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Is This a Pyramid Scheme or Legitimate MLM Opportunity?

In summary, the speaker received a call from a friend from church asking if they were interested in a new business opportunity. The caller then connected them with a man who claimed they could make extra money using the internet for 10-15 hours a week, but was vague about the details and wanted to meet in person. The speaker felt uncomfortable and was unsure of what the man was selling. They also questioned if they owed their friend anything for previously helping them. The expert summarizer suggests avoiding this opportunity.
pampchefrhondab
2,766
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."
 
  • #10
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.
 
  • #11
Run very fast! Sounds weird to me.
 
  • #12
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!!!
 
  • #13
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!
 
  • #14
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!
 
  • #16
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! :)
 
  • #17
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! :)
 

Related to Is This a Pyramid Scheme or Legitimate MLM Opportunity?

What exactly is a pyramid scheme?

A pyramid scheme is a fraudulent business model that promises participants huge profits based on recruiting others to join the scheme, rather than based on actual sales of products or services. This type of scheme eventually collapses because it relies on an endless chain of recruitment without any real product or service being sold.

Is Pampered Chef a pyramid scheme?

No, Pampered Chef is not a pyramid scheme. We are a reputable direct sales company that focuses on selling high-quality kitchen tools and hosting cooking parties. Our consultants earn a commission based on their personal sales and are not required to recruit others to join the company.

What is the difference between a pyramid scheme and a legitimate direct sales company?

The main difference is that a legitimate direct sales company has a focus on selling actual products or services, while a pyramid scheme focuses on recruiting others to join the scheme. Legitimate direct sales companies also have a clear and transparent compensation plan, while pyramid schemes often have vague or unrealistic promises of high profits.

Do I need to recruit others to make money with Pampered Chef?

No, you do not need to recruit others to make money with Pampered Chef. While recruiting can be a way to grow your business, it is not a requirement and our consultants can still earn a good income solely through personal sales.

How can I be sure that Pampered Chef is a legitimate direct sales company?

Pampered Chef has been in business for over 40 years and is a member of the Direct Selling Association (DSA). We also have a clear and transparent compensation plan, and our consultants are provided with high-quality products to sell. We also have a strong focus on customer satisfaction and provide a 30-day guarantee on our products.

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