What is Vector Marketing ?
Vector Marketing is a marketing strategy that uses ” vectors ” or marketable elements to communicate with customers.
The action of vector marketing is to send targeted messages through the customer’s preferred communication channels, such as TV, radio, billboards, or online.
The term was coined in 1981 by John Caples and first used in the US by Waddell & Reed Inc., before being adopted into many other countries’ markets around 1990. It’s also known as advertising with products.
Vector marketing companies use intermediaries to gain access to audiences before they are inundated with other companies’ promotions and ads on social media channels like Facebook and Twitter.
One of the more insidious forms of networking may be vector marketing, which is also called multi-level marketing.
vector marketing scam are prevalent in big cities like New York City, Boston, or Austin. It is most often perpetrated by college age kids on their parents’ dime.
They are used to flying all over the country, trying to get people at random events to sign up for a business opportunity they are supposedly running for one of their friends who has fallen ill in New Jersey with lung cancer.
The scam is really quite effective and it is a perfect example of how to bait people into a Ponzi scheme.
In fact, the US Securities & Exchange Commission (SEC) has made this clear, saying that even if one of your friends does die from lung cancer, your business will not be able to claim the proceeds from their “partners”.
Facts about Vector Marketing :
1. It is illegal in some states. Check with your state regulators to see if it is legal in your area.
2. The business opportunity usually includes an MLM (multi-level marketing) plan, which is where the focus is on recruiting other people into a lobby for a business opportunity, rather than actually selling a product or service.
3. The pitch usually includes a series of emotional appeals that have the appearance of being genuine – but they are not.
4. The business opportunity in vector marketing is usually contingent upon a minimum amount of sales that can’t be met – at which point the scheme falls apart.
5. Most vector marketing scheme victims, who believe they are running a real business opportunity, end up losing a lot of money and time – and some even end up having their credit destroyed by law enforcement agencies for fraud.
6. Vector marketers often try to lure people to work with them with free seminars about how they can make money from home – but fail to disclose how much of their own money they have to invest at the start up stage.
7. At a conference in Miami in 1993 about vector marketing, a US Federal Trade Commission (FTC) representative said that they receive over 30,000 complaints about this form of network marketing every year. [SOURCE] [END OF ARTICLE]
Facts about Vector Marketing Scam :
1. Some Vector Marketing Schemes require you to buy inventory for thousands of dollars, but do not offer any type of guarantee of it selling.
2. Some Vector Marketing Schemes require you to purchase inventory for $150 – $200 and then sell that product at a profit to “others” within the company at a higher price point.
3. Any company that requires you to pay them before they pay their supplier – is scamming you and your peers. If this happens, please report them to the consumer protection offices in your state or federal government.
4. Vector Marketing Schemes are illegal in the state of New York, due to the “Pyramid Scheme Control Law” enacted in 1980 under Article 23-A. The law was amended in 1992 via the Pyramid Scheme Reform Act prohibiting “any person to operate a pyramid sales scheme which causes losses to consumers.”
5. If you are not comfortable with an MLM company, investigate any company that offers it’s products for sale on social media platforms like Facebook or Twitter. If it’s an MLM company, or is related to one, it is highly likely that the company will use your personal profile data to sell their products without your consent. See our article about Facebook Advertising on how vector marketers are using social media to market their “business opportunity”.
6. If you are part of a Vector Marketing Scheme, you are more than likely not making any money.
7. One of the most popular Vector Marketing Scams target college students in Boston, New York City, Austin TX, Los Angeles CA, San Francisco CA and other big cities with promises of starting their own business with no experience necessary.
