New
business alleges you can make money by multi-level marketing the Internet
A new
money making opportunity that claims to “Multi-level market the Internet” could
be nothing more than a pyramid scheme warns Better Business Bureau. An
investigation by BBB shows that iJango – a new self-described multi-level
marketing company – is aggressively seeking representatives for a product that
has no track record. Consumers are paying hundreds of dollars in upfront fees
based on the claim that they can earn money by recruiting others to do the same
– a red flag for pyramid schemes.
Multi-level marketing is one form of compensation
often employed by direct selling companies, whereby sales agents recruit other
sales agents and receive a cut of their sales for products. Pyramid schemes,
which are illegal, promise that participants can make money primarily by
recruiting people who then pay for the opportunity to recruit more people. The
money is then filtered up through the pyramid.
“Millions of people earn honest money by selling
products through multi-level marketing; however, some money making
opportunities blur the lines between MLM and pyramid schemes,” said Frank
Whitney, MidCal BBB CEO. “iJango is making big promises about its money making
potential, but based on our investigation, BBB believes the potential to
generate revenue may primarily depend on the ability of participants to recruit
additional representatives.”
More than 3,400 people nationwide have contacted
BBB to check out Austin, TX-based iJango since August 1, 2009. iJango is being
marketed heavily on Web sites, including YouTube and Twitter, through spam
e-mail campaigns and at in-person sales presentations across the country.
In-person sales presentations have been held in many cities including Phoenix
and Plano, Texas,
with people having been contacted by e-mail and encouraged to take advantage of
the opportunity.
In the company's promotional materials, iJango is
described as an interactive Web site "portal" for customers to access
social media and interact with online merchants. iJango claims that their
representatives can make money by inviting "friends, family and associates
to use iJango...for FREE!" The business claims that this portal tracks
individuals' Web traffic and e-commerce, thereby generating commissions payable
to iJango based on Web page views and purchases made by the user.
iJango says participants can pay an upfront fee
of $50 to join the program, but recommends purchasing a package for $149.95
with a monthly maintenance fee of $19.95. The company further claims that
consumers participating in the program will earn income in two ways:
- The
recruitment of other individuals to purchase the opportunity and the
recruitment of registered customers.
- Commissions
that are generated by Web site traffic and purchases through iJango Web
site “portals.”
BBB has recently received complaints concerning
the ease of use of the iJango portal, delayed availability of materials and
alleged difficulty in canceling membership. The company has responded to some
consumers by stating that they have issued, or will issue a refund. iJango has
earned a BBB rating of F – and its full BBB Reliability Report™ is available
online.
Cameron Sharpe is one of the co-founders of
iJango and has traveled the country presenting the iJango concept. Cameron
Sharpe also co-created Ultimate Introductions, a.k.a. Ultimate Singles, a
supposedly Christian dating service that generated complaints from customers by
charging thousands of dollars and failing to deliver on promises. Ultimate
Introductions was sued by another company in 2004 for theft, fraud and
unfair competition; as part of the settlement it was required to
go out of business.
BBB recommends consumers exercise extreme caution
when evaluating any business opportunity and consider the following advice in
order to make an informed decision:
- Avoid any
plan that places primary emphasis on commissions for recruiting additional
distributors. It may be an illegal pyramid scheme.
- Beware of
plans that require purchase of expensive products and marketing materials
upfront. These plans may be pyramid schemes in disguise.
- Beware of
plans that claim to sell miracle products or promise enormous earnings.
- Don't pay
or sign any contracts in an "opportunity meeting" or any other
pressure-filled situation without first taking time to think over the
decision. Talk it over with a family member, friend, accountant or lawyer.
- Remember
that no matter how good a product may be or how solid a multi-level
marketing plan appears, an investment of time, as well as dollars, may be
needed for your investment to pay off. If it sounds too good to be true,
it probably is.
For more information on pyramid schemes and to
check the reliability of any business, visit www.bbb.org.