricing is certainly not everything. I hate shopping at Wal-mart, not because I don't like saving money, but because I hate shopping in general and when I go I want service. So, yes, what you say is on the mark. However, if you don't take any consideration of retail markup, then you'll lose in MLM because most people don't want to pay 3 or 4 times the value of a product simply for good service. There's a balance.

  • Comment removed

  • MLM is a Pyramid Scheme, PERIOD.

    In fact nothing is more Pyramid than a MLM. The top guy makes money off all the guys on the branches. They always show the shinny top local guys and make you think you have a shot at it. But it's impossible model. Read about it on the net and you;ll know.

  • I'm sorry, but I feel sorry for you. If I was you, I would shoot myself. If u r right, that means Warren Buffet, Robert Kiyosaki and many others are plain dumb. Man, if they are dumb, & they are making it in life, then this world is fu*^ed up lol.

  • That's why they're rich, and you're not.

  • You obviously don't know what you're talking about.

  • You and mtahuri either did not bother to listen to the video, or you do not comprehend well. But one thing is for sure: neither of you understands business . . .

  • @rezatavassolian Since you said its a pyramid scheme because the top guy makes money off all the guys on the branches and its an impossible model. most likely you failed in the industry before.and i would like to tell you something , your boss earn lesser than what you earn?so your telling me if your a new recruit you should earn more than your boss?in which industy can u earn more then your boss?use your brains pls

  • Hi FirstClassMLMTools

    I have just been watching your video and I must admit it really is very good.

    I really enjoyed watching it.

    Already looking forward to more of the same in the future.

    Cheers to your success.

    Mark McCulloch

  • Nice. I think you'll Like a few of My Vids :)

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