Posted by Former Cult Leader on August 31, 19102 at 11:36:20:
In Reply to: Re: What this OPPORTUNITY has done for me posted by Rhino on August 07, 19102 at 05:10:55:
I've read a lot of these postings; some are well written and some sound like people just blowing off some steam.
I was involved with this "business" for seven years beginning right after college graduation. I'm embarassed that I did it for so long, but I was hooked and kept at it thinking surely I would start making good money after all of this time and effort. Don't get me wrong, there were good times and bad times, but after all of it, including being a "regional manager" with seven offices beneath me, I left with $507. in my pocket. Luckily I didn't have any debt and it didn't take long to bounce back.
I'm not writing this to tell my story, just to give the straight story for those of you considering this "opportunity". Here are a few things anyone should fully understand before "taking advantage of this opportunity":
1. Understand that you are not being hired and you will never receive a paycheck. On your first day you will fill out an "independent contractor agreement". They will explain this to you in a creative way, glossing over the details. What it means is this: the only way you make money in "the training program" is commission from the bottles you sell. They have told you this in a creative way, but most new "trainees" do not realize this until their 3rd or 4th day. By that time you've been in so many arguments with your friends and family about this business that you don't want to quit due to your pride. (It's better to get out now if you didn't realize this).
Remember they told you that there are different phases to the training program: marketing, training, management, admin? This way it doesn't sound like you'll be selling on the streets during the entire training. You will, and this is the only way you'll make money during the training program.
Also, since you are not an employee of the "distribution center" or Scentura Creations, you're on your own as far as solicitor's licenses, taxes, and liability. They will tell you that you don't need a license. Call your commissioner of revenue's office, I'll bet they say differently. If you read the fine print in the paperwork they'll have you sign (consignment agreement, independent contractor's agreement) you'll see that all of this is stated there.
Once you progress through training and you get toward the end they'll have you "stay in the office for the day". This will seem like a real treat. They'll have you answer phones and interview people just like you were interviewed, and at the end of the day you've made no money because you weren't out on the street selling bottles. Most offices do not hire a receptionist, they just get free labor from the people in the training program.
2. They have mentioned "running a satellite office" or "going on a satellite" or "going on a road trip" or "fun car". Here's what this entails: 3 to 6 of the people in the training program will load up their car(s) with cases of perfume and drive to an area 2-4 hours away. Your "leader" will tell everyone where to work and you will work until dinner, try to score a free pizza from somewhere, then work until midnight or so selling in parking lots, etc. You will then drive around until you can find the cheapest hotel (if you're lucky and you don't just sleep in the car) and all pile in, turn in the money for your sales, split the cost of the room, and try to get a couple of hours of sleep.
Oh, if there are females and males you'll still all be together. Hopefully you're not with a couple hooking up.
In the morning you may or may not go to breakfast (depending on if anyone made any money the day before) and you'll hit the streets again. This will go on for how ever many days were designated unless you run totally out of money and have to return.
***If nothing else understand this: If you drive you may or may not get reimbursed for gas. It will depend on how much was sold while you are away. You are not an employee, you're an independent contractor therefore you have no legal recourse. Also, if you "lend" money to someone with you who didn't sell enough to eat understand that you will never see that money again. That person will return owing a lot of money to the people who did sell on the trip and will quit when they return because in addition to this debt they also have no money for their personal bills.
3. However they have creatively explained you will get your office, and specifically the money for your office, understand this: You will receive 125 bottles (more or less, the amount changes but the principle does not) which you (and possibly a partner) will need to sell and turn in ALL OF THE MONEY for (meaning no commission during that time) in order to pay for your office start up. You see, when they say they will give you all of the money they mean they will give you bottles to sell and you get to use that money to open your office.
If you complete this task you will personally sign a lease (most likely a sub-lease from a former "owner" who failed/ quit, etc.). You are now personally totally liable for the full term of this lease whether you are in business here selling Scentura Creations perfumes or not. You will also sign a consignment agreement with Scentura stating (among other things) that you are simply a consignee, not an employee. That Scentura is not liable for any of your actions. That the perfumes are fakes and you will not say they are not fakes. You get the drift I hope.
You will also need to obtain a business license. They will explain to you how to creatively explain to the commissioner of revenue in your town what type of business you're involved in. Believe me, if you say that you'll be selling renditions of designer fragrances through independent contractors you will not get a business license. You'll say that you are a "wholesaler of consumer products to businesses". If they don't ask many more questions you'll get your license.
Scentura Creations will send you your "opening order". This used to be 300 bottles, but the amount may have changed. You will be required to send a payment weekly by cashier's check to Scentura for whatever bottles were sold the week before. This is indeed a good deal. You only pay for what was sold out of your distribution center.
It gets tricky when you don't sell much, though, because they won't send you any more merchandise. I'm not sure what the minimum is now but it used to be 125 bottles/ week. If a distribution center sold less than 125 bottles / week for two weeks in a row Scentura told the "promoting owner" to go pick up all of the merchandise and "retrain" the owners. If you quit at this point you are still personally liable for the office lease, any bills incurred (newspaper ads, electric bill, phone bill, etc.).
Now they'll teach you how to run creative ads for "your sales staff". Guess what? There is no sales staff. You will now be recruiting people for the "Scentura Opportunity" just like you were recruited. You now get to run interviews where you creatively explain to people how to get their own office. You get to send them out to FFAAR, satellites, etc.
You will collect money from the people in YOUR training program for the bottles they have sold. You will first take out Scentura's part (used to be $9.00 per bottle, I think it's $10.00 now). You'll get a cashier's check and send that off overnight to Scentura.
Now you'll pay whatever bills were incurred in this order of priority: Newspaper ads (have to get people in to sell for you). Telephone (can't get them in without answering the phone). Rent. Misc.
If there is any money left (doubtful) you can pay yourself, but they will tell you not to, you'd better keep it for future bills. You obviously learned how to sell in training, and in the beginning guess who is training your people and leading satellites from your office? YOU! This will be your income during the first few months of running your own office. You now understand why your promoting owner (or his or her "right hand") still goes out in the field. They told you they really like it or that they like to train their own people. The truth is they're trying to keep their car. Unless you're in a unique situation with one of the top 5 offices who indeed are making money. That's a whole story of its own. If this is the case then ask how long their "promotions" have been in business. If the office that is trying to recruit you has been there for 5+ years, why don't they have offices they've trained who have been around that long? What happened to the offices they opened 5 years ago?
I hope I have lent some insight into what this "business" really is. So many people get sucked in with mistaken ideas of what they will be doing. I am simply trying to help people who do not wish to sell on the streets and work for straight commission to avoid this. I know this because I was the spin-master for a long time. I did make good money when I went on satellites; I could sell this perfume better than most. I can't believe now where I would go to sell it, though. Parts of town where now I wouldn't get out of the car, let alone hang out in the parking lots and try to sell fake perfume for commission!
If you're doubtful on what I have written please print it off and show it to your "branch manager" or whatever they call themselves these days. They will probably tell you that I must be a "weak piece of s***" "blowout" or whatever else they say now when someone leaves the business. Seven years of this I think I really gave "my opportunity a chance". Also, call the commissioner of revenue and ask what kind of business the office you're interviewing with is. Call the better business bureau. Oh, best yet, call Scentura and ask them about THEIR office in your town. Ask what their business agreement is with them. Then call the newspaper who printed the ad you answered and explain to them what this company is really recruiting (not hiring) for.
The last straw for me was a meeting where my partner and I, who were barely paying our bills, were at a national meeting and sitting at the head table with Larry. He stated that all of the people at the front table were making at least $150,000 per year. I didn't make that much in 7 years, let alone one! It made me wonder how many of the others at the front table were just like us, faking it until we make it. At that same meeting Larry held an "owner's breakfast" before the big "rah-rah rally" In the "owner's only breakfast" he said "this is the only legal pyramid in America". In the rally, about an hour later he stated "this is not a pyramid". Hmmmm.
I couldn't consciously keep scamming people week after week. Some would quit a good job to start this thinking they would make at least $30,000/ year when I in reality knew that only 1 in about 200 would even open their own office, and few would make a profit once they opened. Each week we would have 20-50 people start, and be down to 3-10 by the following week.
I hope by writing this I can redeem some of the harm I caused in the people who I recruited who went bankrupt, got divorced, lost their homes, neglected their children, etc. I think I've been pretty thorough, but if you want more information post your question here and I'll respond.
God Bless and Good Luck to all of you.