How to Catch a Pyramid Scheme or MLM
Finding your first gig after graduation can be exciting yet daunting at the same time. This is the stage I am currently at in my life as I’m searching to find a job after graduation that gives me the best experience and continues my learning as a PR professional. Some places just stand out from others, and some places you may or may not have heard of before appear exciting. Unfortunately, this process can be full of tricks, and some offers are just too good to be true. Let’s discuss how to spot a classic pyramid scheme, or as some are now called, a MLM (multi-level marketing business).
What their application looks like
We’ve all been in the situation of sitting at our computer screens, mindlessly scrolling through hundreds of LinkedIn and Indeed postings. But then one listing catches your eye: it doesn’t appear to have a lot of requirements, looks very entry-level, and offers a marketing assistant position. Requirements are great communication skills, demonstrated leadership capabilities, the ability to work independently and in a team, a positive attitude, grit, and a college degree or working towards it. All the generic stuff (this from their LinkedIn job posting). Nice! It also has the option for quick apply. This is great. No cover letter is required. So shoot, why not apply for it? So I did.
As appealing as this can be for those about to graduate college, not having a requirement of experience or non-specific requirements and expectations on a job posting is the first red flag. Pyramid schemes most often target recent graduates who are the most hungry for a job, making them the most vulnerable with their limited experience in the job market. More often than not, experience is the biggest hurdle for recent grads to get over due to application systems immediately throwing out resumes due to their inexperience. Grads need to remember they are interviewing the company they want to work for just as much as the company is interviewing them.
What the interview looks like
Let me explain a time when I had to interview with one of these pyramid scheme companies.
Myself: Oh, I’m getting a call from an unknown number. I wonder if this is the company I applied to.
I have learned from experience that when applying for jobs, I rarely have, maybe not even ever, been contacted on such short notice of two hours after applying.
Company: “Hi Hunter, this is *blank* from *a MLM.* I’m really impressed with your resume and just have a few questions for you, if you don’t mind me asking?”
The questions they will ask you are very generic, and they’ll paint their “company” as an amazing place to work. They’ll try to bring you in with very vague language and hot terms like “brand management,” “customer acquisitions,” and “customer retention.” You can also see these hot terms in job descriptions as well. Unfortunately, more often than not, this is just a facade of marketing. Marketing, unfortunately, is a word that gets dragged and slapped onto anything it seems that is trying to reach and convert customers to their brand.
However, this sparked my interest, and I was curious to know who they have worked with.
M: “I noticed you offer a lot of services, what are some clients that you have worked for?”
C: “Oh, we work with a Fortune 500 company.”
M: “Like who exactly?”
Companies with suspicious Google search results raise red flags that they are a pyramid scheme. MLM’s will always work for that one company they mention. What marketing firm only works for one company unless they just started possibly? Especially when they claim to grow small businesses? Legitimate firms should have a page on their website where clients can apply for said firm. Firms will also often have a portfolio from previous work to show to prospective clients. However, pyramid schemes do not have those pages because their only target is you. Often they only have a place to apply.
One of these things is not like the other one
Imagine yourself as a business owner looking for a firm to provide specific marketing needs. What do you want to see on said firm’s social media? You want to see what work they have done, talking about their services, success stories, etc. Not their team taking a picture in Tijuana or their boss buying an employee a suit. This is the main distinction because a real firm targets businesses while a pyramid scheme targets people. Check the following results when you search the business name on Google. If their second search result is an “MLM company name Marketing scam,” it’s a good indication or their office is a racquet and fitness center, maybe even a house. Unfortunately, most MLM’s will have many younger people who are 1-3 years out of college—not saying that firms don’t have a majority of younger people or that firms don’t have similar posts on social media and places of business. However, these can be indicators that they may not be legitimate and that they use these tactics to disguise themselves with legitimate firms. If it’s too good to be true, it probably is.
So, be on the lookout
It can be infuriating as a young professional going through the first career job process and stumbling into MLM’s. Sometimes it even feels like a slap to the face. Therefore, it’s important to do your research in order to best avoid MLM’s and continue to be curious within the field.
About Hunter
Hunter Bachman is a senior studying Advertising & Public Relations. He is currently a public relations and social marketing intern with Spectacle Creative Media. This is his second semester with GrandPR, continuing his role as an Account Associate for the fall semester. He looks forward to working with his team members on projects that will continue to develop him as a professional. He’s looking forward to starting his career after graduation this December.