Knowlton Knows Knowlton Thomas We get so you can do more of what you want to do. Get It Right." Student Tax Prep $29 plus FREE SPC Card* H&R BLOCK’ Click, call or come over. | hrblock.ca | 800-HRBLOCK © 2009 H&R Block Canada, Inc. *$29.95 valid for regular student tax preparation only. Student tax preparation with Cash Back option is $34.95. To qualify for student pricing, student must present either (i) a T2202a documenting 4 or more months of full-time attendance at a college or university during 2009 or (ii) a valid high school identification card. Expires July 31, 2010. Valid only at participating H&R Block locations in Canada. 16 Desperate students succumb to scams Fellow students, Avon is stealing your money and wasting your time. Here’s how to save yourself the grief. von Products, Inc. is an Arsen large and profitable company. It sells cosmetics, perfume, and toys to over 140 countries and reports worldwide revenue of over $10 billion. It was founded in the late 1800s and employs over 40,000 people today. But what do the vast majority of these “employees” see in terms of that ridiculous revenue? Nothing —if they’re lucky. In the world of multi-level marketing, breaking even is almost a blessing. Many victims to this devious business model, most of which are desperate students or desperate middle-agers or both, find themselves in the hole before they realize it’s best to cut their losses and learn from their mistakes. But it’s also understandable to be determined that one can and will succeed at what they try their hardest at. Unfortunately, however, certain things are designed to make that - virtually impossible. Avon is one such company. The premise of “multi-level marketing” (MLM) is simple. It’s the classic “pyramid scheme” with a more sophisticated and reputable company by MLM standards and is not under major heat for scamming, it is still something to avoid. A majority of “Avon Ladies,” door-to-door saleswomen and unfortunate victims, start off in the red (financial deficit) due to initiation fees and then are never able to escape because of the market competitiveness. Avon launched a feeble rebuttal against the death of the door-to-door tactic with some slightly more savvy methods of selling, but who is going to purchase cosmetics through a sales rep in today’s world of lightning fast online shopping? As one might logically suspect, the answer is no one. Avon Ladies buy products at warehouse prices and then sell them, in theory, for store price. But the process _ is slow compared to any other method of | shopping, and these “employees” resort to begging friends and family to buy a thing or two. And it’s not so simple as just not ordering products: Avon forces its employees to order products periodically. Even Avon optimists admit a new employee must work at it for multiple years “The premise of “multi-level marketing” (MLM) is simple. It’s the classic “pyramid scheme” with a more sophisticated and appealing name.” appealing name. What occurs in these pyramid schemes is a pyramidal chain _of “employees” who have two tasks to complete: sell the designated products and _ recruit more employees to perform the very same tasks. The trick? Selling the products will seldom gain you anything. The only way to stay in the black (a.k.a. break even) is by recruiting new people to sell products under your wing. Each person higher up in the pyramid snags a cut from everyone below, so unless you’re one of the very first people to join, your profits are being shared in some way or another with hundreds or thousands of other people. : And so the problem extends further. With an emphasis on recruiting new salespeople, you effectively create competition for yourself in selling products and over-saturate your own market. This causes no one to sell a significant amount of their product, and no one to make money. So the recruiting continues in desperate — hopes. While Avon is sduiticaly a reasonably before they have a chance at earning a reasonable income. All of this is particularly alarming because Avon is more or less the best MLM company you can work for. Statistics from several research institutes have been reporting very unsettling numbers for decades. Some suggest as high as 99 per cent of people who enroll in some MLM companies lose money in the end, which includes a large number of people who are sucked in just long enough to blow their money on upfront fees and then run for their lives once their eyes open. It is reported that the average income for 90 per cent of MLM employees, such as “financial advisors” of Primerica, is less than $5,000 and the median annual income is just over $2,000. You have been warned. Do not fall for the pyramid scheme. But, if you absolutely -must join an MLM company because their hook is just too clever to resist, or you think I’ma lying bastard, at least swallow one final pill of advice before you dive into your doom: don’t quit your day job.