Multi Level Marketing: American Dream or Deception? Watchdog, Robert FitzPatrick

Multi Level Marketing: American Dream or Deception? Watchdog, Robert FitzPatrick



okay welcome everyone this is David Ortiz and today we're gonna have a fascinating topic and we have a fascinating guest we're gonna be talking a little bit about multi-level marketing and the reason why is everyone watching this has either been in a multi-level marketing business or has had a family member try to solicit them for a multi-level marketing business I've been in a multi-level marketing business um and you know is this an American dream or an American deception some people say oh it's scam artists there are some in the industry that swear by it they go trust me I've got a car I'm doing good it's the American Dream it's the concept of leverage today I'm joined by an individual he's an expert he's been featured on CNBC quoted by many reputable newspapers I believe the New York Times his name is Robert Fitzpatrick and Robert has a website I'll actually let him plug that I believe it's called um he'll do it I'll prop prophet false prophets dot-com and it's a Prophet's PR o fi TS as in money double entendre Robert Fitzpatrick is an expert on the industry of multi-level marketing and he's a fire-breathing opponent of it he thinks it's a big scam he says he's researched the issue and full disclosure um there is another individual I know Robert Fitzpatrick is a very common name but I got to get this out there there's another individual by the name of Robert Fitzpatrick who also wears glasses he was involved with the Harold Camping ministry that said the world was gonna end last year and he was heavily involved with it this is not this Robert okay this is a completely reputable another under individual mr. Fitzpatrick sorry for that long-winded intro welcome welcome thank you okay so this is nice to be here with you no problem um can you hear me clearly yeah yeah it's buffering just a little a bit but it's coming through okay okay so tell us a little bit about who you are and why you do what you do yes well I'm involved in this let's say information campaign regarding multi-level marketing almost by chance some years ago almost 30 years ago now a pyramid scheme swept through South Florida where I was living at the time it was called the airplane game it's a type of pyramid scheme today they called them gifting tables or gifting schemes millions and millions of people have been involved in these nobody today in in law enforcement disputes their legality they are illegal they are scams frauds they are financial traps gifting schemes they're called the one I was in was called the airplane game the most common ones were called women helping women women empowering women have been some in the Hispanic community called La Familia african-american community called the corporate ladder same scheme different names and I got involved in that through friends and out of that experience I was let's say he personally shocked and ascended that I had not seen that this was a fraud so I wanted to write about it I wanted to research it and write about it and to my dismay I discovered that very little is actually written about pyramid schemes what they are how they work how they subvert and and may in disguise themselves as legitimate operations social clubs investment programs or Direct Selling and so I began writing it in the course of my writing multi-level marketing sort of burst on the scene in South Florida and companies like new skin and Herbalife too but mostly new skin came into South Florida with a just rolled through the area and many of the same people that were in the airplane game joined that so my research pyramid schemes expanded into multi-level marketing and that led to writing a book so the book began to take on a life of its own I was interviewed on 60 minutes then I got asked to be a consultant in court cases and through that my knowledge deepened extensively about it and I discovered very few people write about this study it focus on it and so on so I've sort of gained it a bit of a niche in this without ever intending to now what about those that say oh come on Robert you just came across one or two businesses that were bad every industry has bad apples you know what has your research shown you well we've looked at and I say we because I'm part of a network of colleagues that there are a few other people that have done the same kind of work that I have done we have collaborated over the years in some cases we have been jointly retained in lawsuits to serve as experts so we share ideas we shared you know research that we've done among us we've looked at almost 400 of multi-level marketing companies and the way we look at them is on paper we look at their paid plans their compensation plans and that's the code of multi-level marketing I mean forget the product and forget the personalities that may be at the top or their sports stars that are endorsing it for pay or the celebrities identified with it for pay we looked at the actual data and at the code the paid plan and so on what we found is that virtually all of them are identical and they're all based on two primary factors but one is they offer a retail sales opportunity which we have found doesn't exist that is we haven't found anyone that actually makes a sustainable profit from retailing these products to the general public so we determined that the direct selling identity was a disguise oil pyramid schemes are disguised so this is the disguise of multi-level marketing disguises direct selling in fact you don't find anybody that actually earns a sustainable income from retailing the products second and this is the most important how do you make money then because somebody is making a lot of money a few are making a lot of money and that income proposition is a classic Ponzi proposition you recruit to who recruit for who recruit eight and so on and from those people's investments you will get a share of their investment money how will they make money they have to continue the chain so it is an endless chain endless chains which we can speak about in a minute are inherent frauds they will always doom the vast majority who will always be in the bottom ranks who cannot make money and so what we concluded is that what we have created in the United States we have invented a enterprise a set of enterprises hundreds of them essentially all the same masquerading as direct selling companies but are in fact nothing more than endless chain money transfer schemes now let me play devil's advocate oh come on Robert you're just bitter because you couldn't hack it in your business and roll up your sleeves get to work stop complaining and then you know what maybe you'd be sitting in a big house right now well I don't sit in a really big house yes i I have david i do not boast but i have been successful in my life in in my work and so i I didn't enter this field from embitterment I entered in to it I think and I have had to extend them this is exactly why I did enter it I think partly from a reaction of moral outrage I felt this was really something ominous and dangerous for America and it and it somehow affected me it moved me to see so many people who are drawn to multi-level marketing out of their highest and best motives they are desiring to fulfill the American Dream they want to be involved in a business that is fulfilling and successful and many people feel that their options are limited and to use that set of beliefs and needs to scam people to me seemed among the worst kinds of scams I have encountered so I didn't enter it out of embitterment I have never lost money in multi-level marketing and even that scam that I was drawn into back thirty years ago I didn't actually lose money I didn't earn all the money that the scheme promised but I didn't lose money so I didn't get interested in that either because I had lost money I got interested in it because I had lost my soul for a period of time I was selling my relationships as in multi-level marketing that scheme urged you to go and call on the people closest to you friends family neighbors and so on and enroll them so to me I saw this as quite an extraordinary scam in wish it insinuated itself right into the net your your most treasured asset your social network corrupted and commercialized it and then defrauded the people that you role lured in remember in that scheme 90% of the people lost had to lose by design by the math in multi-level marketing it's even a higher percentage yeah let's talk a little bit about statistics I was I've heard you in countless interviews and they're fast and again go to Robert's websites Robert what are your websites real quick yeah they're the primary website which is really the repository of my work plus many other people's for is pyramid scheme alert dot o-r-g pyramid scheme alert all one word and that scheme singular a pyramid scheme alert and that is the nonprofit corporation pyramid scheme alert about org is the material on there is free almost all of it there's a couple of books you can order but most ninety-nine percent of the material in there is free now let's talk a little bit about statistics you said that you did some research 99 percent of people who enrolled in multi-level marketing don't make any money that M way hmm 20 percent of the probably 20 percent of the products that are sold are sold to the general public about 80 are purchased by agents something along those lines give us some hardcore meat-and-potato statistics well the statistics again came from the industry itself the multi-level marketing and as a result of lawsuits and some prosecutions some and many of the larger multi-level marketing companies now disclose income averages these disclosures are difficult to read they're limited and some of them are quite misleading for example they will leave out all the people who don't make money and they'll only get your data on the people that do but even in those cases a few of them will tell you what percentage of people made money so you have to put that factor back into the formula we've looked at dozens of these companies and used the same math analysis on all of them and in each case what it will show you is that based on the money the company pays out commissions royalties bonuses and that type of thing less than 1% actually earn what would be called sustainable profit the vast majority according to the company's own data do not earn a profit or earn nothing whatsoever the other factor that we see in every one of these cases the company says well we pay out X millions and commissions that sounds very impressive but who gets those Millions well our analysis showed that in 52 in some cases 80% of all the Commission paid out by the company goes to the top 1% or top 2% in some cases so they the pay plan and this is all perfectly understandable when you study the paid plan the pay plan offers more commission to the upper ranks than it does to the people who actually execute the transactions that is who bring in the next person if you want to call that a sale this is completely backward from traditional selling in traditional selling you might have several layers of managers above you who would get override Commission's on your sales but their overrides would be a tiny fraction of what you would receive for having made the sale multi-level marketing turns that on its head and actually pays more to the upper ranks than it does to the rank that is actually drawing in the newest person how do you make money then you got to get to the upper ranks so that cooks you want to recruit and treadmill so the data is actually there it's it's really never been disputed directly the data comes from the industry itself and if you put all these factors together you conclude it can't be any other way well I think we do know I mean I know people maybe they're lying to me I don't know but we've many people have seen the woman who's driving the pink Cadillac from Mary Kay um you know I've I've spoken to some Associates of mine in the past just catching up with them years later and saying maybe a year or two later hey are you still working with this multi-level marketing company and they go yeah I'm making about 1500 bucks a week I don't think they're lying I mean I could be wrong you know I but um are they lying what the woman who's driving around the pink Cadillac from with Mary Kay how did she do it I mean is she a scam artist she's a successful enroller I mean and that's it for 12 remember those released cars and a most multilevel marketing companies now offer cars you see this all the time that you get BMWs and so on but what they mean is that they will pay the least for you as long as you maintain a certain volume if your volume falls below that you have to pay the least so just seeing somebody in these cars doesn't mean really much of anything except that they got into it but whether they can sustain this is another story but if you again I don't want to deal only in an anecdotal thanks the data is very very clear on this only a tiny percentage of people can be at the supervisory level at the highest level of of these schemes I mean that's natural the question is and those people will make some money the question is how do they make their money are they making their money from the other people's losses well that's what we found and at the bottom levels you see this enormous churn rate in some cases as high as 80% turnover in a year's time and where did the money come from that those people called bonuses or commissions did it come from sales or did it come from inventory purchases of their recruits and this is this this is what we see most often very few people are able to settle the product very few people ever recruit anyone else successfully but they all had to have bought something paid fees and so on and out of those investments a big portion of it flows upward and so when you see someone who says they're making 1,500 a week or $75,000 a year that has to be an override remover on purchases just to address the question of lying though Dave multi-level marketing is famous for deception and misrepresentation of income claims far more than her deception or claim of fraud or flawed model or whatever is the is the the income claim and they will actually tell you when you sign up to go out and recruit other people right straight away now how can you recruit somebody into a business that you haven't made any money in yourself yet well they'll tell you to just keep saying it's good it's great and so it is constantly hyping and fantasizing creating these fantasies that everybody's making money when the data will tell you that it is simply not and whatever one of these schemes is prosecuted then the data becomes public and it's even worse than our pictures showed that the number of people who lost money is just astronomical here but people are ashamed usually embarrassed and ashamed to admit that they were flimflammed that they may be flim-flam their friends that they were were flim-flam by their friends that some of their friends are still in it that they can believed and hoped in it hoped for it put their hopes in it for a period of time very few people after having done that will then come forward and say let me tell you the truth about this most people just want to move on no actually and I'll be one of those people to say that yeah I did it you know and the reason why I say that is because I know I'm strong but it's important to be honest with people and to admit you know as as a person that when you make a mistake you learn from it and you educate other people on it as best you can so yeah I think it's important that we start coming out and saying hey listen you know be mindful of that stuff let me suss about all the time breaking the silence there is a silence here there is a huge shame factor and part of it is people don't have the facts they are told and this is part of multi-level marketing sales pitch we have a program that works a hundred percent if you work the program a hundred percent so among people who fail or quitters and the only people who quit or losers so if you don't want to be a quitter or a loser then this program is for you so once again sorry we'll do quit once again Robert sorry to cut you off and I say this because there are people who are gonna watch this and then go to speak to their aunt or their friend that recently went on a cruise with their MLM company and they've got the pictures to show it you're basically saying even if they did go on to a cruise or get a car it's really because they were able to get a lot of people under them well a few people go on the cruise on the basis of the people under them again we've been studying this I've been in court cases 22 court cases the more common pattern is people go on the cruise at their own expense in fact when we had these court suits when people total up their losses most of their losses are in things just like that they flew to Orlando they went to a conference they had an airplane flight Hotel meals conference registration to be with the masters to learn you had to be there you want to succeed you need to go where the people are who do succeed and so on so someone going on a cruise doesn't indicate anything it probably indicates that they just lost that money maybe they had a good time I hope they did but it was not the benefit of a business necessarily a few people on that cruise are those who were the successful recruiters why am why then doesn't the government come down on these people I mean if tens of millions of Americans and I would say it'd be over 10 million over 10 million Americans because we all know either we've been enrolled or we know somebody who has why the heck doesn't the government come down on these people well now we're getting into a political discussion but I don't I don't think we need to be partisan about this – for me to make this statement shouldn't we all have had enough experience over the last few years with the housing crisis the mortgage crisis the bailouts the credit default swaps the toxic securities that were bundled and put into the market the credit default swap insurance that was unpacked by enough money to deliver on based on the premiums haven't we seen enough with the with the collapse of the Enron or with Bernie Madoff in not one of those cases did the government take any action Madoff was not prosecuted he came forward and confessed when he ran out of money Enron collapsed on us under his own weight and the entire housing crisis not one single high-level person has gone to jail or even been arrested so isn't any surprise to us that a systematic scam could operate on Main Street under the guise of Direct Selling when in fact it is really a money transfer Ponzi scheme no I mean the the the prosecution would we would have to turn to our Federal Trade Commission for prosecutions and unfortunately over the last 12 or 13 years the Federal Trade Commission has been staffed in some cases by people from the multi-level marketing industry or upon leaving the FTC became lobbyists for the multi-level marketing industry so there is a lot of pressure requests and so on on the FTC – in the neglect to clean up its act to represent people to do an investigation of unfair deceptive trade practices Ponzi economics here but I think that's the bottom line answer as to why the government has not I would add one other factor because it is a big question it's an important question you've raised it's a disturbing answer however that the answer is that the government is not doing its job either answer the other factor that bears on that question though is the government's made up of people it is a political institution let's face that and when you have millions of victims who remain silent when you have an industry that has been very successful at hiding the realities of its economics remember these companies do not publicize this information you have to go dig it out put it together and so on and when you have victims who out of shame fear and embarrassment or having been duped they simply don't understand why they lost their money there's very little pressure on the government to get involved in this so you have regulators who are seduced tempted and polluted and let's say commercial given commercial reasons through lobbyists to just keep their mouth shut as they did in Madoff and the housing catastrophe on the one hand and then you have not very much pressure coming from down below on the government to do something about it so it's been allowed to continue and grow and fester know now while if I did a little google search and some of the MLM supporters were saying that you've been sued also I don't know if that's true or not but what would you say to those that say oh this guy he's been in lawsuits also because he's full of it he doesn't tell the truth I was sued once I am being sued I'm not had been I've been currently in sued only one in my career of working on this about 15 years I was sued by one multi-level marketing company this is a common hazard of speaking up and being a whistleblower I was sued for defamation and my defamation had nothing to do with personality or ad-hominem statements I never engage in such things but and I was sued for stating a very professionally stating that my opinion this particular company was in violation of California's endless chain statute a vac suit is still pending it's gone on for four years and you know it's still an appeal right right now so anybody who speaks up about this definitely and I would say this to anyone else runs a risk as I have and many others and that's certainly not the only ones who have been sued of being sued or and what they call slack suits strategic lawsuits against public participation they are suppressions of free speech well how do you I think that suits gonna turn out how do you think your suits gonna turn out well I we we think it's gonna turn out where it's gonna eventually it will all be dismissed much of the suit has already been dismissed but there are parts of it that have been allowed to go on so in the end I think it will be dismissed that's that's our expectation is urse eyes free speech I've made no malicious statements and I based all my statements on fact and and it I expressed an opinion but it wasn't an opinion without foundation I cited every reason why it was not a mallet was not done with malice that company was not singled out I have made similar statements about many other companies um now you just speaking about politics let's talk about Social Security because on your website we always talk about Ponzi schemes people say oh yeah well Social Security is a Ponzi scheme but you tend to disagree you know politically you know I'm not a I'm a libertarian but you kind of side with Social Security you say it's not a Ponzi scheme no certainly not a Ponzi scheme a Ponzi schemes are unsustainable that is the last ones in have to keep getting an ever-increasing number of people below them in order for them to get a return on their investment and there is a fixed amount in which they are promised to receive we we'll be impossible for the last ones to receive Social Security and we're not the only country to have social security security our systems that operate all over the world Social Security's our safety nets there are insurance plans they can be modulated you can reduce the amount paid out you can increase the amount pay again you can change the benefits as long as there are going to be babies born it is a sustainable business of course it has to be regulated and the benefits have to be calibrated to the number of people behind it and so on and so you will have bubbles occasionally where you have as we have after World War two and then you will have declines in birth rates as well you will have immigration coming in but to call Social Security a Ponzi scheme misunderstands them the nature of a Ponzi scheme this is insurance social insurance and it is controlled insurance it is publicly it is transparent so none of these things are in the definition of a Ponzi scheme it could be abused our Social Security system has been abused but that doesn't mean that the system is a Ponzi scheme you know to call Social Security a Ponzi scheme would almost be like calling a human race a Ponzi scheme for let's say thousands and hundreds of thousands of years how did they elderly get taken care of in their old age by their children right well if Social Security is really nothing more than the same thing the younger generation pays in and as you pay in you pay and over your whole lifetime and then when you retire you get some of the money that you paid in back plus you were subsidized by the new people behind you as long as their specific population yeah configuration then it's sustainable to cut you off Robert when Social Security I'm not trying to drag you into like a political discussion but when Social Security started I think it was 13 people it was the baby boom generation 13 people paying for person we're down to three people paying for one person and pretty soon we'll be down to two people paying for one person that's right so under those circumstances you would have to either reduce the benefits or increase the tax on it right but you're able to do that you're perfectly able to do that it's a transparent system the amount that you are promised is not fixed it can change and it will change over time they have added benefits in the fruit in the past and by the way it didn't start with baby boom generation remember it started during the Depression which is well before World War two so he started paying benefits immediately and straightaway to people who had not paid into it of course so he had to be subsidized from the start but most of them usually are so um a Ponzi scheme cannot do that first of all a Ponzi scheme scheme is unsustainable with a fixed amount you cannot modulate it like that but in social security because it is transparent because the people in it control it it's democratically run then it can be changed and as you said if the proportion of people paying in but remember it isn't just the people paying in that the people receiving it isn't just their money it's your own money you paid in right you paid it in for 40 years so you're not just depending on the last ones in for your money you've paid in yourself during your whole life so it's insurance it's not a Ponzi it's insurance totally different things I think a lot of people have lost that distinction and I think it's partly also a great prejudice against anything run by the government but maybe to young people when you get older you'll say well how in the heck is a person supposed to have a secure retirement or even the beginnings of a secure retirement if all what they saved up is totally at risk all the time you know okay well let's um we'll wind this down a little bit um what do you see you know in a couple minutes we'll wind this interview down do you see the feds cracking down on the MLM industry do you ever see them this industry having its day you ever see justice ever being served well I really would it seems a crystal ball to answer that question for myself I don't do what I do in the hope and expectation that that will happen our my main role is public education civic education and so on so whether the FTC acts or not would not deter me from continuing to blow the whistle do the analysis do the research and make available the information we've gathered but directly to your question I personally do think that the FTC is under is more apt to act today and I think there's strong reason to say that I've been looking at this business for about 15 years and most of that time that was very little public awareness just the fact that you and I are here on your YouTube channel which I really commend you for taking this subject online is evidence of the pressure that is growing on the FTC I mentioned that one reason the FTC has not acted in the past has been silenced from the public to a large extent that's changing we now have Latino groups that are coming forward saying our community is particularly being flim-flam and hit hard by these scams we have people in the financial community like Pershing Square capital that has come out against Herbalife bringing their resources to try and get this exposed and we have websites now in about 20 countries trying to expose multi-level marketing for what it is so I think there's enough pressure here to say it could be wrong but to say with with some reasonableness that the FTC is likely to take some action against multi-level marketing and possibly alter the landscape here who are some of the biggest right now I was actually reading a um there's a company out there called Isagenix and I actually bought their products their products are really good there they have some shakes but I was looking at their compensation plan and they posted it on their website which I commend them I don't know if they did it by force or just to be transparent but it showed that about over I think ninety to ninety three percent of their agents make less than twenty five thousand dollars a year and only about like two percent make over three hundred thousand something along those lines who are some of the biggest perpetrators right now I mean you've said well they're all perpetrators but there are people watching right now that are gonna say well you don't understand Robert this company MonaVie or this company Amway they're the real deal who are some of the biggest most popular businesses right now that you think are scam hmm well first of all you you did mention that I had been sued for making a statement professionally backed by documentation that one particular company violated in my view a state statute against endless chains so I and everyone else that is in my field have concluded in recent years that it is not advisable ever to name a particular company and then say that company is legal or illegal so what we do is we offer all the information we can about them we often will call the money transfers or pyramid selling schemes and so on but we don't say they are illegal and I won't either about any of the particular companies the largest and the most common but schemes that are out there that are doing the heaviest lifting of recruiting are fairly well known the three biggest in the four biggest in the US I would call I would say ER and way newskin Herbalife and USANA three of those companies are traded on major stock exchanges yeah how do you explain that the fact that they're becoming somewhat mainstream I was listening to a political show the other day this individual gets 10 million listeners they were talking about I think it was Herbalife you see them now in the New York Stock Exchange a member of Disney is on the board a former Disney um higher up is on the board of Herbalife I believe he's the CEO he's a former CEO again I guess I have to go back to less let's look at reality David Enron was the seventh largest corporation in America right it was voted the fastest-growing most innovative company in America the last really big company that know that the Federal Trade Commission prosecuted was called Equinox Equinox was in Inc magazines number one position of fastest growing privately held companies the founder was on the cover with a glowing story about that company the last big big one the the most recent larger one that the Federal Trade Commission prosecuted was the company called fortune high tech marketing fortune high tech marketing had a board of former state attorneys general as its legal advisory team okay and that company has now been closed down all its assets seized of course we know the story of Enron Equinox was shut down this Federal Trade Commission estimated losses to the consumers consuming public 300 million and there it was on the front page of inc magazine so we know that Bernard Madoff was the most trusted and respected figure on Wall Street he was the president of Nasdaq world come I mean the list could go on the people that perpetrated the banking crisis they weren't underworld criminals for heaven's sake they were the most trusted most respected figures in our financial community so what you're really saying is that if these schemes are not really business opportunities they are systemic money transfers that in fact 99% of the people who invest in them lose their money and their time if that's the case then we have a real problem in America because these schemes do produce huge amounts of money for the investor class on Wall Street they present tremendous income opportunities for them they have enormous amounts of money to buy political influence this is not a good thing for America to have this kind of ravaging schemes on Main Street being profitable enterprises for Wall Street and being celebrated as good businesses but again I would tell you that the book the most famous scams that we've had in the country have been just that celebrated respected businesses okay well Robert thank you so much for your time again Robert L Fitzpatrick pyramid scheme alert com false profits calm hopefully a war G it's a it's a non profit dot o-r-g yeah apologize um thanks again Robert and I hope to have you on in the future if you'd kindly come on sure Dave thanks for having me and best of luck in your work – likewise Robert thank you all right

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45 thoughts on “Multi Level Marketing: American Dream or Deception? Watchdog, Robert FitzPatrick”

  • I think conventional business is a lot easier to get rich quick. My dad owns a business and he is doing ok. My friend's mom was doing an MLM maybe she till is now but they live a good as well since we are still neighbors. My parents have been buying their wellness products I believe they enrolled my mom to be a member because they said it's a lot easier to purchase as a member. But my mom never ran the business. The products are awesome I like it too. What's wrong with them selling their products to us? My parents are still healthy and wealthy.

  • I was at my local charity store and saw an Amway baseball cap and just new I HAD to buy it. For 15 Eurocents I think that was money well spent not just for the goof factor but just to wear when I don't want anybody talking to me. The minute I put it on, I felt my IQ drop by 1 standard deviation, especially when I saw myself in the mirror. Pretty sure I was voted "least likely to wear a baseball cap – EVER" in my high school yearbook, or maybe not. Maybe in some Mandela-effect reality where I graduated high school at the age of 50 like 2 weeks ago. It's a brand-new item and says it's an adult one-size-fits-all but even at the largest setting, it keeps falling off. I guess the people working the Amway "European Experience Center" which this hat is from probably have small pointy heads. Now, if I could get a Jehova T-shirt to go with that, I'd be all set to go out whenever I don't feel like talking to anybody. Even better, I could start drinking like a madman again just so I can make a total ass of myself while wearing that hat. The possibilities are limitless. Maybe I'll keep it on my dashboard so people stay away from me. But then again, I might just get accosted by some Amway distributor. Oh the pain.
    So I just looked up how much I could sell this thing for and it looks like I could get 5 Euros for it, but before I clicked through the eBay menus to "clothing" I witnessed a couple of real shockers, like hand cream for 55 Euros! The clothing section itself is a doozy, with Amway pantyhose selling for FIFTEEN Euros. You have GOT to be kidding me. Like why would anyone buy that when you can get pantyhose 2 for 99 cents when it's on sale. I know, you're paying all those "entrepreneurs" going 10-20 levels up the food chain. What a ridiculous and feudalistic system of operating a business! Back in the 80s I read in Success Magazine that the average Amway distributor makes about 70 USD a month, where even back then, that was peanuts. Oh, and most of that is "self-sales." [facepalm] LOL!! That literally makes no sense. It's like if I open up a tobacco shop, and include my own cigarettes in the revenue totals, then convince myself that the more I smoke, the more money I'm making.

  • This guys a total idiot. Has no knowledge about how Network marketing works and he is saying that it’s a pyramid. Everything is pyramid. Look at Uber. Over 1 million drivers at the bottom making no money and losing their time and hard earned investments into buying cars and paying expenses to driving while the Uber heads at the Top make the millions of dollars. Now that’s a pyramid scheme in front of your face.

  • I wonder what the revenues would be if MLMs would have a more authentic pitch like: “You look like a sucker for punishment. Are you interested in a 0.4% opportunity to make $3000/year ? You’d have to give up 2-3 days a week and 4 weekends a year and pay into the scheme on a monthly basis. You in?”

  • Revolutionary Thinking says:

    Our government is as incompetent as ever. I was suckered into an FES Financial Education Services MLM for the sole purpose of helping people with finances. i googled them all good reviews in fact they have an A+ with the BBB. Among their ranks is a mayor and a bank fraud investigator and they're even invited into schools to teach kids about finances and give out scholarships. This is terrible on one hand they're screwing decent people over and on the other hand they have these people who are supposed to know better supporting them.

  • Jason Haradyn says:

    These days, most jobs totally suck. Employers don't want to pay people what they are worth, corporate greed is ubiquitous and there are numerous pyramid schemes all around us.

  • The "American Dream" ethos was popularized by James Truslow Adams in 1931, before doing this he was a banker and a military Intelligence officer..think that say's it all!!

  • anthony crechiolo says:

    I’ve never seen one legit MLM company, that doesn’t mean that they’re illegal but their scams that are taking advantage desperate people. These people as sociopaths because the average person couldn’t do what they ask because of the guilt involved with taking advantage of sales prospects.

  • D. Anthony Miles says:

    Hi David, Robert is a colleague of mine. I did a workshop on MLM for my MBA class in Entrepreneurship at Texas A&M University. Please see the the link. Please share:
    https://www.researchgate.net/publication/267269752_WORKSHOP_Faculty_Speaker_Series_-_Psst_Let_Me_Tell_You_About_A_Great_Business_Opportunity_What_You_Need_to_Know_About_Multilevel_Marketing_aka_%27Network_Marketing%27

  • chin chang Hu says:

    Future job or BWW Networking Direct sell/GET RID OF THE LOSERS LIMP | DEXTER YAGER DOUBLE AMBASSADOR CROWN AMWAY | LEADERSHIP 觀看次數:21,736/SUCCESS STORY | DEXTER YAGER DOUBLE AMBASSADOR CROWN AMWAY/Double Crown Ambassador Bill Britt Success Story/觀看次數:17,480/Amway Hong Kong 發佈日期:2016年12月7日 最近連型媽@Yumiko Cheng 鄭希怡都愛上ARTISTRY DERMASONIC美肌儀,忍唔住要同大家分享佢嘅美肌功效,立即睇片啦!賀寶芙馬克休斯 why so youth age is die !逾60人投資HK康寶萊疑總裁失蹤涉款五千萬 觀看次數:8,004/HK The Epoch Times 發佈日期:2015年2月17日 公民黨立法會議員毛孟靜收到多名市民求助,指在美國上市的健康產品直銷公司康寶萊總裁DS近日失蹤,至今已經有超過60名苦主報警求助,初步估計渉及金額超過5000萬港元/www.Epochhk.com。談直銷把困難當挑戰(直销的魅力)/good思維choice決定命運 – 別讓no good思維choice steal your dream.害死了你一生/dreamer給自己一次dream的機會舞台!BWW成功9core動因-以身作則.鎖定目標.積極行動.堅持信念 BWW TW 為您推薦-BWW Eagle. Nine Core Steps: 100% Club. • 6 legs with PV checks.麥當勞教父到底是如何慘賠上億?! 清玉、優衣庫、俏江南、共飲苦茶!他們到底如何崛起 又如何失敗?Hi!How Do You Find The Right People For Your Network Marketing Business?BWW UT/wiki-Bill Britt/BWW LLC/Britt Worldwide/ www.bww.com/BWW Taiwan-STDD/CHIN CHANG HU/Line ID:bww642-tw.hu3./We Chat ID:HU BWW642/ https://www.pinterest.com/chinyauh/?eq=Chin&etslf=48093/ https://www.pinterest.com/chinchanghu/Thanks/STDD Tw/hu3-S1=Selling(Income.Today)/S2= Sponsoring(Multiple,Future)/ S3=Supporting(Long-term Financial Security)/M=Meeting(Fuel,Machine to drive the 3S). https://www.youtube.com/watch?v=1qj2jxxCdBc&t=1135s/ /2011安麗年會-杜國淵 激勵演講/觀看次數:18,755/ https://www.facebook.com/samhsieh723?hc_ref=ARTn9NGByHytoblpra 925DNYpEIpKXnoy7Vdy728LFRKsRunr3zlngFB5wdIFFpQQs0 /https://de-de.facebook.com/ samhsieh723/https://www.youtube.com/watch?v=yn2Olr1P6M8/InBody穿戴式裝置 (BWW )觀看次數:419/ https://www.youtube.com/watch?v=jXzoRkfL0dA&t= 38s/Amway Hero Awards – Angelo & Claudia Nardone – Leadership | Amway/觀看次數:1,051.etc. Micro+IBM+Amway=North America New Network Marketing co. https://www.amwaypartnerstores.com/e/members/home.php/合作夥伴商店/BWW TW/STDD team-selling a vision of hope.org.INDIAN DIRECT SELLING INDUSTRY HAVING A SIZE OF 75 BILLION INR IT HAS THE POTENTIAL REACH 645 BILLION INR BY 2025.FUTURE OF NETWORK MARKETING IN BWW FINANCIAL GROUP.Why Join Network Marketing or Direct Selling- If you like to start small business with great earning and low risk, you can start on BWW/STDD 642system Global.You can do this Part-time/Full-time.Amway/BWW Diamond-amway/BWW is the best networking business in the world.Join with us-STDD Tw/hu3/Summary-1)DS=MLM and PP.Sam to customer with person.2)Global Sales-$183bn.Up1%. 3)People-103mil,up 2%.Remember still bigger than Movie,Music,Gaming Industries combined!Thanks.Top 10 Direct Selling Companies in India Table of Page Contents So here’s the list of top 10 direct selling companies in India that are well-renowned across the nation: 10. Altos Enterprise Ltd: 9. Oriflame: 8. Herbalife 7. Avon( The company for women) 6. Tupperware Brands 5. Unicity 4. Dewsoft( your partners for life) 3. Vestige 2. Hindustan Unilever Ltd 1. Amway/

  • Christoffer Allan Zacarias says:

    It would have been a lot easier to enter the middle class if only manufacturing returned to North America. Nowadays the only way to live the dream is through MLM or pyramid schemes.

  • Dreamploy International says:

    Sir. I've been watching some of your videos. And I feel like asking you something. What's your opinion about MLM Earning App or websites? Because I'm also included in that. In these things we join for free. So can you please tell me your opinions?

  • I am afraid Robert is biased by his own political sensibility on social security. Social security may be called an "insurance" scheme, it does not mean it is.

  • Why are you hating in the best industry possible. It's hilarious Robert talks about less than 1% earn a income. I think he left out the facts that most people join MLM to purchase products for a discounted price. That's why we all go to BJ's Cosco, etc… We pay our membership annually so we can purchase for a discounted rate. Does that mean it's a scam? Does it mean that the customer's are unhappy? I didn't think so. If you take the customer's out of the scenario. I'm sure the success rate to earn a income is much higher. In my company there is no way you can lose. I have done nothing with my business and I have already recoup my investment within the 1st week. Please don't put down a whole industry because you were not successful. It's not nice to hate. Your attitude might be the problem. Come join my team and see what happiness is about. Hello, Warren buffet has 3 MLM company. Are you calling him a crook?? Be careful 🙂

  • Robert speaks truth. Check out "PrimeMyBody" CEO Paul Rogers…..my research is crazy. Hit me up if you want to know more. I've researched EVERYTHING! Beware…."prime my body, Hemp oil enthusiasts!

  • Lee Farkas did get arrested and was set to prison. He was one of many during the housing crisis. What is this guy talking about?

  • Whenever someone tells you about a 'business opportunity,' whether it's selling a service [ie. Primerica, etc] or a consumable product, and starts in with the BS about the money you can make from your 'downline,' RUN, don't walk, for the exit.

  • With all due respect what a shame that someone with so much knowledge on the industry has got it all so very wrong. Unfortunately the majority of people in mlm are not doing it in a professional way which is what happens when you pay a minimal start up. If everyone paid the same as a traditional franchise to get started then they would invest their time and effort in learning how to become a professional network marketer. This is an incredible business if treated like a business. It's legit and an amazing opportunity for anyone who actually puts the work in. We can either listen to so called experts like this or we can crack on and build a business that gives people so much value though life changing products. Listen to the real experts like Robert Kiyosaki , Eric Wore, Ed Ladbrook and Richard Branson. Thanks. D

  • Hallie Hughes says:

    If I receive an excellent product or service for the money that I decide to pay to a company (representative or agent), that's all that I need. Who cares about how many people are earning money "off of me"? Work smarter, not harder. One must be a business owner in order to become rich. Working a job will not make anyone rich or wealthy. MLM is the way to go! Become a business owner, today! Email me and ask me how: [email protected] Thank you! 🙂

  • richard seymore says:

    Is Allegiance, Inc a pyramid scheme? They called me in for an interview
    but the whole process felt fake. From the receptionist, to the hiring
    managers and everybody else working there.

    They all wore nice suits, dresses and name designer shoes giving the effect that they were all wealthy and successful.

    When I was waiting in the lobby before my interview, I overheard clapping and cheering from the other room as if they won the lottery. Selling the effect that they're a successful company.

    Lastly, when the hiring manager came out, he took me outside to get coffee at a nearby cafe. As he was talking about the company, I see a group of people taking pictures outside, who obviously worked for the company. They were all smiling, happy and laughing but the laughs felt forced.

    Even the guy giving me the interview didn't' really listen to my answers. I felt like he didn't really care or was concerned about my answers.

  • Mr. FitzPatrick, I want to personally thank you! I use this interview as a training tool for my network marketing team. We analyze and break down your glaring misinformation as it pertains to our company. It must be said at this point that not all companies are the same but because you do not discriminate in your comments we have the added value of refuting each and every point that you make with examples of how we operate. You represent in your discussion the glaring ignorance of the Industrial Age. Thankfully, education is power and open-minded people (who by the way, make the best multi-level marketers) have the insight to see past your feeble objections. We as a company salute you! Please contact me if you would like to further our conversation, I would eagerly enjoy a chance to educate you. [email protected]

  • Since governments, business, military or just about anything you might name are built on the pyramid model ,agreed ?So this is nothing new. True, in the very early stages there were many cons, garages filled with products that would never be sold people out and out lied to ran rampant through the industry but much has changed.No doubt there are still shills out there and due dillagence should and must be applied.But you apply much to broad of a brush. There are some very good honest MLM companies out there and you might do well to look into them and let folks aware of them as well.This might lend a little more credibility to your personal views on the subject

  • Johnny Rocket says:

    My comments are NOT to throw out EVERYTHING Mr. Fitzpatrick has to say. I will say the general existence of MLM includes both Free Enterprise and introduction of cutting edge products that "ALLOW" the average person to participate thru a specific marketing plan. Its existence does not prevent shady companies touting snake oil from taking advantage. As articulate as he is he enjoys the use of general terms such as "the last ones are doomed"….or 99 percent "Lose Money"….without any of the intrinsic value being assessed. By the way…there is no such thing as the "Last Ones"…The main advantage to MLM is for the business owner/participant to share in the Marketing Margin of the product. The actual person to person interaction vastly outperforms big box or internet marketing because PEOPLE ACTUALLY HELP AND INSTRUCT OTHERS in the product and the process. Mr. Fitzpatrick's heavy reliance on statistics is misleading in that the MLM industry is in fact a door that the average person can enter. He attaches a STIGMA to the recruiting aspect with an underlying tone that the participants are "consumers being duped"….when in reality they have the opportunity to educate themselves…..then participate or decline. ITS CALLED CHOICE. 90% of businesses fail inside of ten years. Same statistic he cites…different concept. I would love to have Mr. Fitzpatrick apply his keen senses to the biggest scam of all known as our University educational system that robs young people while there is little or no price control nor oversite for the "product" being purchased. I do appreciate his watchdog nature and that the spirit of his concerns are not missed….and for that I say…. keep looking out for us.

  • people are fighting cancer and global warming … but many others want to take credit from some poor minds … shame on you multi lever marketers . you give hope you take money you celebrate with our money that we spent tie and effort to get and try to make everyone addicted to some kind of drugs … really shameful … eat healthy ask people of knowledge exercise and you'll live healthy…
    Robert FitzPatrick
    i salute you !!!

  • so then it would be better to have a secular job with a salary with 40 plus hrs a week and go to buy your products to the store and give my money to the stores so they can make millions and millions of dollars? s

  • A true american dream. Multi Level Marketing is amazing and I love the results. Thanks for sharing the video. Okay, back to making money online for me 🙂 Enjoy your day.

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