Is This a Pyramid Scheme or Legitimate MLM Opportunity?

Click For Summary

Discussion Overview

This thread explores participants' experiences and concerns regarding a potential business opportunity presented by a friend's acquaintance. Many participants express skepticism about the legitimacy of the offer, with some drawing parallels to known multi-level marketing schemes.

Discussion Character

  • Exploratory
  • Opinion-based
  • Anecdotal
  • Debate/contested

Main Points Raised

  • One participant describes receiving a call about a business opportunity that raised several red flags, including the lack of clear information about the work involved.
  • Another participant suggests that the opportunity might be related to Quixtar or Amway, indicating a belief that it follows a familiar MLM structure.
  • Several users express a strong inclination to avoid the opportunity, citing discomfort with the vague nature of the proposal and the pressure to meet in person.
  • One participant shares a personal experience of being approached by neighbors about a similar business, highlighting the tactics used to draw them in.
  • Another participant recounts a past experience with a friend who attempted to recruit them into a similar scheme, emphasizing the discomfort and pressure involved.
  • Some participants mention the importance of being clear and direct in declining such offers, rather than avoiding communication.

Areas of Agreement / Disagreement

There appears to be a general agreement among participants that the opportunity presented raises concerns and may not be legitimate. However, some participants express a desire for more information before making a decision.

Contextual Notes

Participants share personal anecdotes and experiences related to MLM opportunities, reflecting a range of feelings from skepticism to outright rejection of similar business proposals.

Who May Find This Useful

Consultants who have been approached with similar business opportunities or who are considering joining new ventures may find the shared experiences and cautionary tales relevant.

pampchefrhondab
Messages
2,759
I need some advice and I know this is the place to go to for it!

I got a call out of the blue last night from a friend from church. She said on the call she and her husband were starting a new business and wanted to know if my husband and I would be interested. I'm thinking I'm going to have to buy something. She then says there is a guy sitting there w/her and her husband who would like to talk to me if that was ok. So I of course talk to him. He claims we can make extra money (no mention of how much) using the internet 10-15 hours a week working w/businesses like Home Depot, Circuit City, etc. (can't really remember what businesses he mentioned). I of course ask what does this 10-15 hours entail. He of course says we would have to meet to go over it. BIG RED FLAG FOR ME. I told him I would have to discuss it w/my husband, etc. He was nice and gave me his number to call back - not my friend. He did ask me what my husband and I do for a living which I felt uncomfortable with since I don't even know this guy:eek: !!

So any ideas on what he is trying to sell???

I do want to mention this friend did a PC show for me when I started my business, but that doesn't make me feel like I owe her anything. Should it?

Any advice would be much appreciated.:)
 
pampchefrhondab said:
I need some advice and I know this is the place to go to for it!

I got a call out of the blue last night from a friend from church. She said on the call she and her husband were starting a new business and wanted to know if my husband and I would be interested. I'm thinking I'm going to have to buy something. She then says there is a guy sitting there w/her and her husband who would like to talk to me if that was ok. So I of course talk to him. He claims we can make extra money (no mention of how much) using the internet 10-15 hours a week working w/businesses like Home Depot, Circuit City, etc. (can't really remember what businesses he mentioned). I of course ask what does this 10-15 hours entail. He of course says we would have to meet to go over it. BIG RED FLAG FOR ME. I told him I would have to discuss it w/my husband, etc. He was nice and gave me his number to call back - not my friend. He did ask me what my husband and I do for a living which I felt uncomfortable with since I don't even know this guy:eek: !!

So any ideas on what he is trying to sell???

I do want to mention this friend did a PC show for me when I started my business, but that doesn't make me feel like I owe her anything. Should it?

Any advice would be much appreciated.:)


Sounds like Quixtar (an internet incarnation of Amway) to me. If not, then they are using the Quixtar/Amway Playbook.


Run away - FAST!
 
pampchefrhondab said:
I need some advice and I know this is the place to go to for it!

I got a call out of the blue last night from a friend from church. She said on the call she and her husband were starting a new business and wanted to know if my husband and I would be interested. I'm thinking I'm going to have to buy something. She then says there is a guy sitting there w/her and her husband who would like to talk to me if that was ok. So I of course talk to him. He claims we can make extra money (no mention of how much) using the internet 10-15 hours a week working w/businesses like Home Depot, Circuit City, etc. (can't really remember what businesses he mentioned). I of course ask what does this 10-15 hours entail. He of course says we would have to meet to go over it. BIG RED FLAG FOR ME. I told him I would have to discuss it w/my husband, etc. He was nice and gave me his number to call back - not my friend. He did ask me what my husband and I do for a living which I felt uncomfortable with since I don't even know this guy:eek: !!

So any ideas on what he is trying to sell???

I do want to mention this friend did a PC show for me when I started my business, but that doesn't make me feel like I owe her anything. Should it?

Any advice would be much appreciated.:)

Absolutely not!
If he can't tell you what it's about over the phone - or at least an idea - that's weird. I'd call him back and tell him no thanks (or don't call him back at all).
 
  • Thread starter
  • #4
That was my thought - not to call back at all. I have caller ID so I can be sure not to answer the phone (ha ha). He may play the cell phone trick on my kids though!

I think I'll ask him if it's Quixtar and see what he says.
 
I'd run in the other direction...fast.
 
It sounds like Quixtar to me too!! If you have any red flags, do not agree to anything!!
 
yup, your message has trouble written all over it. Don't give it any more of your time.
 
I wouldn't do it if you have red flags but I would let him know that I wasn't interested instead of dodging him. You know how we feel when possible recruits go MIA on us... plus he knows your friend and will be talking with her. Just say you aren't interested and if he is pushy say "I'm not interested and I'm hanging up now". Click.
 
I'd just politely say, "I asked my husband if he'd want to hear about it and we've decided that we aren't interested."
 
Our neighbors were trying to get us into this Fortune 500 group. My hubby said I already was doing Pampered Chef, and we didn't need anything else to do right now ( trying to be as nice a possible).

Well the guy called my hubby the next day and says, " My wife said she wants to look at a PC catalog. She hasn't been to a PC party in a while, and she wanted to see what's new. So can your wife stop over and drop off a catalog?" So my hubby says yeah sure WITHOUT consulting with me first.

So then when he tells me I was like...." you know they just want to get one of us over there so they can show us their business speil and try to get us to take some literature home." He was like" you are to negative, all she wants is a catty"

Well the next day I go over there and lo and behold, I hand her the catalog and she hands me a DVD with info on their business. I tried to politely decline taking the stupid DVD, but she practically shoved it into my hands and shoved me out of the door ( never have liked the neighbor's wife).

So then we just didn't watch it, and they called us a few days later asking if we had seen the DVD and what we thought of it, and my husband told them we didn't watch it, but that we would that evening ( AHHHHHHHH! MY husband!!)

We watch it and it is all about getting people to join this comapny and sell things they already use like Sprint phone service, Cable, satellite tv, through THIS company instead of the consumer going directly to a Sprint store and setting up a phone account.

We ended up telling them AGAIN....NO we are NOT interested, and they took the DVD back and haven't been heard from ever since.
 
Run very fast! Sounds weird to me.
 
A "friend" (more like an acquaintance) tried getting me into something like this...definitely sounded pyramid-ish, so I politely declined, telling her I couldn't afford it at the time (there was a buy-in). Shortly after I became a PC consultant, and she flipped OUT because she knew there was a charge for the start-up kit. I told her that I had borrowed the money from my folks (I did...and paid them back after my first two commission checks!). She is very polite with me now, very cool when we run into each other, and always makes sure she asks how my business is going. Then she makes a point of telling me how much less work would have been involved for me to join her company, blah blah blah. I'm sorry, I just feel like if I mention the opportunity to someone and they decline, I can usually tell if they were mildly interested, and I was NOT when she approached me. People just don't get the message!!!
 
sounds like market america or something similar. I have a PC friend who also does it and likes it. I am a bit leary though. I would need alot more info!
 
OhA guy at work tried getting me into it. Not sure of the name. My company found out he was doing it and made him stop b/c it was a pyramid.

He then said Pampered Chef was a pyramid and that we couldn't do it.
 
  • Thread starter
  • #15
Well I called his number during the day today and luckily got his answering machine and just left a VM that we are not interested:)!

Thanks everyone!
 
All of these posts are another reason to promote to Director. As a Director you get tell anyone who asks about another business opportunity that you cannot start with any other direct sales company. It is against the Director Agreement. No one challenge me on that! :)
 
phatratz said:
A guy at work tried getting me into it. Not sure of the name. My company found out he was doing it and made him stop b/c it was a pyramid.

He then said Pampered Chef was a pyramid and that we couldn't do it.

PC is not a pyramid - it is a legitimate multi-level marketing (MLM) company, regulated by the Direct Selling Association. To be a member of the DSA, you MUST abide by a strict code of ethics, one of which is that you cannot be organized like a pyramid. We actually sell a quality product that is useful in and of itself, and you actually earn GREAT host benefits when you host a show with PC, AND, you make REAL money from doing shows and selling the product. Yes, we recruit new members, too, but to sell more product, not just for the sole reason of recruiting to recruit. That is the danger sign with these "pyramid-type" schemes. They need to recruit to make any money at all, but with a legitimate DS company, you can just sell products to make money if you want to. Another reason why I love PC! :)
 

Frequently Asked Questions

Is Pampered Chef a pyramid scheme?

No, Pampered Chef is not a pyramid scheme. It is a legitimate multi-level marketing (MLM) company that focuses on selling kitchen tools and cookware. Unlike pyramid schemes, which primarily profit from recruiting new members rather than selling products, Pampered Chef emphasizes product sales as the main source of income for its consultants.

How can I tell if an MLM is legitimate?

To determine if an MLM is legitimate, look for a few key factors: a strong product line that is sold to consumers, a clear compensation plan based on sales rather than recruitment, and transparency about earnings. Additionally, check for customer reviews and the company's history to ensure it has a solid reputation.

What is the difference between a pyramid scheme and an MLM?

The primary difference between a pyramid scheme and an MLM is the focus on product sales. In a pyramid scheme, participants earn money mainly by recruiting others into the program, while in a legitimate MLM, income is generated through the sale of actual products or services. MLMs often have a structured compensation plan that rewards both sales and recruitment, but the emphasis should always be on selling products.

Can I make money with Pampered Chef?

Yes, it is possible to make money with Pampered Chef, but success depends on several factors, including your sales skills, effort, and the time you invest in your business. Many consultants earn income through direct sales, hosting cooking shows, and building a team. However, like any business, results can vary, and not everyone will achieve the same level of success.

What should I consider before joining an MLM like Pampered Chef?

Before joining an MLM like Pampered Chef, consider your personal goals, the amount of time you can dedicate, and your comfort level with sales. Research the company's products, compensation plan, and support system for consultants. It’s also helpful to speak with current or former consultants to gain insights into their experiences and potential challenges.

Similar Pampered Chef Threads

  • heat123
  • General Pampered Chef Chat
2
Replies
32
Views
10K
The_Kitchen_Guy
  • cookn' katie
  • General Pampered Chef Chat
Replies
11
Views
3K
ChefPeg
  • raebates
  • General Pampered Chef Chat
Replies
6
Views
2K
ShellBeach
  • cmdtrgd
  • Buy and Sell Items
Replies
4
Views
965
Christ Follower
  • sandilou
  • General Pampered Chef Chat
Replies
7
Views
1K
lesliec
  • chefashleigh
  • General Pampered Chef Chat
Replies
7
Views
5K
Misty Shehan
Replies
5
Views
2K
pampered1224
  • lisaterwilliger
  • General Pampered Chef Chat
Replies
10
Views
2K
raebates
  • lockhartkitchen
  • General Pampered Chef Chat
Replies
6
Views
1K
lockhartkitchen
Replies
18
Views
2K
NooraK
Back
Top