Multi-level marketing (MLM) companies have developed a reputation for being questionable business opportunities over the years. With Procom in particular, there seems to be a lot of speculation around whether it’s a legitimate recruiting firm or just another pyramid scheme.
In this in-depth article, I’ll provide a well-researched analysis of Procom to help answer the question “Procom recruiting scam or legit?”. We’ll look at what the company does, how it operates, examine common complaints, and consider industry regulations.
My goal is to give you a full understanding of Procom so you can make an informed decision about whether it could be a good fit for your career goals or not. Let’s get started!
What is Procom? An Overview of the Company
Procom is an MLM company that bills itself as a recruitment and staffing firm. Founded in 2019, the company is privately owned and headquartered in Delaware.
Procom’s basic business model involves recruiting individuals to become “recruitment consultants”. These consultants are then expected to both recruit others under them and secure clients that need staffing services. Consultants earn commissions from the placements they make directly as well as from those recruited under their downline.
In addition to their recruitment services, Procom also sells business coaching and training materials. New consultants are encouraged to purchase starter kits with sales aids, training videos, and business building tools. Ongoing coaches are also sold to help consultants improve their businesses.
Procom operates by having consultants find and screen potential job candidates that are then placed at client companies through Procom. The core function appears to be more recruitment and staffing rather than the direct sale of products.
So in summary – Procom is an MLM firm that recruits individual “consultants” who are expected to both sign up other recruits and secure clients needing staff placements in order to earn commissions.
Common Complaints About Procom – Scam Allegations
There seem to be a number of common complaints that have caused speculation about whether Procom is a legitimate business opportunity or a potential scam:
Expensive Startup Costs
Critics argue that the startup costs to become a Procom consultant are inflated and unnecessary. The starter kits and business tools can cost over $1,000 initially. However, there are questions around how effective these materials really are.
Difficult to Earn Money
Many former consultants claim it is nearly impossible to recoup the initial investment, let alone earn a substantial income. The recruitment side of the business is said to be extremely saturated, making it tough to build a significant downline for residual commissions. Placements also don’t seem to occur at a high enough rate.
Unrealistic Income Claims
Procom aggressively markets the opportunity using images of luxury lifestyles and claims that seven-figure incomes are reasonably attainable. However, most people cannot verify these figures or the true incomes of most regular consultants. Critics argue they create a false expectation.
Lack of Transparency
There is little publicly available data on Procom’s actual operations, consultant retention/turnover, or the percentage of people who truly profit versus lose money. This opaqueness has led some to believe Procom may not want unpleasant truths scrutinized.
Manipulative Recruiting Tactics
There are allegations that Procom consultants use high-pressure tactics to recruit downlines, making dishonest claims and failing to provide balanced perspectives on the difficulties. Once recruits join, some argue they feel stuck in unprofitable businesses.
In summary, many of the usual “scam” red flags frequently associated with questionable MLMs seem applicable to Procom according to critics – expensive startup costs, difficult realities versus marketed dreams, and lack of transparency around actual outcomes for most participants.
Procom’s Perspective – Defense Against Scam Allegations
Procom strongly denies that it is a scam and states it aims to provide a legitimate business opportunity and recruitment service for its consultants:
- Procom argues startup costs are similar to franchising and small business creation. Consultants receive valuable assets they own through materials and education.
- While earnings may be challenging to achieve at first, Procom believes the income potential is real for dedicated consultants who invest in skills and recruiting a strong downline over time.
- Testimonials from top earners are cited as proof the opportunity can work, though Procom acknowledges consultants’ own efforts are key to success.
- Procom aims to maintain transparent accounting practices and comply fully with all applicable laws and regulations. Consultants are independent contractors.
- High-income claims are from real people but acknowledged as rare outcomes few achieve. Marketing materials now include more balanced perspectives.
- Procom asserts it has support programs to help struggling consultants and does not wish to see anyone lose money from involvement. Profit/loss outcomes cannot be guaranteed for all.
Overall, Procom claims scam allegations stem from misunderstandings of direct sales and come from those lacking commitment to build the business properly over time. While earnings may be challenging for some, the opportunity itself provides real value when embraced as intended.
Examining the MLM Business Model
To fully evaluate Procom’s legitimacy, it’s important to understand the inherent complexities of multi-level marketing (MLM) structures:
- MLMs aim to leverage viral growth potential through recruitment. However, recruitment often saturates available markets, harming later participants.
- income relies on not just your own sales/placements but those of your recruits and their recruits too. Huge downlines are needed to achieve claimed earnings.
- regulators seek to prevent MLMs veering into unlawful pyramids by requiring substantial frontend retail sales. But recruitment-focused structures have unclear long-term viability.
- many MLMs can appear legitimate while lacking transparency around typical outcomes for average recruits. Low recruitment and placement rates can still net companies millions.
So while not inherently scams themselves, MLMs’ recruitment-centric models do create an inherent conflict of interest and incentivization toward continuous recruitment over profitability for recruits/consultants. Success tends to hugely favor early adopters over later joiners.
Rather than labeling MLMs definitively as scams or not, a fair assessment acknowledges both legitimate and problematic elements these structures can potentially harbor depending on a given firm’s practices and typical outcomes.
Industry Regulations and Compliance
As a US-based MLM, Procom must comply with relevant regulations:
- The FTC requires MLMs demonstrate a majority of incentives come from retail sales, not recruitment bonuses. However, this can be loosely defined and enforced.
- Some argue MLMs flout the spirit of “income disclosure” laws by not prominently displaying the realities for typical, less successful participants not just top earners.
- State security laws aim to prevent MLMs resembling unlawful pyramid schemes through prohibiting buying into a scheme primarily to receive recruitment-based compensation.
Procom asserts it generates significant revenues through placement fees, meeting the FTC criteria. However, critics argue recruitment still appears heavily incentivized in practice. Without robust earnings data transparency, full regulatory compliance is difficult to independently verify.
Analyzing Common Procom Use Cases
To provide a practical perspective, let’s examine how Procom could potentially work for different types of individuals considering it:
Career Changer: Procom may appeal as an accessible venture, but changing careers to MLM recruiting is high risk without sales experience. Earnings potential seems low for novices.
Business Owner: Some business owners see Procom as a staffing company opportunity. However, the MLM structure poses compliance issues and recruitment-heavy goals may conflict with running a legitimate staffing agency.
Stay-at-Home Parent: Work-from-home appeal exists here, but MLM recruiting requires skills/commitment exceeding what many expect. Income from placements alone rarely offsets joining costs and ongoing coaching fees realistically.
College Student: Flexible hours are attractive, but students lack experience/capital needed long term. Recruitment market saturation poses difficulties as do responsibilities of waiting tables conflicting with MLM’s demands.
Overall, most cases show Procom may superficially align but opportunities aren’t suited to inexperienced entrepreneurs, casual income seekers, or those lacking capital and true business-building commitments full time. Success depends heavily on skills, starting capabilities, and continuous drive to recruit significant downlines.
Alternatives to Procom
For those seeking legitimate work-from-home or entrepreneurial opportunities, alternatives exist without the high-risk, membership-based qualities of MLM structures like Procom:
- Freelancing in areas like writing, design, programming, consulting with real marketable skills trainees can develop. Lower barriers, no recruitment needed.
- Own website/blog businesses scaled over time through Affiliate Marketing, Personal Branding. Products/concepts actually add value versus recruiting.
- Legitimate Staffing/Recruiting firms with salaries, benefits, training and support systems in place of attempting a solo MLM recruitment venture.
- Online Course Creation leverages real assets/expertise developed. Income relies on customers, not recruits under questionable structures. Training opportunities abound.
- Gig Economy includes opportunities like ride-share driving or delivery work offering consistent wages versus MLM commissions largely depending on others’ efforts.
In summary, feasible self-employment opportunities do exist but typically require developing marketable skills, providing real value through services or information products, building reputable brands or customer bases slowly over time, and working independently rather than relying on recruiting others under you.
While multi-level marketing firms may promise flexible work-from-home income, the recruitment-based structures come with considerable risks, uncertainties, and question marks regarding both their legitimacy and sustainable long-term viability for average participants.
Making an Informed Decision About Procom
After examining all available information, several key considerations stand out when evaluating whether Procom could be a good fit:
- Experience in sales, recruitment, business ownership highly recommended prior to joining an MLM. Procom may be too risky without existing skills.
- Acknowledge the reality that few achieve the highest income claims, which require huge recruitment efforts many find unsustainable. Earnings of average participants are unclear.
- Consider alternatives leveraging existing talents through well-established self-employment models that don’t rely on recruiting others or membership fees.
- Carefully review the companyDisclosures Statement on Procom’s website regarding typical outcomes and consultant turnover/retention rates. Lack of transparency is a red flag.
- Joining costs are probably better used toward developing marketable skills or starting business ventures with clearer paths to profitability and independent sustainability long-term.
- Always research the regulatory compliance and legal standing of any MLM opportunity thoroughly to understand structure and look for industry complaints/actions.
While Procom may work for some highly driven individuals able to recruit heavily and secure many clients, overall the model seems poorly suited to those new to business ownership or direct sales. The high risk, recruitment-focus, and lack of transparency in typical outcomes raise substantial caution flags.
More reputable opportunities exist developing in-demand skills or providing real services/products without the complexity and uncertainty of multi-level marketing structures. For most, alternatives to Procom are likely better paths to feasible self-employment and work flexibility without the need to recruit others. An informed decision considers all options.
In closing, while Procom may not outright be a scam in the legal sense, its multi-level structure and recruitment-centric model create an inherently precarious situation for average participants that simply do not align well with most career goals or risk tolerance levels. Approaching any MLM opportunity, especially those lacking transparency, with extreme caution is advised.