Thursday, February 14, 2008

Stephen Ducharme, ContactThem scam

While surfing the other day, I saw an ad someone had posted about a program called "ContactThem" which claimed that they would pay you $4800 to add their links to your website for one month. That sounded like a great deal to me! I have a website..and I like money.. especially free money! Anytime someone wants to pay me lots of money for doing something as simple as cutting and pasting a link onto my page, I'm there! Of course, being the skeptical soul that I am, I decided to do a little investigating before rushing in to claim my $4800. I clicked the link and it took me to a website for a product called "Contact Them" that asks you to sign up and download their software. After my big Zangdo virus fiasco, I'm pretty darn careful now about what I download, plus they asked you a few questions before you download it, so they can "personalize" the software to you. Meaning, make sure they send you the right hype and scam page, targeted towards telling you what you want to hear based on what you're looking for. The questions are 'what describes you the best:", and lists choices, like "I'm an internet marketer interested in promoting affiliate programs" or some such thing, and "Main reason why you want the Contact Them software" again with some choices. They also ask for your phone number along with your other contact information, and it is marked as 'required". It says "your account will match your phone number". Hmmm.. this made a few bells go off.

I Googled Stephen Ducharme, "Contact Them scam" and "Virtual Contact, Inc", and what I found out is that Stephen Ducharme is the self-proclaimed "Free Ad Guru" and claims he never pays for advertising. I also found out that, while his website claims this is brand new software they spent four years developing, there were several complaints on a few message boards from around 2005 for a product by this name, and also something called "My Affiliate Finder", which by the name sounds like it may be the same type of software he's now calling "ContactThem". In or around 2003, there were complaints about other products from Stephen Ducharme , in particular one called "How to get 1million visitors on your website without paying a dime in
advertisement" The complaints said that his promised customer support is pretty much nonexistent, and they do not answer emails or phone calls. In addition to that, after you purchase something from this guy's company, they call you and try to talk you into bigger things, like "coaching"., with high-pressure sales tactics. They ask you questions about your credit cards and available balances, and what you end up paying is the amount of your available balance! YIKES! Read what happened to this poor guy http://www.ripoffreport.com/reports/0/072/ripoff0072066.htm.

These complaints are all a few years old, and I didn't find any complaints recently specifically geared towards the ContactThem software, so maybe he's cleaned up his act.. or maybe it's just too new, since he says it just launched.

The ContactThem offer has two parts.. the software program itself, and the affiliate program...which is the part where he claims you can make "up to" 4800.00 your first month for simply placing their ads on your site. Of course, you have to read the disclaimer at the bottom of the page

"These figures of earnings are examples to help you understand the earning potential - You can make more or less. There are no guarantees of income. *You are NOT paid per click, per impressions or for the period of time our banner is exposed on your website; you are paid per sale generated. You receive a sales commission when members join our paid membership upon your referral or your sub-affiliates'. Recurring monthly commissions are subject to members' renewals. By default, 2 levels of commissions are paid; to access levels 3 to 10, you need to meet each level qualifications. Please take time to consult the qualifications for each level inside the affiliate area that explains everything in details."

This means that you can join as an affiliate for free, and promote the program on your own and try to get people to sign up by marketing it through whatever channels you can find..and possibly make some sales or get people to sign up and upgrade...get them to UPGRADE is the keyword here. You don't get paid for them signing up, they have to upgrade and pay the 49.00 a month before you make any money. Of course, you won't make any real money unless they not only sign up and upgrade, but they then get people under them who sign up and upgrade, etc. Or...you can UPGRADE and pay 49.00 a month to be able to use the ContactThem software to find people to send your ads for the affiliate program to ...and/or promoting the actual software. using their program.. Either way, it's not a simple matter of put the banner on your website and sit back and make tons of cash, like the ads would have you believe.

I will say this for him, he's REALLY, REALLY good at the smarmy sales copy. He knows exactly what to say to make people want to sign up...but he neglects to tell you that it ain't half as easy as he makes it sound. If you do sign up to be an affiliate and you can manage on the free option to find some people who do sign up and actually upgrade, that would be fine. However, we all know it's not that easy. Anyone who has done or is doing internet marketing or affiliate marketing, knows that you have to promote something. You'll have to actively market it. Unless you have a huge mailing list or tons of traffic to your site, you'll need to place ads. Chances are, even if you choose to upgrade and pay the 49.00 a month for the chance to market to the leads they provide you with using their software, a small percentage of those who actually sign up will do anything with the program. Some may upgrade and pay for a couple of months, but most will give up after a few months when the profits they were promised in the ads don't materialize magically. There's nothing wrong in this, it's marketing, and A LOT of programs do it the same way, but it's deceptive, and if people do sign up and attempt to market this affiliate program, they need to be aware that their earnings will most likely, for probably 99.9% of them, never be more than a couple hundred dollars.. if they can manage even that.

This is an FAQ page about the affiliate program...http://www.contactthem.com/affiliateprogram3.php?

Up to this point, one would think there's really nothing wrong with this program, aside from the smarmy and deceptive advertising tactics.. but..

Here's where the scam part comes in:

As a free affiliate you are qualified to earn commisions on your first 2 levels with no qualification, no strings at all.. but from level 3 on you have to qualify to earn commissions by being an active (read: paying) member who has reached $1000 commission earned. A legitimate "affiliate program" does not require you to "qualify" or pay anything in order to collect your commissions. This is not an "affiliate program", it's just a glorified ...and deceptive.. MLM scheme.

What's your compensation plan?


Level 1 = 20%

100% Free - No qualification required
Level 2 = 10%

100% Free - No qualification required

Level 3 = 5%


(To qualify for this 3rd level of commission, you must be an active member of ContactThem software (minimum is $49.95/month)
+ You must have reached $1,000 in commissions earned.)
Level 4 = 2%

(Qualification: Active member + You must have signed up 10 members)
Level 5 = 1%

(Qualification: Active member + You must have signed up 20 members)
Level 6 = 1%

(Qualification: Active member + You must have signed up 30 members)
Level 7 = 1%

(Qualification: Active member + You must have signed up 40 members)
Level 8 = 1%

(Qualification: Active member + You must have signed up 50 members)
Level 9 = 1%

(Qualification: Active member + You must have signed up 60 members)
Level 10 = 1%

(Qualification: Active member + You must have signed up 70 members)

This brings us to the ACTUAL program.. the software.....

What is ContactThem?

It's software that claims it can find the names of, and allow you to contact with a personalized email, virtually every affiliate marketer of every affiliate program on the planet. It sends emails to these people telling them how much you like their site and would they be interested in becoming an affiliate for your product or service and placing your links on their page. Of course, you don't have to actually go to any of these affiliates's sites, so how do you know if they are even active affiliates? or if they even have a website? Most do, but some do not and market through email or other venues. It does make mention somewhere on the site about "Internet marketers/list owners/affiliates/website owners/promoters/resellers", and it says it will tell you the marketer's stats and activities, so I suppose the program knows which type of marketer they're contacting and everything about them, and tailors the emails to each individual? It claims you won't get SPAM complaints, because it's a personalized email. So what? I get lots of SPAM that's personalized, and unsolicited email trying to sell you something, last time I checked, was still SPAM, and the complaints may very well come.

His sales page claims that you will find lots of "tire kickers" talking bad about him on the internet because they "don't understand him", he's ahead of his time. LOL Well, that's a CYA statement if I ever heard one. Though it is true that a lot of people will cry "scam" if they buy something and don't immediately make a million dollars with no effort, becasue they don't know how to work the program, the majority of scam complaints tend to be true, and I'm betting Mr. Ducharme deserves his reputation.

In theory, this software could actually be really useful in helping you make lots of money, if you can find a bunch of affiliate marketers who are stuck on stupid or complete newbies. If I understand it correctly, the way the program supposedly works is that you find a 2-tier affliate program and sign up, and then you send emails to all of these other affiliate marketers from these other programs that the software finds for you, promoting your affiliate program, and they become your subaffiliates in the program. I don't know about you, but if someone who is not the owner of a product or a company contacts me, asking me to promote their products, I'm gonna know they're an affiliate of that product/program. If it's something I'm interested in, I'll go sign up as an affiliate on my own and get full commissions DUH! I could be wrong. The reason they have subaffiliates is because people to sign up to be one, but I just don't see it happening a lot when you're marketing to current affiliate marketers.. On the other hand, suppose you sign up for the service, you do manage to sign up a bunch of sub affiliates under you, and they put the links to your products on their sites..and nothing happens..or only a few sales happen. This wouldn't be a big deal in normal circumstances, but it is a big deal if you're paying $12,000 a year for the ContactThem service! YEP, you read that right.. $12,000 a year.. payable in convenient monthly installments of just $997.00!! DOUBLE YIKES!! Of course, if you can't afford that, they have the limited version that will allow you to contact 200 marketers every day instead of 1000. There are some marketers who wouldn't think twice about paying that much money per month for leads.. but for most people, that's just not an option.

BOTTOM LINE: I don't think you can really classify this program as a scam per se. It is, however, deceptive marketing, and it is not an affiliate program, it's just a MLM scheme. The whole thing definitely falls under the hype and air category. I am willing to bet also, that once you sign up as a free affiliate, the high-pressure, very persuasive emails will be forthcoming quickly..and A LOT of them. Whatever you do, if you do sign up for this program, whether for free or as an upgraded member.. when they call you, and they almost definitely WILL CALL YOU.. don't TALK TO THEM.. do not let them talk you into ANYTHING, and under NO circumstances tell these people, or anyone associated in any way with this company your personal information, including the balance on your credit card. If they call HANG UP!

19 comments:

Anonymous said...

This is definitely a pyramid scheme if I ever saw one.

Anonymous said...

I bought the software and will not be using it as it is pitched. I do like the idea of using it combined with permission emails to website owners for legitimate advertising. Great article, best content I've read in a while.

Thanks for your input.

Jeremy

Paul Burnette said...

thank you for the review. I am a newbie affiliate marketer. I just started my own site, AffiliateCurve.com (i'm NOT spamming you - honestly) Just wanted to say thank you for your review of Contact Them - I tend to get a little too excited when I see this stuff and sign right up. I actually spent my time tonight adding the program and ad link on my site. Too bad - looks like I probably wasted my time. Anyway, not to take too much of your time or anything - Just wanted to say thanks - You have an excellent blog - I only read the article since it's late and I need to get to bed, but do you offer or participate in any affiliate programs that you might recommend?

Thanks again,

Paul Burnette

Shreeonlinejobs said...

Thanks i was just beggning to write an post about contactthem affiliate program in my blog with there affiliate link but your article has saved my time and money also.

Anonymous said...

Wow, thank you for your info. It saves me a lot. Today i get email that invite me to join ContactThem. I'm sceptical person, i wouldn't join this program.

Anonymous said...

Thank you so much for this information. It has saved me from signing up for something which sounds great in theory, but alarm bells went off when I realised it was too good to be true. Sure enough, according to your research and that of others on the www this is one to avoid. Besides which, the people who contacted me quoted stats relating to my site which were also all incorrect.
Thanks again.
Epicurienne
http://epicurienne.wordpress.com

Jimmy B. said...

Bruno Dzimbeg
Hi there,just wanted to say that i'm also a new affiliate from contactthem and that i also
"fell" on the e-mail about my site(xtraterra.com),but i have decided to give myself a month with this program,anyway i found software very useful(but expensive it costs 49.00$ a WEEK)and it functions with keywords-like google but with extra info about page traffic,link popularity,e-mail etc..(expensive google with e-mail client hahaha..not funny)
Just to close up-there are plenty of MLM schemes on the net and they are more or less the same,i'm also annoyed with a fact that this is a "foggy" marketing in a nice new "box",but i think that even if i don't make money with this software ,info that i will get with it,will be priceless in some other "more clean"way of communication and sharing interests.
Will inform you for a month what i did.
Regards from sunny Croatia

Unknown said...

Hi Suze, cannot thank you enough for your clear review of what
is an obvious scam by someone
who has become quite good at it.

Thanks Again
Felix

Anonymous said...

Why don't we have enough people like you in the world today. Thank you very much.

God Bless and keep up the good work

Anonymous said...

Hi Suze, thank you for this article about contactthem software, last night I actually signed up for the software but it didn't go through something about my credit card didn't match something. Thank God! Today I decided to search about him and read your articles, thank you for saving me money, sounds too good to be true really, but I'm getting so desperate. I have a website, it's just new but no traffic yet don't know how to market it www.vidasgiftshop.com, do you have any advice for me, it's alot of websites offering ads for traffic and cost alot of money, don't know which one will really help my website. Thanks again for your good, honest article. God bless you. info@vidasgiftshop.com

Anonymous said...

Actually, I did not find this "review" helpful at all - but annoying. You obviously did not download or test the product for your own marketing purposes. How, then, can you make all these suppositions? It is all speculation, and now you have turned people off a program that could have potentially put their business and affiliate promotions in high gear. Shame on you.

Jimmy B. said...

Dear anonymous-i really don't think that i
need to apologize for my words cause
-i stand behind each one-and without of intention to harm anyone-especially not to product that you promote!
However-if you think that i'm miss leading you or anyone -than you should check my post again-to find that i did
upgraded which means that
i did download
i use ContactThem software and i'm not"selling you fog"

Here is my site where i did my personal review based on the use of software:http://www.xtraterra.com
and there is no need for anyone to join with ContactThem if your primary goal is not to work.

Shan G said...

HI & thank you for your blog post about Contactthem. I almost signed up for the free portion of this. I figured what the heck, but after reading this I have changed my mind. I am a SAHM & Blogger & trying to make some money online (Christmas is coming quickly!). I don't think I should have to pay someone to work for them, nor do I think I should have to have a certain number of sales before I make a commission. If the sale was made from MY site, then the commission belongs to ME.

And $12k/ a year??? Are you kidding me? WOW!! I guess if I had no morals or conscience, I could make oodles of cash too. But I do have morals & will not scam anyone to further my financial house. I would like permission to quote you on my blog. I am going to do a post regarding internet scams, etc..

Great Blog. I second what previous poster said, "Why aren't there more people like you out there? God Bless You!"

And as for Bruno...what exactly are you doing with the software & how can you afford $12k a year? Do your profits far exceed what you are putting out of your pocket? If not, then you are just throwing money away. It's simple mathematics:

What you "earn" - What you pay out = PROFITS.

If what you "earn" is not SIGNIFICANTLY more than what you are paying out, then you have been SCAMMED! (Or you enjoy losing money!)

Check me out at http://mylastshredsofsanity.blogspot.com

Jimmy B. said...

Hey Babyrocasmama-you have been checking ContactThem obviously-cause where else did you get idea that i did upgrade to 12 k a year?(there is a 2400$y.version also)
Now there are many ways to earn as webmaster and i will repeat ContactThem software is a great tool for anyone who haves clear goal and know how to accomplish it.As for you judging my morality...what to say i also have two kids and i'm married and you can see me,wife and kids on my
"one man community"http://die4web.ning.com,
And one more thing-i'm not a guru of any kind,and i personally will never try to sell to anyone some b.s. telling that "you need this or that" and miss leading.
Some how i think that i'm writing to Suze-again...Suze is that you?Naaa i'm wrong-am i?
P.S. my favourite book is also Byble-you know that part when He say-Don't judge cause if do-you will be judged...
Feel free to contact me whenever you want-my doors are always open especially if i can help.

Anonymous said...

Okay, first of all..Babyrocasmama you can quote anything you like from my review, and I'm glad you found the review helpful.

As for Bruno, no I am not Babyrocasmama, if I had anything to say to you in response to your first comment, I would have posted it when you posted the comment months ago..but I didn't. I also did not remove it, because you are entitled to your opinion, just like I am. I investigated the program and its claims, and I found it to be something that is misleading, very expensive, and not likely to be something that will work for the majority of people trying to find a way to make some money online. If you bought into it and are happy with it, good for you.. more power to you. I have no need to hide behind a fake name to give my opinion.. I don't, personally, know of ANY MLM or network marketing program where the majority of the people who join will ever make any money. I have looked into A LOT of them, and joined a few, and they just don't work. There's a ton of information out there from people who have researched it, they've got the data to support their findings.. and they all pretty much say the same thing MLM and network marketing do not work. If you are in some program and you ARE making money, then you're lucky. You most likely got in early. Nobody is judging you, Bruno, she wasn't questioning your morals, the morals portion of her comment was not directed at you.. learn to read! She simply asked how you can afford 12,000 a year and if you're making money with the software to make it worth what you're paying.

Anonymous said my review was not helpful because I didn't download and use the software, so how could I know it's a scam?..well..I can read, I have a brain, I can do math, and that's all you have to be able to do to see this is not a program that I'd want to be involved in. The software itself is probably very useful..but their "affiliate program" is a scam, and that's how they lure people in with promises of easy money..until you read the fine print. So, yes..I'd say that's a scam. BTW..I've never tried arsenic, but I know THAT's not something I'd want to try either..some things you just know without having to actually try it.

Jimmy B. said...

Hmm,...very nice comment,loooong,but i read between the lines-do you?
I have never mentioned that i'm near any MLM program so where did you come up with that?
Even if you think that MLM doesn't work and i also avoid MLM-that doesn't affect on my opinion that MLM
does work-but the flaw is in the people-people don't work and you always have satisfied worker and unsatisfied -don' know how -but i'm expecting much-people.

So lets cut the crap out and recap what i have written from first comment-personally i don't like how the affiliate program functions-even if any sale made for that software pays commission-where did you get that it doesn't?

But if you are affiliate who just signs new affiliate with that ads and no one upgrade-who will pay you?
Software is-wow-markets itself with people who have high expectations and when you put those links on your site you expect miracle-what do you think-all those marketers who are working-they are crazy?
No-everyone needs to work in order to succeed-especially on the net-but the other story is that everyone thinks that internet is El Dorado-it is if you work,if you dig to find-so calling everything a scam is a scam of it's own -usually used to cover "right product"-and we all love juicy stories,discovery's,miracle's-and for sure everyone would love to find magic,secret...yadada source of income.

I left that affiliate program aside and upgrade so i could use software for my business-and for that purpose software is great-but if you think to use it just to say:hi look at me....you wont get much,and than is expensive-to expensive!
Why do i think that you are same person as babyrocasmama-similar profile,age-taking hard offensive on comment....etc.Anyway if i did offended you -i apologize it wasn't my intention but i am the man who "tried arsenic"(i know for instant death-but since we are going extreme)few times and i know what i'm talking about.
One thing that i have learned in life is:never listen to anyone if you have to much opposite opinions.
Sure i make mistakes,but i can say :been there try that-yes or no-i have my own ground where i'm standing and i will always stay behind anything that i said-right or wrong.
Once again sincere apologies if i did anything to offend or miss lead anyone here and especially
you Suze!
And again my doors are opened to anyone feel free to use my e-mail for any question.
Regards to all.

Jimmy B. said...

Sorry for this but again i need to comment on Suze-all post is about how some programs doesn't work and i just need to say this one more time-programs of any kind wont work alone and purpose of any program should be to give you just a bit easier start and selling bonus-but most of the people don't join to MLM to sell products -instead they sell MLM scheme and MLM selling MLM-?

Point is -any affiliate program,or any product can be sold as MLM but unfortunately MlM usually is being used for some low quality products -and people are not stupid.

Anonymous said...

It's not necessary to download the software to see what this is IF you are at all an experienced online marketer.

The phrasing of the email that is sent out is deliberately framed in such a way as to reflect legitimate link purchases that experienced webmasters are familiar with. Yet, tries to dance around ethics by using the weasel-phrase "up to".

It's about as good as the good ol' "Data Entry" sites that justify their existence by calling any type of activity that could possibly involve typing "Data Entry".

Suze is completely RIGHT on this one. No "ifs", "ands" or "buts" about it.

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