Introduction
Nearly 80-90% of businesses are in Social media and they easily find their target audience as compared to traditional marketing. However, with the popularity and effectiveness of these platforms, many businesses have come into doubtful practices that scam users.Many businesses on social media do MLM or run a pyramid scheme by using the name of driving social media. In this article, I will be covering whether Driving Social media is a pyramid scheme or something else.
What Is a Pyramid Scheme?
A pyramid scheme is a business process in which income comes from acquiring customers and showing them unrealistic dreams with their investments. The new entry people invest an amount at the start of their services their income only depends on the ability to bring people into the line of this ‘business’.As there is no value to customers in terms of products and services and acquiring a good amount of money giving false expectations is no less than a scam or a fraud.
Drive Social Media: Company Overview
Drive Social Media is a digital marketing agency that has been offering services related to content creation, SMM, and Paid Ads, They are responsible for a data-driven approach, ensuring high ROI, and client satisfaction.Their main concern is optimizing the best use of social channels for business development. However, recent criticisms have been made on social media by people who have faced scams of MLM or a pyramid scheme.
Decoding the Accusations Against Drive Social Media
1. Overemphasis on Recruitment
See-over recruitment is not an issue because when getting into the job, a candidate has to fulfill the tasks and get paid according to his skills. But if a company is only recruiting and the only source of income comes from bringing people in, then it’s a red flag for sure.2. Sales Getting More Pressure for Target.
Former employees have shared accounts of high-pressure environments where:- Employers set non-achievable targets for sales representatives
- Lack of accomplishment of set goals is said to attract consequences such as firings or penalties which in turn creates a competitive environment at the workplace.
Evaluating the Legalization of Drive Social Media
It should be noted that even today there is no clear evidence that Drive Social Media is indeed a pyramid.Key points in their defense include:
1. Legitimate Products and Services:
It is also important to note that as compared to most pyramid schemes, what Drive Social Media provides includes social media campaigns, ad management, and analysis. These are the basic products offered by the digital marketing agency.2. Client Revenue Sources:
Marketing services fee is the major source of funds for the agency as opposed to fees from recruits and employees. For example: A is a social media agency that provides digital marketing services and B is a customer who wants to avail of the services of digital marketing, so here B will give fees to A for services.Why perception of a pyramid scheme still holds.
People assume that Drive Social Media company works in unfair practices that can be attributed to its business model and corporate culture which can be more transparent and work on the improvement of a company’s policies for the workers. If it's done properly.1. Aggressive Sales Tactics
An extremely competitive sales force climate can make employees assume that the goal of their entity is to get clients. Although used in marketing agencies, such strategies may give an expression to employees of insecurities.2. Recruitment Strategies
What I mean by active recruitment is not in itself wrong. However, giving unrealistic dreams that can’t be achieved for the sake of acquiring people will harm the organization's reputation.3. Client Dissatisfaction
Constant concerns about unclear pricing strategies and less ROI add to doubt, but addressing these might reduce the chances of claims of unfair ethical practices.Hiring or partnering is one of the critical areas in which individuals or firms fall trapped in a pyramid scheme.
Common Social Media Scams: Beyond Pyramid Schemes
If you’re thinking that social media scams are all about pyramid schemes or network marketing tactics. Then I request you to read till the end because scams keep updating like I'm updating informative articles on R.S. Digital Services.On a serious note, you need to be cautious about it because you can be the next target if you’re unaware of the scams. Here are the types of scams:-
1. Phishing
Although phishing is a common scam that was done through emails previously. But now, it is happening in social media. When an entity acts as a reputative software or firm and asks you to click a link, when you click the link, it bypasses your device protection and hacks your personal information.I will tell you about an incident with one of my friends. He wanted to buy an antivirus software for his device. Unfortunately, he went to the wrong website and clicked the link, and he lost millions of rupees from his credit card.
2. Investment schemes
Normal people like us use social media for entertainment and to connect with friends. Some use social media as a profession, like creators and influencers who are doing personal branding for their businesses.All I mentioned above use social media ethically, but there are also scammers there who fool you by showing fake profit results of the customers. Generally, they have a huge followers list, and it is done by a bot.
Normally, people tend to be attracted to get-rich schemes, and what scammers do is take the money from you and promise to double your money, but once you give them the money, they block you.
3. Romance scam
One of the most common and dangerous scams in social media these days. On social media, you interact with many people whom you don’t know, but here or there, you can be attracted by their beauty.Many cases were found where scammers tend to honey trap the person and give blackmail threats to them, and they tell you that if you don’t give the money, then they will share your chat and private pictures to your contact list. In that situation, many people give lots of money because they are worried about their reputation.
4. Fake calls
Many of you have experienced a call that tells you you've won Millions of bucks. Regarding this, they asked you to deposit a token of money, and only then you can avail of the lottery. It seems to be so legitimate because the person who used to call you acts as a bank manager.However, it has become an old scam, but still, in tier 3 cities, people get scammed. Because they tell the big winning prize and of that greed factor, people give the deposit money.
5. Fake Job listings
Among the most expanding social media scams, there are job scams that lure people searching for jobs on the Internet. Here’s how they work:1. Fake advertisements –
Scammers share attractive offers for various jobs on LinkedIn, Facebook, and Instagram, as well as quick sign-up processes such as, ‘Hiring now. ’2. Upfront Payment Requests –
Relating to training, checking of backgrounds, or processing fees, candidates are asked to make payments. Moreover, fake Hr consultancy companies call job seekers and ask about the payment for the interview also.3. Identity Theft –
You will be surprised that fraudsters go to the extent of demanding your bank account numbers, Aadhaar, and even your ID copies, and later on, they misuse this for financial fraud.How to avoid scams related to pyramid schemes when hiring or partnering
1. For Job Seekers:
Research Thoroughly: Opening the curtains of employee reviews through reliable sites such as Glassdoor and Indeed. Understand Compensation: Specify whether you depend on the commission check or receive a fixed amount along with it.Ask Questions: Ask questions about the company’s climate, its prospects, and whether the business prioritizes customer maintenance or new talent acquisition.
2. For Businesses Seeking Agencies:
- Request Case Studies:
It is possible to get information from legitimate agencies which show that they have achieved results in the past. So what you can do is to request testimonials or case studies that show their work proof.
Or else, you can ask the companies or entrepreneurs who avail their services about agencies' work ethics and professionalism in their delivering projects. You will get a fair amount of ideas and you can make an informed decision. - Demand Transparency:
Clarify price, scope of work, and possible rate of return. - Check References:
Ask other businesses that have contracted the agency to determine the level of satisfaction that they have.
FAQS
What has led people to parity Drive Social Media as a pyramid scheme?
The accusations stem from:- There is great reliance on who is getting sourced from and ostentatious sales strategies.
- Claims of focusing more on gaining new clients and recruits than on continuously making sure existing clients are getting their money’s worth from the business.
- Accounts of higher levels of job demands and organizational task ambiguity.
Is Drive Social Media a scam?
In my opinion, Drive Social Media is not a legal pyramid scheme. The services offered by the company are tangible marketing services and the revenues earned come from paid clients and not from employees through the marketing of self-made clones.What kind of employees have complaints to lodge at Drive Social Media?
Some former employees have reported:- Work pressure of a high degree along with set targets of sale.
- A focus on more recruitment and selling more products to existing clients.
- Lack of work-life balance.
Conclusion
The allegations against Drive Social Media operating as a pyramid scheme lack proof of evidence. The company appears to deliver legitimate services, but the criticisms highlight areas for improvement, particularly in terms of transparency and employee satisfaction. I feel every business's method has flaws and rewards but if it is done properly then it may create a problem.Businesses considering a partnership with Drive Social Media or any agency should prioritize due diligence. Likewise, potential employees must evaluate whether the company’s values and practices align with their professional aspirations.
I hope you understood the topic! Thanks for reading.