| Traveling Sales Crews |
Reputable Door-to-Door Programs
(The Southwestern Company)
|
| Recruiting: In malls, off the streets, even from homes; promise travel and big money; expected to leave home immediately. Target teens and non-students. Do not recruit through campus Career Service departments. |
Recruiting: On college campuses and through legitimate interviews; parent involvement and endorsement in program; cooperative relationship with campus Career Services; no binding participation, time allowed to make an educated decision, free to leave the program at any time. |
| Family Ties: Crew leaders allow little to no interaction/communication with family. Family has no way to reach child. No communication process established. Family is typically not part of recruiting process. |
Family Ties: Young people encouraged to contact parents, have cell phones and a phone number at host family home. Family is part of recruiting process, and typically may even sign a Letter of Endorsement for child to participate. |
| Training: Little to no training; "on-the-job" training |
Training: Thorough and professional training prior to running their business; continuous training is offered throughout the tenure of the student's participation; continued leadership and management training is offered for subsequent participation in the program |
| Residency: Constantly on the move, from town to town; traveling in passenger vans and staying in motels; intent to stay a few days maximum |
Residency: Participants work in same area during their summer break living with a host family or work in their own community, establishing a local bank account and local mailing address; travel in their own vehicles or sharing with gas expenses with another student (no company "drivers") |
| Financial Compensation: Compensation promises with little documentation; Crew leader handles all money and distribution; monies collected not in participant's name |
Financial Compensation: Specific, clearly written agreements; regular account statement; monies collected in participant's name and placed in their own local bank account by participant |
| Regulatory Accountability: Not readily accessible; do not obtain solicitation permits |
Regulatory Accountability: Accessible and responsive to the legal process; check in with local authorities; obtain solicitation permit where required. |
| Identification: No ID badges visible; participants do not immediately identify themselves and misrepresent why they are at the door |
Identification: Participants wear photo ID badges that contains information on the wholesale supplier including phone number, website and address; participants identify who they are and what they are selling in first 30 seconds. |
| No legal recourse: Out-of-state owners hide behind a web of "front" companies, and are difficult to sue |
Legal recourse; Jurisdictional nexus established: The wholesale company has registered a local agent, based in the state as a legal representative for the purpose of serving process if ever needed. |
| Solicitation: Participants solicit apartments, military bases (on payday) and businesses in addition to neighborhoods |
Solicitation: Participants solicit families in suburban, rural and residential city neighborhoods. |
| Product/Delivery: Participants do not take ownership of the product; customer may or may not receive end product |
Product/Delivery: Participants take ownership of the educational-based product; guarantee of delivery in writing |
| Taxes: Participants often fly under the government radar, not paying taxes. |
Taxes: Participants are issued 1099's by their wholesale suppliers; these companies assist the states in collecting sales tax revenue by remitting all taxes due to the state |
| Trade Association: "Traveling sales crews" do not belong to the Direct Selling Association. They have been refused membership to the Direct Selling Association, as they do not meet the strict qualifications and Code of Ethics required. |
Trade Association: Companies like Southwestern are members of the Direct Selling Association in Washington, DC. Member companies must pass the year-long approval process and abide by the Code of Ethics; DSA does not accept "traveling sales crews" as members |
| BBB Membership: "Traveling Sales Crews" are not typically members of the Better Business Bureau, as they are very mobile and leave a wake of complaints in each area they visit. |
BBB Membership: Most reputable companies are BBB members in good standing. You can contact your local BBB or check online as a third party reference as to credibility or if the company has had a number of complaints. |