The Investigators: The Pitch - WMC Action News 5 - Memphis, Tennessee

Reported By Andy Wise

The Investigators: The Pitch

An Internet training company under investigation by several states and Australia is holding seminars in the Mid-South.

According to its web site, Utah-based holds seminars all over the country.  It sells products and web-hosting services to help people launch their own online businesses. 

It sends unsolicited invitations in the mail to consumers.  The invitations include tickets to attend the seminars.  It's unclear how obtains consumers' mailing addresses.

According to the Better Business Bureau, has a F-rating with 714 consumer complaints over the last three years. 

11 government actions are either pending or settled against it.  Utah, Indiana, Illinois, California, Oregon, Connecticut, Wisconsin, North Carolina and Florida have sued the company.  They allege conducts deceptive trade practices and makes false promises to consumers about the performance of its services and products.  Australia has filed two separate actions against the company.  Read the BBB's report here:

Nancy Crawford, communications director for the BBB of the Mid-South, says the pattern of complaints focuses on an initial $50 package to obtain what's called a Express site.  The money covers site access and a reservation for the company's follow-up training seminar on marketing and promotional strategies.  It's at that seminar where consumers are offered a second site, Pro, and additional software or product packages to expand their e-businesses.

"People are buying the package, and they're not getting what they think they are paying for," says Crawford.

William Collins of Olive Branch, MS, attended a previous seminar in Memphis.  Receipts show he paid the initial $50 for the Express site and the reservation for the follow-up seminar.  He says he planned to sell remote control cars and boats on the web with's support and site start-up.

"They never gave me the site," says Collins.

Receipts show he paid more than $8,700 to in an effort to establish his site and monthly service.  He says he received nothing and got nothing but trouble when he argued with the company's customer service supervisors.

"One supervisor after the other lied, lied, lied," Collins says.  "I said, 'What's wrong with you guys?  Where's the integrity?'"

"It's a company that we certainly caution people about, but they've got some satisfied customers," says Randy Hutchinson, president of the BBB of the Mid-South.

The Action News 5 Investigators found satisfied customers touted all over's testimonials page.  We spoke to one of them:  Lily Gery of New York.  She hired to help her host and launch her online toy store, 

She says's services have helped her become self-employed so she can stay at home with her children.

"I think some people think is going to run their business.  That's not how it works," Gery told us on the phone from New York.  "They get you started, and you do the work. With, you can always get (customer service), and I couldn't get that with other web-hosting companies."

Bryan Castleman of Martin, TN, started after attending's Memphis seminars in 2003.  He says he and his father now maintain eight e-tail sites.

"We invested about $6,000 up front in 2003 and by 2005, we were up to $2 million a year in gross sales," Castleman said in a phone interview.  " helped me by just giving me the tools. They just kind of showed me the light and showed me how to market."

Jeffrey Korn, chief legal officer for's parent company, iMergent, Inc., says the government lawsuits, settlements and injunctions concerned mostly legal questions over what exactly his company is selling.

"Some states claim we are just selling a 'business opportunity,' and we dispute that," says Korn.  "We sell software which allows the purchaser to develop their own web-based business, but we do not provide to them a 'business-in-a-box,' which we make clear to our customers.

"We stand behind our software. We think it's superb. Obviously, we make mistakes, and we work to rectify those mistakes." 

Here are the BBB's warnings about seminar sales pitches:

Are they legitimate?

  • Some are, but others are hucksters who want to separate you from your money.
  • They may be "opportunities" for investments or for starting your own business.
  • They tout success stories and testimonials that suggest anyone can be successful following their tips.
  • Participants are often asked to pay thousands of dollars for training and start-up materials.
  • Participants often find the pay-offs aren't as great as advertised and they can't get their money back.

What are the kinds of claims that we should be wary of?

  • You can earn a lot of money, no experience or training necessary.
  • The program or business opportunity is offered for a short time only.
  • The deal is a "sure thing" that will deliver security for years to come.
  • You will reap financial rewards by working part-time or from home.
  • You will be coached each step of the way to success.
  • The program worked for other participants - even the organizers.


What advice does the BBB have for people before they invest in such opportunities?

  • Take your time. Don't rush into buying anything at a seminar. Avoid high-pressure sales pitches that require you to buy now or risk losing out on the opportunity.
  • Check out the company in which you are considering investing. Contact the BBB for a reliability report on the company.
  • Before spending your money, consult with business people and experts in the field.
  • Be cautious about purchasing from seminar representatives who are reluctant to answer questions, or who give evasive answers to your questions. Remember that legitimate business people are more than willing to give you information about their sales or investment opportunities.
  • Inquire about how much money is required to invest in the opportunity. Keep in mind that you may never recoup the money you give to an unscrupulous seminar operation, despite the operator's stated refund policies. Taking precautions before you invest is a more effective way to safeguard your money than trying to get a refund after the investment has been made.


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