How To Spot A Pyramid Scheme / Multilevel Marketing


100 thoughts on “How To Spot A Pyramid Scheme / Multilevel Marketing

  1. What was your biggest takeaway from
    my video? Comment below.

    Also, you can comment any questions
    you have for me.

    I might feature your question
    in one of my next videos.

    Don’t forget. Like. Comment. And subscribe.

  2. I’m guilty of this. I got recruited because they told me I only need to spend 1 hr a day on the business and spend the majority time with my kids.

    But then once I was recruited, my recruiter wanted me to go to meeting three times a week, and those meetings were not free…

    I quit! Thanks for making this video. My eyes are opening wide as of now.
    I appreciate your honesty!

  3. I was a victims of MLM. I spend thousand and still can't make $$. Then i realise, mathematically it could work. How could 1 recruit 2 then 4, if you punch in the calculator, by a year you would reached the whole city. Then how?

  4. How to get over the feeling if your friends making some big real money through some mlm and me sitting here watching them. You know how they advertise their income.

  5. It is selfless to have good content videos which educate the public. I also applaud at the courage to say No in something you believe in. In this case, it’s not being a speaker for MLM

  6. I’m with a company and the product seems to actually be credible. It’s life insurance and other financial products. However they focus claim it can be easily done through part time and recruiting. We are licensed agents that follow a up-line commission system. I’ve completely burned through my warm market and am often told “you just have to go through the numbers” of prospecting in the cold market. I’ve been in for six months now and haven’t made a single sale. I’m volunteering at this point. I’m currently a jr. in college for psyc. with the desire to create counseling and recreational centers, an app, and other products. I’m writing a blog for young adults and college students to join me while learning relevant and effective information about creating wealth and living the life you actually want to live. I joined this company in hopes of receiving mentor ship about building a business and be financially literate as well as to earn pt. short term income while completing college. How do I figure out whether to be persistent and stick with it or to focus my attention on my other activities?

  7. Your correct i started in a mlm just recently and that is what brought me to you and in just a few videos you have me on a whole new path with my personal Development Thanks

  8. Yeah, network marketing has been a big hurt, no proper structure no ethics, people putting their jewelery to buy products, one friend being duped by another distributor and his father suffering a heart attack. And it's worst. Could have shared with the media but avoided it for controversy sake.

  9. Dan you know what…you just saved me… today itself I got an offer to go for an meeting …he told me about network marketing and MLM which I didn't have any idea about.. first thing I did after coming home..I watched this video and now i feel more enlightened and sure about my next step….so thank you so much Dan for saving my time and money!
    This is Altaf from India!

  10. i was new to MLM and i already paid 5x the day before i saw this video, the day it was uploaded…. too late 🙁
    DAN! what do i do now?

  11. Long story short: this video lit a BIG-ASS lightbulb of truth in my head about that one "business"scheme I stumbled upon on Cyprus.

    The long story itself: I met a random guy, who lives in quite a nice cozy villa on the hills, who created this ünique travel business" where everyone who gets invited to the memberships (for each of which you pay MONTHLY) and you get some bonus points per: number of people you recommend certain travel destinations, and the vacation bundles that you purchase with that company. And that company partners with some of them. Okay, maybe these guys earn some commission from those purchases, but that guy NEVER talked about how I, or my mom (she was lured in there before me) would earn money.

    I don't even travel that much, and I did a research on it: literally ONLY A FEW of those so-called "members" on socials actually make it, talk about their ring that entitles them for making $100K+ on that business. But nobody never talks about all the other people and their examples of how they succeeded.

    With that said, I really have to say a MASSIVE thank you, Sifu Dan and Desmond, for actually giving me such a packed insight on what really an MLM is, because I had no idea what that was about, and how that even brought money! 🤩🙌

  12. Dan Lok, you're a great businessman.
    However, whenever, when it comes to MLM, you don't know which way is up. Thanks for exposing your ignorance, guys. Your videos on MLM are like comedy to me. I love watching them because they remind me that there's a wrong way and a right way to do any business. Obviously, no one taught you how to do a One Minute Presentation, or a Two Minute Story to present your business. I understand your bitterness.
    I think it's more honorable for you to admit you failed, rather than to throw mud at the whole industry just because you never learnt the skills to do it right. Hahahahahaha, bitter, angry failures (in MLM). I know your type.

  13. Most of them when they sign up to an MLM all of a sudden are into charity work lol, they want to look like caring nice people

  14. A couple tried to get me into Amway and told me all the details about the pay scale. They say it is best to get 5 to 7 people under you at each level, but, the pay scale info revealed that three people under me had no effect on me whether they were directly under, or lined up under each other.

    Well, long story short, I used Excel to discover that, if you start with about 50 people, setting one at the top, and one at each level below you, resulting in 50 levels, the company would owe us in one month more than it took in in a year. So, when they came back for the second presentation (to sign us up, presumably), I presented them with my Spreadsheet and asked if they were interested in an interesting business opportunity.

    Not sure why, but they got really offended…

  15. Dan. I agree with you at some point, but not all MLM companys are the same. I started in a new MLM company 21 month ahí and now i have 18.821 partners. I started to be an entrepreneur and finaly knowing you, because of the Network Marketing.
    In our company you dont have to mantain volume to mantain your rank.
    Its a very different system.
    So not all MLM companys are the same.

  16. Totally agree…..I saw friends went bankrupt because MLM……company after company…..thks Dan…..well done….

  17. in my country, IF someone who you've not talked to or keep in touch for a very long period of time, but out of a sudden ask u out for a drink but refuse to reveal what's it is about, there's a high possibility that its MLM. chances are when u sit down with them, they ask you "have you ever heared of amway?"

  18. Lmao, memories of scamway coming back. The new thing is they emphasize the word " process, we have a process, new process to bet people " … same shit. Vetting suckers at a slower pace with the illusion of selecting and not recruiting.

  19. Jim Rohn made his money in network marketing. Your partner said he made 6 figures with it. I know people can make money at it but I also know it's a small percentage. I'm starting a new career with an established business selling life insurance and ultimately becoming a financial advisor but it's also challenging to think it's 100% commission. Still working on getting 200 contacts before I can start smh that's a challenge all in it's self. So is it that MLMs are really a scheme or does it depend on the person how successful they are? It seems in any 100% commission based business mlm or not your pay is based on your performance.

  20. I think my main issue with these companies is the huge dropout rate, 99% of people will invest money into these companies and not make it back, however the 1% who stays make their money off of those 99% who are often vulnerable people who just want to make a better life for them and their family but end up losing thousands while the 1% make commission from them.

  21. With all respect, Iam currently working in an MLM company which has literally changed my life. I started from scratch and now I can say I'm earning pretty well. The thing is about finding the right company and working with a genuine plan. Thank you

  22. When I was in a MLM I never made more than $5 a month after 2 years of cold calling and conference calls. They had good training, great products that actually worked as advertised. However, if your prospects don’t want to switch brands or THINK something might be a bit off like sounding like another opportunity or products they heard bad stuff about, YOU WILL ALWAYS FAIL NO MATTER HOW GOOD THE PRODUCTS AND TRAINING ARE.

  23. My parents joined Amway and lost thousands! I joined Herbalife – there are NO herbs in their products and the prices are ridiculously high to accommodate the commission system! Joined World Ventures and it is the biggest load of nonsense ever!!! All of these things and people focus on gullible, uneducated and desperate people! Please don't be fooled! Think for yourself! If it sounds too good to be true, it IS!!! Please don't get scammed ever again!!!

  24. Last year I joined an mlm company called Nuskin. In the beginning, it was fun trying beauty products and promoting, but while working for them I discovered many things that I did not like for example they don't really teach you how they just talk about things like how beautiful your life will be if you make it. They won't teach you and if you fail or if you have a hard time, for example, a big fight with someone you care about they will say oh use this as a motivation become successful to show them you are better, but that is not what I wanted … I wanted to take time off to heal. They will in the end always blame you and no matter what you tell them they are so brainwashed that they will not believe anything you tell them. One person even told me other jobs means working for a boss with limitations which I don't agree with! you can be happy while working for a boss, you can be happy with working and having a family. Do not let them pressure you into it. In the end, do what feels good for you and if you don't trust it leave. I personally don't recommend MLM! If you want your own a business then educate yourself find something you love and turn it into a business and help others with the service you provide <3

  25. At the age of 18 I started doing business. I engaged myself in lot of business. At the age of 28 I found I am a complete zero . I had lot of debt . I not only ruined my life I also ruined my family life my parents , my elder brother everyone suffering because of me . Then my whole family started returning my loan . I was completely sitting idle in my brothers house thinking my life is finished . At the age of thirty I joined one Chinese mlm company as the last chance of my life . Now after 10 years I am not telling I am successful but at least I have some money I naught a normal house and I have a normal personal car . But it’s also true lot of people joined the same mlm company on the same time when I joined but they didn’t succeed. From their point of view mlm completely ruin their life . I am now completely confused about this industry. If I consider myself it is a great industry.

  26. I use MLM as a step stone to develop certain skills. I'm not planning to stay here forever. Watching this makes me 100% sure to not rely on it forever

  27. The real money is MLM is made hosting pay-to-attend seminars, conferences and schools, or in corporate appearance fees for speaking on stage, or selling dvds and books to your own people. None of those revenue sources are available to a typical MLM'er, nor are they considered MLM. They simply target MLM participants.

  28. "Hey, do you keep your options open when it comes to making money?" …
    "I know this person who's expanding a massive business in the area and looking for people to help them grow…but I can't tell you the details".

    So many shady tactics in this industry to get people to go to meetings and so on. Thanks for making this video and shedding the light on it. It inspired me to make my own video with some of flaws and reasons why I don't think anyone should get involved with MLM.

    Too many other options for businesses out there to choose from. People just fall into it (like myself) because of the shady tactics that are taught and used (because they work, unfortunately) and the promises of a better financial future.

  29. My parents tried making it in Herbalife for 10 years. They, unfortunately, didn’t make it.
    I remember them during my childhood years almost often away and if they were at home were always tired and or fighting.
    They were and still are brainwashed about how “Herbalife products are good for your health” or “how you can lose weight from drinking shake.” Until now, they still are trying to dabble into this game.
    A few years ago, I personally confirmed it for myself (in my 20s now) that the products don’t make you lose weight. A shocker I know.
    Just yesterday my mom talked about how Herbalife was “fun” despite not earning. I think this is what Dan talks about on 7:57 but if not leveraged properly then it would like watching motivational videos for the high.

  30. Thanks for yr feedback on MLM just now I attended the MLM meeting I confused after their session either to join or not now I am very clear Mr. Dan and I am a fan of u and yr life experience is a set example to anyone thanks bro…

  31. @6:00 Yeah! Like a coffee shop. You go in. You pay for your coffee and muffin. The margins on those items are high. The owner makes revenue that ultimately puts the owner in the black. Business continues profitably. Done! Simple. A child can understand.

  32. Why don’t you promote the strengths of your own business instead of slagging of an industry that you are obviously misguided on

  33. I respect you,and I really love and agree with all your sayings since I knew you,but on this motion I disagree with you.If you are an MLM hater it doesnt mean that you have to influence other people to dislike MLMs.I'm not a distributor but I know that MLM is the best business model I've ever seen.Yes I agree tht there are some MLM companies that are scams,so I advice you to use the word "some" next time,dont speak in geñeral.There are a lot of millionaires from MLM that includes Donald Trump.Even Bill Gates said "If he was to start over,he w'd go for Network Márketing.

  34. Saying to people not to join a legit MLM is unacceptable. People have different reasons why they joined MLM.

    Money

  35. Most businesses fail within 2-3 years, most everybody quits in everything !! So it's no different in Mlm companies, why because most people want paydays without taking action and getting to work!! The moral of the story it doesn't matter what industry your in, it's going to take effort, goals to get to where you want to be. Mlm is a great business model, but often misunderstood . Due your due diligence.

  36. MLM's are so hated anymore. On Facebook there's a large anti MLM group called Sounds Like MLM, But Ok and it has 130k people in it. People are getting sick of it. Sick of being cold messaged over and over and over again. Now they're using attraction posts, where they literally lie about how great they're doing blah,blah blah. I unfollow every friend who joins one so o don't gotta see their ridiculous posts. Lol

  37. I think Hempworx is one of the worst ones out there right now. They prayed on my husband when he was dying of cancer. She told him to go on to her FB page and watch the videos of people who were cured, who took their CBD oil. Mind you, the people making those claims, also sold it. I was so fucking pissed! If you've ever loved someone who's dying then you know the desperation these people feel and the hope they hold onto.

    They make egregious medical claims. Awful people! The Huns are in a lot of the groups I'm in and I call them out every time I see them telling someone that it will cure their depression and cute their liver condition. They legit dash their CBD is the purest in the world. The fucking purest 🙄🙄

  38. Dan you miss very interesting facts… all scammers use 1. "New speech" like in Orwells 1984… you have to be an insider to understand what they really talk about…and at that point you have lost your money already… 2. They use offshore-destinations and complicated structures to get the money our of your reach…like all the "Token Scammers" … you only have a few salesreps who have themselves mostly no idea… 3. Most of the Scammers have the same Top-Leaders… most new systems are just optimised versions of old closed down schemes… just check the "founders"… like this "adscams"…

  39. Have never heard of MLM. How would anyone pay to work for a company? Why would a company focus on recruiting – demographics & market saturation? Most companies sell online to cut employees, maximize profits, and avoid the expense of a brick & mortar lease.

  40. Absolutely right Dan !
    I spent my valuable 1 year in mlm and it cost me a lot .
    But what I learn from this video is game changing

  41. The one little thing I learned just recently about how to spot a MLM or something similar is if they give you a company name or not. If you see nothing but a logo, be very careful, or get out of there.

    I was invited to an "event" one time and had my doubts. Lucky I did, because by the time I got there, I didn't see the name of the company, no cards, no websites either. Just names and reputations to go by. It's a shame too, because the person who invited me seemed to be really genuine and an integral worker.

    Hopefully they don't get into trouble…

  42. Sorry Dan, but network marketing, mlms are more than the one sided view you are showing your viewers here. For a more balanced view, check Patrick Bet-David

  43. I haven't finished the video yet, but I'm so glad I've found it. I knew from Day One that the MLM I signed up for wasn't right for me or my personality. I wasn't interested in ruining relationships and partnerships I had built, and the way they wanted me to prospect people ("Are you keeping your options open?") ALWAYS made me feel slimy, so I stopped doing it. Three years later, I've made no real money and finally decided to let it go. I knew it was never for me, and everything you guys have said so far (only successful if you bring more people "under' you, etc.) are the same thoughts I had. I kept telling myself I was over analyzing….I'm glad to know I wasn't.

  44. Agree! I got isuess with incruises I left them.
    My friend got isuess with dream trips
    The problem is that in Russia those mlm are growing like mashrooms I don't know where to hide, the more the crisis in the country the higher unemployment rates more mlm are open, nearly each third person is mlm.
    Few friends of mine they were about to lose all their money through Qnet and Ucon I knew one guy he was about to sell his flat.
    As my dad is got Jordan. So Jordan is the opposite anything mlm they ban it my law even now Avon is not exciting there! And if they will know that any person is dealing with mlm he/she will be charged and jailed. I think it's the best way in Russia is the opposite:/ it's really sad everywhere is mlm and people are still poor with higher hopes:(

  45. And one big Russian mlm company wish is a huge lie, they opened in few countries and they keep on losing to people it's "Sky way invest group" I didn't know that when I was hird there.It was a basic vacancy but I ran away from them hardly)

  46. Dan thanks so much for this mind-blowing video. I actually invested about 3000dollars in one crypto MLM network marketing company called..Onelife founded by Dr. Ruja Ignatova. till date, it has not gone ICO.

  47. Been involved with several in the past. Not for me. One positive was exposure to reading books like Best Salesman in the World… Og Mandino. Millionaire next door, etc.

  48. Dan, this is a lifesaver and eye opener. Now I'm certain on never joining that crap. I will instead focus on my income earning skills. Thanks man.

  49. Sir, u r a shifu of my life, like in the movie kung fu panda actually, this video helps my time to not going in this direction and also how to identify this type of company. I m from India, sir I hope one day u come here and take some talented guys because India is in the top country where the average age is below 30. I really working on my skill, one day I will be a part of your team.
    Thanks again for this video 🙂

  50. I must say some people got horror story about MLM is because the people whose in mlm field doing unethical on the business.
    Not all MLM are the same.I'm working with the best mlm company that actually listed on NYSE I must say that the company I'm working wth is BIG LEGIT. Actually our company doesnt need us. But us we need that company.

  51. Questra/agam i lost allot of money , tlc total life changes, i market live , and Karatbars. Nevet again in mlm . Thats my lesson

  52. My sister, a single mother of two children, was just talked into joining Farmasi- (an MLM I think) a cosmetics brand. Anyone have good info about this company? I'm googling it but so far only finding what an "incredible opportunity" it is. Thanks for your help.

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