Monday, December 11

The Truth About Biz-Op Phone Rooms

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I’ve worked in the Business Opportunity Industry for companies here in the Phoenix area for about 10 years. I recently got fed up with what’s been going on, and have determined to let unsuspecting individuals know what’s REALLY happening behind the scenes. 

Don’t get me wrong, there are a few companies out there that offer a legitimate way of making money…but even they blow more smoke than they deliver. In my experience of cold calling, training, managing, customer service and building these call centers, it seems clear to me that most phone room owners and operators are simply greedy individuals looking for a quick buck and nothing more.

Now, I won’t mention any names, but you know who you are. Calling unsuspecting and trusting individuals, gaining their confidence, and then setting them up for the big take. Leaving them, in most cases, penniless and in debt. Sometimes for tens of thousands of dollars,and then calling what you do earning a good living? Many is time I’ve heard these scam artists brag about how much they’ve nailed a person for, and how proud they are of themselves! They should be ashamed!

I’m not talking from the high ground here. Not at all! I was involved with quite a few companies that laid into these poor souls. I gained from this form of thievery, there is no doubt! My part involved the set up, or Front-End sale. The Back-End is where the real rip off comes into play. I can say with all honesty, I steered clear of that end of it. That doesn’t take away from my involvement. That’s why I feel it only right to write this article.

I spent months looking for a legitimate company that wanted to help people in their desire to make money from home. But recently I realized that they’re all the same. Time and time again I was met with disappointment. Finally I felt an obligation to warn the public of these companies and let it be known the dynamics of the set up. I’m sure I won’t be making any friends in the industry and frankly don’t care.

So, here goes…

You get a call from someone who tells you that they’ve been informed you were looking for a way to make more money from home. Now this should be your first warning. In most cases these companies have purchased a list that comes from a Lead Broker selling your information.These brokers get rich selling the same information to various Biz-Op Rooms which is why you get so many calls, especially from the Phoenix area.

If you did request more info about a way to make money, it usually has nothing to do with the company that calls you. Also remember that you may have filled out a survey a while back that asked if you wanted to make money from home. That’s another way information is gathered in this industry. Either way, that opening should be a red flag.

The caller, or Front-End Roller, goes through a scripted speech, explaining why they’ve called to offer you this great chance to earn an extra income. They ask you probative questions to find out you motives for wanting to make more money and use this information in the close. Before that however, they may want you to listen to an audio that outlines the business, mainly so that you can’t interrupt and ask questions. In most cases, if they play an audio, after it’s done a Front-End Closer comes on the phone and outlines what you’ve heard and goes for the close.

The close is the most important aspect of this dynamic. A good closer is trained to overcome all objections and continually ask for the money. Over and over they side-step any legitimate concerns or issues, and ask for you credit or debit card. Keep in mind, they’ve qualified you in having an ability to pay before they explained the biz-op. A good closer won’t let you get off the phone until you either succumb to their insistence, or hang up!

If you are a “buyer”, in other words if you usually buy after short or long explanation, you won’t be able to resist. Some of the lists these companies purchase are called “Buyer Files”. Lists of individuals that have a history of buying into these types of opportunities. Pray that you are not on ANY of these lists, the calls will not stop, trust me.

So, after a long hard fight, you decide to give it a shot. Keep in mind the training that goes into making this happen is never ending. The people that close you are constantly reminded that they have to “get your money”, and in some cases the folks that call you are unsuspecting in the fact that it’s a scam. The Front End is mainly kept separate from The Back End. It protects the company in having it exposed as to what happens next.

After giving them your credit or debit card for a “Start-Up” cost anywhere from 49.99 to 499.00, they schedule a call to come from your Advertising Coach, or Marketing Director, or Business Development Coach or whatever they want to call them. Either way, this is when the ripoff really gets serious.

These individuals are Masters of the Con. The talk to you about the importance of advertising and marketing your new business. They have a warm up conversation that culminates into the biggest scam in the industry, buying and purchasing leads. Leads are purchased by the company for anywhere from a penny a piece to sometimes a few dollars. However, when those leads are resold to you on the Back-End, you can expect to pay anywhere from 10 to 25 dollars PER LEAD, and sometimes MORE!!!

I’ve seen lead packages cumulate to $20,000.00!! Sure, they throw in a few bells and whistles, talk about support and the fact they call your leads. The fact of the matter is…this is almost PURE profit to most of these companies, minus the commission they have to pay the Back End Closer, which is usually 20-25% of whatever you pay.

I’ve seen the commission checks these shysters get for bilking folks out of tens of thousands a dollars a week! It’s obscene! They walk around the office giving high fives to one another, talk about how “the got another one”, and brag about how they’ll spend YOUR money! Meanwhile, you think you’ve made a wise investment and hope to get a return for the thousands you’ve now LOST!

Well here’s the truth. You won’t make your money back, almost guaranteed! That money is GONE! If you’ve paid by credit card you might have the chance to charge back but if you wait too long or have signed authorizing paperwork for the transaction, it can be an uphill battle. God forbid you sent a cashiers check or cashed in a 401K, they love when you do that! That’s right folks..this is the scam! Designed only to get as much money from you as possible and delver little if any results! I’ve lived in this world for years and just got disgusted with myself and what I was assisting these companies in doing.

Be warned, they mean you NO GOOD! Sure, a few might come under investigation and be shut down. But it takes just a few months to open another room and start the scam all over again. These people have no scruples, no conscience and no character. They believe that if you’re stupid enough to give them your money, then they deserve to keep it. That’s what they think! Period. I know. I’ve worked around enough of them to know their mind set. I worked in the Saves Department of one company for a while. 

Saves is the Department that saves deals that want to cancel. I was good at that. Most of the times I’d get sick to my stomach the things I’d have to say. Elderly folks that use their credit cards to charge thousands for leads. Calling me to complain that they’ve not heard from their “Coach” since they paid their money. Well, they would never hear from them again. The Coach is too busy with the next victim. I would fluff them back up and get them all warm and fuzzy. God, I was so terrible in doing that. Little old ladies, concerned about a credit card payment they couldn’t afford because they were on a fixed income and used the card in hopes they would make money.

They were the worst. Terrible…

Let me add this however… if someone calls you as an INDIVIDUAL asking you to join a Home Based Business..that’s a different story. That’s a person whose got the moxie to call and personally introduce you to an opportunity they are apart of! Totally different from boiler rooms trying to rip you off. I add that because that’s the ONLY type of Business Opportunity I involve myself with these days. No more will I promote the types of rip offs that occur when someone calls you unsolicited, with the sole purpose of getting your money and keeping it.

Anyway, there you have it. Biz-Op Phone Rooms…exposed! If you’re reading this and have been a victim of these terrible people…do everything you can to get your money back. Until the industry is regulated, this will continue, believe me. So if you get a call asking if you want to make more money from home, ask the person how much money they THEMSELVES have made and then look them up on line! and Rip-Off are great resources that protect you from these wolves in sheep’s clothing.

Most often then not…it’s just a scam.

There you have it! 

Doug Rice


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