We received a phone call from National Business Online (NBO New Zealand) that kindly offered to "renew" our listing with them. I know very well that we have never had a listing with them, however as an "existing customer" I was offered to renew and enhance my listing for $150.00 for the next 2-years. The frenetic sales pitch is rattled through by a gentleman with english as a second language. The delayed phone response indicates that the caller is using VOIP technology either here or overseas and the noise of a busy call centre can be heard in the background. Adding to the sales pressure, this generous offer is required to be confirmed by this afternoon.
Soon after hanging up the phone, the sting arrives in the form of a fax that invites the business owner to complete, sign and fax back to secure listing details.
This is a well worn tactic that dupes and pressures business operators into believing that they, other staff members or previous owners have subscribed to a directory listing. The listing benefit is dubious and the objectives for the company appears to be questionable.
We will again not subscribe to this company and their fax will go straight to landfill. After reading the story from TVNZ below, we advise you to do the same...
Concern about website's sales tactics
www.tvnz.co.nz
1 September 2008
Companies are being warned to think twice before signing up for an online business directory that is potentially raking in millions of dollars a year.
NBO New Zealand has listed virtually every business in the country on its website but ONE News has uncovered concerns about its sales tactics.In a downtown Auckland office block, a call centre is potentially making millions from a business directory that has upset people like Sarah King.
"It really disappoints me that these people have been allowed to stay in business," says King.
NBO New Zealand's website lists 320,000 businesses and the owner says he is offering a value for money alternative to the Yellow Pages.
"We've been providing a great service to all those businesses who are listed in our directory right now," says NBO New Zealand owner Shallendra Singh.
Delaney Bertrand sold company listings at NBO's call centre. According to Bertrand, call centre staff called the businesses that were listed and told them they had 579 viewings on their listing last year.
But she says the viewing numbers are false.
"I was just told to say the same number over and over again, she said. "And they just said 'it's easier' to do 579 every time, it's easier."
But the NBO owner has a simple explanation. "Those are average figures," says Singh.
But his "average" explanation creates a big problem.
If you multiply Delaney's "average" number of viewings by NBO's 320,000 listings, the website would need 185 million hits a year.
So, how many viewings does it get?
"It could be possibly several hundred thousand every three months," reveals Singh.
Which means the "average" viewing per company listing should be less than 10, not 579.
When asked by ONE News, the owner denied that the statistics were false and misleading.
Businesses pay $96 for a two year listing, and, on a good day, Delaney says the call centre could make 200 sales.
Based on Delaney's sales figures, National Business Online could generate daily income of $20,000.
And that means the annual income could easily reach $5 million.
One website designer believes businesses are probably wasting their money.
"It's not very effective...if you do a search in Google for business directories, their site doesn't appear at all," says Henk Keyzer from 4Success.
There is now almost 100 complaints on Sarah King's blog, and she is sick of NBO.
"It's not the way people should be doing business, and it's not how they should be treating their customers," says King.
The NBO owner dismisses the complaints.
"Majority of our customers are very happy and they're getting a great response out of this," he says.
But most companies do not know they're listed according to Delaney.
"I don't think I called up one person that knew who we were," she revealed.
And after a fortnight of cold calling she left.
"I felt so horrible. I couldn't stand being there taking customers money - like, taking their money for no reason," she says.
NBO owner Singh has been convicted for receiving stolen computers, but says that has nothing to do with his directory business.
"This is a completely different issue, and it has got nothing to do with this," he says.
The Commerce Commission has looked into NBO and found nothing illegal, but warns businesses to check what they sign up for.
http://tvnz.co.nz/view/page/1318360/2050617
