Ok so my roommate comes home one day and is like “oh i got a job as management for $35,000 a year” and I;m like oh congrats! That’s great! But then something starts to nag at the back of my skull….why isnt she more excited? SO i press further “Well, what are your duties?” and shes like “Oh managing perfume sales” or something like that…and already I am having red flags go off… “yeah and then theres 6 weeks of sort of paid training” and now im on full SCAM ALERT..unfortunately my internet at home is kaput so I couldn’t look up anything about my suspicions right there and then..so I kept my mouth shut.
Now i come to the office and do a quick search for “perfume management selling scam” and get like a ZILLION links to this. Apparently it is a well-known scam that targets young people around her age with a deceptive classified advertisement for positions such as “commercial designer” “manager sales” or “Administrative sales management” Then they “interview” you (i put it in quotation marks because they will take anyone) and then invite you for a 2nd interview, this time with a group usually. This is to make it seem like you were selected past an elimination round, when again, they take everyone.
They go by the name of WORLD PERFUME or SCENTURA PERFUMES and it’s already been banned in the state of Illinois as an illegal pyramid scheme. For those of you unfamiliar with pyramid schemes ( also called MLM or Multi-level Marketing) it works (or actually, doesn’t work) thusly:
A pyramid scheme is a fraudulent system of making money which requires an endless stream of recruits for success. Recruits (a) give money to recruiters and (b) enlist fresh recruits to give them money.
A pyramid scheme is called a pyramid scheme because of the shape of a pyramid: a three dimensional triangle. If a pyramid were started by a human being at the top with just 10 people beneath him, and 100 beneath them, and 1000 beneath them, etc., the pyramid would involve everyone on earth in just ten layers of people with one con man on top. The human pyramid would be about 60 feet high and the bottom layer would have more than 4.5 billion people! Obviously simple mathematics proves that this cannot work as a real business model. The only people who make money are the top 2 layers, the very scam artists who created it. Everyone underneath is suckered into it and loses money.
In a straightforward pyramid scheme, a recruit is asked to give a sum of money, say $100, to a recruiter. The new recruit then enlists, say, 10 more recruits, to give up $100 each. In the simplest example, the recruiter keeps all the money he gets from his recruits. In our example, each recruit gives up $100 in exchange for $900 ($100 from each of his 10 recruits minus the $100 he gave his own recruiter). In order for no one to lose money, the recruiting must go on forever. On a planet with a limited number of people, even if the planet is as large as Earth and has almost 6 billion potential recruits, one runs out of new recruits rather quickly.
Thus, the result of all these schemes is inevitable: at best, a few people walk away with a lot of money, while most recruits lose whatever money they put into the scheme. In fact, the only way anybody can make money through a pyramid scheme or chain letter is if other people are defrauded into giving money upon a promise of getting something in return when it will be impossible for them to get anything at all in return. That is to say, in plain English, these schemes always constitute fraud. They use deception to get money. That is why they are illegal. They are not illegal because they involve recruiting people to recruit other people to recruit other people. That is perfectly legal and is done to some degree in many legitimate businesses. They are not illegal because they involve giving money to people. It is perfectly legal to give money to people. They are illegal because they involve deceiving people in order to get money from them: that is the legal meaning of fraud.
In actual fact, however, no pyramid scheme will ever work this way because the scheme will never get the number of recruits we’ve been speculating about. All pyramid schemes will begin to die when the later recruits don’t sign on in numbers large enough to pay off the earlier recruits.There will always be enough people who will smell the scheme out. There will always be too many people who will say “if it sounds too good to be true that’s probably because it is.” There may even be a good number of people who will realize that though one person recruiting ten doesn’t sound like much, it quickly adds up to unrealistic and improbable numbers. Also, all it takes is one person to stop the whole thing, either by adamantly persuading recruiters of their indecency, or by reporting them to the police. Well…in theory
AAAAAAAAAAAAARGHHH *tears hair out*
Pyramid schemes are popular because people are GREEDY and naive and greed can do wonders to a person’s thinking. For a person desiring to make a lot of money from a small investment in a short amount of time, wishful thinking often takes over where critical thinking should step in. Wishes become facts. Skeptics become idiots for not getting on board. I’ve experienced this sort of thing before when trying to warn people about other get-rich-quick scams like Quixtar.
In short, they get young, naive hopeful people just entering the professional job market with a deceptive classified ad, and lie and lie and lie to them so that they end up in parking lots peddling cheap ghastly smelling perfume. This is hardly what I call Management and you will not earn anywhere near $35,000 a year doing this. Hopefully she will listen to me on this, id hate for her to have to learn the hard way.