Friday, August 17, 2012

IS MOTOR CLUB OF AMERICA REALLY A PYRAMID SCHEME?



I know. I know. Some of you are probably thinking or saying, “man, not you again, with this Motor Club of America hype”. Well, yes, it’s me again. And this time I want to address those inquisitive minds that think the Motor Club of America is a pyramid scheme.

By now I have probably been dubbed Motor Club of America’s clean-up man or Public Relations guy. But, to be perfectly honest with you, I have never met one person in the upper echelons of this organization. I’ve made a couple calls to the Associate Rep’s 24/7 800 number to get a few things clarified, but never spoke to anyone in corporate. Trust me, if I were the designated damage control or PR guy, I surely wouldn’t be out here peddling the benefits packages. The more I can do to convince you that this thing is kosher and legit, the more wealth we all can gain from it.

Now, let’s get to our million-dollar question: Is Motor Club of America a Pyramid Scheme?
My answer to that is a resounding NO with emphasis. To back my answer up, I will now give you LEGAL authority that defines what a pyramid scheme is as well as what it is not.

According to the Federal Trade Commission (FTC), which is the Federal Government's Agency that regulates U.S. Trade practices, two signs will be present when a pyramid scheme is being perpetrated: Inventory loading and a lack of retail sales. Inventory loading occurs when a company's incentive program forces recruits to buy more products than they could ever sell, often at inflated prices. If this occurs throughout the company's distribution system, the people at the top of the pyramid reap substantial profits, even though little or no product moves to market. The people at the bottom make excessive payments for inventory that simply accumulates in their basements. A lack of retail sales is also a red flag that a pyramid exists. Many pyramid schemes will claim that their product is selling like hot cakes. However, on closer examination, the sales are predominantly wholesale between people inside the pyramid structure or to new recruits joining the structure, not to consumers out in the general public on a retail level.

There is no “inventory loading” with Motor Club of America. The Company does not require you to pay for a wholesale load of products to turn around and retail them to the public. As far as retail sales are concerned, Motor club of America has its internal sales department that is totally independent of the associate marketing branch that has recently been created. Prior to that creation, sales to the general public were done primarily through this internal sales department.

Now that we know the Motor Club of America is NOT a pyramid scheme within the legal definition of the FTC, let us see what type of organization the FTC says it is: “Some people confuse pyramid and Ponzi schemes with legitimate multilevel marketing. Multilevel marketing programs are known as MLM's, and unlike pyramid or Ponzi schemes, MLM's have a real product to sell. More importantly, MLM's actually sell their product to members of the general public, without requiring these consumers to pay anything extra or to join the MLM system. MLM's may pay commissions to a long string of distributors, but these commissions are paid for real retail sales, not for new recruits.”

At footnote 4 of this citation, the FTC clearly distinguishes MLM from pyramid schemes by equating MLM with “direct selling” and “network marketing”, which are the only two types of marketing you will ever hear mentioned in Motor Club of America's Webinars or Training videos. Also, there is no requirement that a person buying the Motor Club of America Benefits package, join the organization as a sales associate. That decision is totally up to the individual.

Prior to linking up with Motor Club of America I had been involved with several companies and organizations that had the network marketing fa├žade, but behind the front they were clearly either pyramid or ponzi schemes. And all of those companies have either folded or been knocked down quite a few notches due to multiple violations of certain federal regulations. I must also mention that in a few short weeks I have made twice as much money in commissions and residuals with Motor Club of America than I did with all of those companies combined. Why? Because it is very hard to generate an income in a pyramid scheme unless you are within the capstone level. Pull a dollar bill out of your pocket and look at it. Now ask yourself "why is the capstone not connected to the body of the pyramid"? You have just come face-to-face with the symbolic reality of why all the wealth and riches that are generated in a pyramid scheme never makes it to the bottom players that are "buying" their way in.
The Motor Club of America has been around since 1926, and I am sure that, had it come under the radar of suspicion of being a ponzi or pyramid scheme, it too would be defunct like so many of the other fly-by-night get rich quick scams.

Hopefully, I have satisfactorily removed yet another obstacle that stands between you and financial freedom. However, I am asking you not to take what you have read here as the ultimate authority on this issue. Go to the following link and verify it to solidify your satisfaction: THE FEDERAL TRADE COMMISSION ON PYRAMID SCHEMES

Feel free to contact me at any time should you have any questions or concerns about the Motor Club of America. I will be more than happy to help you get started on your road to financial freedom.

http://join-mca.com/emacklin /mackchill327@gmail.com/www.facebook.com/eric.macklin.54

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