ED Magedson – Founder
Smart-Circle International/Luminanace Marketing19511 Pauling Foothill Ranch, California 92610 Van Nuys, California USA
Smart-Circle International/Luminanace Marketing NEW Pyramid Scheme in Disguise, formally known Multi-Level Marketing Van Nuys California
To the current employees, future employees and whoever is considering working for smart circle please take one second to read this.
Few things you should know about the company itself:
Pyramid Scheme in Disguise (I'll Explain)
Multi Level Marketing (MLM)
MLM assumes infinite expansion in a finite market. It also assumes relatively virgin markets. As a business model, MLM is therefore inherently flawed, fraudulent, and unprofitable except for a few at or near the top of a pyramid of participants. It is also extremely viral and predatory, preying on the most vulnerable among us.
Ask yourself these questions:
Does a participant (distributor, consultant, representative, etc.) advance one's position (and potential income) in a hierarchy of multiple levels of participants by recruiting other "distributors" under him/her, who in turn advance by recruiting distributors under them, etc.? Sales volume, rather than by appointment made?
Even though there is no cost to be hired for the program, are there minimum volume requirements that must be met in order to advance to higher levels in the hierarchy or to receive greater commissions bonuses at some level?
Compensation plans of MLMs: lead to extreme inequality in payout (money paid by the company) to representatives (Claw-back).
Company payout is distributed to a few at the expense of a multitude of "losers." Often these "losers" will invest considerable amounts of time and money and then quit, blaming themselves.
To put the pay in perspective:
The lavish trip that your trainer talks about, to Dallas and other places that are (all paid for) are NOT. That is part of your clawback and WILL HAVE TO PAY THAT BACK.
40+ hours of work (no overtime pay)
If you do not sell the minimum amount of apps during the week
After Clawback, tax and including your gas money you are paid at MOST $300
That’s $7.50 an hour, below minimum wage
You have spend on average $50-$60 on gas, travelling to the office, then to you’re assigned BestBuy then home. Often being asked to take co-workers home.
I calculated the amount of miles driven and the amount I got paid for
I drove each day:
Now I get an average of 22 miles per gallon on the highway, which is good.
At $4.00 a gallon even, current gas price ($4.39)
The cost of me traveling 360 miles a week, at a average of 22 miles per gallon (which does NOT include streets and other factors is 18.4 as shown in my car)
COST: 360.0 miles (579.3 km) road trip will cost about 65.45 in fuel, based on an efficiency of 22.00 miles per gallon and a total fuel volume of 16.36 gallons. (Your fuel cost per mile will be about 0.18.)
Amount Spend: $65.45
Amount Paid: $20
Subtracting how much on average you spend on GAS alone, not taking account of food etc..
NOT accounting the numerous times you are asked to take other employees home.
An employee makes $220 a week
Divided by the hours 40+ (I have worked on numerous occasions 50 hours a week)
Pay per hour: $5.50/hour
Now the counterargument would be that if you were able to sale enough apps a week you should not worry about getting paid “minimum wage”
Why this argument is completely false?
IF you sign up a customer with DTV:
Attention Customers: You are told that the prices you are paying for your phone and Internet will remain the same, THIS IS A LIE.
You are told not to call and cancel your current service provider until after installation, this is ONLY so they get paid and now you are stuck with INCREASED Internet and phone prices because you are out of the bundle.
To conclude, this message is current employees who are brained washed into false promises, taken advantage of, worked long rigorous hours for unfair wages, given up other opportunities in order to pursue this SCAM. Pyramid schemes and now multi-level marketing have claimed many victims in a ruthless effort to gain money. While the BBB and everyone else stands aside and watches it happen and that makes sense, because the same people who are supposed to stand up and do something about this are the people who have come up with a corrupt, yet sophisticated system and those are the same people who pay BBB and others to keep their mouth shut. Simply writing this will not change anything, but awareness and education will hopefully put an end to this scam. IN a company where you are told, “not to think” just “follow instructions” I see no potential. Convincing kids to drop out of college, tricking people who just graduated and want to enter the work force with the “opportunity of a life time”, brain washing employees each and everyday that education is not of importance and no job out there gives you an opportunity like this one and having NOTHING to show for it, is sickening to me. I’ve seen employees with enormous amount of talent that have wasted 2 years still chasing a false promise. So with this, I hope i have stopped at least 1 Person from working here.
This report was posted on Ripoff Report on 06/03/2013 06:37 PM and is a permanent record located here: http://www.ripoffreport.com/reports/smart-circle-internationalluminanace-marketing/van-nuys-california-91406/smart-circle-internationalluminanace-marketing-new-pyramid-scheme-in-disguise-formall-1056114. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.
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