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Club Pilates, Pure Barre owners say Xponential left them bankrupt

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Re: Club Pilates, Pure Barre owners say Xponential left them bankrupt

#11

Post by uoaei »

ryandrake wrote: post #6

My parents got suckered into Amway back in the 80s and a lot of their generation repeatedly fell for other "run your own business" scams. I always hoped future generations would prove to be more cynical and less gullible and these kinds of things would die. But the next generations seem to be falling for them too, in even greater numbers, plus the modern versions like leadgen and dropshipping "businesses," NFTs, and…

The rhetoric aroung gig work routinely repeats this "be your own boss" language, too.

Re: Club Pilates, Pure Barre owners say Xponential left them bankrupt

#13

Post by toyg »

ryandrake wrote: post #6

My parents got suckered into Amway back in the 80s and a lot of their generation repeatedly fell for other "run your own business" scams. I always hoped future generations would prove to be more cynical and less gullible and these kinds of things would die. But the next generations seem to be falling for them too, in even greater numbers, plus the modern versions like leadgen and dropshipping "businesses," NFTs, and…

It's the dark side of the cult of entrepreneurship built into the reaganite American Dream.

If the path to happiness is material success, and the path to material success is entrepreneurship, anything that looks like a shortcut to entrepreneurial success must be Good.

I mean, even here on HN there are plenty of people who put money into startups that predictably died - often not very different from thinly-veiled scams to provide founders with income. And let's not even get into cryptocurrencies...

Re: Club Pilates, Pure Barre owners say Xponential left them bankrupt

#14

Post by mistrial9 »

ryandrake wrote: post #6

My parents got suckered into Amway back in the 80s and a lot of their generation repeatedly fell for other "run your own business" scams. I always hoped future generations would prove to be more cynical and less gullible and these kinds of things would die. But the next generations seem to be falling for them too, in even greater numbers, plus the modern versions like leadgen and dropshipping "businesses," NFTs, and…

what about actually running your own business? This totally negative take on Amway is one-sided. There was some young woman in MBA school in California and her Mom made lots of money on Amway to pay for that school, etc. Upon questioning, I believe that her Mom had two or three jobs at once, and some military service time, too.

Re: Club Pilates, Pure Barre owners say Xponential left them bankrupt

#15

Post by smogcutter »

hash872 wrote: post #4
hn_throwaway_99 wrote: post #3

As sure as the sun rises in the East, "Suburban Moms (and Dads) Get Suckered By Over-Promised Sales Projections" is the headline that will never go away (see LulaRoe, MonaVie, just about any other MLM scam, not to mention other over-hyped franchises like Quiznos). At the same time, though, the franchisees had plenty of greed of their own. The article states "They also say it promised them the ability to run businesse…

>If your only contribution to a business is giving it money, you are essentially always better sticking that money in the stock market.... the idea that you can beat the market with no special benefit that you bring to the table is a fantasy as old as capitalism I feel like EMH is increasingly becoming a strange & unfalsifiable quasi-religion for some people. I believe even the strongest forms of EMH cover publicly t…

I think you’re missing parent’s point, which is about these sort of “business in a box” pitches sold to the aspirational middle class, and not some kind of statement that it’s impossible to profitably invest money.

Re: Club Pilates, Pure Barre owners say Xponential left them bankrupt

#16

Post by hn_throwaway_99 »

hash872 wrote: post #4
hn_throwaway_99 wrote: post #3

As sure as the sun rises in the East, "Suburban Moms (and Dads) Get Suckered By Over-Promised Sales Projections" is the headline that will never go away (see LulaRoe, MonaVie, just about any other MLM scam, not to mention other over-hyped franchises like Quiznos). At the same time, though, the franchisees had plenty of greed of their own. The article states "They also say it promised them the ability to run businesse…

>If your only contribution to a business is giving it money, you are essentially always better sticking that money in the stock market.... the idea that you can beat the market with no special benefit that you bring to the table is a fantasy as old as capitalism I feel like EMH is increasingly becoming a strange & unfalsifiable quasi-religion for some people. I believe even the strongest forms of EMH cover publicly t…

That's not what I'm saying. Two points:

1. Obviously some people with zero unique insight or skill in a business will make out big (i.e. "beat the market"), just like some people will win the lottery. But drastically increasing your risk/volatility and then saying "some people beat the market average!" is not actually a counterpoint to EMH, which primarily says something about risk-adjusted returns.

2. More importantly, though, if you do have some special insight into why a private business may outcompete its competitors, by all means, go for it. But TFA is basically highlighting that the vast majority of these people had no special skills in business, marketing, etc. beyond "I like fitness and once took one of their classes!" If you're in that boat, on average, you're better putting that money in the stock market. If you're a gambler and think you can, literally, beat the odds with nothing but luck, again, go for it, but I'm not going to have sympathy for you if you decided to, essentially, put your life savings on double-0.

Re: Club Pilates, Pure Barre owners say Xponential left them bankrupt

#17

Post by throwaway66023 »

uoaei wrote: post #11
ryandrake wrote: post #6

My parents got suckered into Amway back in the 80s and a lot of their generation repeatedly fell for other "run your own business" scams. I always hoped future generations would prove to be more cynical and less gullible and these kinds of things would die. But the next generations seem to be falling for them too, in even greater numbers, plus the modern versions like leadgen and dropshipping "businesses," NFTs, and…

The rhetoric aroung gig work routinely repeats this "be your own boss" language, too.

My country has a list of criteria to distinguish self-employment from closeted employment (which is tax evasion where I live):

- use your own tools (laptop, phone, vehicle)

- set your own schedule (work hours/days)

- get paid for tasks, not hourly

- have the ability to decline jobs without losing the customer (within reason)

To me it seems like gig work is in the clear. Why is it not?

Re: Club Pilates, Pure Barre owners say Xponential left them bankrupt

#18

Post by bombcar »

scandox wrote: post #10

Feeling fat, tired and flat! Milo Janus is where it's at. Keeping trim, healthy and slim, Milo Janus you're in the swim. Your new life is waiting to begin at Milo Janus, Get in shape will see you through thick and thin. Everybody! Start your day, shed pounds away. It's all for your common wealth. The only thing you have to gain is your health!

Hugh is much better and more honest.

Re: Club Pilates, Pure Barre owners say Xponential left them bankrupt

#19

Post by petsormeat »

ryandrake wrote: post #6

My parents got suckered into Amway back in the 80s and a lot of their generation repeatedly fell for other "run your own business" scams. I always hoped future generations would prove to be more cynical and less gullible and these kinds of things would die. But the next generations seem to be falling for them too, in even greater numbers, plus the modern versions like leadgen and dropshipping "businesses," NFTs, and…

The Conspirituality podcast episode "Coaches Coaching Coaches" discusses how the wholly unregulated "life coaching" trend operates very much like network marketing, and cons buyers with similar claims to freedom from wage work.

What seems constant is how many people dislike being employees.

https://www.conspirituality.net/episodes/coaches-coaching-co...

Re: Club Pilates, Pure Barre owners say Xponential left them bankrupt

#20

Post by mistrial9 »

sema4hacker wrote: post #5

The article is mostly about franchisees getting ripped off, but I think an important theme is that any business focused on physical fitness often is the fad of the moment, and can be difficult to sustain itself for long because of the need to have customers paying memberships forever. Customers start out thinking they'll always go to the gym or dance studio or whatever, but most inevitably drop out. My advice: stay a…

oh real life gets better than that - a very expensive gym in a large coastal city was founded, profitable, and sold in the go-go 1990s.. expensive memberships and stable, large clientele in an excellent location started a sequence of ever-further leveraged purchases by new owners. The early 2000s saw homosexual prostitution, advertised on CraigsList, mixed into the otherwise upper middle class regulars. In fact, Ron Dellums was a member there at one time. Guess it all went "poof" under covid-19 ? run away
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