I wrote this a guide to help people avoid this scam. If you are in the scam hopefully this will also help you get out.
How they find you;
I was targeted when I posted my resume on careerbuilder.com. Life Long Island called me and told me that they were currently seeking professionals for their 'management training program'. I thought this was a great opportunity since I had management experience. Unfortunately I had no experience with sales offices or how they work, i didn't know that places like this existed. So I attended my first round interview and i was told that they had other applicants to consider and would call me back. Within 2 hours they contacted me and told me i was good for a second interview that would last from 9 AM to 6 PM.
They tell you to dress professionally and most of the people in the office will be dressed well. I think that this is so they dont get kicked out when they go door to door, but also to sell the illusion to new people that this is a legitemate business.
How they get you;
The second round interview consists of spending the day with one of their door to door salespeople. During which you ask a bunch of questions and they lie to you every step of the way. I was told that i would recieve my first pay check within 2 weeks. I would get benefits after the first month. And after 2 months i would be an assistant manager and i would no longer be doing outside sales. Of course they are salesman, so they sell the position.
This is basically a pyramid scam. The difference is that they throw you some cash while they rip you off. This company is all about recruiting and 'team building'. The only way to get promoted is to have more people hired under you. eventually you can work your way to the coveted manager position which takes about 2 years of going door to door.
After 3 weeks, i had earned thousands of dollar in sales and still had not received any form of payment. I asked my manager, Dan Rosenberg, about this and he said that the first pay check can be 5-6 weeks after my start date. I found out that this was because the company had to wait 4 weeks, to make sure that they got paid. This was a problem for me since i had to pay for frivilous things like rent and car payments. (If you are unfortunate enough to start working for this company you will notice that almost no one has a car and everyone lives with their parents even though they make '50k-100k a year').
They outline explicitly how your commission works, verbally. But they never tell you how much you will make in writing. This leaves you guessing at every paycheck. One week i expected a $1600.00
check and i recieved $149.00.
People that don't have any major expenses can survive and stay for a while and work their way up the pyramid scam. Promotions come quickly at this company. Within weeks i was training others. The quick promotions are to keep people interested in the 'program'.
Probably the most illegal thing that these people do is give out responsibilities at the beginning of each week. They hire everyone as a 1099 private contractor. This meets that you don't get paid by the hour but you get paid for what you bring into the company. 1099 works very differently than a normal employee which i can't cover here. But it is illegal to tell a private contractor that they have to be in the office at a specific time or specific days of the week. It is also illegal to give private contractors office tasks, or make them work until specific responsibilities are done. This may seem unusual to someone who is not familiar with the difference between an employee and a private contractor. But basically this company has the benefits of employees who work for free and then the company does not have to pay for workmans compensation and things like that. So if you get hurt on the job you are totally screwed.
Week after week, dissappointment after dissapointment you find that it is time for you to leave. Make sure that you stay long enough to collect all of your pending sales commissions. Once you leave they will be gone.