a new scam – American Direct, Inc.
We are slowly realizing all of the perks that come with living in a working-class neighborhood. While I don’t think the whole Universal Promotions/Travel Universal thing was tied to our zip code (I think I did actually fill something out online), we were contacted a few months back about a new promotion a company was having. The company is called American Direct, Inc. and they told me they were just opening their store in Fairfield and were having a promotion that included a drawing for a new truck or $10,000 cash. I thought that was kind of interesting, but wary of scams after our earlier experience, I didn’t really pay them much attention. They said they were going to ship me a key to try out in the truck and I’ll I’d have to do is show up at one of their appointments to test my key to see if I had won. I said I’d call them to set one up and promptly forgot about it. When the key came I threw it away.
Well, this past Monday I got a call back from the people at American Direct. This time the person’s name was LeAnn (probably not her real name). She said they were “sweetening” the deal to encourage the remaining few people who had keys to come by: they’d give me a $500 shopping spree just for showing up. I asked if they had an appointment in the evening so it wouldn’t really disrupt our work and stuff and they said yes, so I set up an appointment Thursday night at 6:30. They wouldn’t tell me anything about their company and when I asked if they had a website they said it wasn’t accessible unless you had the password. All of these things were making me wary, but I figured I could avoid giving them anything but my time and was determined to simply walk out if there was a problem.
So, along came Thursday night and Debi and I made our way to 325 Commercial Drive in Fairfield, OH. The building is located in a business park. It was a single-storied, stripmall style building where you’d expect to find a scam. As we walked in, our fears were confirmed. The place had clearly been in business for quite a while, which means I had already uncovered their first lie – this was not a grand opening and was not some special promotion. This is how they lure in the unsuspecting and prey on them. We arrived a little late and they were already taking all of the unwitting participants into the back room to try their key in the truck. Since I had to get another copy of my key (I threw the original away), I had to register and stayed behind for a few minutes. While one of the receptionists logged me in, I pulled out my phone and tried to secretively snap a few photos. When we got our phones I didn’t think I’d ever use the photo feature, but I occasionally find it very useful. I snapped these two photos before I went back to the “special rooms”:
The first one is just a sample of the wall decorations. They had these all over the walls in the front room. Seriously, there must have been 200 of them or so. Poor Roy Sipe… He actually looks happy. I think the U.S. flag in the background is a good touch; I’m sure it has great appeal for the demographic they target.
This second one was the real kicker. In case you can’t read it very well it says, “Due to the confidential nature of our business ALL RECORDING OR PHOTOGRAPHIC DEVICES ARE PROHIBITED in this building.” Any honest company would not have this type of sign posted, unless they are literally trying to protect trade secrets (e.g., the Toyota plant my father-in-law visited in Japan didn’t allow photography of the factory floor). Clearly American Direct, Incorporated has something to hide – their dishonest business practices.
Once I had finished “registering,” I walked back to where all the other victims of the scam were and caught up to Debi, who whispered under her breath, “Look at the demographics here.” I hadn’t had time to do that until now and when I did, it was telling. There were a total of 18 “marks” or victims, and of those, all but two were working class – Debi and I. There were a lot of old, deteriorating t-shirts; lots of hairsprayed and oily, stringy hair; stained jeans; and a lot of poorly behaved children. Don’t get me wrong, they are all nice people; we talked to a bunch of them and they were very kind. But you could tell they weren’t coming down from West Chester or stopping by from Wyoming or Hyde Park. These are the type of people who live in our condominium complex – blue collar, working class. I don’t claim to be wealthy – au contrair, I’m a poor graduate student and probably make a lot less than a lot of the people who were there. But there was a clear educational difference, which I’ll touch on a bit more later.
Anyway, we all tried our key in the truck to no avail. No one won the truck or cash. We were then herded like mindless, unwitting sheep into the “sales pitch” room. Our salesperson, an African American, former military guy I’ll call “Asswipe” (’cause I forgot his name) was telling jokes and working his angles the whole time. Once we were all settled, he started in on his pitch. I have to admit the person who called me didn’t say how long this would take, but I was hoping it wouldn’t be very long as I had other things I wanted to do that night. Well, I’m beginning to realize that length of time is an important factor in these scams. Rather than jump right into how much money they want to take from you, they start by “building relationships of trust” (an old phrase from when I sold Mormonism door-to-door in Costa Rica). Asswipe pretended to teach us all about how we were mistreated by retailers like Sam’s Club and Wal-Mart (again, think demographics here). He talked about how much they mark-up the merchandise they sell to us. I particularly enjoyed his discussion of Sam Walton’s personal wealth and his claim that it came directly from his marking up of products, which was one of the first places where I shook my head in disagreement (exploitation, exploitation, exploitation…).
The really scary thing about the presentation was that Asswipe was so ebullient and charismatic that 16 and a 1/2 of the people in the room were really getting into his presentation (Debi did half the time). When he would ask, “Who cares about their money?” Everyone would answer in unison, “We do!” And when he’d ask, “How many people agree with that,” Everyone would raise their hands. For some reason I just couldn’t get into his pitch.
I was, however, quite impressed by the use of manipulative techniques. He spent the first hour or so pretending to educate the people. What better way to build confidence in his marks than to actually make them feel like they are more educated now than when they walked in? Quite a brilliant tactic, actually. I also liked how he directly referred to other, classic scams (e.g., timeshares, Amway, etc) as scams. He mad fun of those other scams and spoke directly to the fears of the marks he had in front of him. He said stuff like, “How many of you, on the way here, were thinking, ‘It doesn’t matter what they say, I’m not buying anything’?” Again, 16 hands went up. He then tried to alleviate their concerns by saying, “This is not a scam.”
So, what is the scam they are trying to pull off at American Direct, Incorporated? They claim they can save you money by helping you buy the merchandise you would by at a retailer direct from the factory, saving the retailer’s markup. One example Asswipe used was Blue Blocker sunglasses (which I had never heard of). He claimed the cost to make them was $0.95. He then said the cheapest you could buy them retail was $9.95 from Sam’s Club and that most places sold them for anywhere from $14.95-$49.95. He used several additional examples, including some cheap ass knives and grandfather clocks, showing the markups on them. In short, he claimed you could save money by affiliating with American Direct, Inc. and buying stuff direct from the factory.
Of course that seems like a good idea. The problem, however, is that nothing is ever that easy. It’s not like the people at American Direct, Inc. are just going to sell you a $5.00 guide to buying factory direct or anything; they have a different goal. I think the goal of American Direct, Inc. is best seen in something Asswipe kept saying. He was really fond of asking, “What are retailers in business to do?” Everyone in the room was smart enough to realize the answer was, “Make money!” But the question Asswipe never asked was, “And what is American Direct, Inc. in business to do?” The response, of course, is, “To make money!”
So, how does American Direct, Inc. profit from “helping” people buying factory direct? There are three clear ways they do. First, they charge a 10% handling charge on everything you purchase from the factory through them. That’s in addition to the shipping you pay for. So, even though they claim to be getting rid of the middleman, in reality they become the middleman. Second, they charge a one-time lifetime membership fee of… get this: $1,999.00. Yep, that’s right, that’s almost $2,000.00. On top of that, and yes this makes no sense, you have to pay an annual renewal fee of $199.00. So, the one-time, lifetime membership fee isn’t the only fee – you have to pay $200 per year to stay a member.
Let me recap:
- 10% markup on everything you buy (in addition to shipping)
- $2,000.00 up front to join
- $200 per year to stay a member
And they claim you’ll save money by joining. Well, let’s think about that… While we were sitting in the “sales” room I saw at least three other sales people walking around, sitting on their thumbs, studying the marks, etc. There were also two secretaries/receptionists up front. That makes for at least 6 employees, if you include asswipe, all who take home paychecks. Hmmm… So, what they really mean with the phrase “saving you money” is “making them money.”
I particularly loved it when he said that they are not in direct competition with retailers. He even said that they don’t want to take all of the retailers’ customers away, which didn’t make any sense to me. If they really had a good deal for people and wanted to help them, they’d want everyone to convert. Truth be told, if too many people find out about this scam, they’d be run out of town. So, they don’t want too many people to know about it. In saying this, Asswipe actually claimed that everyone in Cincinnati was given a chance to participate in the program, but that they only contacted 10% of the population at a given time and that they dialed numbers randomly. Yeah, right. Remember my description of the demographics of the people there?
Oh, and about those demographics… At one point, in talking about the wealth of the Walton family, Asswipe said they were worth about $27 billion. He then asked if anyone knew how much a billion is. Two of the fathers in the room said, and I’m not making this up, “One hundred million?” I’m not sure if I was more shocked or appalled. Asswipe was kind enough to correct them, but I thought that was particularly telling. Asswipe really wanted these people to feel special, thus the, “We only invite 10% of the people around here to participate.” American Direct, Inc. is likely targeting people in lower-income and working class neighborhoods. They probably think they are less likely to see through the program and recognize the scam that it is. And because Debi and I are poor and bought our condo as poor graduate students we fall in the right zip code!
It was pretty clear from the get go that I was going to be the group’s only skeptic. I didn’t buy into the charisma and didn’t answer his questions. I didn’t raise my hand. In fact, I spent most of the time writing notes and doing ethnographic field work. But there were a few points when I had to pipe up and question his bullshit. For instance, he kept insisting that we are “forced” to buy retail. Everyone else agreed and I said, “No.” He said, “What do you mean no. You have to.” I said, “You can make it yourself.” To which he responded, “Yeah, good luck with that.”
Later when he insisted that retailers are a monopoly I had to pipe up again. I said, “No, retailers are not a monopoly and they can’t be due to anti-trust laws in the U.S. What’s more, because they are not a monopoly and compete for our money, that actually drives prices down.” He said, “Look, I took an economics class in college. I know how this stuff works…” I cocked an eyebrow at him as he continued, angrily, “I don’t care if you agree with me or not. The point is, I’m here to help you save money.” He got really angry and intentionally tried to avoid talking to me the rest of the time. His anger boiled over when he asked the people in the room if they thought $199 was too much to spend per year to buy factory direct. Everyone else said no, but I said yes. His response, “You think that’s too much to spend to buy factory direct?” I nodded my head. Then he said, “Then leave. You can leave right now.” I said, “I want to see how much the one time membership fee is.” He responded, “Why? It doesn’t matter to you. You don’t want to pay the $199 so why do you care?” I said, “I just want to see. So, do go on.” I think he was pretty upset, but I really didn’t care.
It was at about this point that the sales pitch ended. They then took us out of the “sales” room, divided us up into individual couples, and brought in “the closers.” I loved they way the closers worked. Rather than ask if we wanted to buy a membership or not – they went straight to, “So, how many memberships do you want, 2 or 4?” What a manipulative scheme. The whole thing is designed to manipulate, pressure, and deceive. It was absolutely appalling! We said we weren’t interested and the guy tried for a while to convince us we should be, but he didn’t get anywhere.
He then said he was sorry we weren’t interested, but that they were going to give us our $500 gift certificate and a travel voucher just for coming. Woohoo! When I got home I checked out the gift certificate and voucher in detail. The gift certificate claims to give you $500 worth of cash on this website: www.KEShoppingSpree.com. Since I didn’t use my code, you can use it to get into the site: KE0293712. KEShoppingSpree.com is another scam site. Yep, they rewarded our attendance at a scam presentation with an invitation to another scam. You can, in fact, buy shit on the website, but they charge you exorbitant shipping and handling fees (e.g., $15.00 to ship you an XBox game). I looked through the site and compared some of the prices to actual retail prices. They have the XBox game “The Hobbit” listed at $49.95 plus $14.95 shipping and handling. You can buy it at Wal-Mart right now for $19.95 and can probably get it used on Half.com for about $8.00. All of the kitsch on the site is set up this way. The price they give is way, way over retail. Then the shipping and handling charge is about what you’d pay retail. In short, the $500 gift certificate is worth a whopping total of $0.00, and is more likely to cost you money than save you money! My favorite part about this is that on the back of the voucher it has directions that tell you to enter the URL directly into your browser and not to use Google to search for it. Guess why? ‘Cause now that I’ve posted that it’s a scam, Google will return my URL too ;).
As for the travel voucher… Remember how they talked about timeshares being a scam? Yeah, well, it’s a travel voucher that goes through a timeshare sales company. You may get 2 nights free in a hotel, but you have to go through a timeshare pitch. What absolute and total assholes! American Direct, Inc. is a scam. And when we didn’t buy their scam, they tried to reward us with two more scams. All told, we threw away 2 hours of our life to American Direct, Incorporated. Assholes!
A couple of things I didn’t mention earlier but are worth touching on:
- Asswipe claimed he wasn’t a salesman but was a “consumer consultant.” Consumer consultant my ass!
- Asswipe intentionally exaggerated the differences between factory direct and retail by not including shipping and handling costs, which you’ll pay no matter what; he just reported the manufacturing cost.
- When Asswipe mentioned the 10% markup fee, he glossed over it as though it wasn’t really anything.
- Most factories don’t sell directly to consumers because it is too costly for them to manage the shipping, ordering etc. They use distributors. What do you think American Direct, Inc. is? You still don’t buy factory direct, you buy through American Direct, who is just a distributor/retailer.
- At one point Asswipe said, “There is no catch.” That was before he talked about the one time fee… ;)
- Asswipe mentioned a lot of well-known manufacturer’s names to make people feel like they would be buying namebrand merchandise. I’d bet my left kidney most of the shit they let you buy through them is kitsch and knockoffs.
- In a sheet they had us fill out, one of the things listed that you could buy factory direct was, and I’m not making this up, “psychic readings.” Debi and I laughed about that one for about 5 minutes straight. We almost put it down just to see how much money Asswipe thought we could save on it.
- If everyone who attended that night had paid the fee, that would have been about $20,000 (couples only pay one fee, not two). That’s probably about half the amount they pay one of the sales reps per year…
There’s another important thing to keep in mind here about why this program is a scam. I’m guessing most of the people who pay the fees never buy anything through American Direct, Inc. They get lulled in by the slick sales pitch and the deception, but then realize it was a mistake and go back to shopping like everyone else does – retail or wholesale. Keep in mind that Bill Gates doesn’t shop through American Direct, Inc. He shops retail, just like everyone else.
Anyway, I’ve come to love our zip code. It really brings in the scams. This is my new favorite, replacing the bi-annual Jesus Prayer Rug from St. Matthews’ Churches. Why? Well, it’s clearly marketed towards working class people and it really will bend you over and fuck you long and hard.
A couple lessons learned about scams:
- If they claim it is not a scam, it is. Any company that has to try to distance themselves from a scam is a scam.
- If they are trying to sell you something and won’t let you take pictures of them trying to sell it to you, it’s a scam.
- If the person trying to sell you the scam says they are not a salesperson, they are and it’s a scam.
- If they mention other scams or make fun them, it’s a scam.
Update 6/5/2006:
I just realized I should mention this company can also be checked out via the Better Business Bureau of Cincinnati. You can see a report on them here. I’m guessing the low number of complaints is the result of the small number of people who fall for the scam and not that the company is a nice one. Just my two bits, though… Also, if they contact you and you’re on the “Do Not Call” registry for telemarketers, you can actually lodge a complaint against the company with the BBB.
Update 6/20/2006:
John Matarese from Channel 9 interviewed me about my experience. You can see the clip below:
Update 7/13/2006:
Amazingly, I just got another call from American Direct, Inc. inviting me to come visit their recently opened store. The call came at 7:25 pm, on 7/13/2006. The number they called from was 1-270-762-9905. The woman on the phone said (and I’m paraphrasing), “Hi. We’ve just recently opened a store in your area and would like to invite you to come visit it. We’ll send you an invitation with a key in it. If you’re key turns on the truck when you get here, you can drive the truck home or win $10,000 cash. Have you ever heard of American Direct, Inc. before?” I, of course, said, “Yes, I’ve been to one of your presentations.” To which she quickly replied, “Oh, okay, I hope you enjoyed your presentation.”
Hmmm… Recently opened store my ass! And do you really think they call people randomly? I’ve received two calls in the course of just a few months. They are clearly targeting people living in working class neighborhoods. Bastards!
I just became a customer at American Direct and just saved 450.00 on my new wide screen at Best Buy the TV was 1999.99
Hi Penny,
I really hope that is true. But to verify it, can you give me the brand of TV, the model number, and a copy of the receipt? Without all of that information there is no way to verify what you are saying.
Best,
Ryan
Okay, so we went and they gave us a refund. It was hard to get a real fix on this business. I got the impression that they are as legitimate as they are required to be by law, but they’re not what I would call reputable. At first they tried to sell my partner and me on the whole scheme, but we were playing “good cop – bad cop” and I was the hardass who showed ‘em I meant business. I told them they blatantly lied to my mom, showed them a copy of the BBB report, told them I went online and read a number of blogs and reports from dissatisfied customers and that I’d found LOTS of bad info on America Direct, which they claimed is their biggest competitor. I also asked why the BBB has them listed under five different names, which they denied like idiots. Basically, they knew we had done our homework and decided a mutual dissolution of the contract was probably in their best interest.
Thanks for the update. I’m glad you were able to get out of the deal. Just goes to show that Google can save you money!
Best,
Ryan
Dear Ryan,
Wow I feel like an idiot! I went to the Royal Prestige presentation to grab the 2 $500 gift certificates and the 3 day 2 night hotel stay. I didn’t buy anything, because I am a poor student who is getting married and I hate cooking. (I KNOW WHO SOLD MY NUMBER, I HATE DAVIDS BRIDAL ARRRGH! They spam my phone at ungodly hours wondering if they can sell/rent me a tuxedo.) (Besides I wouldn’t spend $2000 on pots and pans when I can’t spend that much on a car I so desperately need.)
I remember sitting there going, “WOW! I don’t know teflon could give you cancer…” The salesperson working that night joked with us and I told him there was no way in hell that I’d buy his stuff. He gave me the coupons anyways and I asked if the stuff was legit and he said yes, which makes me sad because he was pretty nice and he handed me scam stuff.
Anyways it was very nice to find this site. I never bought anything with the gift certificate because I balked at the shipping prices. I kind of figured it was a scam because they were very vague with the products. Plus it surprised me when it said, “Do not use GOOGLE or any other search engine” under where it said to type in the address.
What is the deal with the 3 day 2 night hotel stay? Is it timeshare, and what exactly do they want? I was really hoping to use it as a vacation my fiancee and I so desperately need, but it costs anything more than the $50 security deposit it says on it…then its really going to pop my bubble. Not only did I sit through the long, boring, presentation…we had to wait for it since the one I was originally scheduled for was canceled since not enough people showed up. I was already at the hotel it was at so my friend and I just sat at the bar drinking for two hours before the next one. At least we had a few cocktails to get us through the bullshit, but I still feel like a complete idiot for going in the first place.
Hi Kim,
You’re definitely not an idiot (though I’ve felt the same way many a time). Think about it this way, you didn’t fall for the sales pitch – and you’re lucky you didn’t. I don’t think I’ve specifically mentioned this in this post before, but I paid about $400 for a very nice set of pots and pans about 5 years ago. I got them at Linen and Things. They are non-stick, teflon coated and they are superb. I can’t believe I cooked without them for so long. I’m completely enamored of them. And they were $1600 less than the crappy cookware they sell at these sales pitches. So, good for you for not buying.
As for the 3 day, 2 night hotel stay, I’m almost positive it is contingent on you going to a timeshare sales pitch, where you’ll get even more pressure to buy something. If you know, going into it, that you absolutely will not buy anything and don’t mind wasting somewhere between 2 and 4 hours listening to someone try to sell you someone, then it is a free 2 night hotel stay. But if you don’t have the fortitude to sit through that sales pitch, don’t do it.
Sorry you wasted your time, Kim. But, yes, waste it you probably did. Part of the allure of these sales pitches is that they do get you to invest time into the sales pitches. And the more time we spend on something, the more valuable we believe it to be (basic social psychology). So, unfortunately, it is actually working to make the sales pitch more believable the longer you spend there. Congrats for finding the site and realizing it is a scam.
Good luck with the wedding,
Ryan
Kai, did you attend the presentation at Jimney Peak? I am anxious to hear how it went.
Hi there! I posted on May 4. I just wanted to update you… they just called me again! They wanted to send me another key! As soon as I told them I’d already been contacted and had turned them down, she couldn’t hang up fast enough.
Julie
Julie,
In my experience, once you let them know you’ve had some involvement with them, they can’t get away fast enough. They know they only have one shot to scam you, then it’s over.
Thanks for the update.
Best,
Ryan
I am actually very thankful that I found this blog. After being contacted and told I had won a honeymoon vacation package and $500 shopping spree at KE I actually thought for a moment it was the real deal. Then me and my new husband decided to do just a little research and the ONLY thing we could find about this scam was this blog. I found it interesting that the web wasn’t flooding with information (and we all know if this were real, it would have more on the internet than just this). I am 5 months pregnant and I’ll tell you one thing, if I ended up going and they made me sit through some BS like that I would be a very VERY unhappy woman. So Ryan, thank you for the insight… We both greatly appreciate it!!!
Hi Breanna,
Glad I could help. Pat yourself on the back for looking into it before you went; not everyone does.
Best,
Ryan
in response, your arguement holds no real value. i decided to become a member and saved tons of money. well over what the enrollment was. what more can i say.
your loss and for those who dont believe it try it for yourself. dont listen to this skeptic.
Hi Jason,
I’m glad it works for you. As for my argument holding no real value, a sample of one does not illustrate that. I also think it’s funny you think calling me a skeptic is a bad thing. I’m a skeptic and I’m extremely proud of that fact! I don’t accept things just because someone says they are true. I want evidence. Just because you said it works for you doesn’t mean it actually works. I need proof. Send me receipts for items you’ve purchased to show me how much you’ve saved. Send me the evidence. If you can prove that it works, I’ll stop criticizing the company. But I have yet to see any evidence of that.
Best,
Ryan
I worked at a call center. I too, Ryan, am a Graduate student. Firstly, I have no particular love for the company, they just paid really well to talk on the phone. I hate phones, I like talking, and I’m not rich, so two outta three ain’t bad. Secondly, the people that call you have no idea what they’re doing. We were just given a script to read. We were explicitly kept in the dark about the actual operations. We knew there was a membership fee, but I have no idea how much it is. And the annual renewal is new to me. Though it is pretty humorous.
So basically, what I want to say is this, don’t hate the caller. In fact, we do use our real names, I did anyway. But most of us are just college student trying to pay the bills while getting an education. With a few High School drop outs with an excuse for not getting an education. (The pay is surprisingly good. It ranges from $7.00 – $16.00 depending upon performance.)
Anyway, I think scam might be a little a harsh…I mean they actually do deliver a product. If anything, I’d say they’re only guilty of self-ingratiation.
As for the target demographics…I think that’s probably not true. I mean they’ll take anyone’s money I’m sure. But you are right, the calling isn’t random. IN fact, it’s the exact opposite. As a caller, we’re given a couple of folders lists of numbers. The folders are organized by area code (not zip code) and then the lists of numbers start with one prefix in the area code, say xxx, and then goes through every 4-digit remainder. e.g. xxx-0001, xxx-002, xxx-003 etc. So it’s certainly not random, but it’s not targeted either. I think the demographics you observed most likely came from the type of people desperate enough to win a new car or $10,000. I mean honestly, if you’re a multi-millionaire, you don’t care about winning either one, and you’re not overly concerned with how much you spend on retail. So it’s not as if a particular demographic is targeted, it just that a particular demographic responds more often than others. Which is different from being targeted.
You are right though about the new store bit. They have three stores, 2 in Ohio and one in Texas, and the Texas is the newest. The other two have been open for years. But then again, ‘new’ is a fairly relative term.
And just as an aside…The national do not call list doesn’t technically doesn’t apply to American Direct. The scripts are worded so that they are not selling you anything over the phone. While there is a sales pitch at the location, that doesn’t qualify as telemarketing. Granted, this may be merely an aesthetic thing, but it does allow them to legally not be classified as ‘tele’-marketers. They technically market nothing over the phone.
In any case, thanks for giving me the skinny, I always wondered what happened to the poor saps I lured in…
Hi Ryan –
My boyfriend and I attended a presentation on Saturday, May 26. Everything you said is 100% true. I’m surprised that we were contacted…our zip code is in the heart of Hyde Park. They seem to be shooting for a higher demographic as there were two middle aged, upper middle class couples there. The free hotel stay is now “two free roundtrip Delta tickets” through FlyFreeAmerica.com. You pay $99 activation fee, and you get to fly free to a limited number of destinations. The kicker is that you have to pay $199+ per night to stay in a hotel once you get there. We only went because we thought maybe we could fly free down to our already purchased condo in Florida, but I don’t think it’s going to work. We have a request in to Fly Free America. I will let you know what happens.
One last comment. The tactics of the sales people bordered on illegal. I almost felt kidnaped. Usually when I go to a sales presentation like this, I play along and pretend I’m really interested. I’m not sure why…I guess I like to see their faces when I tell them I’m absolutely not interested once we’re in the pressure room. Usually it makes it easier for us to get out of there quicker, but at this one it made it way tougher. They kept us in that room an extra half an hour after I said no. I got up and opened the door and stood in the door to show them I wanted to leave. The salesman kept telling me to write down a “legitmate reason” why we weren’t interested after I had already written down something. I finally said “look, we saw a woman who was in the presentation with us leave after 5 minutes. We’ve been here an extra 30. Now I want to know what she said to be able to leave.” The guy said “she said she couldn’t afford the membership”. So I said “Great! We can’t afford the membership. Can we leave now??” Overall an extremely high pressure and intimidating sales pitch that I didn’t appreciate.
The presentation lasted two hours. The woman on the phone told me it would last one. The “free gifts” are a bunch of crap. I tried like crazy to find USA Direct on the web before I went to the presentation, but I couldn’t. I wish I would’ve found your blog beforehand – it would’ve saved me some aggevation on a holiday weekend. I plan on complaining to the BBB.
Hi Former Employee,
Thanks for the thoughts. I can understand your position. I still think working for such a company is morally objectionable, even though you didn’t know all the details. But, I can understand your position.
As for it being a scam… Well, if they claim something other than what they deliver, that makes it a scam. They deliver crappy products at a paltry savings. I don’t think that’s what they claim. But, you’re right, it isn’t an out and out “steal your money” scam. It’s just mostly an out and out “steal your money” scam.
Christen,
I’m glad you found the site, but sorry it took you until afterward to do so. The company must be having a hard time signing up new people if they are getting so pushy. That is really, really pushy (which is an indication that it is definitely a scam). Please do complain to the BBB. The more complaints, the merrier!.
Why do you hate American Direct so much. Did they rip YOU off??
I wouldn’t say I hate them. I simply believe they are scamming people. In the interest of informing people about what they are getting into if they go to the American Direct sales pitch, I posted about my experience. I don’t think what American Direct is doing is entirely honest, but that is my opinion. I leave up the opinions of others on this blog – those who agree and those who disagree. Basically, I think people should make informed decisions. American Direct wants to limit people’s access to information; I want just the opposite.
Ryan
So what you are saying is that you were NOT ripped off by American Direct. That is absolutly opposite from what you seem to be implying in your story about your experience. About 90% of the postings here are from people who did not even join the club. Do you think that this is a fair representaion of an overall member experience?? I wish more of my fellow members would post on this so more people would not take to heart comments made by people who have zero clue what they are talking about since they are NOT MEMBERS. Like yourself. Unfortunatly people who have good experiences typically will not talk about it in this format. They would rather be happy with all of the money they have saved and have a nice day.
You don’t like their sales tactics? Fine. You did the right thing by not joining since you did not feel comfortable. But others choose to look past that and find more money in thier bank accounts at the end of the day once the utilize thier membership. It is not for everyone. It worked for me and it works for many more people than this site reflects. Thank you for you time.
Happy American Direct Member
Hi John,
I never said I was “ripped off” by American Direct. I said I went, found the whole enterprise questionable, and decided to describe my experience. Given what I know about it, it is very close to being an out and out scam. As I said earlier, it is possible that some people might benefit from this – if they buy lots of cheap stuff (e.g., home furnishings for rental units), then this may actually save them some money. But for the average consumer, it’s isn’t very likely.
As for whether this is a fair representation, that’s neither here nor there. This is my blog. That means I get to post MY OPINION. I never claimed impartiality. Additionally, just because someone is a member doesn’t mean they have accurate information. They, too, are biased – just in the opposite direction of myself. You are welcome to start your own blog talking about how wonderful American Direct is. It’s a (mostly) free country. But I do want to point out that, if I was completely biased and not interested in dialog over this issue, I’d just delete comments like yours. I can, but I don’t. What does that tell you John?
As for me having “zero clue,” I don’t think that is fair nor accurate. I went to the presentation. I sat through it. And I did not find the arguments made by the sales people at all convincing. Just because I am not a member of something doesn’t mean I can’t have an informed opinion about it. I’m not a Republican or a Democrat, does that mean I have “zero clue” what those two parties are about? I’m not a Muslim or a Catholic, does that mean I have “zero clue” what those religions are about? Your argument is fallacious.
I really do hope it works for you. I know it would not have worked for me – the sales person even said it wouldn’t. I reserve the right to describe my experience. It is, after all, my blog. I can say whatever I want, so long as it is my opinion (which this is).
Best,
Ryan
Hi Ryan,
I recently worked for American Direct. The only reason I did so is because the pay is really good, for a high school student. Ha, they have highschool students working for them. You guys are being called by alot of fifteen and sixteen year olds just to let you know. I finally quit due to the fact that I was tired of scamming poor individuals out of their valuable time. I worked at the “marketing center” in Kentucky. I’m soooo sorry for calling you people! Anyway, when I started working there, there were certain things that the Owner and managers wouldn’t tell the employees. For example, the membership fees, the website address, what year the company started and much more. It was all very shady. Trust me, this “opening promotion” has been going on for an extremely long time. When we tell you that we are trying to get this promotion to a close, that is also false. We have said that for months. It’s just a way to lure you guys in.
Hi Sabrina,
Good to know. Thanks for stopping by. And I’m glad you finally quit!
Best,
Ryan
I just got caught up in this scam today I went to the seminar and signed up. I just got home decided to do some research and came across the blog, and few other sites. I am going cancel this contract because legally, we have three days to cancel.
I Learned my lesson do some research before hand…
Thanks allot for putting this up….
Hi Sunnie,
Happy to help.
Best,
Ryan
Hey Ryan, I’m glad you had this online. I think it’s crazy that you started this page over a YEAR ago and you are still getting replies on this! I got a call today and was tempted to make a long drive to get our 2x$500 but thought it was fishy i couldn’t see what i was going to buy with my gift certificate. with your password i saw it was a bunch of stuff i couldn’t care less about. I’m glad i saw your site on google before going all the way out there! thanks for posting this over a year ago!!
Hi Super Grateful,
Happy to help. Any relation to the Grateful Dead?
Best,
Ryan
I just got a call from a woman at American Direct. She told me the key I had thrown away was probably good at that I could get a duplicate if I went to the appointment tonight. I told her my dad had recently passed away (true) and that I really could not be bothered with promotional sales events. She continued to reassure me that it was probable that my key would fit and I really should attend. I then did a search and found this blog, thank God.
I really want to thank you all for the heads up regarding this company. I am grateful to Ryan and Debi for starting this blog. I am also happy I did the research. I really was not expecting something for nothing, but I must admit the caller from American Direct was good. She had an urgency in her voice while she told me about how my key was one of the only ones left that could turn the ignition. For a moment she almost had me fooled. I have just registered my telephone number to the “do not call” registry.
Hi Karen,
Happy to help. We’ll just chalk one more up as having been saved from a high pressure sales pitch! Spread the word!
Best,
Ryan
Just thought I would share a little. My wife and I went to a presentation in Columbus in 04. We ended up buying in and later wished we hadn’t just because we really did not need it.
I suppose if you were remodeling you might use it. They did come down to $1700….if you call that coming down, and also there is a $100 renewal fee every year. We haven’t paid it yet, and unless I’m planning on buying a car or some windows. I don’t think I will.
I just wish I had went back and got my money back before the 3 days were up. I was under the impression there is no cancellation fee.
But so goes…..just wish I had researched the company before I went. Thanks for the informative blog.
Erin
Hi Erin,
Sorry you joined. I think you’re right, if you are planning on making a lot of purchases right away it may save you some money. Otherwise, it’s just like giving money away.
Thanks for sharing.
Best,
Ryan
Ryan, I just wanted to say thank you for posting this, along with everybody else. But I am thanking you for a reason that I haven’t seen yet…
I was supposed to start my new job this morning, make $7 per hour in Murray, Kentucky, at a call center (the only one?) for American Direct. I was told that it wasn’t a sales job, but I was going to be paid based on my “quota” of contact cards (people who will be receiving invitations in the future). It could go as high as $12 an hour–something I desperately need right now.
Something told me to check sources earlier, but I was just lead to do it this morning by my gut feeling. I was supposed to start work 10 minutes ago, but I am not going.
Last year, I was a Quixtar “independent business owner” (associate them with Amway), who would be found in a meeting similar to the one you experienced. My husband and I regret joining that business, and are still recovering from financial losses. I am not proud of attending those meetings, encouraging demographics similar to those of American Direct’s to buy into a business opportunity that in fact was only “opportune” if you got out, haha.
Anyway, I will not be working for American Direct, although I desperately need a second income. I just cannot allow myself to morally do that to people again, whether or not I see them face-to-face.
So, I’m off to a job application that I can be proud of.
By the way, the 270-762-#### confirm that they are in my town. I am sorry that it’s based here; kind of a sore in a beautiful college town in my opinion, and disappointing to say the least.
And I’ve never gotten a call from them, which makes me think they could get “removed” if it was discovered to be in Murray. I doubt they ever call people this local.
This is a good thing for your blog. You just saved at least 3 people per hour from coming to seminars in the future, and I planned to work full-time :o)
Hi Becky,
Thank you for posting. I’m sorry you won’t be making the money, but I applaud your decision to do the moral thing and not participate in scamming people! Good for you!
I hope you find a better job as a result.
Best,
Ryan
I have really enjoyed reading the responses on this site and would have to agree that this is a total scam.
Even to those that have reaped the benefits, the company still employs deceptive and strong arm tactics, which if it was good for the majority, it wouldn’t.
If it was so legit, then why not tell you UP FRONT, that you would need to do major purchases to recoup just the “one time” fee, much less the purchases you would have to make annually to cover the $199.
And then there is the “free” gifts for attending. Did any of you “advocates” actually use those? Give me a break, I looked up several items on different categories to do my own comparison and on every single item I saw the SAME one at or below the shipping cost. Where the hell did they get their MSRP’s?
Now lets get to the truck. In every post I read, not one person won the truck. How about with you “advocates”, did anyone in your group win? That alone is a deceptive tactic.
Lets face it, even in the biggest scams someone has to benefit, but the reality is that most will not, and that is where these posts come in handy. If they had come out and told me that I could save thousands of dollars by joining the club, but only if I was planning major purchases, then I would be ok with it, but the fact is that the majority of the people in the “group” can’t afford to spend the money necessary to make back the investment, and ADI KNOWS IT!!
Ryan and Debi.
Thank you VERY much for your website. I was very suspicious of the call, the key and the follow-up calls to ensure I was going and to give me my passcode to go with my key. My appointment is tomorrow at 10 am but thanks to you I wont be there wasting my time on beautiful spring day in Austin, Texas!!
My 78 year old dad just surprised me with the membership card for this service. He wouldn’t tell me what he paid. I am guessing $2000.
Going to talk American Direct this week to get his money back. Ugh.
Ryan, thanks for hosting this blog.
I’m glad it helped.
I attended an American Direct presentation yesterday. I have taken early retirement and had nothing to do. “If its too good to be true, it is.”
The presentation was the stock script described on your blog. My one-on-one counselor told me he had only been on the job 6 weeks and kept going to the manager’s office for answers to my questions.
I was really surprised when the counselor insisted I sign a statement making my decision not to join irrevocable!! Irrevocable my left sneaker! I’m waiting for the next call!
A friend and I did a longish google on Ameircan Direct.. We found lawsuits filed in Columbus and in Butler County. We also found the name of the owner of the American Direct website among other things.
Interestingly enough, we were unable to locate the website for the group that “sponsors” American Direct:: The American Manufacturers Association (I think, it was mentioned in the presentation). The ones I did find had the word “Asian” or (Latin) in very small letters in front of the bold print site name of American Manufacturers Association. I’m not certain these are the actual sponsors referred to in the presentation.
I’m ready to nail up a manifesto on their office door! Is there any way to get these dudes out of town short of a shotgun and a shovel?
Hi Karen,
I wish there was. I’d suggest lodging a complaint with the Better Business Bureau. Hopefully enough complaints will lead to more investigations of the company.
Best,
Ryan
Ryan,
Wish I had read your blog before I committed to American Direct on Saturday in Columbus. The sales pitch was completly phony and certainly a hustle. Talk about time share pitches! Because I didn’t check any big ticket items on the list, they gave me to a newbie, who was very unsure of her presentation. She kept expecting me to walk out, especially after she told me that I wouldn’t be saving much on the refrigerator I need to buy.
So why did I fall for it? Because I buy wholesale for my jewelry design business and know what the markup on things is. I figured if this was legit, despite the scammy, scummy sales pitch, I could buy other things I need wholesale and save a ton of money.
Then I went looking for things to buy . They said I could go to a store, get the manufacturer’s number and then buy it through American Direct. NOT! I just discovered that unless you are buying HUGELY POPULAR items such as flat screen tvs or whole rooms of furniture, they don’t actually buy from every manufacturer. Instead of a nice Kohler toilet, for instance, what they can sell you is American Standard’s commercial one-piece stool, with no tank, and which requires special plumbing. Who wants that in their half bath?
And that bedroom furniture ad they wave at you at every presentation — you all know the one I mean. That ad struck me as wrong, but it wasn’t until today that I figured out what it was. The brand name of the furniture is fake, I think. It’s supposed to sound like something good such as Bassett or Broyhill, but it’s neither. Now I wonder if you actually could order Bassett or Broyhill or just junk.
Discovered your blog when I was writing the “Cancel my membership” letter. Thanks for putting it out there, since there is almost nothing on the internet about a company that says it’s been in business for more than 20 years. That should have been a red flag right there.
Glad to help.
Has anyone been able to find out where the headquarters for American Direct is? Who the founder is? President of the company? Any web site? A friend of mine joined American Direct in Fairfield recently and I knew it had to be a scam. I want to be able to show him any info that can be found.
Hi Sally,
Looks like this is where they are headquartered:
http://centralohio.bbb.org/WWWRoot/Report.aspx?site=49&bbb=0302&firm=14007595
And it looks like they have an unsatisfactory record with the BBB. Any other branches must be satellites of the main one.
Best,
Ryan
Ryan, I posted last July. I was the girl who decided NOT to work there, despite my need for better income at the time, haha.
Well, just wanted to update you: American Direct is still based in Murray, KY, much to my dismay. As for me, I interviewed for a job the same day I decided not to go to work at American Direct, and I love it! It’s a REAL sales job, where I sell insurance adjustment software to people who actually need it, haha. I can’t believe they haven’t been weeded out yet! If you need any assistance, just let me know!
Hi Becky,
I’m glad it worked out for you. I’m not sure what will be required to shut this company down, but nothing seems to be happening along those lines as of yet.
Best,
Ryan
Well I was contacted by American Direct recently and invited to their Fairfield, OH showroom for a Ford Ranger or $10,000 cash giveaway. I thought it sounded too good to be true. Thanks to all for bringing this scam out in the open.
I just got the key in the mail. I can’t wait for them to call and “sweeten the pot”. Thanks for the heads up.
I live in Dayton, OH. I just got a call from American Direct this afternoon, inviting me to take part and I was suspicious right away. When I asked the girl (who had a very thick southern accent) how she got my number, she claimed it was dialed at random. When I mentioned the Do Not Call list and told her my number was on it, she didn’t seem to know what it was but when I told her about it and that calling me was against the law, she promptly hung up on me. I then did a google search and found your blog. Thanks for warning the public against this dishonest practice.
I just got a call from these scumbags.
I just love how they claim that the Do Not Call List does not apply to them. Sorry, honey, but it does. It IS a sales call, and it IS illegal for them to call me.
I live in Yellow Springs, a nice place to live but also has a high percentage of unemployed 40-somethings living in their parents’ basements (they seem to form the defining voter bloc in local politics), so I get calls like this all the time. I love my ZIP code too!
Wow, I guess Im glad I searched for this tonight. My wife and I got a call a week ago about winning a truck and I was playing on the internet. I told the person on the phone that if he was calling for me to buy something then i was not interested and he replied that all he needed was my address and he would send a key to me. Of course I gave it to him to shut him up and get back to playing my mmorpg (lol).
We received the key and set a date for tomorrow at 11:30am I guess they will have one empty seat.
Thank you Ryan for your post on this. We would all love to save money but if most are like me. I dont have the money it takes to save money from American Direct.