December 11, 2005
Domain Theft: A Promise to Pay Gone Bad!
I recently received a very long email from the seller of a domain name who never got paid. Although I have covered domain sale issues before, I failed to document a critical procedure to prevent this from happening. The email is to long to publish and the situation sounds quite volatile so I will summarize the issue and provide tips to prevent this.
A false sense of security
The seller has known the buyer on line for a number of years and decided to transfer the domain BEFORE she/he received payment in full. The funds for the purchase never arrived. No money ever arrived. Round one of the war of words starts with emails to the buyer, ICANN, and the registrar. Still...No money arrives.
Tips to Prevent
1. Assume that both the seller and or buyer in a domain sale are convicted criminals and nothing said via email, phone, or in writing is true.
2. Require PAYMENT IN FULL BEFORE you transfer a domain to another party. Exit the deal if the buyer won't do this. No exceptions. Your wasting your time writing ICANN, your registrar, or your host since their is nothing they can or should do if you transfer ownership of a domain before you received payment in full..
3. Larger deals should always use a reliable Escrow Company like https://www.escrow.com/index.asp This procedure protects both parties and criminals won't use an Escrow. The Escrow company collects and holds the funds from the buyer. Next they notify you (the seller) of this fact so you may transfer the domain which normally closes the Escrow. Finally, the Escrow company sends the seller their money.
4. Larger deals (5 figures and more) sometimes involve a promise to pay the remaining balance of the purchase price. These are tricky and require some precautions:
Insure that the buyer has paid enough cash into the deal so they actually have an investment. A 10K deal with 5K cash and a promissory note for the remaining 5K is viable, subject to a few other issues. A sale for 10K with no cash invested and the total price of 10K carried via a promissory note should never be consummated. Just walk away and find another buyer.
A seller should never offer to carry financing on a deal because of the inherent risks of default. Let the buyer mention it and reject it on any deal under 10K. A seller should always negotiate deals which involve financing. Raise the price for financing and lower it for all cash.
See your attorney and follow their advice. At a minimum, you will need a signed Promissory Note from the buyer. How will you collect moneys owned if the buyer defaults? What do you actually know and have verified about the buyer? Did the buyer properly complete a credit application and have you verified this data? Exactly where will the cash come from to make the payments on your promissory note? Are you prepared to live with the reality of default by the buyer and then undertake collection efforts?
Posted by Steve_S
September 20, 2005
The $3,000.00 email: Secrets your Affiliate Program doesn't want you to know about.
Reader "frogtrain" tells me how he used the techniques in my recent entry titled "Secrets your Affiliate Program doesn't want you to know about" to earn significantly more money from his current CPA programs. The article link opens in a new window so, I suggest you read the original article as well as the email which I received and have edited at the senders request. The reader was generous enough to include a few tips which I failed to document.
The email I received: Certain sections of this email contain my edits to comply with the senders request which I always honor.
Hello Steveo,
I was skeptical as hell when I read your blog entry titled "Secrets your Affiliate Program doesn't want you to know about". I kept asking myself why such a valuable tip is rarely available on other sites and why the hell I should believe YOU. I run a number of sites at: (redacted) which together generate monthly CPA revenue for (redacted CPA Networks Name) me of around 4K per month. That's a one year average of my commissions and some months are a little less and other months like the Holidays are way more. All of these sites have been on line for years and occupy top 3 positions in their respective niches.
Since I'm a cautious dude, I Googled your name to see exactly who you are and what you have done. Nothing to worry about with your history. A multi-year look back on you with lots of transparency. Next I called my AM to start the ball rolling. She seemed not only nervous but shocked that I would call. In later conversations she seemed far more at ease and I even sent her a birthday card which prompted her to call me and "gush" and giggle like a high school freshman. hahahah
After a couple of weeks of chit chat I popped the magic question during her review of my numbers. Word for word just like you said: "(redacted), I think I'm producing some great numbers for both of us and I enjoy our relationship. How can I earn more money from these results?
You could have heard a pin drop. Silence and silence and silence. Her first response didn't even remotely answer my question. I let her babble and then immediately returned to my original question. She said: "Let me check with my boss and see what we can do."
Her first offer involved VIP status and the promise and review of a soon to be released "Contest" where I could win a free trip for me and the wife to (redacted). In either case it only amounted to around a one or 2 point (percent) increase in my commissions for the same results I was generating and it was a one time deal and not the duration of my relationship. Lets please forget the Contest and groovy VIP title I muttered. ALL I want is more of a cut on the revenue I'm generating. Again, the AM didn't answer my question so I told her again using different words and ignored the other babble she spouted.
BINGO! After I through a few numbers into the conversation we finally agreed on an increase in my revenue of about $249.00 per month or about 3K per year for the very same results I had averaged over the last 12 months. That's a dandy BINGO of about 6 percent and I have it in writing. The easiest money I ever made.
THANK YOU :)
My Response:
Hi frogtrain,
Thanks for the email, the PI work on me :) and most importantly of all, taking the time to document your fantastic results and provide your tip on Contests.
Not only am I happy for you but grateful for the fact that you analyzed the "Contest" pitch and equated same to points (percent of earnings). Real Producers like you should ignore "Contests" and focus on an increase in your earnings for the entire term of your relationship. Your additional revenue is reflected in an increase in your cut of the sale. Contests are much harder for an affiliate to monitor for Network abuse, sometimes contain catch terms in favor of the Network, and are of primary benefit to newbies and average affiliates.
Continued best wishes.
Posted by Steve_S
August 03, 2005
A Parents Cry for Help: Instant Messenger Abuse.
It's not unusual for me to receive phone calls from this sites visitors who need help. This call was different. Mom and teen daughter were in a panic and indicated a scruffy looking stranger was at the front door asking to see the teenage daughter and even worse, the stranger knew far to much about the teen. This was an exclusive gated Community which required a Password to open the gate and located a few miles from my office. I advised Mom not to open her front door, politely ask the stranger to leave, use the Panic button on her alarm and then call the police. It would take me a few minutes to reach the house with my "digital kit" on a pro bono house call. What I saw and learned not only confirms my view that the Internet is a very dangerous place but lot's of Parents and teens need a strong dose of reality and training.
Tears and Angst.
Mom and the teen daughter were waiting in the living room. After displaying my Drivers License, I addressed the issue in a somewhat direct and tackles manner. Do you use a Computer to access the Internet? Do you use Chat Rooms and or IM (Instant Messenger)? Yes to all my questions from the teen and No from Mom who continued to cry. How would a stranger acquire the pass word to the front gate, your DOB, favorite foods, High School name, and your home address? Silence from the teen. Glassy eyed stare from Mom. Can I see your Computer? What was the last thing you were doing on your Computer? What is your favorite thing to do with your Computer?
An infected machine: Spyware and predators galore.
Packets were flowing in both directions. The machine was infected with tons of Spyware and IM was displaying lots of stuff including a "Joe" meeting date and numerous strange links.
Mom, I'm unplugging the Broadband Cat 5 Cable and taking the Modem with me. I'm also taking the Computer with me. Is this OK? Sure. I have a professional service who can fix the infection or you can choose from any of the following. Is this OK. Sure said Mom. However, none of this repair work is the core issue which we need to talk about. Teen begins to sob and cry. Mom indicates in an emotional tone that both she and her husband don't know anything about the Internet.
Tough Love from Me!
For Mom and Dad: The Internet is a VERY dangerous place. If you don't understand how this can occur and or don't wish to engage your kids with a family friendly security policy, you shouldn't have Internet access in your home. When I say dangerous, let me be rather direct in telling you what will happen in various cases: rape, identity theft, infected machines which no longer work, kidnapping, extortion, blackmail, sexual abuse, murder, drug addiction, robbery, and more! Dad arrives home and joins the discussion. I repeat my warnings and then offer some advice: Mom and Dad, take a course on the Internet and learn how to use it properly, hire a consultant (not me as I'm pro bono only), sit down with your daughter and surf the Net together, find sites that all of you can talk about at the dinner table. Make it a family affair with Security procedures. Mom and Dad agree and I provide third party resources.
For Teen daughter: Don't bother answering my questions teen diva! I know what happened. I can see what happened. I can read the logs of your IM chats. I can see that the machine is infected with Spyware. I know how you met the "dude at the front door" and how he obtained way way to much data on you! I know that teens spend much more time on IM during the summer months. These are the rules and if you don't agree or have questions, please speak up because I don't want to return.
My way or the highway. Rules of the road.
Don't give sensitive information to strangers. Any stranger! Via IM or anywhere else on the Net. ONLY use your first name or better yet a handle/screen name.
Don't click on unknown links sent to you via IM, email, Chat Rooms, or unknown web sites.
Assume that your real friends/buddies who you have known from school don't have a clue about how dangerous the Internet is.
Install a Firewall, reliable Anti Spyware software on your computer, and Anti Virus software. Keep your profiles updated.
You seem to be a smart kid and not a rebel without a cause. I see real "love" in this room. Take this foundation and spend some time with Mom and or Dad surfing the Net together. Talk about this stuff at the dinner table. Do it together and have fun.
Sure, I understand your a teen and need your "space" in some cases but let a healthy dose of paranoia guide you. Would you tell all your sensitive data to a stranger you met at your High School dance? Of course not, teen diva says. Then use these same common sense rules to guide you on the Internet.
I'm also aware of what your friends are doing and the resultant peer pressure to be "cool" and transparent. Use the "dude at the front door" story to educate them and stick to your guns.
Any questions teen diva?
Teen Daughter: I understand Steve, but your kinda strict and my friends won't think this is cool.
Sure, I understand teen diva but that's the way it's going to be unless you want scruffy looking strangers knocking on your front door and the resultant fear and panic that you and Mom suffered. You make the choice and then tell all your friends about the "dude at the front door" and rape, identity theft, infected machines which no longer work, kidnapping, extortion, blackmail, sexual abuse, murder, drug addiction, robbery, and more!
Long pause from teen diva and then...
I get it. Thank you Steve.
Posted by Steve_S
February 20, 2005
Sean's email raises some important issues and omissions on my part.
Although most of our email was supportive of my recent article titled "The New Google Toolbar: Just say NO!" which I suggest you open in a new window, Sean does present an interesting argument and properly points out some omissions in my original entry.
The email:
"Your recent rant on the Google toolbar prompted me to install it. After trying it out, I get the impression that you didn't.
When I went to a page containing an address the "AutoLink" button in the toolbar changed to "Look For Map". The page didn't change at all. I had to click on the autolink button to change the address to a hyperlink to Google maps. Same went for an ISBN. And as I moved my mouse over the hyperlink, the hand changed to a different icon, and a tooltip telling me this was a Google AutoLink was attached.
You can also turn it off if you want, or set it to use Yahoo! maps or MapQuest rather than Google Maps. Granted, I don't see an option to change the book provider from Amazon to something else, maybe we'll see it in another version.
Comparing this toolbar to the likes of Gator is outright irresponsible.
Sean
--
Sean A. Walberg - http://www.ertw.com (Permission granted for use)
Our response:
Sean,
Thank you for the email. You have raised some interesting issues which I should have documented in the original entry. Of course I installed the Toolbar and tested same before I wrote my article.
The original fair use extraction clearly stated: "...and click the AutoLink button" which changes it's name as you note to help focus the users attention on the button. You are certainly correct that a user of this Toolbar may in fact change the default site from Google to other sites such as Yahoo or MapQuest. Actually, Google uses the same flawed argument when they state:
"Google, the world's most widely used search engine, denied that the AutoLink feature is an attempt to control which destinations Web surfers visit. People can already choose between several map services, including Yahoo and MapQuest, and choices for book retailers may be added in the future, a company representative said on Friday." Source
Both your statement and that of Google miss the real issue, which I failed to properly state in my original entry. In Google's case, it's a flawed attempt to justify the functionality of the Toolbar.
The REAL ISSUE that matters
Regardless of the fact that the link (and Tooltip display) points to Google, Yahoo, MapQuest, Amazon, or any other site on planet earth, the fact remains that the content of the Publisher's site has been altered by a surfer who clicks the AutoLink button while using the Toolbar, which Google provides. The content of the Publishers site is altered without their prior approval and the Publisher does not share in any revenue generated by the hijacking of a visitor to another site. The Publishers looses revenue via this hijacking procedure. Please permit me to explain this another way:
Sally and Jim build a Web site. They use the revenue from the site to support their family. It's taken them years of hard work and dedication to generate revenue. They also pay money to advertise the site so new visitors continue to arrive and purchase their product or service. They may also use Affiliate programs to generate revenue. These Publishers are the only ones who have the authority to determine exactly how their site displays in a browser and exactly which links they have chosen to insert which earn them revenue. They are protected from hijacking/alteration and the unfair loss of revenue by the Toolbar hijacking users via the following federal Laws:
The DMCA (The Digital Millennium Copyright Act of 1998) is designed to protect the content of Web sites and prevent others from unilaterally altering the content of a third parties site. If the site has also obtained a Trademark then this introduces another serious legal issue. A Trademark is designed to protect the owner of the site from folks who see fit to create confusion in the marketplace, steal images/content, and unfairly profit from the Trademark holders hard work by hijacking traffic. These same two issue are central to the numerous law suits which Gator/Claria/Kazaa and other Spyware players have been involved with as defendants. In some cases the courts have sided with the Web Site owners as I documented in this article and in other cases the courts have sided with technology and the Publisher lost the case. Given the fact that the same two legal issues are involved in these cases, I think it's fair to paint Google as a member of the Gator/Claria/Kazaa club, even though the courts have moved in two different directions and the Toolbar is not Spyware/Adware.
Final thoughts
A few years ago, Microsoft tried a somewhat similar thing with its Smart Tags feature and fortunately for Web Publishers, subsequently removed it because of adverse publicity, Publisher outrage, and Copyright/Trademark concerns. I'm the first to admit that the legal principals involved in this issue have not been universally interpreted by the courts and the fact remains that I'm not an attorney. Thus, I have chosen to call Google an enabler: they provide the Toolbar and I respectfully consider the actions of Google to be morally and ethically reprehensible.
If Publishers don't voice their concern and objection to the new Toolbar, the hijacking door is left wide open for Google to continue to add new features which inflict additional damage on hard working and dedicated Publishers. Will Google decide to implement AdWords advertisers inside the functionality of the AutoLink feature of the Toolbar? Will Google find itself in court for these actions just like the Gator/Claria/Kazaa crowd. These are real concerns of many hard working Publishers.
Thanks again for your email and pointing out areas of concern and facts which I failed to properly document.
This article is a response to my original entry titled: "The New Google Toolbar: Just say NO!"
Posted by Steve_S
February 12, 2005
Buying a Web Site: Tips to prevent fraud from "confused"
Every few weeks we publish some email we receive along with our response. We generally redact the senders name and email address to protect their privacy. This email provides an excellent question and some valuable tips to prevent fraud and half truths in the purchase of a Web Site.
Email received:
I've looked at a bunch of Web sites to purchase but I'm uncomfortable with them. Can you offer any additional tips?
Our response:
Hello confused,
We could probably fill a dozen ebooks with tips to prevent fraud and the abuse of buyers. Here are a few:
1. We never send payments via Western Union. Period. That's always a red flag and the sign of fraud. This includes auctions. You have no recourse if you pay via Western Union. We examined numerous sales and auctions and this trait always occurred. Use an escrow Company like www. escrow.com to protect yourself.
2. Many sales include verbiage like "...fastclick, adsense, realmedia approved.." or something like "includes FastClick account" Sometimes these statements hint and other times they are more pronounced. In all cases the statement is not true and we consider it a Red Flag. For example: the AdSence Policies state:
"Account Transferability
AdSense accounts are not transferable, assignable or resalable in connection with the sale of your site or otherwise. For example, when a site changes ownership or management, the prior owner or manager must cancel the AdSense account for the site, and the new owner or manager may sign up for a new AdSense account in his or her own name." Source
The Fastclick procedure:
"I wanted to jump in here and mention a few things. First, we do allow transfers for sites that have been sold. You may not switch your payment profile to the new owner, the new owner must create a new Fastclick account or add the site to their existing account. Please keep in mind that the site is still subject to our publisher agreement. Fastclick.com reserves the right to refuse service to any new or existing Publisher, in its sole discretion, with or without cause.
If you have sold a site and the new owner would like to continue to use Fastclick you must send an email to publish@fastclick.com and CC the new owner stating that you would like to have the site removed from your account.
Regards,
Matt Oettinger
Media Account Manager
Fastclick.com, Inc." Source
What can happen to a buyer? The seller gives you the Admin data to log into the affiliate program which also violates the TOS. You log in and change the Payee/Ownership of the account to your own. BINGO! Not so fast dude! No can do. The affiliate program suspends the account and earnings drop to zero or they require you to reapply. If you reapply then the next series of questions are: Does the site still comply? Is the affiliate program still interested in the type of site you just purchased?
What can happen to a seller? You fail to notify the Affiliate program of the sale so you may loose all your earnings. The sale should include terms and a requirement that the seller will notify all Affiliate programs of the sale and that the buyer will reapply.
3. Why are you purchasing a site which is cheating? Forums are full of these types of deals. The buyer needs to carefully examine the site in question and insure that every Affiliate Program running on the site or which has ever produced revenue complies with the letter and intent of the Affiliate programs rules.
4. When you first see a sale, immediately run a Whois search and make note of the owner. If the seller is not the same owner as displayed in the Whois database leave and do not purchase the site. If the owner changes in Whois during the sale, you have a red flag. Audit the sale by sending an email to the address displayed in the Whois database and require a response from this email. If it bounces or you do not receive a response, leave and do not purchase the site. You would be surprised at the huge number of fraudsters trying to sell sites which they do not own.
Final thoughts
We realize we haven't covered all the issues but hopefully have provided you with what we believe to be some of the key areas of fraud in the sale of sites. Don't hesitate to drop me an email if you have other questions. I'm pretty busy but will do my best to try and help. Thanks so much for the great question.
Posted by Steve_S
January 09, 2005
Our Site Critique From "unhappy"
Every few weeks we will publish some email we receive along with our response. We generally redact the senders name and email address to protect their privacy. We have chosen not to enable the Comments feature of our script since it lacks adequate controls to prevent Spam and abuse. We hope you enjoy this regular feature.
Email received:
Hello,
A lot of your writing is way to opinionated for my taste. It's almost like you are preaching to children and you seem to thrive on inflating your ego.
Please tone it down!
Our response:
Hello unhappy,
Points taken on your comments. They are valid and we appreciate your input although we aren't going to change. We hope the following provides some insight into exactly what we are trying to accomplish.
Our mission is to provide a unique perspective. After all, their are literally thousands of useless sites who either steal other folks content or just quote an article on another site. Why would you want to read the same dribble across multiple sites. The mainstream Internet news sources generally do a pretty good job but their mission is not to yell and scream when they see abuse. Also, they don't offer the kind of "street level" commentary that we do. We both serve a purpose and that's why we insert their RSS feeds on this site.
Next we have sites that post articles that really amount to a self promotion pitch. Since we don't run adverts or try and sell you anything, we are uniquely positioned to document issues without a conflict of interest. Yes, we do have an agenda! Educating you and others about Scams, Abuse, Fraudsters, and Criminals. Using our own extensive real world experience, contacts in the industry, and our friends in law enforcement.
Finally, I'm not hiding under a rock and if you Google me you can read tons of stuff which date back to 1997.
For example:
Google Steve Shubitz
Search for posts by User Name of Steve_S on GeekVillage
Whois on this site
Thanks again for taking the time to write me. I do hope you continue to visit this site and please tell your friends and associates about us.
Posted by Steve_S
December 01, 2004
Affiliate Program Advice From the "dude"
Every few weeks we will publish some email we receive along with our response. We generally redact the senders name and email address to protect their privacy. We have chosen not to enable the Comments feature of our script since it lacks adequate controls to prevent Spam and abuse. We hope you enjoy this regular feature.
Email received:
dude!
Me and my buddies think your investigations of companys and programs is a total waste. We all live in the same frat house and just join programs which sound cool. We get paid and havent been stiffed yet!
later
Our response:
My name is Steve and that would be the appropriate name to use as opposed to "dude". If and when you graduate from College and actually seek employment, you will discover that the use of "dude" won't get you a real job. Perhaps a fry cook at McDonalds but not much else. You need to break this habit because I've seen many folks accidentally use the word in a business setting which always taints their image or in some cases gets them fired.
The real issue in your email is interesting and your thoughts are pervasive in the Webmaster world. Lets break this down into logical points for you and your buddies to consider:
1. You will be cheated and or abused. Not if but when. Period! Dozens of affiliate programs launch, which rely on the fact that you won't spend the time to properly research them and then they cheat you.
2. Your missing the real issue which is training for "Life" and making logical decisions based on prior research. For example, when you join the real world you must research prospective employers, auto insurance, health insurance, credit card terms, sale or purchase of a home, and numerous other issues which play a significant role in your life. If you develop the habit of not performing your investigations before you leap, you will make bad decisions and have little if any chance of succeeding in life.
Later dude!
We couldn't resist a little humor in our response. However, this kind of thinking and correspondence is a serious problem. The Internet has spawned a generation of folks/loosers who think the brick and mortar world works the same way as the Internet. Do you have a clever comment? Take us to task. Let's hear your logic. Send your best thoughts to: ss AT StopScum DOT com
Posted by Steve_S