Of Saints and Schemes

I apologize in advance if this post is mostly anecdotal, but I have been concerned for a while about the business practices of some Mormon run companies specializing in door-to-door sales. I have several friends who have taken positions in companies selling a range of things, from pest control services and alarm systems, to knives. For the most part, their experiences have been terrible.

The companies of which I am aware tend to recruit male returned missionaries as their sales force. When they get enough people to sign employment contracts, everyone relocates somewhere for the summer (except for the knife salesmen who are encouraged to sell among family and friends). Then they begin selling. The work days can run anywhere from 8 to 12 hours depending on the salesperson. There is no direct supervision; however the salesmen are usually in competition with one another. Those who make more sales often receive random prizes like Plasma TVs and Ipods in addition to the extra money they make from commission.

Given the incentive to sell, many employees begin to lose their moral compass. Almost everyone I’ve spoken to about these companies report that the salesmen are encouraged to lie. Sometimes, the ‘team leaders,’ themselves returned missionaries, will use gospel-oriented motivations, like explaining that more money from sales equals a larger tithe for the church.

What’s amazing is that it seems to work. One person I know makes between 35 and 40K – just selling over the summer! His brother, a partner in one of the companies, has made well over a million dollars over the last few summers. However, for every success story, I have heard of several people who quit or are forced to resign, either because they don’t make enough to pay their rent, or because they dislike having to mislead people in order to make sales.

I know that unethical behavior is practically ubiquitous in many sales based organizations and, therefore, it shouldn’t matter if some Mormon companies engage in the same dodgy practices. But I worry about what it will mean to the church if in ten to twenty years these salesmen begin to assume leadership positions.

Has anyone else had experience with Mormon run summer sales companies? What about multi-level marketing, pyramid and matrix schemes? Ever get a call from an ex mission companion asking you to meet for a “reunion” in Provo?