AIBU to be sceptical of this job

[stripeytiger]

Have posted this in other subjects too as I am keen to get some advice.
Am thinking of becoming an agent for a mag marketing company - which is basically being paid to display magnetic adverts on my vehicle. I have researched the company as much as i can and re-read the info many times but just want to be sure before I go ahead.
They are asking for an up front payment of £59.95 however they do guarantee a full refund within 90 days should the business not take off or if it isn't for me.

It sounds pretty good, not mega money to start with so not a get rich quick scheme.....but I've had my fingers burnt before with things.

On many forums I have heard that if a company wants an up front payment, then you should avoid. What is the money for?

Avoid it of they are asking you for money.

I don't think it sounds like a good idea tbh.

Sounds awful. If it is money-spinner, then there is no reason for them to want money up front. It is probably pyramid selling at best. Avoid.

There is no reason for you to pay anything - in fact they should be paying you as the're using your vehicle to make money. How are they proposing that you make money?

Ladythumb - there is a paragraph explaining why they want the money up front, they say that this is a ready made business that you have the opportunity to expand, by charging a fee they can weed out serious people from those who just want to make money by doing nothing, in return they send you access to their data base, introduction to local businesses etc. They say that if you have made a small investment you are more likely to be trustworthy and diligent, ie displaying the adverts when you say you will. I do have an address and contact telephone number for the company and have spoken to someone this morning who sounded genuine enough....and then there's the money back guarantee so I'm thinking that would be something?

So it's sort of a franchise arrangement? Have they given you a contract?

Because it is not a job, it is a business opportunity.

Not all business opportunities that require money up front are scams or dodgy.

Do look into that opportunity, Money Saving Expert is a good forum to try to see if anyone else has tried this particular scheme and what is involved.

How do you know someone in the next street isn't doing the same - do you have any guarantees?

I really wouldn't trust their flannel. The idea of a job is that they pay you, not the other way round.

All the counter-fraud advice is to avoid anyone who asks you for a 'good faith' investment like this. A bona fide company just wouldn't do it.

The 'you can change your mind' is how they hook people in to a scam. If you pay out, you'll never get your money back. And they'll be long gone.

en.wikipedia.org/wiki/Employment_scams

So what do you get for the payment?

ps: if this is an advance fee fraud (which it sounds like), once they have your £59.95 and contact details, they'll be asking for more and more, reeling you in.

But Kitty - it is not a job and should not be confused as such.

I work from home (something different from what Stripeytiger is looking at) and had to pay up front - but it is clearly a business and not a form of employment. I had to registered with HMRC as self-employed and do my own tax returns. And what I do is completely genuine and gets me a nice income - nothing that will make me rich but certainly helps towards the bills and things like holidays.

Writerofdreams - no contract, but I haven't signed up to anything yet. It is ultimately a self employed business opportunity.

Kara - thanks for the info, I will definitely have a look at that forum.
1234thumbwar - there are no other agents in my area at the moment and they are apparently not looking to recruit any more than 6 for this region (devon/cornwall)The initial application asked for your location and what radius you anticipate you would cover, I presume so their agents won't overlap?

I don't know what to do. I'm not looking for a get rich quick scheme, just to top up our family income. Getting a part-time regular job is difficult as I don't have child care support and a child minder would be too expensive, then there's the school holidays.....sigh

If they're a reputable company, they'll give you a contract to sign before you have to pay up. Take a good, close look through it.

In particular, look for clauses that tell you

• Is your franchise exclusive in your area?
• What are the terms for you or them ending the contract? How much notice? In what form?
• Under what circumstances can you terminate?
• Under what circumstances can they terminate?
• Do you get your deposit back if you terminate the contract?
• How is your commission calculated?
• How/when is your commission paid?
• What happens to commission if you terminate/are terminated, and under which circumstances?

It's also worth looking up the Commercial Agents Regulations 1993 , as that gives you a reasonable idea of what your rights and obligations are in this kind of relationship.

HTH

Why don't you go to local businesses yourself and ask them if they'd like to advertise with you? You don't need to pay for being allowed to do this and to be honest if they really do have leads they would either be using them themselves or charging you a lot more.

I think £59 is a figure that most people would not overly worry about paying and would not go to small claims if they didn't get it back. Just a thought

Regardless of the job/business issue, it smells like a scam to me. Magnetic advertising?

No contract???

Ask for one.

If they can't or won't give you one, and try to fob you off with excuses, then you'll only have yourself to blame if you sign up, pay up and then get fleeced.

Do not under any circumstances hand over any money without a contract.

Kitty - I know what you're saying, and the more I think about it the more sceptical I'm becoming.

Kara - what do you do? I think for some companies such as Kleeneze, Bettaware etc they ask for a fee up front for providing the catalogues, paperwork etc and they've been going for years.

Mag marketing will give me access to a data base of local businesses but I'm just not sure that is worth £59.95??

you can get a database of local businesses for free from the Yellow Pages and local business directories.

The Avon/Betterware type things are slightly different in that you are buying stuff from them (catalogues, stock) rather than an "opportunity" to do something.

Thanks for all the thoughts and info.

Microfight - think you are right, there is nothing to stop me approaching these businesses myself....might be worth thinking about. And you are right about the 59 figure, probably clever calculation on their part - most people wouldn't bother to go through the hassle to claim this back.
Am leaning towards stepping away from this.

Mag marketing will give me access to a data base of local businesses but I'm just not sure that is worth £59.95??

What are they giving you that isn't in yell/Yellow pages/Thomson Local/a million Internet sites?

What is to stop you talking to local businesses and having your own mag signs made up?

This sounds very suspect to me bu even assuming they are OK - it doesn't sound like a viable business at all, and for that reason, I'm out and so should you be.

Totally agree Writerofdreams. Don't hand any money over until you have researched it properly and know it is genuine.

Stripey - I contract with these guys

Not the easiest thing to get into, they have fairly strict requirements for your PC and work area, and you have to commit to doing a 6 week training course (4 hours a day) which you do from home as well. But I have been with them for nearly 2 years, and I know people who have been with them since they started in the UK in Sept 2008.

I think the key thing is, if it looks too good to be true, it probably is.

Sorry to agree with others, it sounds odd.

Theres a lot of good advice on scams on this website safe from scams