Apr 3, 2012

Beware of the Tricky

Recently I was approached by a friend of a friend, who thought I would appreciate a fabulous opportunity in this company of sorts she's part of. As you know, though I'm on an unpaid leave from the company I work with, truth is that life costs and I need an income in order to provide for my needs, so I'm looking for a job. This person first approached our common friends to ask if I would be interested, and I believe they weren't well informed of what the fabulous opportunity was about. Fooled on the idea, and with the kind intention of helping me, they told her to contact me, so she did. Her offer was to join a pyramid-type of company.

Hn.

I'll cut on all the unpleasentries and the actual surprise that invided be when she was actually offended that I would suggest that her fabulous opportunity was a Ponzi Scheme. Sadly for her fabulous opportunity, I'm not stupid, and having seen one or two of these shady operations, I can recognize them from far and run the other direction. These types of companies exist everywhere, work the same way and - what upsets me the most - they prey on the same kind of people: the vulnerable, unemployed people. The reason for it is simple: these are the most desperate people they can find, feeding on hope so hard they'll take and do anything to get out of the slump.

These types of companies are never the answer to unemployment, no matter what they promise, they are not. However, in order to help people recognize and prevent falling in the tricks of these companies, I'd like to present some of the typical things that you should be aware of. If you reply to a job add, or someone approach you with a proposal that fall on any (or more, or all) of the following, back off and run for your life.

* One of the most characteristic features of these type of pyramid companies, is that you are usually requested to bring abroad more and more members. It's either told that the more you "widen your network" the better you would do, or you are told downright that you will get money for every person you bring abroad, and also the people they bring abroad, or any other thing, but be it as it is, the push is there to bring on more and more people to the company.

* It's also quite common that you have to pay some money at the begining to join the company. Either you are told that you'll become an "Independent Owner Businessman/woman" and this amount is your initial investment, or that the money is to cover your training, or your first batch of products, or your product portfolio... it's all a hoax. Check any other regular job on the market: nobody has to pay anything up front to start working. Maybe - and only maybe - in certain jobs where you have to use a uniform and thus you have to pay for it, but even in those cases normally the cost of them - if any must be shouldered by you - is deduced of your first check. So remember, the point of taking a job is to MAKE MONEY, not to SPEND IT.

* Normally nobody is willing to talk to you directly about what the job is, until you haven't been forced to endure an infomercial-like induction. It doesn't matter how many times you ask to be explained clearly what the job is about or what the company actually do, you'll meet only dodging answers and replies on the line of "well, I can't explain you this just like that. But once you listen to the introduction, you'll understand everything". Press your thumb to this one, because here's where normally all of these fail. The reason for this is that the job is risky, sketchy and the moment you hear about it, you'll see through the scheme and tell them to go trick someone else. The infomercial introduction is needed because it builds upon one thing and one thing only: to get you tired and dizzy with tales, so you don't see clearly what's going on. 

They'll normally tell you how awesome the company is - without telling you what's the company's name - how awesome is the product, how it sells itself, and how the explosion of this business has been so incredible in this market, the owners - who are always in some other country - are so amazed at how this particular market is breaking records...

They talk using amused and amazed tones of voices to make you believe that "OMG, this is it! You can't let go of this opportunity now!"

Truth is, no matter the job, if it is HONEST, if there's nothing to hide about it, it can be explained easily in a sentence. It's "secretary", "postman", "baker", "engineer", "credit analyst", "lawyer", "clerk"... so, if you don't get a straight answer from the begining so you can decide if it is for you, then run away.

* There's no fix wage, but "the earnings depend on you". Indeed there's a lot of jobs where the income depends on commision, normally in the sales sector, but if you are employed, you can expect to have a minimal wage, a base wage and you build commisions upon it. If you are employed - and if you are looking for a job, yes, you are looking to be employed - you are supposed to get a wage. You could be in a situation where you get nothing if you sell nothing, only in cases where you are an independent enterpreneur. For instance in cases where you are you own boss and manage your own company, or also in the cases where you sell products like make up, tuppaware, and all those people normally do as a way to complement your salary from another job. However, if you are unemployed and are looking to support yourself and family, you are really looking for a stable job with a stable wage, not a job that might pay one day and might go on empty another.

* It's not often common to all pyramid-type companies, but they usually don't advertise themselves. You probably hear from the company and the product for the first time at the infomercial introduction, and being so marvelous, have you considered why you haven't heard of it before? You'll be explained - of course - that the company prefers to cut marketing costs and rely on mouth-to-mouth publicity, thus being able to "sell the fabulous product" at a "reduced price" or "allow you to get a bigger chunk of profit". This doesn't hold water because there are products that have been using that kind of strategy and you know about them. Avon, Oriflame, Zermat, Tuppaware. These are the only pyramidish companies I know I can endorse as a salary complement activity, because this really rely on a product widely known by and everybody knows about. Have you heard before about this particular product? This company? This service? No? Then it probably either is phony or it's not as good and self-selling as you've been told.

It's far riskier - and really, RUN if you find yourself in front of a case like this - when the super-company doesn't even have offices, or recognizable headquarters. The explanation to why you are meeting in a coffeeshop, a park, in a McDonald's McCafé sector, a hotel's convention center, a rented room, building, is that they do that to cut costs and give their "partners" (meaning the fools falling for the lie) more profit. However, what are they not telling you? A company that has no buildings, no investment in real estate of any type, or anything that's not liquid (quick to sale) is a company that can disappear at any moment. What do they have to hold them back? What could they lose? A company like that can wire the whole money the moment things start getting  sticky - and they always get sticky - and be vanished in minutes.

If there's no main building, where can you go if problems arise? You call a number? Yes, you do know that phones can be disconnected or not picked up, right? Where will you go? What will you do if the authorities come knocking on your door for problems with whatever you've been selling. Your customers could sue you, you know? What will you do if they fail on transfering your earnings? What if they fail to send you the product that you've ordered?


You can be told that this or that media guru has endorsed the company, wanted even to buy it, and whatever they say don't trust it. Look at them, analyze them. Do they look like "successful" people? Check on the clothes, the shoes, the hair, the make up, the general vibe. Usually the people sent to collect you are also hopeful and desperate people trying to reach a carrot that has never been there. They are told to look successful, but their low income doesn't cut it to buy a decent suit. They are strugling too, trying to get you on board so they can get a couple of coins for your head. Is that what you want? Honestly, there you are jobless, do you prefer to be a shady salesperson for a shady company that can ditch you any moment, or rather go work as a waiter at a local restaurant, have a regular, stablished schedule and get a regular wage? I don't know you, but I know which one would I pick.

Finally, if you are out there, looking for a job and nothing happens, remember that every job is good if it is honest, and there's no undignity in it, no matter how humble it is.

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