As college students, we all know what it means to be under constant financial pressure. Most of us are paying out large sums of money while simultaneously having very little or no income. I, like anyone, would justifiably do whatever it takes to alleviate this strain. However, in our effort to overcome our financial burden, we must keep in mind that there are some serious threats, traps, and deceiving practices at work.
One of the foremost problems that has plagued college campuses across the nation consists of entities or businesses, often referred to as multi-level marketing companies, which play upon our financial pressure to encourage us to become either tools or victims of their business model. These companies may promise financial gain, but usually come to harm their targets. Let’s examine how some of these companies operate:
Individuals are told that they have the opportunity to establish their own business unit. Usually, the individual’s point of contact is not the company itself, but another individual who operates as his own business unit. This referrer receives a share of the profits of each person he or she refers. This flow of money continues to trickle upward, eventually benefitting those who have referred many.
Similar to a traditional business model, the seller, who in this situation happens to be an individual, must buy merchandise to then sell at higher prices. However, he is not only asked to buy these as he needs them to supply his customers, but is generally forced to purchase a large quantity to be permitted to take part in the organization. The problem? These initial goods are often not sold successfully, and the intended sellers—unable to establish a successful business—use and consume their own products. In effect, the business operator assumes a role as an unwilling customer, sometimes losing thousands in the process.
Such companies are often recognizable by practice of the aforementioned business model, a reluctance to state the company’s name or use of multiple names, and students recruiting other students. Conveniently, corporate recruitment activities are not permitted on the RPI campus without the express permission of the Career Development Center. I strongly urge you to help your campus, help your friends, and help yourselves. If you find somebody recruiting on campus for one of these companies, contact Public Safety or the Dean of Students Office as soon as possible. If you know friends who participate in or are considering working with such companies, talk to them about the dangers of their involvement. Finally, steer clear of multi-level marketing, and protect your own assets.
