Multilevel Marketing Schemes & The Scam of Financial Freedom

MLMs have been selling the scam of financial freedom for decades, and I'm fed up. Let's talk about it.

Multilevel marketing schemes, also known as MLMs, network marketing, or sometimes even pyramid schemes, sell the idea that you can make money and get rich easily. But the truth is far from that. From crippling debt, to preying on vulnerable communities, to many lies and deceit, multilevel marketing schemes have a whole lot of problems. In this video, I talk about why MLMs are dangerous, who they prey on, the fantasy of the get-rich-quick scheme, and how to actually become rich.

#multilevelmarketing #mlm #personalfinance #videoessay #scams #moneymanagement #financialfreedom

💌 Want to support the channel? Here are a few ways!:

🎥 Check out some of my other videos! 🎥

Want more videos on money, media, society, and intentional living? Be sure to subscribe for more video essays!

Time Stamps:
00:00 Lularoe's $5,000 investment
01:17 Let's talk MLMs
01:37 Dark reality of making money in MLMs
02:41 Pyramid schemes vs MLMs
04:18 Selling the idea of financial freedom
05:52 Why does this matter?
06:10 MLMs vs Gambling odds
06:52 Devastating financial consequences
8:10 Who MLMs prey on
9:10 MLMs targeted me!
10:29 How I knew I was in an MLM call
11:40 The MLM "opportunity" trap
12:05 "Get Rich Quick Schemes"
12:52 What do you think?

Keywords for some sweet, sweet metadata:
Multilevel marketing, MLMs, network marketing, financial freedom, personal finance, money management, making money, income, social media, video essays, video essay, dark reality of MLMs, scams, side hustle

[Cucumberflavoredmustard]

The infallible rule: if YOU have to pay to be involved, then YOU are the customer AND the product. The leggings, lotions, oils, and protein shakes are just props.

[mattwong]

If getting rich were as easy as MLMs make it seem, no one would be poor

[matthewgreen]

The worst thing about these groups is how they play with people's emotions, and give people false hope.

[phobowl]

The worst thing about MLMs is that they encourage you to hook in your friends and families. I’m insulted anytime someone I know try to recruit me. They’re trying to scam me out of my money and they’re supposed to be my friend and family.

[CBBforme]

I was in an MLM earlier in my career. At the time, I was completely seduced by the intense excitement, the super tight community, and the supposed possibility of wealth. I soon realized, that it was TRULY all about recruitment, not about product. And I HATED it. Imagine being pressured to speak to everyone you know - friend, family, stranger, about a "business opportunity" that wasn't even a business opportunity. It was awful. After I left, I was embarrassed about this chapter for quite some time. But now, I realize it was just part of my journey.

[ellarose]

i can’t wait for this channel to become one of the big video essay channels

[shebophebopwebop]

My parents fell for an MLM, luckily we survived, but I told them straight up at the beginning that I had a suspicion that it was blatantly an MLM and they dismissed me because I was "too young to know anything".

[deersakamoto]

Problem is even people who criticize MLM often look down on honest labor at McDonald's etc. There's too much entrepreneur worship even though 99% of MLMers make less than a few hours of work at McDonald's

[karacoconutag]

I've watched probably hundreds of anti-mlm videos at this point, and this is the one I will be sending to family and friends who don't know about MLMs. Outstanding work, Cara!

[dolledupwithdani]

I got trapped in an MLM for probably two or three months, thankfully not longer. I was at the pool, and this couple came up to me, and they were telling me that they were entrepreneurs, and I instantly got intrigued because I want to own my own clothing, business skin care, lashes, and whatever and obviously that intrigue them, so I got in contact with their “sponsor” I was doing weekly video chats, which were taking up a whole bunch of my time they were only about what strategies I was using trying to tell people I know about it and it was always about recruiting, which was honestly really annoying because I wanted to talk about how to grow my own business and then the fees came fees buying the products being a part of the group selling on the website etc. I was too broke to continue. I only had $100 left my name. They even wanted to help me budget and went through all of my expenses and everything and I just thought it was super ridiculous that after many times I told them that I honestly couldn’t afford to continue. They kept trying to help me with a new budgeting plan. I just blocked all of their numbers and thankfully I moved on.

[ryancraig]

I've always gotten cult-like vibes from MLMs. Enough to send me walking, if not running, away as fast as I can.

[missm]

another demographic more vulnerable to MLMs are disabled people. alongside the fact many of us struggle to spot signs of scams, many of us cant access the mainstream world of work cause of ableist employers, so we have to look for alternative options to work. Especially given the late stage capitalist hellscape we currently live in.

[DustinHaning]

One day we'll look back at how long MLMs were allowed to legally scam people and be horrified. This has been going on for almost 50 years now, it's crazy!

[CourtPark-ux]

Thank you for discussing this topic. Sadly, I was a victim of MLM scams. They preyed on my vulnerabilities at that time when I was going through a rough phase. At first I was ashamed, wondering how I could be so stupid. Still working through forgiving myself. Now I've learned from these past mistakes and speak more about it. Warning people of the dangers that the MLM mindset poses and how to avoid the traps they lay out. Admittedly, some people do find success engaging with certain MLM's, but many others do not. Be wary with these "business

[DR-cufl]

It's insane how people still fall for pyramid schemes.

[Corgiville.midwest]

Have had several family members in MLMs. What I hate the most is how they used selling “health products” to shame me for having necessary surgery. One of them outright told me in writing that I was “forcing the family to suffer”, since taking these products would make any medical intervention unnecessary. I was also accused of “making the doctors rich!! Sweet coming from an MLM.

[Mirage]

I was invited to a Mary Kay party once. I had never been to one and my friend/colleague acted like it was going to be a laid back get together, no pressure to buy anything. This was not the case at all. We were instructed to try samples of the products, one by one, with the group. The host was visibly irritated if anyone jumped ahead or asked too many questions. It was blatantly obvious she knew quite little about make-up techniques for the diverse group in attendance. At the end, she literally isolated each guest by taking them to the other side of the apartment, out of earshot of anyone else, and asked what products we liked. She was a bit more pleasant and I thought this was a conversation where she sought feedback. Halfway through, I realized she was jotting it all down on an actual receipt, then she held it up showing the total cost. Once she realized I was only buying one fairly inexpensive product, her mood shifted drastically; she was cold and obviously done with me once she realized I wasn't spending a lot of money. She didn't say a word after I paid, not even a thank you, just called over another guest. We were all grad students, so it's not like we had a lot of cash to burn. The product works great, but I would rather have spent that Friday evening without such manipulative people.

[sweetsunshine]

People join MLMs for the same reason people join cults, the military, and other group: COMMUNITY. Humans are social creatures and crave validation and interaction with others. Even introverts need that too. This is the foundation of why people will continue to join them. Often on videos like these people say why do people keep joining these if theyre such terrible investments? Because deep down, that's not why theyre there. Theyre craving friendship and community.

[richardpodnar]

Another worst thing is having a family member, close friend or good neighbor who gets sucked into an MLM who invites you to an ostensible "party" which turns out to be nothing more than a high pressure selling occasion by someone he or she has also "invited". This has happened to me a number of times in the past. Very uncomfortable.😮😢

[sarahjane]

I was targeted five years ago in LA by the Rodan and Fields “boss babes”. With that company I found they actually targeted higher income earners, but preyed on emotional vulnerability in order to recruit. For example: Do you feel unappreciated by your boss? R&F will always value you. Do you feel isolated and disconnected after birth of a new baby? R&F women will be your best friends. Does your husband work a lot and you feel like you have nothing for yourself? R&F is the answer.
Seriously these ppl are evil.