one of the biggest hidden and widely unknown evils out there today is the multi-level marketing (MLM) scam, an intricate pyramid scheme that essentially builds itself on the sale of worthless products by large teams of deluded, lowly paid salespeople for the benefit of a few "motivated" and "dedicated" people who have "succeeded" at the business. but their success comes at the expense of hundreds and thousands of peons who can not infiltrate the higher levels of the pryamid which are, by definition, limited in size. Amway is more or less an example of this type of thing that everyone is familiar with, and depsite their being the butt-end of jokes since the 1970s, they're still alive and kicking. another more recent example is Herbalife, which is ulimately responsible for many of those "work from home" and "lose 10 lbs. in 10 days" signs that you see in subway cars and on telephone poles. for an in-depth discussion of Herbalife, i highly recommend checking our the work done by Rob Cockerham of cockeyed.com. it's very long and involved, but the work he did in exposing the company and it's practices is highly worthwhile.
i bring this up because nearly everyday when i get off the subway on my way to the office, there is a morass of young men and women pulling large boxes down the stairs and into the station. they're typically dressed in shirts and ties and there are 1 or 2 people seemingly in charge who are leading them around. this has gone on for the 3 years that i've worked here though the people i see have changed constantly. given the whole demeanor of the situation, i assumed that they were likely involved in a similar type of MLM that required them to go out and sell whatever crap happened to be in those boxes. but it was only this morning that i made a note of the company stamped on the boxes - Innovage - and decided to do a little digging. as it happens, Innovage (whose website is amlost certainly intentionally vague) is tied up in someway with a company called DS-Max (Direct Selling to the Max!) which is ambiguously involved in so may different things it would take months to get it all straight. the points is that these kids ae basically being exploited by an organization that preaches about opportunity, making your own success and six figure salaries but on which most people end up losing money - only to hear themselves described as "quitters" and "lazy" by the lucky few who make it to the upper echelons - when the deck that's been stacked against them finally chews them up. but apparently there's always a few more ready to take their place.
but the truly amazing thing is the number of people who come to their defense and claim what a legitimate business it is and how much they believe in it, to the point where one post i read on a site devoted to this topic claimed that "without us there would be no Christmas" after someone posted that the quality of their products was equal to that of products sold in dollar stores (and in fact, much of the merchandise they peddle IS sold in dollar and other discount stores).
for more insight on how they operate, check out this glossary of terms which is sort of like leafing through Satan's playbook (example - Atmosphere : Happens once in the beginning of the day before the morning meeting and once at the end of the day after people come back from the field. In atmosphere people should be constantly "juiced" about the opportunity, be either practice pitching, telling a pro ds-max descendant story about how you succeeded with the marketing system, or some elses success story, be explaining the 5 and 8 to others and loud motivational music should be playing. Nothing negative about the business should be said. No new people should be allowed to be near each other or they might talk each other out of the business. An aura of excitement should pervade the room.). also check out the Rip Off Report for numerous stories of people getting sucked into this cult-like atmosphere who want to prevent others from making the same mistakes.
Posted by jamie at August 12, 2004 01:35 PMThat's all similar to that scheme my uncle is always going on about.
Posted by: the wife at August 12, 2004 01:56 PMi can imagine, especially considering the crappiness of those pillows we got. it's probably a good thing that we passed on that baker's rack - i'm sure it would have come crashing down in a matter of days.
Posted by: jamie at August 12, 2004 02:11 PMboy, when you get fired up you make a lot of typos. i have a hard time feeling sorry for anyone exploited by such an obvious scam. who in their right minds wants to work for a company like ds-max or a place with a name as lousy as innovage-you think the entry level serfs are their prime concern? i could use some juicing before and after my work day too.
Posted by: crispin at August 12, 2004 02:47 PMwell the whole tenor of the pitch is that they do care about the entry-level people. they tend to pull in a lot of the down-on-their-luck, willing-to-try-anything types who truly want to believe that this stuff actually works and that financial freedom is just weeks away. after that it's all psychological power plays as the only goal is to keep people in the program by feeding them a bunch of jargon. so i do feel sorry for them because they're obviously so desperate (and the pitch so seductive) that they're willing to overlook the obvious drawbacks in order to line the pockets of their evil overlords.
Posted by: jamie at August 12, 2004 03:20 PMYou feel sorry for people who fall for scams but you'll give Tyrone Biggums his crack money?
Posted by: jake at August 12, 2004 04:24 PMI think those companies attract a lot of people without much world experience. It took all of our power to try to convince my little brother that those jobs are scams despite what they promise and how legit they sound - to someone who needs money and has stars in their eyes - it sounds like a good deal.
Even people who should know better are often enticed by the easy money - I had a camp director once who made us attend a *mandatory* meeting during which he tried to pitch us on this pyramid scheme to sell phone service or something like that. That's shady.
Posted by: Michelle at August 13, 2004 09:28 AMokey dokey so i know some things about how dsmax and innovage work, i just wanted to say them and hear opinions.
DS-Max (okay, cheesy) was a few people selling junk they got on clearance door to door for regular price or like 5 or 10 bucks off or something like that, anyway they are now the company that heads production, purchasing and distribution for materials and stuff used by Cydcor, Granton, and Innovage. Cydcor does services(At&t, stuff like that), Granton does advertising(coupons and things), and Innovage does Clearance (products). I was in an innovage office, now no two offices of this type are going to be running the same. The way it works, is that everyone all the way down from head office gets this stuff on consignment, wherein whatever they're selling they pay for when it's sold. Ok, so that means DSMAX did 4bil or whatever in sales last year, but they didnt directly sell it to any people, obviously, it went to different offices and they sold it.
Now as for the behavior in individual offices, i have heard a number of horror stories about corruption and mistreatment of responsability, people "toasting out" under just stupid circumstances, but hi!, human nature here, people given alot of responsability abuse it sometimes...*cough* *cough* *bush* *cough-cough*
I mean, uh...
anyway so my point being that it is a multiple level marketing group, but all aspects of the setup can be seen as a scam or a benefit. Taxes seem like a scam to me but i'm not going to devote a web site to my beliefs on the subject, the system they have WORKS like crazy for some people, and for some it doesnt.. now from a business standpoint, which side of that would you promote, that people can succeed quickly or that you can try for some time and never advance?
Both happen, fairly frequently, and thats just how that works.
Anyway, i seem to be rambling on so i'm just going to cut this short...
post or email me, i'll check back in sometime
iamin420heaven@Hotmail.com