Impromptu Speech Topics: Help Making Money

This post is made possible by Microsoft BizSpark as a new part of the Spark of Genius series that focuses on a new and innovative startup each day. Once a week, the program focuses on startups within the BizSpark program and what they’re doing to grow.

Consumer electronics search engine and review site Retrevo had the best traffic day in its four-year history on Monday. But unlike Cyber Mondays of the past, site visitors who were browsing the site’s comprehensive reviews also had the option to buy electronics without leaving the Retrevo site.

In the past two months, the company has been dipping its toes into e-commerce — an industry that it plans to dive into fully next year. The site’s long-time sources of revenue have been advertising and cost-per-click fees it collects by referring its users to electronic retailer sites. Since launching e-commerce components, such as its daily deals, it has more than doubled its monthly revenue.

To complement the new strategy, the company is launching a new search engine today that allows consumers to search accessories, the major portion of its product offerings, by entering a specific electronic device they wish to accessorize.

Taking this leap into e-commerce was something of a risk for CEO Vipin Jain. E-commerce is a decidedly different industry than review indexing, and there was a question of whether readers who trusted the site for information would also trust the site with their money (the answer thus far appears to be that they will).

class='blippr-nobr'>Mashableclass="blippr-nobr">Mashable recently chatted with Jain about making the transition that he says is likely to triple annual revenue.

Building a Strong Frame

Retrevo built a 6-million-unique-users-per-month user base for its search and review engine before it decided to start selling products itself. And although selling electronics is turning out to be much more profitable than recommending them, the four years that it spent refining this system were an important component in building the site’s e-commerce success.

For one thing, customers already trust the site. “We probably would not have had this much success with e-commerce if we had not gone through building the trust with the information and reviews and recommendations first,” Jain says. “I think that where we are and where we think the company is going to be, I think that is a result of having that belief in the recommendation and the advice we are giving them. It is easier for them to open their wallets and give us money to buy products.”

It’s also unlikely that consumers would choose to buy from the site if it were just another Amazon-like retailer. The comprehensive reviews, which make it easy for people without a lot of technical knowledge to pick out a product, is the reason that people will continue to visit the site. And, as Jain sees it, the commerce component is a way of completing this easy-to-navigate experience. Instead of sending customers to a third-party site that might be confusing, users can easily complete their checkout where they started their search.

Changing Course

Earlier this year, when Retrevo started planning for the switch, the staff didn’t have any delusions about what a drastic change the company would be making. Retrevo sought new talent from online retailers like Newegg.com and eBay to help its team think in e-commerce terms.

“We were the king of the hill in our old world (CE reviews and recommendations),” Jain says. “E-commerce is full of potholes, and we are going against big guys such as Amazon. Amazon can be very aggressive when it comes to pricing for items that they want to move.”

Instead of competing with Amazon down to pennies, Retrevo’s advantage needs to come from helping customers buy the best products for their needs and get the most out of them. The accessory search engine that launches today, for instance, helps customers find the right accessories based on what devices they have. If the accessory doesn’t work with the device, the company will accept the return with no questions asked.

It would seem that selling and recommending devices on the same site might be a conflict of interest, but Vain insists that it is no more so than when the review site has hosted advertisers like Sony in the past.

“I think we have established over the years that Retrevo is a trusted place and the reviews and recommendations that we give you have not been influenced by any business model or revenue model,” he says.

Because being a reliable source of decision-making information about products is the key to its e-commerce strategy, it seems like much of Retrevo’s success or failure will depend on whether this statement holds true.

Image courtesy of class='blippr-nobr'>Flickrclass="blippr-nobr">Flickr, Chuck “Caveman” Coker, Dean Terry

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Q. I was charged $1,200 by Debt Solutions of America with the promise that they would lower my house payment. Well they did -- It was $823 a month. Now it's $817. And I'm out $1,200. Is there anything I can to do to recoup my money?

Pamela Staheli

A. Pamela, I really hate to hear about cases like yours. With all of the trouble in the housing market, companies like this are popping up more and more. They often call themselves foreclosure rescue or foreclosure relief services, and they promise big things: Lower your mortgage payments, cut them in half, save you thousands of dollars a year.

What they actually do is exactly what you could do on your own, or with the help of a good not-for-profit housing counselor: They help you gather and submit the paperwork needed to complete a loan modification as part of the Making Home Affordable program.

When we received your email, I did a search for the company so I could get in touch and see if we could recoup any of what you lost. What I found, unfortunately, is that this company is already out of business. I did manage to track down Chris Stover, the owner, and he was less than helpful. He said that in order to work with his company, you had to sign a contract that said, essentially, that there are no guarantees.

I know you've acknowledged that you did, in fact, sign this contract. Because the company is out of business -- Stover tells me it "just wasn't a profitable business to be in," although I'm sure you'd disagree -- going after a refund would probably be throwing good money after bad, according to Gerri Detweiler, a credit adviser for Credit.com.

Instead, she thinks you should file a complaint with your state attorney general's office and the Federal Trade Commission (you can do that here). I'd also file a complaint with the Better Business Bureau, which already has a file started on this company, with 10 complaints registered. You can add yours to the list here.

Now, if you're still struggling with your mortgage payments, and it sounds like you are, you should get in touch with a HUD-approved housing counselor. It's completely free, and they'll be able to outline what options are available to you at this point.

Finally, for others out there who are considering one of these services: It's not worth it. There are no quick fixes, and if someone asks you to pay for this kind of counseling service or help with a home modification or a delinquent mortgage, it's more than likely a scam. (As a side note, there are legitimate credit counseling services, which charge a small fee to help you pay down credit card and other debt. If that's what you're looking for, keep your search limited to members of the National Foundation for Credit Counseling.) Whenever you're considering paying for a service of any kind -- debt settlement, credit counseling, even a new cell phone or cable plan -- you should thoroughly research the company, including verifying its rating and accreditation with the BBB.

Consumer Ally problem-solver Jean Chatzky is the "Today Show" financial adviser, a longtime financial journalist and best-selling author.
bench craft company scam

Wednesday, December 8, 2010

Help Making Money

Building a Strong Frame

Changing Course

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