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The Southwestern Equation

When Capitalism Becomes A Cult

Although many of the people in the town had been laid off. Tiedemann says the members on his sales team did very well: he netted $3500. This year Tiedemann is a student manager for Southwestern and has so far recruited 12 students one of whom is from Harvard.

Clara Y. Bingham '85, who is joining Tiedemann's group, learned about Southwestern through Tiedemann, who is an old friend. She describes Southwestern as "a word-of-mouth network within the country," adding that recruiters "seduce you into selling." After attending the sales school in late May. Bingham says her team will be assigned to an area in the West. Every Sunday they will meet for a "pow-wow" to compare experiences and successes Describing Southwestern as a "capitalistic cult." Bingham says she will sell the books "partly for the money and partly for the adventure."

During the year, the company offers various seminars and special weekends for students who have been with the company at least one summer At these weekends, the students and managers discuss recruiting techniques and watch psychologists' studies on why people excel, succeed, and make money.

Stacy P. Gilber, a junior at Brandeis, accompanied her boyfriend, a Southwestern salesman, to an awards ceremony in the Pocano Mountains last March. Numerous prizes were given out, including awards for hardest worker, most hours, and best sales presentation. Her boyfriend, who is paying his way through New York University law school, won a trip to the Bahamas during Christmas vacation.

Daniel Moore '76, marketing development manager for Southwestern, says the company provides a chance for students to make enough money that they will not be so dependent on financial aid. During his three years at Harvard. Moore recruited during the school year and sold books for Southwestern during the summer, making enough money to pay his way through school. Although he admits that selling books is not for everyone. Moore adds that "if students are willing to work hard and do something different, they will get something out of the program." He says his only regret about Harvard's ban on Southwestern is that students are missing an option to obviate financial difficulties.

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The problems with Harvard began in 1975 when recruiters used a common room to interview students. By preventing students from officially hearing about Southwestern, a bad image was painted. Moore says, adding that Southwestern maintains a good rapport with the other Ivy League schools.

Since Harvard has banned Southwestern from campus, a Business School recruiter. Thomas J. Mallon, has this spring held introductory meetings at the Sheraton Commander hotel. Unapproved posters announced the meetings, listing the time and place. Halperin attended one of these meetings and says when he left early Mallon followed him out to make a "last ditch effort" to recruit him Mallon was told both this year and last by officials at both the College and the B school that he could not use his room or business phone to recruit or post unapproved posters. Jesse M. Fried '85, who is joining the program, says Mallon called him after getting his name from some friends who were considering joining the program. Until last week when Mallon was told to stop using his room for any activities concerning Southwestern, Fried and a few others had been meeting weekly in Mallon's room. At those meetings, they discussed various sales techniques and methods of self-improvement. Fried explains his reasons for deciding to sell books as "I usually follow the conventional route. This is something so unconventional, something I never imagined myself doing, so I'm doing it."

Mallon has been affiliated with Southwestern for the past six years. As an undergraduate at Dennison son College, he sold books and became a student manager. Although the managers receive no salary from the company, they receive a percentage of the total sales their recruiters make Mallon says if he doesn't feel a student is working he sends them home but adds that the attrition rate of his teams has gradually improved each year After college he became a full-time, salaried district sales manager for the company. Saving enough money, he was able to pay his way through the B-school and after this summer hopes to have enough capital to buy his own business.

Mallon had planned to do most of his recruiting this term but says he will have to go off-campus completely because of the strict enforcement of the ban. Agreeing with the need for college supervision. Mallon feels Epps should give the company an opportunity to recruit on campus because of everything it has to offer.

Other schools in the Boston area have different policies with regard to Southwestern. MIT doesn't allow the company to recruit on campus because "students objected to misleading advertisements." Phyllis Jackson, assistant director of career planning and placement, says. Jackson adds that in the past recruiters have asked to use MIT rooms to interview but have been denied permission since they refuse to fill out detailed information forms about the company. Boston University has also banned Southwestern because recruiters used campus facilities without permission.

However, Boston College allows Southwestern to recruit through its career planning office, and this year 26 B.C. students are planning to join. John Steel, director of career planning at B.C., says. Steel explains that the company has a fine reputation but adds that problems with student managers sometimes develop. With the high turnover of personnel. Steel says relationships with recruiters differ each year, adding that last year Southwestern wasn't sponsored because recruiters didn't stay in contact with the school. Galloway says the recruiters' independent relationship to Southwestern contributes to the problems because there is no one overseer to address complaints to.

Tufts' student employment agency was founded last year, and Director Bernard Pakala contacted other campuses in the area to learn about Southwestern. He discovered that it "wasn't well liked" and was skeptical because recruiters didn't seem to try "to weed out the non-salesmen."

Although he heard many complaints about the recruiting practices of Southwestern. Yale's Noise says he allows the company to recruit on campus. "I heard horror stories about the aggressive sales organization, but if people join with their eyes open they should be all right." Noise adds that if a student can succeed in that rigorous program, "you can succeed in a more gentile marketing management program when you graduate."

"It can be a nightmare for some," says Howard Lumsden, director of career planning and placement for the University of Tennessee at Knoxville. He adds that that is why it's necessary to be absolutely up front when recruiting students. As Gilber says, "people must have a positive attitude or otherwise they'll get nailed."

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