Fly-by-Night Direct Sales Companies

October 9th, 2006 by Kristy

I just finished reading about a direct sales company that started up recently, but turned out to be nothing but a sham. Apparently the company’s owner started up a fake direct sales program just to get sensitive information from people who thought they were getting in on the ground floor of something great.

It’s a shame that things like this happen. It really puts a damper on legitimate companies that are trying to get started, because people have to be so leery of anything that’s new. Here are a few things to consider if you are looking at a new direct sales opportunity:

  • Is the website professional? If someone is serious about starting a new business, they will most likely take the time to make their website look professional. This means appealing design, good spelling and grammar, and logos of familiar payment processors or organizations that you can check out their affiliations with. Note: A professional website does not necessarily mean that a company is legit, but an unprofessional one is a good indication that they’re probably not.
  • Beware of companies in a “pre-launch” phase. This means that they are only accepting signups for consultants and not selling products yet. Legitimate companies sometimes do this, but wouldn’t it be convenient for someone who just wants enough information to steal your identity to say that they’re not selling products yet? Then they could avoid all the hassles of undelivered items.
  • Take unbelievable or unsubstantiated claims with a grain of salt. If a new company with no affiliations with a larger, more familiar company claims to have already signed up a large amount of reps, there’s probably something fishy going on.
  • As always, do your homework! Search for the company’s name on Google and see what pops up. Check out the scam forums, consultant check groups, and the like. Ask around and find out if anyone you know has any experience with the company.

Remember: if it sounds too good to be true, it probably is. If they ask for sensitive information and you just don’t feel right about it, don’t give it to them. If the company is indeed legitimate, you can always join later. It’s not worth risking the loss of your identity and money for any sort of incentive they may offer to join now.

Posted in Business Opportunity Scams, Direct Sales, Uncategorized | 4 Comments »

4 Responses

  1. Jack Payne Says:

    Work at home, along with getting suckers to post job resumes, are the two leading internet scams, with identity theft being the usual goal. Stock tips are a close third.

    I’ve been writing on this stuff for the past 45 years, and it never ceases to amaze me, the ease with which con artists of every type have adapted to the internet.

  2. King Edward Says:

    Watch out for a real bad un called Perfect4U

    the guys behind it Robert Fitzpatrick and Gurdeep Singh are serial scammers and will run off with everyones cash.

  3. Roy Wright Says:

    Perfect4U has got to be the worst swindle out there. how do these guys get away with it? they stole money from us, plain and simple they are crooks

  4. Mel Says:

    i herd they r goin by d name 1vision now & owe loads of cash all over. they is scum

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