Is Drive Social Media a Pyramid Scheme?

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.

This approach results in staff and clients' loss of morale, widespread dissatisfaction, and skepticism.

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.

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?

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?

What kind of employees have complaints to lodge at Drive Social Media?

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.