The Better Business Bureau serving Central California is warning consumers about a Texas company making big promises that may be part of an illegal pyramid scheme. We have confirmed that this company will be presenting at the Piccadilly Inn Airport in Fresno on September 18th. Please note that the Piccadilly Inn is not associated or affiliated with iJango in any way. The BBB has also received information that iJango will be presenting to consumers in Visalia on September 16th and Bakersfield on September 17th. We have been unable to confirm locations in Bakersfield and Visalia at this time.
The BBB office in Austin, TX, has received over 4000 inquiries from consumers nationwide over the past six weeks about Austin-based iJango. Because of this increase in traffic, on August 3, 2009, representatives of that BBB met with iJango’s CEO, Rayner Smith, to clarify the nature of their business practices. Mr. Smith and his staff indicated they are just offering a business opportunity. However, he did note that potential clients are paid for the recruitment of registered customers and the recruitment of others to do the same, a clear sign of a pyramid scheme. This information earned the company a BBB rating of F from the BBB of Central, Coastal and Southwest Texas.
This self-described multi-level marketing company claims consumers can earn money from Internet activities, even free activities. People pay an upfront fee of $50 to join the program, but iJango recommends purchasing a package for $149.95 and a monthly maintenance fee of $19.95. The company further claims that consumers participating in the program will earn income in two ways:
The recruitment of other individuals to purchase the opportunity and the recruitment of registered customers.
Commission on iJango’s commissions that are generated by Web site traffic and purchases through iJango Web site “portals.”
However, complaints received by the BBB allege concerns with the delayed availability or use of the iJango portal. The BBB is awaiting a response from iJango to these complaints.
The BBB is also concerned about iJango’s claims that they have Web traffic agreements with companies such as Yahoo!, iTunes, Rhapsody and Google which the BBB has been unable to confirm.
The BBB serving Central California recommends that consumers in all states exercise extreme caution when evaluating any business opportunity and consider these tips to make an informed decision:
Avoid any plan that includes commissions for recruiting additional distributors. It may be an illegal pyramid scheme.
Beware of plans that ask to purchase expensive products and marketing materials upfront. These plans may be pyramid schemes in disguise.
Beware of plans that claim to sell miracle products or promise enormous earnings.
Don't pay or sign any contracts in an "opportunity meeting" or any other pressure-filled situation without first taking time to think over the decision. Talk it over with a family member, friend, accountant or lawyer.
Remember that no matter how good a product and how solid a multi-level marketing plan may be, investment in time as well as dollars may be needed for your investment to pay off. If it sounds too good to be true, it probably is.
For more information on pyramid schemes and to check the reliability of any company, visit www.bbb.org.