OU Warns of 'Exploitative' Business Representatives on Campus

Oakland University officials are warning students about the presence of business representatives on campus recruiting OU students to participate in product sales and salesperson recruiting campaigns.

Glenn McIntosh, interim vice president for student affairs and enrollment management, distributed an email on Thursday to students on campus warning of business tactics where prospective salespeople or recruiters are asked to buy large quantities of a product to sell at a markup and to recruit friends and family to do the same.

"Business experts have advised that many of these entrepreneurial opportunities are nothing more than exploitive enterprises that leave many investors with significant financial losses," McIntosh said in his email. "Other campaigns are, quite simply, illegal pyramid schemes."

McIntosh urged students to do their own research before signing up with any business opportunity that might seem to good to be true.

"When presented with any job or investment opportunity that seems too easy or too good to be true, we strongly encourage you to exercise due caution," he wrote. "Look for independent evaluations of the company offering the opportunity. If you can’t find this information, chances are that the investment you’re considering is a risky one."

A message was left with McIntosh on Friday seeking comment. 

Have you been approached?

Rochester-Rochester Hills Patch was contacted this week by an OU parent after reports of an energy drink company using similar tactics began recruiting students on campus with promises of a BMW and large sums of money. If you or your student have been approached by someone from such a company, we would like to follow up. Please email john.mckay@patch.com.

McIntosh's email is included in its entirety below:

To all students,

We have learned of concerns that certain business representatives or entrepreneurs may be actively recruiting Oakland University students to participate in product sales and salesperson recruiting campaigns.

This phenomenon is by no means new and by no means uncommon. Entrepreneurs looking to promote great earning opportunities are often very enthusiastic, inspirational and seemingly supportive of students interested in a chance to make extra money. They often share tremendous success stories and suggest that any hardworking individual can enjoy the same success.

A common thread in such campaigns is that prospective sellers and salesperson recruiters are asked to first purchase large quantities of product supplies, which they can subsequently sell at a markup to consumers or to other salespeople they recruit. New recruits may also be asked to pay for sales training and other investment support services.

Business experts have advised that many of these entrepreneurial opportunities are nothing more than exploitive enterprises that leave many investors with significant financial losses. Other campaigns are, quite simply, illegal pyramid schemes.

When presented with any job or investment opportunity that seems too easy or too good to be true, we strongly encourage you to exercise due caution. Look for independent evaluations of the company offering the opportunity. If you can’t find this information, chances are that the investment you’re considering is a risky one.

Before you agree to participate – or worse, invest or borrow money to get started – be very clear about what you stand to lose and the challenges you’ll face in working to earn a profit. In most cases, you can protect yourself by doing your homework and critically evaluating the remarkable claims you’ve heard.

Whether or not you’ve been approached with such an opportunity, I hope you’ll keep your primary focus on your academic studies. Time after time, this investment has been shown to pay great dividends. Toward that end, I wish you great success this semester.

Glenn McIntosh