Millions of people have found success in direct selling for companies using a multi-level compensation plan. Unfortunately, not all opportunities are legitimate and it’s easy to get caught up in the enthusiasm and big promises of a pyramid scheme posing as a trustworthy company. So how do you tell the difference? Answer the following questions:

Is the start-up cost reasonable? A legitimate company will generally offer a startup kit that includes product samples, catalogs, order forms and other essentials that you need to get started selling. The median cost of a kit is $99, but can range from free to several hundred dollars depending on the type of product being sold. A pyramid scheme on the other hand will often require a large upfront investment of several thousand dollars for which you get little more than the right to recruit others.

Does your compensation come from selling products and services or from recruiting others? The money-making potential in a legitimate multi-level marketing company will rely primarily on selling products – be it from your own sales or the sales made by your recruits. In a pyramid scheme money is made by the recruiter from the fees paid by new recruits, regardless of whether they sell anything. Additionally, be sure products and services are being sold to the ultimate consumer of those products instead of passing large quantities of product from seller to seller.

Will the company buy back sales kits and unsold inventory? Most direct selling companies do not require large inventory purchases, but if one does, be sure to check out the buyback policy. All Direct Selling Association member companies are required to repurchase, at no less than 90 percent of the purchase price, any marketable inventory and sales aids purchased in the past 12 months if you (more…)

With more consumers buying more goods and services more often on the internet, Better Business Bureau of Southern Arizona is offering tips for consumers to stay secure when shopping online.

“Shopping online is convenient, but not without its risks,” says Kim States, BBB President. “While the vast majority of people are thrilled with their purchases, others have learned these transactions between buyers and sellers can be hazardous.”

With so many consumers turning on their computers for their shopping needs,  BBB offers the following tips to help prevent being taken in by unscrupulous online retailers, scammers and hackers:

Use trustworthy websites – Shoppers should start with BBB to check on the seller’s reputation and record for customer satisfaction. Always look for a “trustmark” from BBBOnLine and click on that seal to confirm that it’s valid.

Protect your computer – A computer should always have the most recent updates installed for spam filters, anti-virus and anti-spyware software, and a secure firewall.

Protect your personal information – BBB recommends taking the time to read the site’s privacy policy and understand what personal information is being requested and how it will be used. If there isn’t one posted, it should be taken as a red flag that personal information may be sold to others without permission.

Trust your gut – Offers on websites and in unsolicited e-mails can often sound too good to be true. Consumers should always go with their instincts and not be afraid to pass up a “deal” that might cost them dearly in the end.

Beware of phishing – Legitimate businesses do not send e-mails claiming problems with an order or an account to lure the “buyer” into revealing financial information. If a consumer receives such an e-mail, BBB recommends picking up the phone and calling the contact number on the Web site where the (more…)

*See bottom paragraph for the latest update regarding this company

Better Business Bureau of Southern Arizona is alerting consumers to Patterson Bell, Harris Fields, Lexington Duke, Henderson Gill, Robinson Rhodes, Madden Hall, Nicholson Barnes, Jefferson & Greer, Welsch McCormick, Shelton White, Zimmerman Cain, Davidson Powell, Morrison Banks, Sutton Perry, Gilbert Turner, Sullivan Lang, Stanton Carney, Emerson Ross, Swanson Carr, Thompson Fuller, Richardson Blake,  and Hoffman Sims,  self proclaimed “Awards Redemption” agencies  mailing letters to local consumers that state the recipient has qualified for airline tickets.

Since Dec. 10, BBB has received over 30 inquiries about Patterson Bell from consumers seeking to determine if the offer is legitimate. Consumers who spoke to BBB said they had no recollection of ever entering a sweepstakes or contest for the airline tickets.

Consumers say the letter states that they have qualified for an “award” of two airline tickets that have a retail value of $1,400. The letter claims that Patterson Bell has attempted to contact the consumer multiple times and if the consumer does not contact them by a specific date the airline tickets will be given to an alternate recipient.

According to consumers, Patterson Bell’s address in Tucson is 4811 E Grant Rd, STE 261 85712, and its Web site, www.pattersonbell.com, says the company has additional locations in New York, Florida, Utah, New Jersey, Texas, California, and Oregon.

BBB has also received a number of inquiries about Hoffman Sims, another “Awards Redemption Agency” in Tucson whose Web site, www.hoffmansims.com, is similar to Patterson Bell’s, and claims to operate in the same cities.

Consumers who called BBB concerning Hoffman Sims say they too received a letter indicating they had won free airline tickets. A Hoffman Sims representative told BBB over the phone that they the mailings were sent on behalf of Southwest Travel Inc., a Tucson-based travel club. BBB has not been able to (more…)