The other day I was reading something about MLM and someone pointed to a video from personal finance guru Dave Ramsey. The video is from his radio show, so you can press play and listen while you read (assuming you are a multi-tasking hero.)
I don’t want you focus on the information specific to the particular MLM mentioned. There isn’t much important there other than the fact the financial MLM is specifically targeting women. Pretty much anyone breathing can join, male or female, and a specific pitch towards women comes across like tailoring a pitch to Red Sox fan in Boston because that’s who you happen to be talking to.
I’m going to pick out a few quote and timestamps from Dave Ramsey here:
Dave (1:35): Multi-level marketing in general is fine. There’s nothing wrong with it in essence.
We’ll circle back to this one at the end, but for now I’ll just show you that over 99% of people lose money
Dave (2:08): I know people who make over a million dollars in 4 or 5 different ones.
I’d be interested to know who these people are. It is extremely rare to make a million dollars in any MLM. We are talking about around 10 people out of 100,000 that are in them. (This is from my experience in breaking down the Income Disclosure Statements of many companies). There are an estimated 15 million people in the US in MLM, which means around 150 people in the United States total making a million in MLM. It’s hard to believe that there are 4 or 5 people making a million out of those 150 people. It’s harder to believe that Dave Ramsey would know these people.
Read the rest of the story here: https://www.lazymanandmoney.com/dave-ramsey-supports-pyramid-schemes/