Is iJango a Scam? |
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I was watching Tech Now this week and the technology show mentioned a scam that's getting the Better Business Bureau's (BBB) attention. I never really cared too much about these scams, because I assumed, like Nigerian princes, people were smart enough to avoid them. However, after realizing that a lot of people are getting scammed by MonaVie, I figured I should write about some scams when I come across them. I figure it might save some reader some money someday - and that makes it worthwhile for me. Today's scam in question... iJango.
What is iJango
iJango bills itself as a "Membership Rewards Community." What does that mean? It means that you sign up to earn rewards and recruit other members. I love earning rewards. I even like recruiting other members for things I believe in. However, there's a problem with iJango... if you want to earn rewards for recruiting other members it costs $150, PLUS $20 a month. Tech Now showed this information on their broadcast, but I can't seem to find it on the iJango website. Several links appear to be broken on iJango's website, so maybe they are having some difficulty on their site today. In fact, the Vicky Nguyen of Tech TV says that iJango admits to often having a broken site as they are constantly upgrading.
What Tech Now and the BBB say about iJango
After fielding 3400 inquiries after their August launch, the BBB gave iJango an F rating. While iJango claims to be a Multi-Level Marketing website, the Erin McCool of the Silicon Valley BBB says "they have extreme suspicions about what they are doing."
According to McCool, "People have trouble canceling the service" due to the website's bugs. It's always a bad sign when you get stuck with a $20/mo. bill that you can't get out of.
McCool also said, "We can't shut them down and it's a pain staking policy for the government agencies as well." This is something that has come up in MonaVie discussions a lot. The logic of some distributors is that if they haven't been shut down, it must be legal. Because of the painstaking process, this is simply not true.
What Founder Steve Smith says about iJango being a pyramid scheme
Tech Now caught up with founder Steve Smith and asked him if iJango is a pyramid scheme. His answer was so hiliarious, I've transcribed it below:
SS: It's a little... it's a little... it's a little, different concept because we are bringing customer on who produce revenue for us.
TechNow: How do they produce revenue? So you have partners with companies that pay you?
SS: Yeah for what they do on... on... shopping... and... online
TechNow: Who are those companies? Netflix? I saw you said Netflix... Pricegrabber... are those all companies you have a relationship with?
SS: Those are all companies that we have a relationship with. It's probably not even a direct relationship. This development team that we brought on brings us a lot of relationships. So for us it would be a third-party relationship that brings the relationships with these people that help monetize the customers that we bring to the site.TechNow: How is this NOT a pyramid scam? Make that easy for me.
SS: Because we produce revenue from our customers. We get revenue, our customers use their tools and utilities, and we are paid part of that revenue share.
The BBB goes on to say that the relationships with Google, Pricegrabber, and Rhapsody don't exist. Here you could take argument with what the BBB is saying. I'm sure iJango has a relationship with these companies through affiliate programs like FlexOffers and Commission Junction. Founder Steve Smith is misrepresenting the relationship when he flashes a Netflix logo during a presentation as if to say, "These big companies are partnering with us, so you have to believe we are the real deal" instead of "No one at Netflix has ever heard of us."
What iJango Users have to say
When asked about how iJango is paying, Paul Bass, iJango user, said:
They haven't started paying out yet because of the problems with the servers. Even if I was dupped and even if they got my $149... [laughs]... that's not a lot of downside risk... and the upside potential...
That's exactly the kind of attitude that pyramid scams want to hear. A lot of $149 and $20 a month bills add up quickly for companies... especially when they don't really provide a product.
Another user Michelle was interviewed:
TechNow: Can you give me an idea, Michelle of how much money you've made with iJango?
Michelle: Absolutely not, that's a private matter.
I suppose it is a private matter, but if it was signfiicant mone, wouldn't she be shouting it from the rooftops?
Why iJango is a scam
By becoming an iJango Community Director, you are basically becoming a salesman for them and their company. You are out there recruiting other people and earning commission on everything that they buy (if they buy anything). You wouldn't pay your own employer to work for them, so why would you pay iJango?
This post deals with:ijango, ijango scam
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“In fact, the Vicky Nguyen of Tech TV says that iJango admits to often having a broken site as they are constantly upgrading.”
Hey, call me crazy, but maybe utilize a development environment and make sure stuff works before promoting to production?
Hey, call me crazy, but maybe utilize a development environment and make sure stuff works before promoting to production?
That’s like saying ‘I should’ve went this school but decided to go elsewhere’ this and that. You know about hindsight is 20/20. Ijango is no different than ANY other legitimate companies out there. You’ll defintely gonna have your trials and tribulations. The jury is still out on this company and time will tell if it’s going to survive.
MooseShady,
Millions of companies have a development environment. I have one for this website, and I’m just one person working part time.
It’s not at all like saying, “I should’ve went this school but decided to go elsewhere”, or believing hindsight is 20/20. It’s simply taking reasonable safety precautions. It’s like getting a car, you put on a seat belt. You don’t just drive, get in an accident, and say, “I probably should have gone a different route.”
I don’t know if the jury is out on this company. When the BBB starts to say bad things about your company it is very different than other legitimate companies.
“I don’t know if the jury is out on this company. When the BBB starts to say bad things about your company it is very different than other legitimate companies.”
Me thinks the BBB have more of a vendetta against Ijango than they would admitted to. Here’s the lowdown: Ijango was giving 10-day deadline for some clairity about the company’s compensation plan. The management was talking to the BBB of Central Texas (Austin)however, CTBBB went ahead anyway to leaked out to the press before the deadline. To me, that’s considered grounds of a nasty lawsuit. Last word is that the company and CTBBB agreed to remove the negative ‘F’ rating off of Ijango’s record.
As of this comment, it looks like the CTBBB has not removed the “F” rating.
However, I was referring to the BBB of Silicon Valley, a fairly separate to the one from Central Texas. So it’s twice as bad that they’ve got two different branches of BBB upset at them.
The BBB has no vendetta with any company, their mission is to look out for consumers.
Regardless of the point about the BBB, IJango basically boils down to a product-based pyramid scheme.
Two things: Ijango is NOT a prymaid scheme. It’s Community Directors gets paid in two ways, when signing up members who browsed the portals thru web traffic, advertising and shopping for FREE and sponsoring community directors who singing up their members.
No BONUSES are paid to upline on just reruiting Directors unless they signed up at least 3 members to triggered the bounses.
Also, Ijango just launched it’s Online Ads program where reps can signed up local companies to advertising their business online for $249 one time fee and $99/mo thereafter. And more products are on the way.
Secons:I’m not saying the BBB as a whole has a vendetta against MLM companies as a whole. The BBB is a great organization and should be continued as a watchdog of shady companies scamming it’s victims of products and services that they cannot delivered. However, what they should’ve done, is to followed their own portcol when dealing with any companies with questionable marketing strageties and giving them a chance to clarify it before announcing it to the media. BBB of Central Texas did not followed the portocol and it could result of a legal action against them for not doing so.
Conclusion: I am not an Ijango rep not promotioning the opportunity. I am a Ijango member using the web portal like I am now. And it did not cost me a cent to surf
MooseShady said, “No BONUSES are paid to upline on just recruiting Directors unless they signed up at least 3 members to triggered the bonuses.”
I’m going to quote About.com now:
“The big difference between MLM and a pyramid scheme is in the business’ operations. The entire purpose of a pyramid scheme is to get your money and then use you to recruit other suckers (ahem – distributors). The entire purpose of MLM is to move product.”
And you are saying Community Directors pay IJango for the right to earn bonuses from IJango when they recruit 3 other members. That matches the exact definition of pyramid scheme from About.com. It’s not even an MLM because IJango has no real product to move.
I’d need more information about the online ads program. I couldn’t find anything about it on IJango’s website with a few minutes of looking. From your description I have trouble understanding if it’s IJango reps paying the $249 and $99/mo or the local companies.
That’s quite an unusual conclusion. You are pretty defensive of the company and know a lot about the behind the scenes deal with the BBB for just being an average member using the web portal.
Also, it’s odd that you would make a claim that it doesn’t cost you a cent to surf. It doesn’t cost anyone money to surf the Internet excluding fees. It’s not like Google is charging me money when I do a search there. So you are essentially saying that IJango is giving you what the rest of us already have… awesome.
“I have trouble understanding if it’s IJango reps paying the $249 and $99/mo or the local companies.”
You are so way off base! Local companies pays $249 and $99/month to advertised with Ijango Adz. Not the reps. What’s great about Ijango Adz is that they can advertised on Yellow Pages, Local.com, Yahoo and Google So, I don’t understand your logic on this matter.
“That’s quite an unusual conclusion. You are pretty defensive of the company and know a lot about the behind the scenes deal with the BBB for just being an average member using the web portal.”
Nope. You may think
what’s sad about Lazy Man, it’s you taking about.com’s word instead of getting the real lowdown by talking to the company. How about talking to the Ijango reps on how they feel about the opportunity.
Sorry that my fingers clicked the submit button prematurely, but what I was saying in my reponse to your comment about the company situation with the BBB and that I was getting defensive about it. you may think so but apparently, it’s not the case. Also, I was not damning the BBB as a whole. BBB is a great organization in awaring the public of real scams out there. I was just pointed out that the BBB of Central Texas had jumped the gun on Ijango without the company’s a chance to explain on it’s comp plan.
One more thing. To clarifying the Ijango comp plan; Reps does get paid bonuses when they recruited other reps who gather at members but the real revenue of Ijango comes from web trafficing every time the members surf the web and shops online and well as adverstisment from local companies.
Like I said, if you really wanted to get the real scoop on Ijango, call the company or talk to it’s reps about the opportunity because simply, you’re just getting one side of the story. Do your research carefully about Ijango before whether it’s a pro or con.
Just to go back a couple of comments, I asked for clarification and you said it was “so way off base!” Asking a question is never so way off base!”
As for Ijango rolling out an advertising program, that’s nothing that new. As I stated in the article, Ijango says that they have relationships with a number of companies, and it turns out that it’s through third parties. Let’s see the press release from Google about supporting iJango. Otherwise, I can claim advertising from Yahoo and Google on this site (I rejected Yahoo as it wasn’t paying me enough) – it doesn’t mean I’m a big business – I’m a one-man shop.
I’m not taking About.com’s word… I watched what the BBB had to say and how iJango defended themselves (they chose not to!) in the news segment. I also put 2 + 2 together and realize that they are charging someone money to join a commission-only position… a very poor an questionable business practice. and they are just giving general guidelines
I’m not taking About.com’s word for it… I’m using them to support a conclusion that I made on my own. There’s a Grand Canyon of a difference.
Perhaps that BBB in Central Texas jumped the gun… perhaps not. I can’t speak to that as I don’t have either side of the story. I do have Silicon Valley’s BBB giving the quotes against iJango as I stated in the original story.
IJango had an opportunity to defend themselves in the news article that I cited. If they want to talk to me they can easily leave a comment here or hit the contact button. The ball is in their court… let’s see what they do.
“I watched what the BBB had to say and how iJango defended themselves (they chose not to!) in the news segment”
Yes, they already have. A few months back, Company’s Chairman Steve Smith was in the Ijango meeting in the San Francisco area when a television reporter for an NBC affilate asked him about the Ijango negative report from the BBB and answered any questions for that reporter.
“As for Ijango rolling out an advertising program, that’s nothing that new. As I stated in the article, Ijango says that they have relationships with a number of companies, and it turns out that it’s through third parties.”
I do not know about third parties so I cannot give any creedence on it. However, I do know that Ijango has relationships with companies like Google, Local.com, GoDaddy and YellowPages.com and others.
“I also put 2 + 2 together and realize that they are charging someone money to join a commission-only position”
It’s called Membership Rewards program. members can enrolled other members at NO COST to signing them in Ijango web portals and they get paid cashback rewards when they shops and a 5% commission when other members shops online. However, in order to get paid multiple levels, they can upgrade to a Community Director at anytime.
“Let’s see the press release from Google about supporting iJango. Otherwise, I can claim advertising from Yahoo and Google on this site (I rejected Yahoo as it wasn’t paying me enough) – it doesn’t mean I’m a big business – I’m a one-man shop.”
I would love to see Google give Ijango support they need. As soon the all the furor dies down, you’ll may see many companies comes out supporting Ijango. We’ll just wait and see that will happened.
I forgot Steve Smith actually did comment, I included the quotes above. It was nonsensical gibberish at best.
Again, I have relationships with Google and could have one with GoDaddy in about 5 minutes if I wanted to (I have no use for a relationship with them). These don’t validate iJango.
I have no problem with the free membership. However, the Community Director program is essentially a pyramid scheme. We covered this before. If iJango gets rid of the Community Director program and getting paid on multiple levels, then I wouldn’t call them a scam. However, that would sound a lot like the BlastOff Network.
I don’t think any companies are going to be supporting iJango. It’s not like companies are going out of their way to support Ebates and they’ve been around years and years.
Eos Rewards browser launched last night. We get paid as the company indicates. iJango/Eos is the real deal. The company, which was sold a ‘bill of goods’ initially, chose to step up to the plate, invest money, talent and time, in bringing into reality the concept that iJango was presented to it as.
The new .com site launches in a day or two. What iJango has done is sheer tech business, no scam involved, and allows ordinary people to derive income from the internet.
I know people today spending thousands to become real estate agents – and insurance agents – and stockbrokers. I have news for you: those are multi-level, and as often as not, true scams that relieve innocent people of hundreds of thousands of dollars.
There’s a congressional hearing going on right now about bonuses to bankers. I’ve never seen an mlm bonus questioned by congress.
2010 is the 100th anniversary of mlm or direct marketing. This is the year that we are coming into our own as an industry. iJango is a small part, but we are legit, serious and growing.
Thank you for this forum.
Barb
Greetings,
No doubt that ijango launched prematurely. That is a long and boring story. The most remarkable thing on this forum is the total lack of due diligence. Take a deep breath and watch what ijango is now and where the company is heading. They are utilizing the industry best practices and now have a top rate IT team. I could easily slander any individual or company based on derogatory hearsay, and partial truths from long ago (long ago being relative to the age of the entity)
I applaud the effort to “look out” for others best interest, however I believe such action should be predicated on legitimate and thorough information.
All The Best Always!
- Jamie
Much like the NY Times putting out an article in 2003, that information may become dated over time. I’m not saying that this is dated, but at the time of the article it was accurate. Everything that I wrote was true at the time (unless you have other data). The Better Business Bureau did go out if it’s way to make those comments.
All those things may be VERY, VERY well might be true to today, I’m not sure and having looked into the company more since. Just remember that because the information was from long ago, doesn’t mean it’s wrong. You could read an article about Microsoft having the top home computer operating system years ago, and though the article may be outdated, it’s still the case today.