Well here we go again, no wonder you are feeling like a frustrated network marketer. As I have warned in a couple of past posts…LICENCE PLATE READING…DNA LEGIT OR SCAM? and Network Marketers – Licence Plate Reading…DNA SAGA Continues Even after these posts there are still questions. Is CSI or Narc That Car a pyramid scheme?
Narc That Car,formerly known as Narc Technologies, and CSI are no different in the style of program than Licence Plate Reading…DNA. According to the BBB a Business opportunity to earn money by collecting license plate sightings may be a pyramid scheme. They have some questions as to the legitimacy of these types of companies going so far as to suggest that it may be a Pyramid Scheme. As you will see in this post, the Better Business Bureau is taking a very close look at Narc That Car/CSI.
There does not appear to be a substantial source of income for participants (“independent consultants”) other than the money paid in by other participants. ~ BBB
The law states that to be a legit company the majority of a consultant’s or distributor’s commission must be based upon the sale of PRODUCT! and not from recruiting.
In a pyramid scheme, participants make most of their earnings by recruiting others rather than from sales of a product. The Texas Attorney General’s Web site warns, “People who get in on a pyramid scheme early might make money in the beginning, but the schemes inevitably collapse, victimizing the recruits at the base of the pyramid.” ~ BBB
If you are following Narc that Car/CSI, DNA or any of the other auto type deals such as 5 Star Auto (long gone), you will see that the afore mentioned companies have only copied the later 5 Star Auto model or given a new birth to their schemes. These companies will only last as long as it takes for the Feds to receive enough complaints.The Feds do eventually catch up, just like they did when they shut down 5 Star Auto in 20 States for being in violation of the business operations laws.
Narc That Car receives "F" from the BBB
F would be considered…One Step Above Pyramid!
Reasons for this rating have been given and listed below from the BBB site as:
- 21 complaints filed against CSI
- 2 filed and unresolved complaints against this company
- 5 serious complaints filed against business opportunity.
- Business has failed to resolve underlying cause(s) of a pattern of complaints
- Advertising issue(s) (methods) found by BBB.
- Length of time business has been operating.
It has been the independent consultants who have filed alleged misrepresentation of CSI as well as complaints of non-payment (no commissions paid out) unease of contacting the business and cancellation of reoccurring monthly fees/unable to stop automatic charges.
Narc that car narrowly escapes being labelled a pyramid by changing the pay plan structure, as reported on 4 Mar 2010 by Rod Cook
RED FLAG MOMENT – JUNE 2010: CHANGED NAME TO CROWD SOURCING INTERNATIONAL! – Rod Cook
In June 2010, I received this alert from Rod Cook (MLMWatchDog) that the company changed their name and some of the compensation plan to make it legal.
Under the old pay plan, an independent consultant must have recruited 12 individuals in their "downline" and received two (2) paying third-party clients before they EVER begin to see commissions on "reported" license plates. The new structure pay plan looks like this…as of March 1, 2010, the company has provided a reformed compensation plan allowing for base-level independent consultants to receive commission payments.
It is important to note that upon closer scrutiny of the pay plan the Independent consultants will be charged $7 for every compensation check they receive. It will be automatically deducted. There is an optional web portal which will cost the independent consultant $24.95 monthly. This must be part of the BBB clean up. According to Rod Cook, the BBB’s advertising review inquiry is still pending.
As a bit of a side note here…Web portals are considered sales tools. It is an absolute NO GO (ILLEGAL) to pay commissions on any sales tools…of note 73 Checks, AKA Message Magic Marketing or Pulsating Matrix. This program was based upon using an add-on for Skype to send mass messages to people, even if you did not know them. The tool (add-on) became the “product” of which you would receive commissions on of those who sign up under you. Apparently if there is a commission plan attached to a marketing “tool”, it becomes far more enticing to become an affiliate.
There are reasons that companies change names, pay structures and make changes to their policies and procedures. Grant it the companies have every legal right to do this. However, you may want to pay attention to some of the red flags that are raised when this is happening on a monthly basis.
Follow this link to read more:
STOP IT – those who want to be in network marketing on a legit basis, you need to know that you have to do a lot of due diligence on your part BEFORE you join any company…ANY company.
The BBB have always recommended these tips to anyone considering participation in a network marketing, MLM business opportunity and so do we:
• Clearly and concisely understand the business opportunity. Ask these questions – How do participants really make their commission checks? Investigate the contract or agreement (Policies and Procedures) with an attorney who is well versed in network marketing and MLM opportunities to make sure you understand it and that all promises are in writing.
• Is there an actual product that you can fit in a bag, box or bottle? BUSINESS TOOLS ARE NOT PRODUCTS, i.e. the add-on that Message Magic promotes. Before you join ANY company, investigate…is the product offered something for which there is a market? For it to be legitimate, most of your commissions must come from the retail sales of goods.
• In a multi-level marketing plan, participants earn money through sales of the product and by recruiting others in order to receive commissions on their sales of the product. Consider your own ability to recruit, train and motivate others to sell.
You can read the full report of CSI/Narc That Car below. Again no different than Licence Plate Reading…DNA.
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