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The 5 Big Lies Of Multilevel Marketing

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– Lies, lies, lies about
multilevel marketing. Now what is multilevel marketing?Have you been lied to?Maybe your upline is lying to you. Today I’m going to teach youhow to think a little bit smarter. How to think on your own. How do you look at some of these things. So what are some of the lieswhen it comes to multilevel marketing?- Well you know, Dan, I
actually did fairly wellat some network marketing businesses,some affiliate marketing businesses,some multilevel marketing
businesses, MLMs right. However, the reality
is I’m now 40 years oldand after 20 years of
experiencing ups and downs,I must say though that
there are five lies. I’ve come up with five liesthat encompass the multitude of companiesthat I’ve worked at. Can you succeed at network marketing?Yes, absolutely. Statistics actually prove that you canbut it’s a very small number. And so that is one of the first liesI want to cover. Actually, I’ll circle back to that oneso watch this video
all the way to the end. In fact, the first one
I want to tell you aboutis actually my own story. So when I started at
the age of 18 years old,the gentleman that approached me,he came to me and said,”Hey are you keeping options open?You look like a sharp young guy. “And he really painted
this picture in my headthat I could become an entrepreneurfor a very small investment. Few hundred dollars and
I could wear the capeof being an entrepreneur. And I think that’s the first lie there. That entrepreneurship,
after all these yearsI’ve realized, is very
different than the picturethat these network marketing
companies they paint. They make you feel like you can becomeand entrepreneur for nothing. So again, it’s that whole
get something for nothing. – And I think you can become a top earnerwith a high income skill
without being a businesson your own without a lot of money. That’s okay, because you
are trading your time. Your trading hours for dollars. But for high dollars
right, that’s what I teach. That’s perfectly fine. But building a scalable business,building that big of a business,it costs fucking money, it just does. People cost money. Marketing costs money. Everything that you do, it costsa certain amount of resources. So I think having that
unreasonable expectationwhen you’re not ready to start a businessand you thought, you know what
I have no money, I’m broke. The worst time to start a businesswhen you got no money. Listen to me, the worst
time to start a businessis when you’re desperate. Because business takes time. It takes time to build. It may take you one year, two
years, five years, ten years. This is not a job. This is not just you wait
til the end of the monthyou get a paycheck. This requires a tremendous
amount of effort,attention and skills, right. If you want to make
some money on the side,don’t start a business. Give em a high income skill,so you’re going to
offer to the marketplacein exchange for money. Now that is smart. – That’s right. Because I failed at two major businesses,I failed at many businesses,but I failed at two major ones. Half a million in one, half
a million in the other. – 1 million dollars, gone. – And you know what?And why we fail?Because we didn’t have cash flow. We didn’t have that income coming in. We took other people’s
money and we blew it. We knew how to blow
money before we learnedhow to make money. – Correct. – And the whole thing
about the lie as wellis this whole entrepreneur thing. From what I understand and
Dan can actually testify this,entrepreneurs create things. The create jobs. Network marketing companies,
you’re not creating jobsexcept for the people at the head office. You’re a distributor, you’re a consumer,you’re not an entrepreneur. They call you a small
business but you’re not. And so that’s one of the lies. – If you’re CEO of a
network marketing company,now that’s an entrepreneur. – If you’re the founder than
you’re the entrepreneur. So I feel like that’s a lie. Number one lie. – So what’s lie number two?- Lie number two is the
whole part time thing. Oh do this on the sideand just put in a few hours. They make it sound so easy. It is not. In order to get to the top levels. . . Even I just scratched the lower
levels of the upper levels. – It’s a full time- 7 days a week. Everyday away from my family. Leave the house at 6pm. Go to work, work a whole day. Come home exhausted, tired. Jump into a suit and if you
don’t like wearing suits,you’re in trouble. Then after that, go out, drive somewhere. Spend money on coffee. – Go to that meeting. Go to the hotel meeting. Drag family and friends. – Stay late after the meeting. – Oh fuck, and try and close the pitch. – Til two o’clock in the morning. – Unbelievable. – Exhausted. – Yeah I remember. One of the things I’ve
learned that is to. . . Cuz once I run of out
people that I talk toin the beginning- Yes. – Well you gotta prospect,
you gotta meet with people. So I actually went to bookstores. – Yes. – Okay, I know you done this before. It’s fucking stupid. I went into bookstore. I hang out in the personal
development business section. – Yes. – So people are looking at different booksand I would kind of like,
slowly get close to them. Yeah that’s a very good book. Try to strike up a conversation. Yeah what I like about the book. . . Oh by the way, are you looking foran opportunity to make side income. They’re like, what the. . – Pounced on me. – What the fuck right?And it was just bad. And what’s worse is that
while you are doing this,I don’t know if you feel the same way. It just feels so draining. – Yes. – It feels so exhausting. I feel like after I talk about whateverthe network opportunity, I feellike I need to take a shower. – Yeah, you feel dirty. – I feel so dirty, I feel so disrespected. – Yeah. – This is not a good way to make a living. – It’s like a cheesy salesman. – It’s like you’re the worst in there. – Yeah. – Like the proof of that is very simple. You go out there any
function, any gathering. Could be a wedding, could
be a business networking. You just walk up to
people, anyone, anybody. You tell them what do you do. Well I’m a multilevel marketer. See how people react to you. – Actually, true funny story. We were at a conference. – Big conference. – Big conference and
they give you these tagsand you can put these
little stickers below it. – Like little ribbons. – Yeah, copywriter. – Marketer. – Marketer, agency owner. And Dan over here,
because he wants to study. He wants to be at the
event and pay attention,he doesn’t want to be mobbed by people,what did you put on yours?- I put MLM. I put five of them. MLM, no one talked to me. It’s beautiful. It’s absolutely beautiful, right?- It’s works, it works. – Seriously, it works. You don’t want people talk to you,just tell em I’m a network marketer. Then it’s like you have
some kind of disease. They don’t even want to get close to you. Do you actually like that?Seriously, is that how
you want to be treated?Like, no pride. It’s sad. It’s very sad. So part time, forget that. It doesn’t work. Now if you just want
to make a few dollars,like a couple hundred bucks,
yeah you can do it part time. But if you want to make
thousands, forget it. If you want to make serious money,you need to put in a little bit of time. You gotta treat it like career. You gotta take it very seriously. So part time, it’s a lie. So what is the third lie?- Well the third one I would saidis what I realize is they always make. . . First of all, their productsare always more expensive. – Yes. They will say it’s cheapercuz we don’t have the cost, you know,we’re wholeselling. – Yeah, yeah. – Versus in the store, you buy thisand you know, distributor
and all that stuff. Well it sound logical but
you’ve got fucking eight levels,seven levels you gotta pay. – The commission. – Hello, it’s the same. It’s the same shit. Someone is getting paid, right. – Yep. – And they said why they mark that upbecause they need the profit marginin order to pay all the distributors,all these levels where all the bonusesand all that stuff, right?- That’s right. They make it sound like the premium pricesare for better quality pricesand scientifically
proven, clinically proven. – And some of them are good, like I said. I subscribe to a couple of companiesI do like the product of. I’ve done my research but that’s it. But most of the time, I
won’t name the company. – Some water filters. Some travel companies. – I won’t name the companybut there are a number of companieswho has a huge line of products. I’m talking about thousands. A lot of the products that they claimto be much better, high
quality, it’s bullshit. It’s all private label shit. They don’t even make that shit. Someone else made it,
they put out their logoand they let you distribute and they makethat seven layer commission. That’s how it works. If you think logically, you knowthat’s how exactly how it works. So if there’s spending so much moneypaying everybody else, how much moneycould they spend on improving the qualityof the product. Like an idiot could figure that out. – So when you become a distributor
and you get brainwashedinto going out there and
now trying to convinceother people and you have to handlethe objection of why
it’s more expensive. . . – The one thing that I cannot standespecially that health related productbecause those motherfuckers,
I just gotta say it,where those upline, they’re in hotel room. They make the most outrageous claims. No joke. Most outrageous stories
about some vitamin. I’m talking about it cures cancer. My wife was. . . We couldn’t get pregnant
and now she’s pregnant. I’m like give me a fucking break. Because of greed. And they make all these crazy promises. This is wrong. It’s just wrong. If it’s a vitamin, that’s fine,you know health and you have
more energy, that’s okay. But while they’re making
these crazy claims,it bothers the fuck out of me. – And that’s why the FTC shut them down. – It bothers the fuck out of me. – We talk about this in another video. Go up there and watch that other videoin which we talk about
how FTCs can shut it downand why that’s a risk. – It should be shut down. – Right, it’s a risk to you. Maybe it wasn’t even you that said it. It was another leader that said it. But then the FTC comes
in and shuts you down. So then, what happens to your income?You’re gone. It happened to me. The fourth lie we want to go intois that anyone can do it. They want to make it sound
like just anyone can do it. And Dan, you know I’ve got a
fairly extroverted personality- Personality, outgoing personality. – You know, talkative,
socializing personality. Maybe for someone like me, it’s naturalthat I like to network. That’s why they call it network marketing. But what about someone who’s introverted?I mean Dan, when you were growing up,you were fairly introverted. – Yes. – You were shy. You didn’t have a big
network of friends, did you?- I had no friends. So when it comes to anyone can do it,there’s something that anyone can do. But for network marketing,
in order to climbto that top leadership position. What are the statistics?I think it was Ink did an article on this. – Ink did a-One out of a thousand,
three out of a thousand. – Three people out of one
thousand actually make it. – Yes. I was probably one of those three. That was me. – Not 3 out of 100. 3 out of 1000 make it. Now, making it doesn’t mean you’re rich. – No. – It just means that like
you’re not losing money. – Paying bills. – Yeah, paying the bills. – Not losing money, exactly. – Not losing money versus
I think the statisticsif I remember correctly. . . On average, network marketers they makeI think it was like
whatever 2500 bucks a year?- Oh don’t let the cat out of the bag. That’s number five But yeah, it’s not
about anyone can make itcuz it takes a lot of skills,
it takes a lot of time. When they say anyone can make it,yes anyone can make it
maybe after 20 yearsif you are a super
introverted, shy person. You don’t speak good
English, if it’s Englishthat you’re communicating. It takes time so it is a lie. They try to mask that lie. Cuz most of us, we want to do this, why?Because you want to earn that money quickand you want to get out of your jobor whatever you’re doing quick. You want to spend time
with your family quick. You don’t wanna spend time with your kidswhen they’re 20, 30 years old. You want to do it like next yearand that’s the lie. They make you feel like anyone can do itbut the reality is it takes timeto learn these skills to
get to that high level. – And what is something
that anyone can do?How do you know if. . . If you want to create
wealth, if you actually wantto create abundance in your life,you can never be out of the equation. You always need to be
part of the equation. So anything that is kinda shadyand anything that’s promising you,hey it has nothing to do with you,just push a button or money
will fall on your lap,or just distribute this productand everything will be fine. If they take you out of the equation,this is a scam. Period. Period. Or this super duper investment,just put the money, it has
nothing to do with you,you don’t need any
effort, you’ll make money,you’re being scammed. – That’s a scam. – In order to create wealth,you always, always have to
be part of the equation. – Right. – What could you do to deliver real valueto the marketplace in
the exchange of money?See that’s legitimate. – That makes you a real entrepreneur. – That makes you a real entrepreneur. Not this fucking lotion
potion bullshit, right?- Right. So we saved the best for last. – The best for last. – And the number five lie, the fifth lieis about the amount of money. They make it sound like
everyone can make money. That’s not true. Statistics have proven,
Ink. com has proven it. There’s lots of studies out there. Dan, what was the statistics
I shared with you?- I think it was 2500 bucks– That’s right. – On average that they make per year. But on average, they spend
over $25,000 dollars. – 10 times. I can attest to this. So it includes going to conferences. The sign up kit. – Buying the products. – Dressing up if you don’t have a suit. Going out and buying a
suit if you don’t have one. The driving places, the products,the marketing, the telephone bill. Not to mention your time
away from your family. The gas bills, everything. The average network
marketer direct salespersonmultilevel marketer only earns
an average of $2500 a yearwhereas they spend $25,000 a year. – So gotta think about thisyou spend 25k, you can make $2500 bucks. How is that a good investment?You are better off, if you juststay home and do nothing. – Right. Cuz then you would’ve made nothingand you would’ve spent nothing. At least that’s you’re like breaking even. – Go get a real part
time job at Starbucks. – Yeah, legit making money right now. – You could make more money. – Right, it’s just incredible. – It bugs me, Dan, that
people go through these liesand that’s also why the
attrition rate is so high. That’s why you have to
keep recruiting peoplein it which is a whole nother that I. . . – You need to babysit a
whole bunch of people. People who are not motivated, not eager. Who are not serious. They have wrong expectations. It’s just frustrating. And part of why I want to
make this particular video. . . I have a lot of haters on the internet. – Yes. – And that’s okay. Fuck you guys by the way, you haters. If you’re fans, love you guys. What bothers me, sometimes
I’ll see on social media,and they accuse me. Oh you know what Dan Lok is
doing is a pyramid scheme. When I am the fucking biggest anti-MLM guyon the fucking planet. There’s a reason. I want you to look at
so many other speakers,motivational speakers, big names. They speak at MLM conferences. – You’ve never. – Why do they speak at MLM conferences?Because MLM companies
pay them a lot of moneyto inspire and motivate their people. Where I can tell you right now,you will never ever ever see Dan Lokon a fucking network
marketing stage, period. Period. I don’t care if they pay me $100,0000. I don’t give a fuck if write a chequefor 1 million dollars. You will never see Dan Lok
on a network marketing stage. Period. Because I am anti network marketing. I don’t believe the model. I don’t believe in what they do. And I don’t believe they actually givea shit about people and
want to grow people. I can tell you this, I’m leaving
so much money on the table. I can make so much more than
just this as my influence. – Dan, since the very
first time I met you. What I realized which
was different about youwas that you didn’t focus on yeah sure,it’s a big argument about
the network marketing. Even I was very vanilla about itbut what you taught me
was about having that,because I wanted to build
a business, was to havethat high income skill
then scale a businessthen invest. – How we turn investments. Right, which is so different. It was a mind shift for me. It was a very big difference. – So there you go. The five biggest lies. So if you’re still thinking about,you’re asking a lot of questions,oh Dan, should I join, should I not join?Don’t fucking join network marketing. What’s your opinion on network marketing?Don’t fucking join network marketing. Well what do you think of this MLM?Don’t fucking join MLM. We are done.

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