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Dave Ramsey is Wrong

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This week Eric Worre takes on Dave Ramsey… Recently during Dave’s radio show he had a woman call in regarding her opportunity in network marketing. Mr Ramsey’s response to this young lady’s questions were filled with misinformation about the profession and Eric Worre is here to set him straight on the truth about Network Marketing…

In the radio show, Dave asks this young lady, “Are you sure this is your dream? Are you sure that this is the best entrepreneurial way for you? You know, these network marketers, they make it sound so easy, but it’s hard. It’s hard work… And do you realize that for the rest of your life you’re just going to be recruiting? And is that really what you want to do? Do you want your friends looking at you funny because these network marketers drive everybody crazy? And what about getting stuck with product?” Dave went on to pour cold water all over the hopes and dreams of this young woman, and pigeon holed the Network Marketing profession into his very limited understanding of what it is all about.

This lit a fire under Eric, and he had this to say in rebuttal to Dave Ramsey, and also to the young woman (or any person) looking for an entrepreneur based business or looking for opportunity …

As far as entrepreneurial options, network marketing is the most financially responsible of all choices. The average person in the United States that wants to start a traditional business, spends $65,000 into a business that they know nothing about most of the time, and 90% of those fail over the course of five years. But in network marketing your investment startup is typically $1,000 or less. Also most companies have a 90% buy back policy, so the investment risk on $1000 is now down to $100. Network marketing is the most risk-free when it comes to just the dollars.
Another firing point was Dave told her that “all you’re gonna be doing is recruiting.” Eric offers this advice on how to actually explain it: “All you do is you expand your network and you expand the productivity of that network.” Which, as Eric points out, is exactly the same business model that Dave has followed… he expanded his radio network, he expanded his financial advisor network, and all of those advisors in every state, all over the world are providing advice for Dave within his network, and then giving him a little piece of the pie. The wealthy people in this world build networks, look for networks, and then increases the productivity of those networks. Network marketing is no different. It’s the same.
Eric also continues to provide rebuttal to the “it’s hard” comment, and the “bothering your friends” mentality that Dave and some people might have about the profession. There is a lot of misinformation about the network marketing profession floating around, and Eric sets the record straight on what is real and what to expect.

In conclusion, Eric has this to say — network marketing is not perfect, but it is better if you have an entrepreneurial bone in your body, it’s better. And to Dave Ramsey if he is listening, “You come into my world and talk about network marketing like you know it – I’ve got to call you on it. Sorry, man. And I respect your work, but in this case, you’re off base.” And for the young lady on the radio show, or anyone who is in the profession: “I hope someday we meet and you tell me your story about how you crushed it inside of this network marketing business and you took all the doubters, including Mr. Dave Ramsey, and you proved them wrong.”
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Link to Dave Ramsey episode:

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54 comments

  • Oscar Miguel Pérez Verdecia

    IT IS A STONE COLD FACT THAT DAVE RAMSEY DOESNT HAVE A BETTER WAY…

  • Richard Brooke

    You Go Eric! Imagine the shift we could make in the public’s..even the regulators and media’s perception if we could just sit with them for 30 mins.

    • Pete Kever

      +Richard Brooke You know how you could shift the public’s perception of network marketing? Stop selling it as an easy path to residual wealth.

    • Bess McCarty

      Exciting Eric!

    • Cocktail Box

      exactly, 10 a penny people saying “oh look at me im rich” or millionare MLM .com. Its dull and prays on the weak and easily lead. If they have it in their gutt do something for yourself..Go Dave he makes sense.

    • Serhan Ozulup

      Honestly i don’t care what public or anybody thinks. I know what we have and i know no matter what you do people will judge you, say negative things about you.

  • Ethan Vanderbuilt

    I am very glad to see that David Ramsey spoke the truth to her.

    • John D

      Actually, the truth is contained in all publicly traded MLM’s annual reports.

    • John D

      I see a common pattern by the MLM community when they say not all MLMs are the same, not all branch offices are the same, not all reps are the same. It seems to be a strategy to pass the hot potato onto “some bad players” rather than accepting that the MLM system is the heart of the problem.

    • Steve McCartney

      Did you even watch the video and listen to what Eric said?…… LOL. All ANYONE hears from YOU is confirmation bias. You sound like you TRULY HAVEN’T researched both sides. And why don’t you EVER present facts from both sides. You can never admit that there ARE success stories from this industry. All you know how to do is somehow find 10-20 mins a video telling everyone that everything is a scam “in your opinion” why haven’t you taken all these companies to court for being a scam!??” Because YOU CAN’T. You know these are legit opportunities, but it would seem YOUR LIFE is SCAMMING PEOPLE out of trying out a very low risk endeavor and SCAMMING THEM out of THEIR TIME.

    • Neeraj Lakhotia

      Ethan Vanderbuilt Woah! Nice to find you here too ! Finally with the power of internet more and more people are releasing the truth of MLM hype.

    • John D

      +Neeraj Lakhotia In the past, MLMs only had to worry about government regulators. Now, in this information age, they have to worry about the court of public opinion. Vemma and Herbalife have recently discovered that.

  • Pete Kever

    Dave Ramsey is correct that network marketing IS hard work, and network marketing recruiters sell it as being easy. As far as the recruiting part … he is being a little unfair there, some network marketing companies don’t focus on recruiting as much as selling product. But most network marketing companies sell a dream through recruiting.

    And the point Mr. Worre makes about expanding the productivity of the network is exactly what I mean: it is HARD to do that. It is HARD to get other people to be productive. It is WORK.

    And network marketers sell their dream to people as if it isn’t hard work.

    • Giovanni Venezia

      +Pete Kever Thanks Man! Network Marketing has A LOT of cleaning up to do, and even Eric says so in the video. The Feds are helping draw the clear boundaries 🙂

    • Betsy Clark

      I have to disagree with you. I am building a successful business with Young Living. While it may be easy to be a hobbiest and play around with it on the side to earn a couple bucks, anyone who does this as a living knows it is hard work. It would be foolish to claim it is anything other. I want people coming into this knowing they need to work to get what they want. If they come in thinking this is a get rich quick plan then they will be quickly discouraged and stop. If they realize that anything that is worth it takes hard work and set their goals and work toward them, they are much more likely to succeed. I want hard workers on my team, not people who sit back and wait for money to fall in their lap. Those lazy people who are looking to get rich quick don’t do me any good what so ever and I would rather not waste my time on them. I would say that most all of those in my position who are serious about building a network marketing business would say the same. All of my friends who are successful in this business tell their team members, “If you want it, you have to work for it. This is not a get rich quick scheme. If that is what you are looking for, you have come to the wrong place.” Have you ever read a book on network marketing? They all will tell you it takes work, effort, blood, sweat, and tears… but when compared to the standard corporate america drudgery, it is so worth it. I suggest you take a serious look at what network marketing really is and do some reading before you decide what you think it is.

    • Pete Kever

      +Betsy Clark I was in a network marketing company for some time. It’s good that there are some companies trying to do things the right way.

    • Derek Joyner

      Networking is a very tough business. But most network companies do sell the dream. That’s just the way it is. Most people get in thinking they are going to be on the beach watching money roll in. Then get in the business and realize how much work it is and spark at it for months and then quit. About 98% probably do this.

    • Neeraj Lakhotia

      Derek Joyner and when the company makes money off those 98% failure too it’s just a really sad way of doing business.

  • Kieran O'Sullivan

    Network marketing is a scam. The product is just a way around the Ponzi scheme laws. Also where did you get your figures for the rate of business failures? Dave Ramsey is certainly wrong but not for the reasons you believe.

    • mattyttv

      hehe lucky you have a choice not to buy it or you would be in real deep trouble then hey 😉

    • Tiana Smith

      I am in a company that does network marketing and it is not a ponzi scheme. We do not tell people that if they buy our product that they will make money. They have to out the time and work into it.

    • AirLove

      Why would billionaires invest into network marketing? Why would companies partner up with network marketing? Their lawyers would be dumb to partner up with scams. I’m guessing a job isn’t a scam right?

    • Michael Patrick

      AirLove youre clearly ignorant

    • Mario Velarde

      AirLove companies match up with Network Marketing companies everyday. Network marketing is not a scam. That’s like saying business is a scam.

  • holdengr

    Network marketing is still around?? I thought we had all realized Amway was scam.

    • Ruben Vatle

      The network marketing industry (as a whole) is doing just about $200 Billion a year in sales! 🙂

    • Jay Smithson

      Lol. I love how all of you MLM people come up with these outlandish numbers. According to the Direct Sales Association, the MLM industry did about 35 billion in revenue. Not $200 Billion. You might want to check your facts. Also, just because they do all of those sales, does not mean it’s legitimate.

    • MichaelCasanovaMusic

      Brainwashed Ambots regurgitating the stats they hear at their cult meetings

  • jdssurf

    Everyone I know who followed Dave Ramsey’s plans is doing great now.

    • Mario Velarde

      100% success rate? What are you measuring?

    • Anthony Dooley

      If you follow what Dave Ramsey teaches, you cannot fail.  If you fail, you didn’t follow the steps.  There is no skill or luck involved, just simple math.

    • xcharged

      I’m curious how much people spend on ramsey products. I bought a 12.99 board game to give to my sister in law. then I realized, another marketing guy just got his hands in my pocket.

    • Anthony Dooley

      Dave Ramsey information is free. Syndicated radio program, iheart radio, Sirius XM, YouTube, Dave Ramsey. Com, and itunes podcast dowloads. All free.

    • Tony Zavaleta

      Damb Right he chose to purchase that board game

  • John Edmonds

    Hahaha yeah, i’ll stick with Dave Ramsey.

  • Madison Westfield

    Dave Ramsey saved my financial life. I am a huge fan.

  • Devo Dar

    This guy looks like one of the clone heads, acts like a telemarketer, comes across like a know it all. I’ll stick with Dave.

  • j w

    this is exactly why I cannot stand Dave Ramsey. he goes on and on about “it’s too hard” and so on. well yeah it’s hard to start a business or move up in any business you work for. makes me wonder if he’s ever heard the saying, “if it’s easy it isn’t worth having”

    • j w

      also he slams debt, “BE DEBT FREE!!!” yeah, be debt free and never grow your business if you own one, just stay in the same place, save your money and invest it! diversify! it’s a friggin joke, no wonder why he makes the money and everyone who listens to him is broke.

      if you want sound advise, look to someone like Grant Cardone or someone like him. listening to Dave you’ll stay broke and never get anywhere.

  • Daniel Garcia

    he’s was just letting her know it’s alot of work. most young ppl today don’t want to work. they want it to be handed to them

  • R D

    THAT’S ONE BALD HEADED HATER RIGHT THERE. I BET YOU HE’S IN DEBT RIGHT NOW!!!

  • Victor Mendoza

    What’s more irresponsible? Giving sound advice or misleading promises of income and cult like teachings? Seems to me like you are making this video cause the people that you may be making money off of will hear his video and learn the truth. Network marketing is a joke. Stick with Dave Ramsey.

    • Neeraj Lakhotia

      Victor Mendoza Yeah. Network Marketing is a cult. I got involved in QNET being manipulated using the ‘trust’ I had on my friend.
      At first I didn’t understand much and read a lot of stuff to get good idea of how businesses work. Then saw my uplines teaching cult like techniques- hiding product and company details and getting friends to ‘invest’ lakhs of Rs on the basis of trust.
      They avoid amswering all logical questions. keep hyping to brainwash new recruits. QNET MLM is the worst torture I faced in my life. Still everyday I hear their evil words in my mind. “YES, a lot of people will lose money but it’s legal and that’s all I care about.”,
      “Fool or be fooled”, “Today I can fool anyone”.
      It’s pure torture.

  • NOVA Dash Cam

    Sorry Eric but if you read the fine print, Dave Ramsey is solely on the air for entertainment purposes and falling for any FREE advice shows you or anyone is gullible. I just listen for the entertainment value and the fact most Americans don’t even have $500 cash for an emergency.

  • Zaghir

    MLM is simply broken down like this: very few winners and a whole lot of losers

  • davh10

    Internet has been bad for the world another way to rip people off. This clown looks like the emperor in star wars and just as evil.

  • Me Goofy

    This guy and Dave Ramsey both make good points. While Network Marketing is not a scam, it does have an extremely high washout rate. I should know. I am one of the washouts. Only the strong survive that game.

  • herbert barnes

    i believe this guy is upset of knowing building financil wealth is to be free of debt.. marketing is pursuade a person
    to buy a product many do not need.. buy it ,use it a little bit ,then it either sits or is broke.. notice his big house that in
    time will have to be sold or turned over to kids..more waste.. i will never do such a thing because its a chain to the source..
    sell stuff to poor people.. marketing sucks and its pure lies SCAM AT ITS FINEST.. CREDIT CARDS IS A SCAM TO

  • Adam Butler

    you should be ashamed of yourself how dare you miss represent @daveramsey