From KPHO.com:
PHOENIX — In the down economy, a flood of multi-level marketing companies have popped up; however, the Better Business Bureau is warning consumers that some may be nothing more than pyramid schemes.
In a news release sent Tuesday, the BBB says Valley-based company iJango has the hallmarks of such a scheme.
“iJango is making big promises about its money making potential, but based on our investigation, BBB believes the potential to generate revenue may primarily depend on the ability of participants to recruit additional representatives,” BBB spokesman Steve Cox said in the release.
During one of the company’s recruiting seminars, iJango co-founder Cameron Sharpe extolled the virtues of his business.
“You don’t have to stock up on a bunch of products in your garage,” he said. “You don’t have to sell pills, potions and lotions. There’s no quotas. You’re in business for yourself, but not by yourself.”
iJango representatives make money by recruiting people to buy in to the program, and they earn commission every time someone uses their interactive “web portals” to read the news, buy clothes or download music.
It costs $50 up front to join the program, but the company recommends a $149.95 package. There’s also a $19.95 monthly maintenance fee.
“You make money at iJango the same way that Mary Kay representatives or Amway representatives … or any other companies out there that are building a business on network marketing,” Sharpe said.
