Cobra Group is a registered company specialising
in door-to-door sales, originated in Australia and New Zealand. It
has since expanded to several other countries, with several offices
under it using different names, including Malaysia, Singapore, and
even countries in Europe. The culture and hierachy of Cobra Group
has a close resemblance to it's US affiliate, DSMax.
The Cobra
Group has hit the tabloids on a number of occasions and has gained
the reputation of a ruthless pyramid organisation that gives next
to no rights to the "self-employed" field representatives.
Like
DSMax, Cobra Group has been under heavy criticism, with several
complaints appearing on www.ripoffreport.com, a site in which
companies with bad practices are mentioned. Further complaints can
also be found in several online forums. The reasons for its
unpopularity usually come under one of the following:
1) Cobra
Group, like DSMax, is essentially a door-to-door sales company. But
its advertisements do not mention this fact, possibly because it
does not want to scare potential employees away. Instead, it
advertises itself usually as offering "management" jobs, with words
that range from "entry-level management" to "rapid advance
opportunities in management". This is viewed as highly deceptive by
many. Advertisements usually also claim to have training sessions
by trainers, but according to www.ripoffreport.com, the so-called
training sessions are simply following a senior employee around a
certain district selling products. Occasionally, they will state
the salary in the advertisement, which is highly fallacious as well
because the salesmen are allegedly not paid any base pay; the
salary depends solely on their commission.
Harsher words to
describe Cobra Group include calling it a pyramid scheme of
management which has led to the success of the company.
[269] An
example of an advertisement posted.
2) Online posters usually
criticise the work conditions of the company. According to many, a
typical work day usually begins at 0730 in the morning which
involves packing of goods to be sold and morning meetings, followed
by 8 hours of walking in an allocated district, trying to sell
various products. Upon returning to the office, there is a debrief
session and eventually this may add up to even 12 working hours a
day or more and the employee can only return home late at night.
3) Many online posters also claim that the promises made in
Cobra Group, such as fast promotion to real management level, which
involves setting up ones own office and specialising in products,
are hard to fulfil because many of such offices fail to generate
income and as such leaves many employees depleted of financial
resources. The senior managers of the company allegedly attribute
this to "bad attitudes" harboured by the employees which result in
their failure, and that all employees leaving the company do not
adopt a positive attitude to work. It is rumoured that the monthly
staff turnover rate of the company is as high as 95%.
4) Some
posters also mention that the quality of the goods sold by the
company is very low, and various questionable practices such as
sneaking into a commercial building or shopping centre while the
security guard is not looking, or telling every customer that the
discount only applies to them since there is only one product left,
are ultimately undesirable.
Examples of such forums:
[270][271][272]DS-Max also comes under similar
criticisms.
See the article of DS-Max
[273] for more
details.
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Adapted from a previous edition of this
article: "
Workers in the Cobra group are held in by mind
meddling games, the prospect of big money, the prospect of
promotion and living the high life. It is claimed that the cobra
group will expand by 25% nearly every year, however fails to expand
successfully anymore in Australia. The average age for "owners" or
franchisee's is claimed at 23, however this is only the case
because an average owner goes broke or quits after 2 or 3
years.
The job itself, door-to-door marketing or event marketing
in shopping centres, is so demanding, most workers do 60-70 hrs a
week. They need big lures to stay. Workers are told about prospects
of promotion, success stories and are constantly fed "this is the
only way to become rich". This inturn keeps the average worker for
about a month on an average wage of $400 for 60-90 hrs work.
All
workers are forced to get an ABN and become an independant
contractor. However they are essentially employees, have set hours,
are not entitled to sick leave and are basically exploited.
The
pyramid management that keep workers for more than a day: At the
top Comanies like austar, amex, energy australia sub contract to
The Cobra Group sub contract to Regional Office (liquid market,
empower united, redz , etc etc 100's of them)
Independant
Contractor - ie. The "employees"
The people at the bottom, are
offered the chance of getting their own company or "franchise" and
becoming an owner if they train up enough people and recruit enough
people to hit sales targets. However these targets are unrealistic,
and it is often told that being an "owner" or "franchisee" is
instant riches, the reality is most go broke.
The payment system
For example, an IC signs up a customer for Austar. Austar pays The
Cobra Group $300 (example figures not actual) The Cobra Group Pays
the Regional Office $160 The Regional Office pays the independant
contractor $70
There is no basic wage and is wholly commision
based.
The majority of workers are school leavers and are
usually exploited on massively low per hour rates and are unable to
take the responsibilites of an ABN.
Very Few Pay Tax
It is
the same basic company as DS-MAX
www.ripoffreport.com/view.asp?id=24979
This company is useful
for entry point marketing but not as a long term job as the
employees are often exploited beyond brain washing.
Every Office
follows the same basic recruitment process. Mass Advertise
Positions. Target 18-23 age market teach the 5 steps talk of
success stories go to motorvational speeches
Among the 100's of
offices sub contracted from the Cobra Group. Few are run well but
they're are the odd office that is brilliant to work for. The Cobra
Group is based on sub-contracting and therefore the person at the
top is untouchable and obtains proceeds from every sale from every
one of the 15000 IC's. http://www.blackantmarketing.com.au/ -
another cobra office
"
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The following text appears in
the Cobra Group homepage:
"The Cobra Group is a global leader in
face-to-face marketing. Its primary service is promoting and
selling the products and services of their clients and
customers.
The Cobra Group has offices in over 20 countries
presenting over 1 million ‘Human Commercials™’ on behalf of their
clients every day. The Cobra Group's system is unique, proven and
unrivalled. Last year alone, they acquired more than 8 million new
customers worldwide creating over $5 billion of new revenue for
their clients. They have also educated over 60 million consumers
globally using their Human Commercials™ on a range of products and
services over the past 12 months.
Their client portfolio
includes some of the biggest names in financial services,
utilities, sports and entertainment, charities, fashion, sportswear
and consumer products.
Our global network drives best practice
Nothing is left to chance
Our culture fosters superior
thinking, work and communication
We have developed regional
centers of excellence
Our success is measured by the results we
generate for our clients
Superior market cachet and reputation
We have a common global infrastructure for client management,
engagement management, database management, call centre management,
training, billing and payables
We offer proprietary marketing
tools such as Human Commercials™ and Granton ValueCards™ to give
you a real competitive advantage
The Cobra Groups client's gain
access to recognised industry experts who know how to sell to an
increasingly diverse market - both in the UK and overseas
We are
the global leaders in face-to-face marketing
see
http://www.savethechildren.net/australia/corporate/corporate_cobra.html
http://www.savethechildren.net/australia/corporate/corporate_champions.html
Playfair
Enterprises Pty Ltd is an affiliate of the The Cobra Group. It
registered as a Proprietary Company on the 21 April 2005.
Its
headquarters are situated in Bondi Junction, Sydney.
Currently
it provides direct sales and marketing services on behalf of Energy
Australia and AAPT.
On the week of the February Rally, the
annual award ceremony held by the The Cobra Group, Playfair
Enterprises was registered as the top office in the Energy
division.
Red Planet is an affiliate of Cobra to find out more
go to http://www.marketingjobslondon.co.uk/about.html
SRJ
marketing is another Cobra company based in Bristol. Doing really
well and setting an example for everyone.
Sid Jain is the managing
director of the company, to find out more or for a real business
opportunity go to http://www.srjmarketing.co.uk/index.html"