Small business owners are passionate and dedicated people who have accumulated years of experience in an industry. With time and experience, they have often found ways to improve processes and use that knowledge to the benefit of their clients and customers. However, one aspect of business ownership that they may not be as familiar with is marketing.
To overcome their lack of experience in attracting new customers, many small business owners turn to marketing agencies and companies to manage their online presence or advertising needs. Unfortunately, the demand for these services opens up the opportunity for scammers to take advantage of small business owners. BBB Scam Tracker receives several reports across the country of bogus companies tricking small business owners into signing monthly contracts for services that are never provided.
How the scam works
A small business owner looking for a low-cost marketing service discovers a company that offers exactly what he’s looking for. The company may claim to offer public relations, search engine optimization or other general marketing support for a low monthly fee, often promising amazing results.
Once a small business owner registers and submits payment, it becomes difficult to communicate with the business. They may constantly postpone or delay promised marketing materials, such as social media posts, graphics, or logos. In many cases, contacting the business once the payment has been processed becomes almost impossible and attempts to cancel the service go unanswered, so the business owner has to cancel ·lar the card associated with the account.
Earlier this year, a Texas-based company reported to BBB Scam Tracker that it received a $790 bill in the mail for advertising services in a local magazine that they did not approve and had no prior contact with the alleged company of advertising
“We didn’t approve of anything like this and immediately knew it was a scam,” the business reported. “It appears, after some investigation, that this was a scam and was done in multiple states.”
How to spot fake services
Research companies thoroughly before hiring. Take the time to research and get to know the company well before contacting them. Make sure your website is professional and your social media accounts are real. Find customer complaints and feedback about their services a BBB.org. Legitimate marketing companies take pride in their digital presence because it is often the most requested service by their clients and provides an opportunity to demonstrate their capabilities. Take this opportunity to evaluate how the company positions itself or advertises itself and whether it is a good fit for your business needs.
Check the contact information. If the company has a social media presence and a professional website, be sure to check their contact information. If the business does not have a phone number or physical address, this is a sign that it may not be legitimate. If a phone number appears, call it to make sure it’s in service and check that the physical address is associated with the business name by doing an online search. Scammers often use the addresses of vacant properties for their own purposes.
Approach the references. Contact the references provided by a company to verify that they are not manufactured. Make sure it’s possible to contact the people on the list and research their names online to make sure they’re real people with legitimate small businesses. Please note that online testimonials posted on websites or on some review platforms may be fabricated. Learn more about the BBB review verification process at BBB.org.
Understand what you’re paying for. A reputable company will be able to clearly describe their services and the expected timeframe for receiving marketing materials before a potential client pays for those services. Take the time to understand the services, their scope, how they will be delivered (email, email, social media post, etc.) and when they will be provided. If any of these items are unclear, or if details about payments are vague, look elsewhere for services.
Use secure payment methods. Be wary of any company that insists on paying for services via bank transfers, gift cards, or prepaid debit cards. If someone asks for payment in one of these ways, it’s probably a scam. Even if you use a trusted company, BBB recommends always paying with a credit card for the extra protections it offers in case problems arise and you want to dispute charges.
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