Motor Club of America Information

Motor Club of America Information

Acronym: MCA
Business model: Multi-level marketing (MLM)

Information from the FTC regarding pyramid schemes: http://www.ftc.gov/speeches/other/dvimf16.shtm
Information from Fraud.org comparing pyramid schemes to MLM: http://fraud.org/pyramids/pyramid_mlm.htm

Pyramid/Ponzi scheme accusation rebuttal:
Ponzi schemes involve no products or services. They are merely investment schemes. What people are accusing MCA of is a pyramid scheme. There are many properties a business model needs to meet to be a pyramid scheme. This data can be verified at the FTC/Fraud.org links above. Some of these properties are:
-forcing associates to buy bulk products up front - MCA doesn't do this; it's a service company
-a product that is not viable for the market or is not sold to consumers - the viable target market is at least 153 million people - the drivers of America - not to mention Canada; product can be sold directly to consumers without requiring them to join the sales program
-pushing associates to recruit heavily over product sales - MCA does not do this, as I do not receive e-mails telling me to recruit; actually the only e-mail I've received outside of my sales receipts is one letting associates know how to legally use their trademark images and associate promotion limitations; if you see people recruiting heavily, it is because they choose to do so, not because MCA makes them do so
-incentives for recruiting - these would include extra bonuses for recruitment or meeting recruitment goals; yet when product sales and recruitment both yield $80 (especially considering product is sold in both instances), this is definitely not the case; there are no recruitment goals or quotas
-product sold only within the pyramid - a customer does not need to join the associate program to buy the product; customers can buy what they want without even joining a sponsor

Excerpt from a MCA discussion:
--- CynthiaBelleza Message ---
Let me start off by saying that I have not made one cent with MCA but maybe one day I will :( It is hard to push the benefits even though they are necessary I HAVE however used them as a member. Again, I have not made any money off of MCA, I am merely a consumer. When I called in after locking my keys out of my car, the representative was so friendly and professional.. I wont lie I did wait about two hours but that wasn't the fault of MCA apparently the tow company was busy. As far as more expensive than AAA, keep in mind that AAA only tows up to three miles for free with a cap on your twos whereas MCA tows for 100 miles for free and you get those benefits unlimited.. they are good to compare however MCA offers a tad more.

--- Ernestejust, in response to CynthiaBelleza ---
Where did you get the bad info on AAA? 3 miles? That's absurd, wake up from your ponzi scheme and check the Internet so that you see that AAA premiere package tows up to 100miles, and you receive up to 4. If your vehicle is that crappy where it requires unlimited tows then maybe you should take that $20 a month and put it towards a new car. $80 for a year, compared to an $240 of unnecessary fluff that a pyramid scheme (as clear as day) is attached to. Very few get rich off of such fairy tales, but if you stand for nothing you'll fall for anything.

--- Yvonne, in response to Ernestejust ---
Cynthia Bellezza is right and you are wrong, dear.  AAA (basic plan) tows only up to three miles back to a AAA destination.  Basic MCA tows up to 100.

Do YOUR due diligence before you cast that big ol' stone, love. :D

--- artizhay, in response to Ernestejust ---
Wow, the lack of knowledge in this rebuttal is astounding. Really, you pointed out your ignorance by stating "premiere package." Clearly, if a company offers a "premiere package" (or premium, top-level, etc), there are obviously packages below it with lesser benefits, which you don't seem to be aware of. Quite embarrassing, really.

Yvonne is correct - the basic plan tows you up to 3 miles, 3 separate times per year. Wow, all that money for a total of 9 miles of towing that you can't even use at the same time.

By the way, if you're new to AAA, they require you to be on the basic plan until you can prove your "worth" of being on a higher package. Wow, maybe not a scam, but that sure is rude. I don't even have the freedom to choose what package I want, and I have to prove that I'm worthy of paying AAA even more money. At least with MCA, I can choose to pay anywhere from $9.99 to $39.99 per month. I don't have to jump through hoops to prove my worth to the company.

Also, just thought I'd let you know - the FTC says you're confused. "Some people confuse pyramid and Ponzi schemes with legitimate multilevel marketing." I'm sorry that you have to fall into that category. Not everyone's minds can be well-informed or easily understand business concepts.

What's even more shameful is that you said "Ponzi scheme" and "pyramid scheme" in the same comment, when there are striking differences between these two illegal structures. Frankly, you're just further displaying your lack of knowledge of what either of these is.

Ponzi schemes involve no products or services, by the way. It's merely an investment scheme. What you're shakily accusing MCA of is a pyramid scheme (well, assuming you even know what that is). There are many properties a business model needs to meet to be a pyramid scheme. Some of them being:
-forcing associates to buy bulk products up front - oh look, it would seem MCA doesn't do this; it's a service company

-a product that is not viable for the market or is not sold to consumers - oh look, it would seem the viable target market is at least 153 million people - the drivers of America - not to mention Canada

-pushing associates to recruit heavily over product sales - oh look, MCA definitely does not do this, as I do not receive e-mails telling me to recruit; actually the only e-mail I've received outside of my sales receipts is one letting associates know how to legally use their trademark images and associate promotion limitations; hmm

-incentives for recruiting - oh look, these would include extra bonuses for recruitment or meeting recruitment goals; yet when product sales and recruitment both yield $80 (especially considering product is sold in both instances), this is definitely not the case; oh, and there are no recruitment goals or quotas

-product sold only within the pyramid - oh look, a customer does not need to join the associate program to buy the product; customers can buy what they want without even joining a sponsor; wow

I mean, if you don't agree with me, you're free to tell your friendly neighborhood government agency, the FTC, what idiots they are: http://www.ftc.gov/speeches/other/dvimf16.shtm But considering your displayed lack of knowledge, they may just laugh at you and tell you to go away. Be warned.

Anyway, a product being at a price higher than what you would pay does not make it a scam, by the way. I mean, some people love buying Mac computers that cost thousands of dollars, compared to similar Windows-based PC at half the cost. Yet, it would just so happen that Apple is one of the biggest corporations in America. Really, you should go start a RoR about how big of a scam they are and how they've infiltrated America with shady tactics and Ponzi/pyramid schemes. That'll do the trick. They'll be out of business by tomorrow once everyone realizes the truth because of you. Thank goodness for your intuition.

Oh! Did you know that AAA only saves members an average of 24% off their prescriptions? While MCA saves an average of 65%, even at well-known pharmacies such as CVS and Walgreens. Oh, and their optometry and dental discounts go up to 50%.

So, while I know that you think the 300+ million people of America are just like you and spend their money just like perfect you, it may just so happen that someone, through a simple mathematical calculation that you probably don't know how to do, may actually spend less over time by paying $19.95/mo for MCA and receiving a 170% increase of medical discounts over AAA's lesser fee but also lower discounts.

Just some food for thought. But you are omniscient and very well-informed, so I understand if you still think you are right. Have a good day!