I have always been a big Dave Ramsey fan, and believed that his financial advice for consumers is first rate. But today Dave Ramsey got it wrong in a big way. On his blog, he published an article about making money in multi-level marketing.
The article failed to acknowledge the fact that over and over again, it has been proven that 99% of people involved in MLMs lose money. Front and center in the article was this lie:
Truthfully, if you have a go-getter personality, and you can follow some basic business and personal etiquette, you can make a lot of money in an MLM. The trick is to avoid all the potential pitfalls along the way.
Truthfully? No, there is no truth in what was said. Being a go-getter and having etiquette doesn’t make you any money. Even fantastic business skills won’t make you any money in MLM. What makes you money is the ability to lie about the opportunity in order to very quickly recruit lots of new victims.
The article goes on:
MLMs can be awesome if you understand how they work, but they can also be a financial and personal disaster if you jump right in without thinking.
Again, this totally misstates the reality of multi-level marketing. “Understanding how they work” does not give you any advantage.
The article goes on with many more falsehoods. All MLMs pitch you on getting rich quick. Mary Kay, for example, is notorious for pitching the ability to make a full-time executive level income with part-time hours. They don’t come right out and say you’ll get rich “quick,” but the inference is there nonetheless.
Ramsey goes on to suggest that using common sense business practices will save you from disaster in MLM. And he says you shouldn’t pressure friends and family to get involved. Except that’s the only way you will move up in MLM. And you will be taught that you are doing a disservice to your loved ones if you don’t introduce them to this opportunity.
Dave Ramsey’s bottom line is that MLMs are legitimate businesses. He is 100% wrong. They’re pyramid schemes disguised as legitimate businesses. And they swindle consumers out of billions of dollars each year.
Thank you, Dave Ramsey, for adding legitimacy to one of the greatest consumer cons in the history of the world. DAVE RAMSEY SUCKS.
Trackback from your site.