Diversified Solutions, located in Knoxville Tennessee is a subsitiary of the Phoenix USA company. They start out by placing misleading adds to get a large response from the community.in their add, they state that they are swamped and need motivated individuals to train. Then they tell you that if you aren't making $750/wk [~$40,000/yr] to call. Being near a college campus and being that the average person in the area makes around $8 an hour it seems like a great opportunity.
They tell you on the phone that there will be a brief company overview and "if they like you" you will be invited back. Well, everyone is invited back, but a lot don't come back because they see that it is a scam. Anyways, in this "overview" they show you how much petrolium is in the water and how many children die from drinking household cleaners. Finally they go over their pay structure and how you make commissions off of the people below you in rank. They then tell you to only listen to people who have made the money you want to make - and the majority of the people a this briefing do not have people close to them making that kind of money - so obviously they should listen to the speaker. The keep emphasising not to let this opportunity pass you by because someone told you that it was too good to be true.
What I later realized after another day of researching this company is that some of the people sitting in the seminar room are actually employees strategically placed there to make you feel confortable and to create crowd participation. Also, they tell everyone that this is a sales job, but if you are not good at sales, others there will pick up the slack - because some people are there for sales. But, everyone who responds to the adds are responding to be a manager, not a sales person.
After a couple of days, they tell you "If I were you I would by inventory regardless of whether I were going to be a sales person or not, because you don't want to miss the next John Doe who comes along and sells a bunch." To start making money off of others, you must have sold $5,000 worth of inventory - so that is what they "recommend" you buy. More like urge.
Then they get you to start recruiting people and sitting in on the briefings as "potential employees" as I mentioned above. If you chose not to buy inventory, they stress that you at least try a product and tell others about them.
This is a SCAM. After researching this company further, I found out that the three owners are former top executives of the company EQUINOX. This company was forced to close for running a pyramid scam by the FTC. It is almost exactly like Phoenix USA?!?! Even people's descriptions of their experiences are the same. I recommend the site if you want more information about Equinox. I also recommend the site which compares Phoenix USA to the Equinox company. What it comes down to is they lied to get you in (false ad), they lied about the water test (there is no petrolium in the water - it is things like acidity & alkalinity that turned the water orange and they are perfectly safe to drink), they tried to scare people with the household cleaners speal, they talked of fortunes galore, they said not to listen to those close to you unless they have the results you want (few do), and finally they were founded by SCAM artists from a company almost exactly like this one that was closed by the FTC. There are those few individuals who do make a fortune off of Phoenix USA - unfortunately they are the founders.
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