Worldwide Internet Consulting: Franchise Scam

Ian del Carmen is selling territorial franchises for Worldwide Internet Consulting. Nothing says “proven business model” like pitching a get-rich-quick scheme (make $500 an hour!) that teaches you the supersecret concept of building websites for local businesses and charging them for it. With only 133  million search results on Google for “web design,” who wouldn’t want to pay $697 (plus $97 annually after the first year) to buy a franchise.

Here’s the website’s registration info.

Domain name: worldwideinternetconsulting.com

Registrant Contact:
   Fireball Planet Corporation
   Fireball Planet Corporation ()

   Fax:
   G/f Feron Bldg 9590 Kamagong cor Bagtican sts
   San Antonio Village
   Makati City, Metro Manila 1203
   PH

Can we presume that Ian del Carmen is operating out of the Philippines only because the weather was too hot to operate the scam out of Nigeria?

The website doesn’t mention the term “franchise.” Instead, we get code for it like “we’re only accepting one partner per territory.” However, the e-mails pitching the business flopportunity include phrases like “Just grab your franchise here” and “see the details of this franchising offer.”

For credibility, the sales pitch notes that Microsoft, Google, and Amazon have territorial managers too. Comparing a scam “franchise” to salaried employment at three of the largest online companies? That’s ridiculous.

Of course, you do get ready-to-print business cards that state you’re a “Certified Marketing Consultant.” Oh really? Why not “Certified Dupe” instead?

Now let’s look at the particular legal aspects of this franchise scam.

  • The biz flop is being sold in county-size territories within the United States. However, potential franchisees are not being supplied with Uniform Franchise Offering Circulars (UFOCs) as required by federal and some state laws.
  • There does not appear to be any attempt to qualify to do business in each state where franchises are being sold.
  • Utilizing the term “partner” in the sales pitch suggests that equity may be sold as part of the deal. If so, there appears to be no effort to comply with U.S. federal and state securities laws.

Don’t think that I’m just picking on poor Mr. del Carmen and his flopportunity. There is at least one U.S.-based Internet marketer (social media guru) treading on thin ice with something similar. If that marketer doesn’t clean up his act, I’ll be posting about his scam too.

If you’ve been deceived into buying an illegal franchise in the United States, here’s what to do.

1. Demand a full refund.

2. Contact the U.S. Federal Trade Commission.

3. Contact your state’s Attorney General’s office.

4. If you still want blood, hire a good trial lawyer to destroy the con artists who duped you.

05/16/09 – Someone hacked and destroyed this post. It was restored but comments were lost. Because this post was targeted, comments will be closed indefinitely. Not rewarding bad behavior.

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Christian Internet Marketing: Selling Greed Using Jesus

jesus-bannerI came across this banner for bethsmoney.com (will not reward the site with a hyperlink) that claims a Christian mom earns $5,000 working at home. When a person uses religion to sell an Internet biz opp, the warning bells start to go off.

The website doesn’t pass the smell test, starting with what appears to be  stock photo of “Beth” and an elderly lady. Here’s a disclaimer in white text on a gray background at the bottom of the sales page:

“This page and associated pages on this site are an advertisement. All persons mentioned on this blog are fictional examples of people who used the promoted products and is for demonstration purposes only. The statements contained herein come from many different people and are not necessarily being made about the specific products discussed.”

Fictional people and the statements might not even be about the specific products discussed in the sales page. Incredible.

The site is pitching googleprofitsinsider.com, which according to the fine print in white text in a gray background at the bottom of the page includes:

“The initial shipping and handling charge of $1.98 S&H which includes fourteen (14) days worth of access to the online directories and training. After 14 days, you will be charged MONTHLY of $47.50″

The screen capture of a Google check is in the amount of $868.55, which the fictional Beth Fisher claims is for one week of work. No evidence of $5K per month earnings from Google. And, let’s assume the check is an AdSense commission. Want to bet the expenses incurred ate up a nice chunk of “Beth’s” commission. Of course, because Beth doesn’t exist, the payee name on the check has been whited out.

Who owns the domains involved? That’s a good question. The “Christian” owner has them registered by proxy so the WHOIS doesn’t reveal identity.

It gets better. This link shows that bethsmoney.com was being used to pike government grants less than six months ago. The photos show a U.S. Treasury Check (tax refund?) and a check that Beth is claiming is a government grant check that just happens to be the same as a Google check with the payor’s name blurred out.

If you want to apply religious and moral principles to your business, by all means do so.

However, the deceptive and fraudulent tactics engaged in by people who own websites like bethsmoney.com are clearly unacceptable. The U.S. Federal Trade Commission (FTC) should make an example of them.

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Internet Marketing Scams: What’s Hot in 2009

Unbalanced by the recession and trying to recover from falling price points and conversion rates, many Internet marketers are tossing away ethics to pike anything and everything in the hopes of making a few bucks.

Four major themes dominate 2009.

1. Teleseminars/Webinars to Dupe Newbies. Because there is a constant churn of newbies, marketers are using teleseminars/webinars to sell content with dubious value. Typically, this includes methods that might have worked 3-5 years ago online but don’t anymore because (a) the market has changed, and (b) everybody else has fished the same waters (the profits have already been taken by others).

2. Praise Jesus. There’s certainly nothing wrong with being religious. However, there is a problem with finding religion in order to sell your products to someone who really is religious. With all the sincerity of the Farting Preacher, these marketers pitch everything by liberally sprinkling “Jesus,” “God,” “Christian” etc. into their sales pitches for the sole purpose of fleecing the flock. When you see an online marketer doing this, think of [Read more...]

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