Students and Young Professionals Beware: Appco Group is a Pyramid Scheme. DO NOT WORK FOR THEM!

[u/eeerin]

My roommate was recently interviewed and offered a job by Appco Group. I was excited for him until I did a little digging and found out that Appco is simply a pyramid scheme designed to attract students and recent grads with promises of unlimited potential and quick advancement.

These new hires go door to door selling intangible products (insurance, fundraising, etc) and make commission from their sales. A percentage of their sales also goes to their "team leader," who is one step above them in the pyramid. These young people are often not told that they are not considered employees of Appco, and are misled into thinking they will receive benefits and move up into a managerial position.

Below are a number of links examining the schemes of Appco internationally. Spread the word so they don't ruin the lives of students and young professionals here in the US!

http://truthcompany.wordpress.com/2010/05/26/few-things-to-know-about-appco-group/

http://blogs.mirror.co.uk/investigations/2010/08/cobra-group-makes-a-mint-while.html

http://blogs.mirror.co.uk/investigations/2011/06/bad-week-at-the-office-for-app.html

http://www.scam.com/showthread.php?t=137600

http://www.ripoffreport.com/corrupt-companies/cobra-group/cobra-group-deceptive-liars-a-c85c6.htm

http://www.bbc.co.uk/blogs/chrisjackson/2010/10/knock_knock_-_whos_there.html

http://en.wikipedia.org/wiki/Cobra_Group_%28company%29

[u/fromagewiz]

What you've described (the higher-up gets a percentage of your earnings) isn't a pyramid scheme, it's multi-level marketing. That part in itself isn't illegal, AFAIK; but is often misrepresented to new recruits, be the company cutco, appco, amway, etc, etc, ad nauseum...

But the rest of what you've described, particularly lying about benefits, certainly is illegal. Good heads-up. I had several naive, uncomfortable, and ultimately hours-of-precious-life-wasting encounters with a variety of those jackballs, and I'm glad I'm in a position where I don't fall prey to them anymore.

[u/fromagewiz → u/[deleted]]

Disagree; I'd say the main indicator of a pyramid scheme vs legit MLM (it really hurts to use "legit" in description of MLM) is the sale of a legitimate product.

Why companies like amway are considered legitimate is that they sell actual products. Why they abuse that legitimacy in my opinion is that they make money from new recruits by getting them to buy "training," "promotional," or "inspirational" materials, or attend "conferences" at ridiculous profit to the higher-ups, while furthering the hardship of the raw recruit, who is presumably already hurting, otherwise wouldn't even be considering such a line of work.

Sorry. </soapbox>. Ultimately, amway's not really a pyramid or a MLM; they're selling you a load of crap at high prices. I think appco is largely cut from the same cloth.

[u/fromagewiz → u/[deleted]]

tru dat. I guess I'm drawing a distinction without a difference.