התמלול המלא של Episode 25: Multi Level Marketing

from your downline's sales. 00:05:56.800 --> 00:06:02.000 I know some of this was repetitive, but I want to make sure I'm laying out all the facts for you. 00:06:02.319 --> 00:06:08.639 A huge factor that plays into recruiting is what is called making rank. 00:06:08.879 --> 00:06:18.800 The pyramid has different levels to it, and each level is a rank, which often has some nonsense name, like regional director or executive. 00:06:19.040 --> 00:06:24.000 These labels mean absolutely nothing in the real world, by the way. 00:06:24.240 --> 00:06:31.680 In order to reach a specific rank, you have to hit a few goals each month, and the clock restarts every month. 00:06:32.000 --> 00:06:39.920 Each MLM business is different, but for the most of them, you yourself have to sell a certain dollar amount of product. 00:06:40.160 --> 00:06:48.480 Each member of your downline has to sell a certain amount, and you have to sign up new people to maintain your rank. 00:06:48.720 --> 00:07:03.040 When your upline is up against the clock and it's five minutes to midnight at the end of the month, they will tell their downlines to buy product to hit the quota and help your upline either maintain their rank or move up a rank. 00:07:03.279 --> 00:07:05.680 I'll get into this a little more later. 00:07:06.079 --> 00:07:09.519 This is also why the products are so expensive. 00:07:09.680 --> 00:07:17.680 The company needs to cover the cost of the item, make a profit for themselves, and be able to pay these different commission tiers. 00:07:54.000 --> 00:07:57.120 Remember, money flows up the pyramid. 00:07:57.360 --> 00:08:01.600 Sitting under those few at the top is every single person's downline. 00:08:02.000 --> 00:08:06.639 They do not see downlines as people, they see them as dollar signs. 00:08:06.879 --> 00:08:12.560 As much as these team leaders like to love bomb you, you are just a commission check to them. 00:08:12.800 --> 00:08:19.680 These sales reps are very good at sniffing out the vulnerable people around them and getting them to join their downline. 00:08:20.000 --> 00:08:25.680 Some are even encouraged to use their tragedy and pitch the business to other people like them. 00:08:26.079 --> 00:08:37.039 I watched one Zoom meeting for a popular MLM company where the team leader told a woman to use her support group for those that lost children as a fishing pond. 00:08:37.200 --> 00:08:41.519 It's a very predatory behavior, and frankly, it's gross. 00:08:41.919 --> 00:08:45.360 There's also the fact that you'll run out of people to pitch to. 00:08:45.600 --> 00:08:48.080 You get signed up by your cousin, let's say. 00:08:48.320 --> 00:08:55.200 You both share the same side of the family, and the cousin already pitched to them, so you try the other side of your family. 00:08:55.440 --> 00:08:58.559 If you get someone on that side of the family to sign up, great. 00:08:58.799 --> 00:09:04.879 But now the person that that person can pitch to is cut in half because you already tried everyone. 00:09:05.120 --> 00:09:09.759 If neighbors keep pitching to neighbors and family to family, you'll run out of people. 00:09:10.000 --> 00:09:16.320 Everyone you know will already be a sales rep, and now it's a race to try and make money each month. 00:09:17.440 --> 00:09:21.759 The MLM business model has a lot of similarities to cults. 00:09:22.000 --> 00:09:25.519 A key tactic that cults use is isolation. 00:09:25.840 --> 00:09:32.639 Get the person away from any naysayers or haters and surround them with people that support the cause. 00:09:32.879 --> 00:09:40.159 The second you join one of these businesses, you're added to social media groups, text change, and video conferences. 00:09:40.320 --> 00:09:43.679 They want to keep you surrounded by like-minded people. 00:09:44.000 --> 00:09:49.840 These groups want to make sure that the only information you're receiving is coming from the group. 00:09:50.080 --> 00:09:53.759 They don't tell you to research the products and their ingredients. 00:09:54.000 --> 00:09:59.200 They send you a link to a report that was issued from the company's laboratories. 00:09:59.440 --> 00:10:04.000 They send you claims to make in your pitches, but nothing to back up the claim. 00:10:04.159 --> 00:10:10.000 If people question you or your company, they're just haters and you need to move on. 00:10:11.279 --> 00:10:14.799 Another tactic cults use is sleep deprivation. 00:10:15.039 --> 00:10:18.639 Good example of that is David Kuresh in the Branch Davidians. 00:10:18.799 --> 00:10:25.759 David set up his own sect of a religion, built a small community, and would preach to his members for hours every day. 00:10:25.919 --> 00:10:28.240 Even kids had to sit in these sessions. 00:10:28.480 --> 00:10:32.240 Nowadays, MLM team leaders use Zoom calls. 00:10:32.399 --> 00:10:37.679 There will be weekly check-ins or hangouts to make it sound more informal and relaxed. 00:10:37.919 --> 00:10:42.480 You're also pressured into training sessions that take more time out of your day. 00:10:42.720 --> 00:10:45.759 These businesses don't want you to have downtime. 00:10:46.000 --> 00:10:53.600 Downtime gives you time to reflect and think about what it is that's being expected of you, and they certainly don't want that. 00:10:54.080 --> 00:11:05.840 If you aren't on a Zoom call or a training session, you best believe you're expected to be posting multiple times a day on your social media accounts about the business and tagging your upline. 00:11:07.039 --> 00:11:12.720 The reason you aren't being favored in a cult leader's eyes is because you aren't giving enough. 00:11:12.960 --> 00:11:18.879 The reason why you aren't succeeding in your business is because you aren't working hard enough. 00:11:19.120 --> 00:11:20.879 You need to give your all. 00:11:21.120 --> 00:11:23.120 And even then it may not be enough. 00:11:23.360 --> 00:11:28.720 There's always the threat at the end of each month that if you

don't pull your weight, you may not get paid. 00:11:28.960 --> 00:11:33.440 This is where a lot of the love bombing comes in, or in some cases the bullying. 00:11:33.679 --> 00:11:38.879 It's not a good place to be, and not how a true team acts. 00:11:40.320 --> 00:11:45.440 There are quite a few lies that potential uplines will tell in order to get you to sign up. 00:11:45.679 --> 00:11:50.000 The one that every company uses, yet is never true. 00:11:50.720 --> 00:11:54.799 You get to own your own business and be your own boss. 00:11:55.279 --> 00:11:56.240 No, you don't. 00:11:56.480 --> 00:12:00.159 If you do sign up, your boss isn't you, it's your upline. 00:12:00.320 --> 00:12:03.440 They enforce expectations on you and keep you in line. 00:12:03.600 --> 00:12:06.639 It also isn't your own business, nor could it ever be. 00:12:06.879 --> 00:12:12.559 If you own your own business, you are in control of the product sold and the prices. 00:12:12.799 --> 00:12:17.200 In the MLM business model, you're told what to sell and for how much. 00:12:17.440 --> 00:12:19.759 Even discounts are determined for you. 00:12:20.000 --> 00:12:25.039 The only thing you might own is your website link that the company makes for you. 00:12:25.279 --> 00:12:33.279 If you join an MLM business, your boss is your upline, and you are not a business owner, you are a sales rep. 00:12:33.600 --> 00:12:42.080 Being a sales rep alone doesn't sound so bad, but you need to remember that this is a predatory business model that you would be supporting. 00:12:42.879 --> 00:12:49.840 If a sales rep approaches you to join their team and you counter with, that sounds like a pyramid scheme. 00:12:50.080 --> 00:12:56.000 Nine times out of ten, they will respond with, pyramid schemes are illegal. 00:12:56.320 --> 00:12:58.000 Yes, Susan, I know that. 00:12:58.159 --> 00:12:59.919 That doesn't mean they still don't exist. 00:13:00.240 --> 00:13:10.480 On paper, the only difference between an MLM business model and a pyramid scheme is that MLMs sell products, whereas pyramid schemes sell an idea. 00:13:10.720 --> 00:13:16.559 The way both of them make money, and the only thing keeping them afloat, is recruiting new people. 00:13:17.759 --> 00:13:23.519 We talked about ranks, but what I left out was the practice of rank stacking. 00:13:23.679 --> 00:13:28.879 This is usually against the company's policy, but that doesn't stop people from doing it. 00:13:29.200 --> 00:13:31.039 Rank stacking is this. 00:13:31.360 --> 00:13:37.279 Jane signed up Mary, but Mary is having trouble finding people to sign up. 00:13:37.679 --> 00:13:45.519 Jane takes people that she was going to sign up under her and instead signs them up under Mary. 00:13:45.840 --> 00:13:47.120 This does two things. 00:13:47.360 --> 00:13:54.399 It helps Jane move up a rank, and it gives Mary this false confidence that she's successful. 00:13:54.720 --> 00:14:02.879 Mary will also use this confidence and the fact that she now has people under her to use when she pitches to new people. 00:14:34.159 --> 00:14:38.240 The brand of car changes by the business, but the carrot is the same. 00:14:38.480 --> 00:14:41.679 Here's what they don't tell you about this car. 00:14:42.320 --> 00:14:44.879 Probably because they don't know themselves. 00:14:45.200 --> 00:14:50.799 The sales rep that is driving that car is financially responsible for it. 00:14:51.039 --> 00:14:55.120 That sales rep has qualified for a car bonus. 00:14:55.519 --> 00:14:58.480 The company does not give them a car. 00:14:58.960 --> 00:15:00.399 It works as such. 00:15:00.639 --> 00:15:04.960 If you reach a specific rank, you qualify for a car bonus. 00:15:05.120 --> 00:15:09.679 This is a check that the business gives you every month for the car payment. 00:15:09.919 --> 00:15:11.600 It's not as simple as that though. 00:15:11.840 --> 00:15:12.320 Duh. 00:15:12.559 --> 00:15:14.080 Let's use our girl Jane. 00:15:14.320 --> 00:15:20.159 Jane moved up a rank by rank stacking and signing up five people under Mary. 00:15:20.399 --> 00:15:23.679 Jane now qualifies for the car bonus. 00:15:24.000 --> 00:15:25.279 Boss babe. 00:15:26.000 --> 00:15:32.960 The company determines the make, model, and even color of the car Jane can purchase. 00:15:33.279 --> 00:15:37.519 Sometimes the color is dependent on the rank, too, which is so stupid. 00:15:37.919 --> 00:15:45.519 Jane goes to the dealership and takes out a loan for the only type of car the company says she can purchase. 00:15:45.840 --> 00:15:56.639 Side note, some sales reps have a hard time qualifying for a loan because, as a sales rep, at least in the United States, you're considered a 1099 employee. 00:15:56.879 --> 00:16:01.600 This means that you do freelance work and this money's never guaranteed. 00:16:02.159 --> 00:16:07.759 In these cases, the sales rep may need a partner to co-sign the car loan. 00:16:08.559 --> 00:16:17.360 Okay, so now that Jane and potentially Jane's partner are saddled with a car loan, she now sings the praises of her business. 00:16:17.600 --> 00:16:20.399 However, then comes the end of the month. 00:16:20.639 --> 00:16:27.440 If Jane and her downline don't meet the rank requirements, Jane will not get that car bonus. 00:16:27.679 --> 00:16:32.559 This means that the monthly loan payment is all coming out of Jane's pocket. 00:16:32.879 --> 00:16:43.840 If her team did hit all the requirements, Jane gets that car bonus check, but it's only for a portion of the loan, almost never the full amount. 00:16:44.080 --> 00:16:50.320 She may get a$300 car bonus check to go towards her$800 car payment. 00:16:50.559 --> 00:16:53.759 The company is not paying for Jane's car. 00:16:54.000 --> 00:17:03.840 Jane's commissions are paying for it, and she may get a check from the company if she and her downline hit all their sales goals. 00:17:04.160 --> 00:17:13.279 Jane is now even more dependent on her downline making money since she now has

this massive car loan and image to uphold. 00:17:14.160 --> 00:17:19.839 Oh, and those trips and conferences that your upline has you working towards, don't get too excited. 00:17:20.000 --> 00:17:24.799 The company might pay for your airfare, usually the cheapest they can find. 00:17:25.119 --> 00:17:32.160 You are responsible for transportation to and from the hotel, all of your food, and drinks. 00:17:32.319 --> 00:17:41.279 And if this is a conference, which is just a massive love fest on how great the top of the pyramid is, you have to pay for the ticket to get in. 00:17:41.519 --> 00:17:49.119 Sometimes reps have to pay a deposit to make it on a list to qualify for a conference ticket. 00:17:49.359 --> 00:17:51.759 Yeah, nothing is ever guaranteed. 00:17:54.960 --> 00:17:56.319 Okay, friends. 00:17:56.640 --> 00:18:01.759 You now know what an MLM business model is and why they are bad. 00:18:02.000 --> 00:18:05.119 Now I want to teach you how to spot one. 00:18:05.759 --> 00:18:08.720 On social media, it's actually pretty simple. 00:18:08.960 --> 00:18:18.960 Your friend or in-law or elementary school teacher will all of a sudden start posting a lot about a business that they never name. 00:18:19.200 --> 00:18:28.960 These posts will be in a completely different voice from them, using a lot of emojis and will come with a slew of pictures to prove how great the products are. 00:18:29.200 --> 00:18:30.160 Now hang on. 00:18:30.640 --> 00:18:33.119 Why aren't they naming this business or company? 00:18:33.359 --> 00:18:42.160 Well, as I said at the beginning, if the sales reps put the name out there, savvy persons will look it up and see that it's a pyramid scheme. 00:18:42.559 --> 00:18:47.359 If the rep creates mystery around it, they have a better chance of roping you in. 00:18:47.599 --> 00:18:51.680 The sales rep, though, isn't clever enough to know to do this on their own. 00:18:51.839 --> 00:18:58.319 Their upline sends them pages of photo captions and posts to just copy and paste. 00:18:58.559 --> 00:19:03.039 This was sent to them by their upline, who received it from the heads of the company. 00:19:03.359 --> 00:19:13.359 If you comment that you're interested or want more information, they will respond with messaging you, once again, not sharing any information on a public platform. 00:19:14.000 --> 00:19:18.079 Now, not everything they post throughout the day will be about the business. 00:19:18.240 --> 00:19:18.960 No, no, no. 00:19:19.119 --> 00:19:27.599 They need to play around with the algorithm so that when they do post about whatever nonsense it is that they're trying to sell, they will hit enough people. 00:19:28.160 --> 00:19:32.319 Social media algorithms are kind of like mathematical equations. 00:19:32.480 --> 00:19:37.200 The more you click or interact with certain accounts or posts, the more you'll see it. 00:19:37.440 --> 00:19:41.839 If this seller is posting an innocent question like, what's for dinner? 00:19:42.079

--> 00:19:48.000 Or Am I the only one who you feel like it's a normal post and add your response? 00:19:48.240 --> 00:19:50.240 This plays into the algorithm. 00:19:50.480 --> 00:19:56.960 Now you'll begin to see this person's post more often, and they'll be up towards the top of your feed. 00:19:57.200 --> 00:20:04.559 Some people will post these simple questions with a picture of their kids or pets to further encourage you to click that like button. 00:20:04.720 --> 00:20:05.839 But stay strong. 00:20:06.079 --> 00:20:07.359 Do not engage. 00:20:09.440 --> 00:20:13.119 In person, sales reps will often play the same game. 00:20:13.279 --> 00:20:17.680 They'll compliment you and tell you that you would be perfect for their business. 00:20:17.920 --> 00:20:28.000 No info given, no business name, but they'll pressure you to get your contact information so that they can rope you into a video call with their upline. 00:20:28.319 --> 00:20:31.440 Remember, no is a full sentence. 00:20:31.599 --> 00:20:37.519 If they continue to pester you, call over a store manager or threaten to call 911. 00:20:39.359 --> 00:20:43.200 Let's say you got sucked in and sat in on that video call. 00:20:43.440 --> 00:20:46.799 Pay close attention to what is being said. 00:20:47.440 --> 00:20:54.480 So often, the person that recruited you remains silent and lets their upline do all the talking. 00:20:54.720 --> 00:21:02.240 This upline is going to do a lot of talking without saying a gosh darn thing. 00:21:03.680 --> 00:21:10.640 Take a minute to process what they just said and ask yourself, Am I walking away with any information? 00:21:10.960 --> 00:21:12.720 Was my question answered? 00:21:13.039 --> 00:21:16.160 Do I have any idea what's being expected of me? 00:21:16.799 --> 00:21:19.759 The answer is probably Nope. 00:21:20.240 --> 00:21:27.839 They just throw around a lot of buzzwords that they're told to say because more likely than not, they don't know the answers either. 00:21:28.079 --> 00:21:31.920 Or they may have been instructed to skirt around these questions. 00:21:33.039 --> 00:21:38.799 The MLM company Herbalife started getting their reps to open smoothie shops. 00:21:39.119 --> 00:21:42.880 These shops don't have an Herbalife logo anywhere. 00:21:43.119 --> 00:21:46.319 The shop will also be called Something Nutrition. 00:21:46.720 --> 00:21:58.160 Their drinks are always brightly colored, most times multicolored, and if you peek behind the counter into an open cabinet, you'll see the Herbalife brand protein powders. 00:21:58.400 --> 00:22:08.480 If you mention this brand Name or ask if the shop is affiliated, the person behind the counter will usually shut down and be quick to shuffle you out the door. 00:22:10.000 --> 00:22:15.599 Multi-level marketing companies are everywhere and tout legitimacy all day long. 00:22:16.240 --> 00:22:17.839 Don't be fooled. 00:22:18.160 --> 00:22:19.759 Ask questions. 00:22:20.079 --> 00:22:22.640 Pay attention to the answers. 00:22:22.799 --> 00:22:31.519 And while you're at it, watch some awesome anti-MLM YouTube creators like Hannah Alonzo, Kiki Chanel, and Brianna Jewell. 00:22:31.680 --> 00:22:35.519 And come back next week to see what else has been hidden.