Worldwide Internet Consulting: Franchise Scam
May 8th, 2009
A few days ago, Tony Blake and I were discussing a new product launch from Ian Del Carmen. He pointed out several disturbing things about this “opportunity”, and as a result of our conversation, he contacted our favourite, brilliant attorney Mike Young.
Mike Young is a no-nonsense expert in legal business matters, and he regularly “tells it like it is” as a valued expert moderator at ABlakeForum.com.
Mike knows his stuff… and he posted an extremely informative article on his blog.
Here’s a link:
Worldwide Internet Consulting: Franchise Scam
Do your subscribers a favour… let them know that it IS POSSIBLE to make a healthy income online without resorting to tactics like this.
Let me know what you think!
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Very interesting Lisa, thanks for sharing that with us.
Lol at his “harshness” way of telling it like it is, I 100% RELATE to that as you know.
Rob
Rob Sellens last blog post..Bought the dream but not living it
Hey, Rob! Thanks for swinging by…
While I don’t begrudge those who are trying to make some money and be creative while doing it, I DO have issues when people try to deliberately circumvent the law to do it. Not only are they ruining their own reputation, but they PUT THEIR OWN CUSTOMERS AT RISK! The same people they SAY they are “helping”.
I don’t think for a single moment that those involved were “unaware” of the issues, and if they were? Ignorance isn’t a sufficient excuse. If you are charging that kind of money for a scam like that, at the very least have a proper lawyer look over the setup so THEY can point out the errors before you ruin others.
Just my thoughts.
Cheers!
Lisa
Hi Lisa! I appreciate the post but one thing, we never called it a franchise. And yes, it IS a great opportunity and a first on the web and offline business world.
In fact, read what happened to one of my partners:
Read what happened to Dave:
“Well, what a start. I only “signed up” a few days ago and devoured as much info as I could.
And just spoke to a few people about what I have got involved in.
The bottom line?
2 clients in my first day of talking to people.
One is a Beauty and Holistic Therapist who would like a website makeover and an ongoing IM service (I’ve got some great PLR on beauty and holistics
)
The other is a fish broker who wants the full monty as well!
So, around $1000 plus ongoing maintenance charges….
… Thanks Ian for giving me the tools and the confidence to get out there and talk to these people…
I’m also putting a Local Portal site together, using Joomla with a few plugins – SOBI2 for a local business directory which I will offer listings for free (for now), a classified ads plugin (free again for now), a forum and a load of other goodies to get the traffic to stick!
Will be doing loads of offline promotions for that, but he main idea is to get businesses to register their details, then use that as the basis for my IM Planning campaigns!
Another thing I was going to add to the classified is “proper” list building stuff. …
I often see traditional affiliate marketing on similar local portals, selling TVs and other “hard” goods, but I’ve never seen one incorporate proper list building affiliate marketing techniques.
So, if somebody is looking for kennels, they get a free dog training book or such like to get them on my list. If they want car repair shops perhaps I’ll give them a “how to save on fuel” guide… for their details. I can then follow up with a One Time Offer and a series of emails with hints and tips and a few more affiliate promos within…
Anyway, I’ll let you know how it goes….
Oh yes, http://www.1066LOCAL.co.uk – I live at the site of he Battle of Hastings in 1066!
And if anybody would like a fuller explanation how to set up a similar site, let me know.
All for now
Dave Offen”
UPDATE: Well, my Beauty and Holistics client has come good…
She has referred me to a friend of hers who needs a new website and IM Planning service is the Flat Letting market. This is a more complex… and more expensive site… But I already have loads of Joomla plugins that can do exactly what this client requires
That’s 3 clients in my first week with one off fees of around $2000 and ongoing IM Planning services, AR and Hosting on top of that…
Great stuff!
ANOTHER UPDATE:My wife has been brilliant talking to everyone she comes into contact with…
She just had a minor operation (a tummy tuck follow up) and spoke to her surgeon….
He has 6 websites (lovely design, but little in the way of SEO or IM Planning) and wants me to sort them all out.
Obviously he gets a discount for “buying in bulk”, but that’s equated to $600 straight down to sort the sites out SEO-wise, another $600 when done, plus monthly maintenance …
And she found me another property related client for $800 + monthly promotion fees…
And a girl at work put me in touch with an online Art Gallery that has lost a fortune in Adwords (Adwords is something I do at work, and do well) – another $500 for a fairly minor site makeover and ongoing monthly fees for Adwords and other promotion… I guess the moral there is to LET PEOPLE KNOW WHAT YOU’RE DOING – It’s not necessarily who you know, but who THEY know!
That’s roughly $4500 + monthly fees in my first month…
This is good fun!!!
I’m still just doing this VERY part time while I build it up, but it’s not long before I can tell my boss what I really think…
Ian del Carmens last blog post..How To Become A Super Affiliate
Ian…
I beg to differ that you don’t call it a “franchise”…
This is what you sent out as an email recently (I have highlighted the word FRANCHISE):
Hi XXXX!
This offer is STRICTLY for ONE PERSON per location ONLY.
So if you are a fast action-taker…
I’m giving YOU a ready “OFFLINE BUSINESS” for you
to run as your own franchise…
Take note: OFFLINE BUSINESS
First, see the details of this franchising offer here: http://URLREMOVED — first come, first served!
If your territory is not available, you can choose:
“Other Territory”
HOW TO GET YOUR FR’EE FRANCHISE?
2 ways.
Option 1: Just grab your franchise here:
http://URL REMOVED AND I will buy the Mega Red Packet for you… FR’EE!
(the cost is just the same and you are guaranteed to claim
your territory before the others do!)
Option 2: Invest in Edmund Loh & Vince Tan’s
MEGA Red Packet package here:
http://URL REMOVED
Be sure to use only that link! You can also avail
the EZ Payment Plan…
Then send your receipt to http://URL REMOVED
with the territory you want to claim! (first come, first served!)
You’ll get a ready-made OFFLINE BUSINESS from me as a bonus
and I will send you access to all the tools before May 31.
To your success,
Ian del Carmen
PS: If you want to get ahead of the pack, just grab your territory here: http://URL REMOVED
In the United States using the words Franchise and “territory” are extremely legally problematic… they are seen one in the same… in order to sell a franchise or territories you need to register your opportunity with each independent state, post a sizeable bond and make available approved prospectus’s… plus that this opportunity is well over $499 you will also have to register it in 43 states as a business offer and post another large bond…
In other words, what you are selling in the US is highly illegal and actionable not only by the FTC but by each states individual Attorney General’s… didn’t know that did you?
And don’t think that because you are based in the Phillipines you are protected… you aren’t… the law has a long reach and it will get you if it wants — no matter where you are…
The reality is that if it looks like a duck and walks like a duck then it’s a duck… and this is as highly problematic a as any scheme as I’ve ever seen… and I’m not the only one that thinks this way, Michael Young a top US attorney sees it the same way…
I’m just waiting for this stick of dynamite to explode… it’s going to be fun watching the fireball that it produces… someone hand me the popcorn…
Anthony Blakes last blog post..Re: Can someone help with this difficulty
I dislike people who lie.
Thanks for posting, Tony – you beat me to the punch! I was right in the midst of posting the same thing…
Additionally, I have further emails with similar wording, along with the other lie that was told about John Reese.
John had to threaten legal action if a retraction wasn’t printed, and the lame excuse that I saw was not even close to being good enough, in my opinion. If I were John, I’d sue him anyway – just being associated with the scam could damage his reputation.
As for your “ad” posted above, Ian…
You could also be putting your own customers at risk by doing what you are doing. How do you think they would feel having their businesses shut down?
Pass the popcorn, Tony…
I can provide further emails if needed to show that you did indeed refer to it as a franchise more than once.
Please feel free to provide the appropriate documentation where it shows you have followed the law and paid appropriate franchising fees for all of these “territories”…
We used the word franchise the way MegaRedPacket.com used it. Sorry for the error but there’s no “franchise” anywhere in my website.
We’re closing the site until we fixed the errors. No need for the popcorn, it hurts your fellow marketer in this same industry. Anyways, if there’s something wrong, you can always call that marketer’s attention to fix it and not ruin him in blogs. (just like what Reese did)
Being the veteran marketers, it would be better to just assist a newer one and correct him in his errors and not laugh at him falling down.
I still appreciate your concern guys. You are veterans in this industry that we all look up to.
Ian del Carmen
Ian del Carmens last blog post..How To Become A Super Affiliate
My first priority is ALWAYS to my subscribers and my readers. Pointing out questionable or unethical marketing tactics is important, both as an education on what NOT to do, but also to be careful whom you are dealing with.
Having said that, I DID send an email to you, pointing out the problem – no reply… (big shocker).
I will assume you’d have sent a similar “breezy”, dishonest reply like your original comment here, ignoring the issue and talking about your customers, giving testimonial about the product.
I just looked at the MegaRed thing – and yes, same problem. I hope to God that their customers are aware of the legal peril they may be placing their business in. I’m certain that the site owners have not purchased the appropriate licenses in order to sell “franchises”. It’d be too expensive.
My BIGGEST problem with your deal, Ian, is that you LIED. You were not up-front and tried to gloss over the huge problem once you were made aware. I do NOT like the lie you told about John Reese buying your “franchises”. You should have taken full responsibility, apologized publicly and profusely, without excuse. And equivocating about whether you used the word “franchise ” on the site or not is irrelevant. You DID use it many times throughout your promotions.
There is one really great lesson here for my readers: If something hasn’t been done before, chances are that there’s a good reason. “Franchises” have not been done in Internet Marketing because of the massive expense in doing so legally and ethically. ALWAYS check out “new” ideas with a reputable lawyer to make certain your participation doesn’t land YOU in court!
Having said that, I DID send an email to you, pointing out the problem – no reply… (big shocker).
– never received any email, Lisa…
About John Reese, we both solved it in a professional manner.
Thanks and let’s learn from this and close this nightmare…
Ian
“While I don’t begrudge those who are trying to make some money and be creative while doing it, I DO have issues when people try to deliberately circumvent the law to do it.”
Three cheers to that! Some of these folks even seem quite proud of lying, like those behind the flogs (fake blogs) who despite putting up a website where everything is a lie they either see nothing wrong with it or think it’s a clever way to market!
For example:
http://www.warriorforum.com/ad-networks-cpa-cpm-cpl-millionaire-makers/83426-now-kebin-has-audio-still-makeing-5-000-week-posting-link-google.html
and
http://www.warriorforum.com/ad-networks-cpa-cpm-cpl-millionaire-makers/82368-no-wonder-cpa-cos-reject-so-many-us-now.html
Mike Young posted about the fake blogs a little while back too:
http://mikeyounglaw.com/wp/2009/04/11/christian-internet-marketing-selling-greed-using-jesus/
I completely agree, John. I truly don’t see the value in marketing that way. It brings zero value to the consumer.
If any marketing technique requires you to “trick” or “manipulate” services (like Google, affiliate networks, social media), it can only be for short term gain. To build a solid business, you must must must provide real value and do it on the straight and narrow. WIC and MRP are troublesome to me because they are outside the law – unwittingly at first, maybe… but both sites are now completely aware of the issues and still seem to think everything is ok.
It doesn’t matter to me who runs a website – many people who are successful think they can get away with more, but being in the public eye puts focus on you, and in my opinion we should lead by example. I’m hoping to see the appropriate changes very soon on Edmund’s site.
Thanks a bunch for stopping by!