Local Search Engine Marketing Blog

Daily Deal Site SaveMore Accused of Being a Scam

Posted in Internet marketing by smallbusinessonlinecoach on April 29, 2012

http://smallbiztrends.com/wp-content/uploads/2012/04/savemore.jpg
I found this post interesting and I thought I’d share here:
I like to share interesting posts and information about internet marketing that read in my Google reader. Let me sort through the junk to bring you the real goods when comes to local internet marketing for small businesses. I thought this was super useful. if you like it be sure to share maybe subscribe to the authors blog: http://smallbiztrends.com

The Better Business Bureau has issued an alert to the public about daily deals site SaveMore.com, which according to over 1,000 complaints “took money for daily deal coupons, never delivered.” This case illustrates one of the risks of dealing with daily deal sites whether as a consumer or as a business offering the deals. If the operator of the daily deal site does not follow through and honor the deal that it sold, it leaves a trail of spitting-mad consumers and legitimate businesses that may lose money and get their reputations sullied in the process when unhappy consumers complain.

savemore

According to the Better Business Bureau, customers in 45 out of the 50 U.S. states have filed complaints. SaveMore has a BBB rating of F, the lowest possible. Michelle Corey, BBB president and CEO, is quoted as saying the number of consumers affected is astonishing. “We may never know how many people were taken in by this company,” she said.

SaveMore shares close ownership ties with Douglas Van Arsdale, founder of debt settlement company, Credit Solutions of America. Credit Solutions was sued in 2009 by several state attorneys general. Daily Deals Media points out more about the people and network of companies surrounding SaveMore.  The article also points out that a number of the “merchants” featured on the SaveMore website are actually affiliated with SaveMore in some way.

It also appears that legitimate small businesses have not been paid for deals that SaveMore issued in their name and have filed complaints.

As of this writing the SaveMore.com website is still up and running. The site is still apparently accepting money from unsuspecting consumers, and possibly snaring more unaware small businesses to sign up to offer deals.  The site claims to have saved over $9 million — the only question is for whom!

There’s a lot of press right now about Groupon and its IPO, but in my view the real story in the daily deal space is not about a legitimate company like Groupon. Rather, it’s always been about the potential for fraudsters playing in this space. Just look at the daily deals business model. It’s simply too easy to set up a website, collect email addresses, and purport to sell people something in the form of a voucher or coupon – and then pocket the money.  Even a legitimate daily-deals company with the  best of intentions can run into trouble and find the money all too tempting when the rent is due.

And then consumers and small business merchants get hurt.

From Small Business Trends

Daily Deal Site SaveMore Accused of Being a Scam

http://smallbiztrends.com/2012/04/daily-deal-savemore-accused-scam.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+SmallBusinessTrends+%28Small+Business+Trends%29) Don’t forget to comment and subscribe to the authors blog.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: