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> People sell on AirBNB and Uber because they need the extra income. That's true for some people. But for others, it's more "want" than "need". Like one drive

by amyjess 10y ago

> People sell on AirBNB and Uber because they need the extra income. That's true for some people. But for others, it's more "want" than "need". Like one driver I rode with last week: she started driving for Lyft part-time, in addition to her day job, because she wanted to make a little extra money in order to afford the down payment on a house. She didn't need to do that; she could have continued living in her existing place indefinitely, and her day job lets her afford her current living expenses just fine. But she wanted something more, so she took up Lyft. And I got the impression that she'll give up Lyft as soon as the down payment is made. Or other drivers I've talked to who could work a full-time job in another field and make a decent living doing so, but choose to drive for Uber or Lyft because they like the idea of being their own boss. This actually reminds me of how insurance companies work... I've been approached by a few of them while unemployed in the past, and they came off as pyramid schemes to me, but there are a few people who have the mindset to make it work for them, and they enjoy it.

pc86 10y ago
OK I don't want to fall for the bait or anything but how in insurance a pyramid scheme?
- amyjess 10y ago
  (I should probably qualify that I'm specifically talking about life insurance here. Other kinds of insurance may be different.) You have to pay to become an agent, you work solely on commission, and you have to pay for all of your own work expenses (drive around to meet with clients? You pay for the gas!). The agent who recruited you into the biz gets a cut. It's probably best to browse sites like ripoff report for descriptions of how being a life insurance agent works. A lot of people are unhappy with the system, but if you look through the reports, you'll also see positive reviews by agents who are happy with how the system works who are. Here's one (this specific company repeatedly contacted me in 2010-2011): http://www.ripoffreport.com/reports/liberty-national-life-insurance-company/birmingham-alabama/liberty-national-life-insurance-company-review-customer-satisfaction-commitment-liberty-219217 http://www.ripoffreport.com/reports/liberty-national-life-in... Here's how one review compares it to a pyramid scheme: > So let me get this straight. You are hired informally through a conference type atmosphere where they sell you their business opportunity. They tell you that it is your business and you get what you put in. Claiming that you can make over 100k each each year working solely on commission. After reaching a sales cap they place you ahead of 5 low level sales persons. When those people reach their sales cap they give you five more or 'promote' you again to have 5 managers below you and 5 agents below each of them? > If this in anyway sounds like the operation that liberty National adheres to then it is a Pyramid Scheme. Another says: > This is not a job for anyone without deep pockets. It is an expensive company to go to work for. I have probably spent more money to work for this company than for all other companies I have worked for combined! And another: > Also, count on spending several hundreds of dollars (or thousands) to work for this company. You will have to have a (relatively) new laptop computer and a GPS plus appropriate attire and suitable automobile. You'll probably be driving 100 miles a day at your expense. It is unlikely that you'll make enough money in the first few months to off-set these expenses and have anything left over for your family. I've probably spent more than I've made with Liberty National. But here's one guy who made being an agent work for him and really likes it: > I have enjoyed the comments from "ex-employees" of the company. I started in August of '06. Prior to this career move, I owned a business for 6 years, worked 16 hours a day consistantly. > The reason I bring that up is, I believed in what I was doing, these comments have a common thread, LAZY people expecting more than they are willing to put in! > I have been with Liberty for over a year now, I have worked very hard to get what I have and where I am with the company, with out my "WORK ETHIC" I would not be where I am, with that said, I have not worked a 16 hour day since I sold my business in '06...on average I work 9-11 hours 5 days a week...not bad when you consider my yearly income IS over 6 figures! Oh, and I get to see my family! > 1. If you work hard, yes you can make over $100k your first year, I did!
  - acchow 10y ago
    But life insurance companies sell a real product (life insurance) that produces real revenue (the premiums). This sounds like legitimate MLM not a pyramid scheme. I'd suggest reading the MLM section on https://en.m.wikipedia.org/wiki/Pyramid_scheme https://en.m.wikipedia.org/wiki/Pyramid_scheme

by amyjess 10y ago

pc86 10y ago

OK I don't want to fall for the bait or anything but how in insurance a pyramid scheme?

amyjess 10y ago
(I should probably qualify that I'm specifically talking about life insurance here. Other kinds of insurance may be different.) You have to pay to become an agent, you work solely on commission, and you have to pay for all of your own work expenses (drive around to meet with clients? You pay for the gas!). The agent who recruited you into the biz gets a cut. It's probably best to browse sites like ripoff report for descriptions of how being a life insurance agent works. A lot of people are unhappy with the system, but if you look through the reports, you'll also see positive reviews by agents who are happy with how the system works who are. Here's one (this specific company repeatedly contacted me in 2010-2011): http://www.ripoffreport.com/reports/liberty-national-life-insurance-company/birmingham-alabama/liberty-national-life-insurance-company-review-customer-satisfaction-commitment-liberty-219217 http://www.ripoffreport.com/reports/liberty-national-life-in... Here's how one review compares it to a pyramid scheme: > So let me get this straight. You are hired informally through a conference type atmosphere where they sell you their business opportunity. They tell you that it is your business and you get what you put in. Claiming that you can make over 100k each each year working solely on commission. After reaching a sales cap they place you ahead of 5 low level sales persons. When those people reach their sales cap they give you five more or 'promote' you again to have 5 managers below you and 5 agents below each of them? > If this in anyway sounds like the operation that liberty National adheres to then it is a Pyramid Scheme. Another says: > This is not a job for anyone without deep pockets. It is an expensive company to go to work for. I have probably spent more money to work for this company than for all other companies I have worked for combined! And another: > Also, count on spending several hundreds of dollars (or thousands) to work for this company. You will have to have a (relatively) new laptop computer and a GPS plus appropriate attire and suitable automobile. You'll probably be driving 100 miles a day at your expense. It is unlikely that you'll make enough money in the first few months to off-set these expenses and have anything left over for your family. I've probably spent more than I've made with Liberty National. But here's one guy who made being an agent work for him and really likes it: > I have enjoyed the comments from "ex-employees" of the company. I started in August of '06. Prior to this career move, I owned a business for 6 years, worked 16 hours a day consistantly. > The reason I bring that up is, I believed in what I was doing, these comments have a common thread, LAZY people expecting more than they are willing to put in! > I have been with Liberty for over a year now, I have worked very hard to get what I have and where I am with the company, with out my "WORK ETHIC" I would not be where I am, with that said, I have not worked a 16 hour day since I sold my business in '06...on average I work 9-11 hours 5 days a week...not bad when you consider my yearly income IS over 6 figures! Oh, and I get to see my family! > 1. If you work hard, yes you can make over $100k your first year, I did!
- acchow 10y ago
  But life insurance companies sell a real product (life insurance) that produces real revenue (the premiums). This sounds like legitimate MLM not a pyramid scheme. I'd suggest reading the MLM section on https://en.m.wikipedia.org/wiki/Pyramid_scheme https://en.m.wikipedia.org/wiki/Pyramid_scheme