SendOutCards Scam? Yes It Is In My Opinion!
Can you make a significant amount of money by being nice to people and sending greeting cards to them? It sounds almost too good to be true. My subscribers have requested I take a look into the SendOutCards business opportunity. In my opinion, directly selling greeting cards to your friends and family and recruiting them into a MLM business seems to be a strange way of being nice to people. Here is what I have found.
SendOutCards Scam Claims
CORPORATE MISSION STATEMENT: Treat People Right!!!
The prompting to reach out and touch someone’s life is something every person experiences. SendOutCards is enabling people to act on these promptings by providing an online service which helps you send personalized, printed greeting cards and gifts as a way to make a difference in the lives of others.
With SendOutCards you can get paid for being nice to people. Yes, it really is that simple! Our mission is to provide you with a vehicle for financial success, and our income opportunity provides you with exactly that.
Here is how the business opportunity is presented:
SendOutCards Scam Reality
SendOutCards is a MLM company that markets products and services through Independent Distributors. It was founded in 2003 by Kody Bateman.
1825 West Research Way
Salt Lake City, UT 84119
To become a SendOutCards Distributor, each applicant must Purchase a SendOutCards Distributor Kit. You have to recruit other distributors to advance in rank in the compensation plan.
You can make a 20% commission by selling to customers as long as you have qualified your distributorship. This qualification requires a monthly sales amount. 62% of SendOutCards U.S. distributors earned no commissions.
You are not paid for being simply nice to people in this business opportunity. You are paid for selling greeting cards and gifts to your friends and family and recruiting as many people as possible into the business opportunity to do the same thing. How nice you are in doing this is up to you.
They do not provide you with retail sales information on how successful people are in your local area selling their products and services. You have no idea how many SendOutCards representatives you are competing against or how successful people are in your area at selling the products before you join.
In my opinion, this is a poor opportunity to make money when you can easily signup for multiple affiliate programs for free and make a 12%-15% commission without having to pay any fees or have any monthly sales requirements.
Here are two examples:
SendOutCards limits how you can sell their products online:
Distributors may not utilize, in any fashion, any self published or purchased web site for the sale, marketing, and promotion of SendOutCards. If a Distributor desires to utilize an Internet web page to promote his or her business, he or she may do so through the Company’s official web sites, using official SendOutCards replicated sites only. – Source SendOutCards Policies And Procedures
You are not allowed to make negative comments about this company when you are a distributor:
While SendOutCards welcomes constructive input, negative comments and remarks made in the field by Distributors about the Company, its products, or compensation plan serve no purpose other than to sour the enthusiasm of other SendOutCards Distributors. For this reason, and to set the proper example for their downline, Distributors must not disparage, demean, or make negative remarks about SendOutCards, other SendOutCards Distributors, SendOutCards’ products, the Marketing and Compensation plan, or SendOutCards’ directors, officers, or employees. – Source SendOutCards Policies And Procedures
In my opinion, Jordan Adler a top earner with SendOutCards makes it very clear that recruiting lots of distributors is the “secret” to this business opportunity.
Here is what one person had to say about their impression of how a top distributor with this company went about running their business:
They are all about showing prospects (you) an image of the success you will have if you follow them. And they will do anything to maintain that image, and to keep you hooked into them. Whether that means friendship, helping you in some way, finding out your dreams for your life so they can dangle them in front of you with promises you can do it if you stick with them, whatever it takes so they can profit off you. It is all about the money in the end.
In my opinion, SendOutCards is a recruiting scam that gets people to spend $50-$395 and $12.95 per month to have the tools to succeed as a distributor, but the vast majority of people make little or no money. You are not selling your own products or services. There is no reason to pay this company money for this business opportunity.
$50 Independent Distributor
$395 Marketing Distributor Package
$59 Annual Renewal
$12.95 Pre Month Social Sendcere
Retail Customer $9.80 per month
Preferred Customer $39 per month
Silver Customer Relationship Package $345
Gold Customer Relationship Package $450
– Source Sendoutcards.com
Greeting cards and gifts.
Click here for the SendOutCards Compensation Plan.
There is one main requirement for a distributor to be eligible to earn all of the bonuses and commissions available in the SendOutCards Compensation Plan. The main requirement is to be Q Qualified. All bonus and commission payout require a distributor be Q Qualified based on their current rank from the chart below:
Rank / Recommended Method / Personal & Customer Volume /Amount Distributor May Contribute
Distributor / You + 3 Preferred Customers / 124 PCV / 31 PCV
Manager / You + 3 Preferred Customers / 124 PCV / 31 PCV
Sr. Manager / You + 6 Preferred Customers / 217 PCV / 31 PCV
Executive / You + 9 Preferred Customers / 310 PCV / 31 PCV
Sr. Executive / You + 12 Preferred Customers / 403 / PCV 31 PCV
Eagle / You + 15 Preferred Customers / 496 PCV / 31 PCV
You have to recruit other distributors to advance in rank in the compensation plan.
To become a Manager you must have accomplished the following:
- At least 3 personally sponsored MDs.
- Q Qualified for Manager.
The term of the Distributor Agreement is one year from the date of its acceptance by SendOutCards. Distributors must renew their Distributor Agreement each year by paying an annual renewal fee as determined by the Company on or before the anniversary date of their Distributor Agreement. If the renewal fee is not paid within 30 days after the expiration of the current term of the Distributor Agreement, the Distributor Agreement will be canceled.
They offer a 7-Level Downline Commission.
The Leadership Volume Commission is a monthly commission based on the volume sold in your downline. This bonus pays to unlimited levels depending on how your organization is coded to you as a leader.
With seven to unlimited levels of commissions paid to representatives this compensation plan takes advantage of the many people at the lower levels of the company.
Many levels of compensation only further enriches those at or near the top … of distributors. Excessive levels in a downline is another sign participants are expected to sell primarily to their downline, rather than to the general public. – Source Mlm-thetruth.com
Click here for the SendOutCards Income Disclosure.
When presenting or discussing the SendOutCards opportunity or Marketing and Compensation Plan to a prospective Distributor, may not make income projections, income claims, or disclose his or her SendOutCards income (including the showing of checks, copies of checks, bank statements, or tax records).
62% of U.S. distributors earned no commissions.
93% of Active U.S. distributors made $35 or less on average per year.
SendOutCards is a great way to lose money. This is one of the worst business opportunities for making money that I have looked into.
All sales are FINAL. The initial sale is subject to the buyer’s right to cancel.
You may CANCEL this transaction, subject to the terms and ongoing obligations contained in the Agreement,, within THREE BUSINESS DAYS from the above date (Five days for Alaska residents or as required by law).
– Source SendOutCards Terms And Conditions
SendOutCards Scam Conclusion
In my opinion, SendOutCards is a MLM recruiting scam. They convince people to spend $50-$395 and $12.95 per month to have the tools to succeed as a distributor, but the vast majority of people make little or no money. You have to recruit other distributors to increase your rank in the compensation plan. You are not selling your own products or services. There is no reason to pay this company money for this business opportunity. This is one of the worst business opportunities for making money that I have looked into. With seven to unlimited levels of commissions paid to representatives this compensation plan takes advantage of the many people at the lower levels of the company. I would avoid the SendOutCards business opportunity.
Click here for another opinion on the Send Out Cards Scam by Andrew Riggio.
“I went to training sessions. I spoke with my upline. I met a lot of well-intentioned people offering advice. I listened to the motivational speeches of the top earners. In the end, though, the reality of it began to sink in: the business model sucked, the company sucked, the higher-ups sucked, and the entire function of the business is, for all practical purposes, to suck the money out of bright-eyed, hopeful masses of people and channel it into the pockets of the top dogs.”