Experts say classified ads can be misleading
November 1, 1995
Mysterious advertisements that promise students big bucks fast, giving few details, are popping up with regularity in the Iowa State Daily’s classified section.
But experts warn against what’s known as “pyramid marketing,” where firms spend more time recruiting sellers than actually selling products.
One classified ad in the Oct. 31 Daily reads: “$$ MOTIVATED; Job not paying enough? National company expanded to Ames, PT/FT, 1K/2K+ potential.”
Another says: “FUN $$$; New expanding company needs 2 qualified individuals who like meeting people and are $$$ motivated.”
Neither advertisement gives a job description or a company name.
“They [the company] should feel comfortable in the recruitment process by telling what the company is all about and what they are selling,” said Mary Harms, an Iowa State marketing instructor. “I am only hesitant when a company will not divulge in the product they are selling.”
Harms said she has seen students get interested in companies like Marketing Future — a regular in the Daily classifieds — only to end up “very disillusioned and upset by the amount of time spent on going to find out about the company.”
But one Marketing Future official insists her company is “the best place in the world to work.” Marketing Future is recruiting people to sell health and fitness products that are “environmentally sound.”
Kerry Hemingson, a Marketing Future director, said the company has run Daily ads frequently because it is up-sizing. She said Marketing Future has taken on 400 companies in the last 3 1/2 years. They offer full- and part-time sales jobs and management positions.
When a person responds to a Marketing Future advertisement, a company representative will ask the caller a few questions about his or herself, then leave the opportunity open for the caller to ask questions, Hemingson said.
After the caller’s questions are answered, she said, the representative will attempt to set up an appointment with the prospective employee.
Hemingson said this is a great opportunity for students because they can get the best hands-on business experience available. Hemingson said some people earn more than $3,000 or $4,000 a month with Marketing Future.
Harms isn’t so sure.
“Many students don’t have enough job experience to do what is demanded or to know what they are getting themselves into,” she said.
Harms said some of these “pyramid” companies are taking advantage of students, knowing they are in need of funds.
A person who joins a pyramid-marketing company, Harms said, will be making most of his or her money by bringing in new recruiters. The other type of marketing is direct marketing, but Harms said it has drawbacks as well. Direct-marketing companies usually have high turnover rates with sales representatives, she said.
Regardless of a company’s marketing strategy, Harms said it is important to get information about the company and a job description before making a commitment.