Is this illegal?

[RSI]

A marketing scheme... A sales representative gives a presentation to friends/family (or calls someone ... 25+, married, kids.. and arranges and appointment), and at the end of the presentation (whether or not anything is sold), said sales rep requests 10-15 names from the people whom he/she is presenting to. The client-base is thus acquired in such a manner as word of mouth and referrals, pretty much. Can't buy it in stores or anywhere else except through this method... is this an illegal marketing scam? Your comments, please. Greatly appreciated.

 

[pyonir]

it is a pyramid scheme which is illegal.

 

[Beau]

Originally posted by: pyonir
it is a pyramid scheme which is illegal.

hehe... living in Pheonix, you should know a lot about those things

Actually, I think Utah is the pyramid scheme capitol of the country.

 

[HiveMaster]

Sounds Like Amway. (Scamway)

 

[RSI]

Originally posted by: Beau6183

Originally posted by: pyonir
it is a pyramid scheme which is illegal.

hehe... living in Pheonix, you should know a lot about those things

Actually, I think Utah is the pyramid scheme capitol of the country.

Dammit... I knew it seemed a little fishy. Well, this one claims to have over $200mil/year income in U.S alone (it's in U.S. and Canada) and 12 million 'satisfied customers'.

I need any advice I can get. Get out asap? Play along and see what happens? BTW, I have to call them within the hour, so if I'm going to bail out I should know before then.

 

[Beau]

I think you are protected by a 48-hour right of decision. I don't know exactly what it is called, but it is law.

 

[RSI]

Originally posted by: Beau6183
I think you are protected by a 48-hour right of decision. I don't know exactly what it is called, but it is law.

What do you mean? Also, we've already had a couple days of training.

 

[raptor13]

When they ask for referrels, is it just that they want names of people to go sell their stuff to? If that's the case then there's nothing illegal about it all. CutCo Knives (by way of the Vector Marketing company) has been doing that for years. They sell knives to one person, get names of friends, and go sell knives to them. The cycle continues.

Now, if you're being recruited to sell things for this company where you get a cut of the sale, they get a cut, and so on and so on then I would say there's probably something pretty screwy about it. You'd definately want to check it out as far you're able. If you find that their claims of "millions of satisfied customers" is true and they've been around for years, then there's probably nothing illegal about it and you may as well play along if you think you can make some bucks.


Good luck, keep us posted.

 

[Beau]

Originally posted by: RSI
What do you mean? Also, we've already had a couple days of training.

I know that with any contract, you have up to 48 hours to change your mind and void the contract. I can't remember the title of the law that states this, but it does exist. If you've already had a couple of days, then I don't know what to tell you. Read over the agreement and see if there is a clause that covers this.

 

[RSI]

Originally posted by: Beau6183

Originally posted by: RSI
What do you mean? Also, we've already had a couple days of training.

I know that with any contract, you have up to 48 hours to change your mind and void the contract. I can't remember the title of the law that states this, but it does exist. If you've already had a couple of days, then I don't know what to tell you. Read over the agreement and see if there is a clause that covers this.

Sorry, I just wasn't sure what you meant. I didn't sign anything as of yet.

raptor13: Where did you hear about CutCo and Vector Marketing? Also, how can I be sure they are in fact legitimate?

 

[RSI]

I was reading info on multi-level marketing and "pyramid schemes", and this got me even more suspicious, because it filled pretty much everything about the definition of a pyramid scheme. However, there is one thing, in the illegal pyramid schemes, they are primarily focused on recruiting new people, and that's how you get paid. With this, they seem so far completely focused on marketing/selling their products, and didn't make any mention about recruiting people. However, our manager dude was once in our place, and look what he's doing now? Yep, recruiting us... hmmm. Damn this crap...

 

[RSI]

Also, one of the requirements to be a pyramid scheme was that you had to make an initial investment before you could continue - kinda to "buy" your recruiting rights. Well, for tomorrow we need nearly two hundred bucks to buy their kit... they also said we could "borrow" it and not own it, or buy it "later" for much more $. It all seems fishy... and need social insurance # too... I'm guessing tomorrow is when things would be being signed, etc...

 

[RSI]

Look what I just found

comments?

 

[Zclyh3]

Do NOT work for this company. I've worked for them before and the money you make will only be enough to buy you gas. That's it. Take advice from someone who has worked for them before.

 

[pyonir]

if i were you, i'd get out. and don't give them your SSN. only the "managers" recruit (what the supervisor did to you). you start out selling the stuff, and after a while you can move into "management" and then recruit people to sell for you.

 

[Cyberian]

Originally posted by: pyonir
it is a pyramid scheme which is illegal.

I guess I am just really dense. How is this a pyramid scheme?
Don't those usually involve investment of $$ by the clients?

 

[Viper GTS]

Originally posted by: Cyberian

Originally posted by: pyonir
it is a pyramid scheme which is illegal.

I guess I am just really dense. How is this a pyramid scheme?
Don't those usually involve investment of $$ by the clients?

Pyramid Scheme Defined

Doesn't sound like a pyramid scheme to me either, but not something I would ever want to do.

Viper GTS

 

[RSI]

After reading that page, I feel like calling up a couple of the dudes that were there (some of them were pretty nice ppl with potential to do well). In any case, I have to call the manager dude soon and let him know the plan. I guess I'll be bailing out. Apparently he's buying pizza for everyone if we all call in though... so I won't ruin the chance that they get pizza, i'll keep my part and call in.

Damn, what a waste of time this has been. Time to look for a real job.

 

[pyonir]

Originally posted by: Cyberian

Originally posted by: pyonir
it is a pyramid scheme which is illegal.

I guess I am just really dense. How is this a pyramid scheme?
Don't those usually involve investment of $$ by the clients?

$200 'kit' he has to buy...maybe it isn't by definition. regardless, i wouldn't give them a dime.

 

[gentobu]

cutco sucks. I 'worked' for them for a couple of months and all I got to show for it was a $140 dollar set of knives and a few hundred dollars ( less than $250 I think).

 

[RSI]

Thanks for all the comments, everybody. It felt a little fishy from the start. Plus I've never been the outgoing type of person that would MAKE a good, legit salesman anyway. Reading that article gave me a good reality check, and confirmed suspicions. Thank god my dad just said "isn't that illegal?" after I explained how it worked... I knew something was off, but I didn't remember all about multilevel marketing/pyramid schemes... It is very much like that. I feel bad for the people being suckered into it though. I should warn some of them...

Anyway, thanks again all.. gotta call the dude in a min.

 

[QTPie]

<<I need any advice I can get. Get out asap? Play along and see what happens? BTW, I have to call them within the hour, so if I'm going to bail out I should know before then. >>

No, you don't get in first.

 

[dribgnikcom]

Are you talking about Primerica?

 

[GoodRevrnd]

2by2.net works[ed] this way. So do a lot of those solicitor sales. This one sales job I applied to a while ago ended up being a purely commission based job where you're organized into teams and you work your way through leader and manager statuses. These types of operations are all essentially pyramids but just barely not enough so that they're legal. It's mostly a matter of if you get in early enough and if you stick with it.

Cutco is completely legal and legit. Pays fairly well too.

 

[obiwaynekenobi]

Originally posted by: Beau6183

Originally posted by: pyonir
it is a pyramid scheme which is illegal.

hehe... living in Pheonix, you should know a lot about those things

Actually, I think Utah is the pyramid scheme capitol of the country.

HEY! We aren't that bad!!!