whoo-hoo this is what we're looking out
for this video is brought to you by
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com there's a billion dollar lie being
peddled around the internet right now
where people are promising quick and
easy riches
it's called multi-level marketing and it
is something that you need to be worried
about and you need to be looking at and
that's what I want to talk about in
today's video I used to run ads for a
multi-level marketing company the
engagement lasted two weeks and I felt
skeezy about it the entire time but
you'll be excited to know the ads didn't
work because Facebook doesn't allow
multi-level marketing ads however we
tried everything possible to get this
thing in front of people and through
doing that through that engagement I
learned a lot about how these
multi-level marketing companies think
how they try to skirt through laws that
are in place to protect people from
companies exactly like them and in
today's video I want to talk about that
what do you do if your friends in an MLM
are you in an MLM what is an MLM etc
let's go through it and I want to reveal
this to you so that maybe you can avoid
falling into the trap that a lot of new
entrepreneurs fall into of joining one
of these companies first a quick story
my mom joined the MLM that I was doing
Facebook ads for and I told her not to I
was like this is the company I'm working
for it's whatever the site is I told her
the pitch she loved it and I was like
mom do not join these guys what are you
doing do not pay them it's obviously a
scam I don't even know I have them as a
client I shouldn't have them as a client
the only reason I had him as a client by
the way was cuz I was broke and living
at home with my parents that's why I was
even talking to my mom about this so if
you did join and she kept her credit
card on file with them for over a year
as far as I know it hasn't been
cancelled yet might have been two three
years now she's paying them monthly
because MLMs are very sneaky beasts but
I told her not saying for dinner anyway
I also see people at coffee shops this
is how you can spot an MLM pitch you go
into a Starbucks there's a family next
to you it's a couple usually
20s probably married with their laptop
out giving a presentation to another
couple about some BS it might be
essential oils it might be knives it
might be travel agencies or timeshares
or whatever if you see random average
Americans pitching other random average
Americans on something the odds are high
that they are involved in a multi-level
marketing scheme and if this is you the
odds are high say you might be involved
in a multi-level marketing scheme so
watch out so first of all what is
multi-level marketing well it's also
called pyramid selling network marketing
and referral marketing and it is the
name for a system where all of the money
generated by the company is generated by
non salaried employees meaning people
pay for access to the product and then
they sell on commission only most of the
time recruiting their friends into
something called a downline while
earning commissions from the people
below them in a pyramid and that's why
it's called a pyramid scheme because the
boss is at the top he recruits three
people they recruit three people etc
until you have this nice pyramid where
the people at the bottom get hoes why do
people join pyramid schemes and why do
they love the idea of an MLM it's
because it seems like easy money they
trick you they tell you that if you just
sell these essential oils you're gonna
be a millionaire you're gonna have the
dream there's a system that you buy into
and all you have to do is pay for
$30,000 of Cutco knives and you can go
door-to-door selling them and you're
gonna be rich and the best thing about
it is you recruit other people into your
downline they sell the knives for you
you don't even sell the knives and you
just keep crunching it out and they get
more people etc until it becomes a
pyramid with you at the top sometimes
they don't use the pyramid anymore
because pyramid schemes have gotten such
a bad name but that's that profit easy
money etc people love that nobody wants
to put in the work thing is it's a dream
that that would be the best business
model in the world if it actually worked
but mathematically there's no way you
could run a pyramid scheme without
stealing money from the bottom 50% of
the pyramid that's that the pyramid as
it grows will pretty quickly thanks to a
concept called
exponential growth it'll increase to the
point where absolutely nobody in the
bottom half of the pyramid can make any
money and in order for them to make
money you'd need more people than the
entire population of the earth that's
how exponential growth works what are
some of the top
openes what are some companies to look
out for if there's actually a mega
thread on reddit and it's called is
blanket MLM search here and you can see
all of the companies that are confirmed
MLMs if any of these companies are
pitching you or your friend works for
any of these try to get them out you see
the big ones a bonds on here and then
there are hundreds of others we'll have
a link to this down in the comments
below you can check to see if your
company is in MLM for tails only
flamingo papery I love these names hate
these companies when do you know that
you're in an MLM if you have to pay to
join and they frame it like a business
opportunity like you'll see these
posters around I used to see them in
college where it was offering a job but
you have to pay for the training that's
an MLM if they're telling you that you
can be a travel agent but you have to
pay them to be a travel agent that's
most likely in MLM as well if they ask
you to recruit your friends for the
business that is an MLM so where do you
go if you're stuck in the MLM loop or
you think you're trapped in an MLM I
would recommend going to the anti MLM
subreddit and they've got this nice list
of resources here John Oliver's video on
MLM s is very good very thorough and
also this article by Vice how to get a
friend out of an MLM if you're wondering
how to actually get your friend out this
is a step-by-step article that you can
go through it's very well-written very
good and then the subreddit in general
is great because people are just
trolling the MLM salesman
emilie air bond protein powders vegan I
use it quick and easy by my definition
veganism also requires avoiding harm to
humans so air bond and other MLM
companies don't quite cut it
kristan multi-level marketing recruiters
watching more single moms become
unemployed due to kovin who this is what
we're looking out for this video is
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