Complaint Review: SMC - Chatsworth California

It's a shame that you didn't read what you wrote as you answered your own statement. You said that all of those people,SMC, Don Lapre, Carlton Sheets, Tony Robbins and others make money by sharing their business knowing that only 10 to 20 percent of people like me ever follow through on their programs! That is part of the secret to their success. YOU ARE 100% CORRECT!! If you don't work at it you aren't going to make anything. I made $175 profit in my first week of getting my kit and all it cost me was $39.95. So, I invested less than $40 in myself and "BANG" i have made the profits and continue to do so now. But, I work at marketing strategies, I go to the swapmarts to see what they sell, how they display their merchandise ... I leave my catalogues where they will be seen and taken home (25 brochures cost me $4.50)- car repair shops, dentist office, etc. So you can make money and tons of thousands of people are making money with SMC - Some people got it and some people don't -- Perhaps you should not be in sales because the products I have received have sold themselves.

There needs to be a way to notify people of posts like Deans and his pitch. Some of the posts here are crazy and off topic. People saying that they are employees when they are not. There is no information on this site that is trustworthy!

As an employee of SMC Promotions, the telesales department of SMC, it strikes me as strange that individuals that contact US for the opportunity to own their own home--based business, would complain when EFFORT is required to make this business opportunity work. I call about 250 people per day that have shown an interest in what we provide. The opportunity to control your own future. Some people make good use of the tools and support we provide and do quite well. Others do not. It does come down to personality and ability to sell. This company hgas been doing thisd for 56 YEARS+!!! That fact alone proves that what we offer is legitimate and above board. Ive been a Telesales rep for over 13 Years. I've worked for SMC Promotions for about 3 months. This is a PURE PROFIT BUSINESS!!! It works and is very basic in its operation. Most people try to complicate it and fail to follow coaches intructions. The risk is minimal and the potential to make money doing this is increased with a positive outlook and good work ethic. I contact the people I set up after they get their business kits and let them know that business is work and there are no guarrentees. Most take what I say to heart and try hard to make it work. I think what must be pointed out is the TYPES of people that call infomercials touting business opportunities and their MIND-SET. Most are in a financial quandry and are looking for the easy way to solve their money problems. When they see it requires work and commitment they blame us for making it too difficult under the guise that we ripped them off. I say to those individuals...B.S.!!!! SMC Promotions Account Exucutive Phoenix, AZ

Wilson,

Okay, I may be a little slow on the uptake here, but if you became an independent SMC product seller in November of 2002, and you posted the article I am reading dated as April of 2002, isn't it a bit perculiar that your posting about SMC is some 7 months BEFORE your involvement with them??? Hmmmmmmmmmm!!! Did you mean you became a SMC product seller perhaps in November of 2001?

:0)

Anyway, according to my calculations of the information you provided, not including any additional costs for the display ads in the papers or decals & business cards, costs of your permits and licenses (if any), nor the cost of the website; i.e. service provider, hosting, etc., you had thus far invesed a sum of $4,009.00 which also does not factor in your costs of the pay-per-hit search engines you used.

Then, of the 12,000 hits you received in November-December, you received 12 actual orders? I don't know about you, but I certainly wouldn't be bragging up SMC based on those statics, my friend!

12 orders from 12,000 hits, a 1:1000 sales ratio is not much of a conversation rate to brag about, Wilson. Would certainly say something about the product to most of us, whether it be quality or price or perhaps even the website design or marketing may have contributed, even the economy too, but you you do have to agree that if 12,000 people visited your site and you only got 12 sales from it, there's something amiss!

In June of 1999 I started my own website, and without spending ANY money or paper ads, etc., I did a better conversion rate than that, about 1:100, and still made sales starting from about $200 the first month and increased substantially each month after. In November of 1999, my best month, my sales were in excess of $4000.00 and then in December......... NOTHING! And I didn't know s__t from shineola, as they woulld say, about building or maintaining a website! The next 6 consecutive months produced no income at all and finally I shut the site down. Still, I took a write off on my taxes, even with the good month! OH! And that wasn't selling SMC either! I was selling an intangible item.... Memberships!

But I digress! My point is, even though you were able to deduct the $4, 466.00 as a business loss, nevertheless, you're still out that $4,009.00 initial investment, aren't you?

After all, you DID lay out that money from your pocket, IN CASH, and just because you got to take a "write off", doesn't mean that you recouped that 4 grand that came directly out of your pocket in the first place. It's not like the government handed you back the $4,009.00 to put back in your piggy bank. All they did was not make you pay taxes on that amount of money, plus a little extra, but you never got it back, right?

I never could understand the logic! Same I hear from people that buy a home! "Well, I get a great tax write off!" Yeah, you do perhaps, but that doesn't put the money that you are paying in interest BACK IN YOUR POCKET! All you're getting is the ability of deducting that amount off of your income so you don't pay a tax on it, but if you paid $100,000 in interest........ you still paid $100,000. You didn't get it back, you still paid it out! That money is GONE, and so too is the money you paid for your SMC business! You never did make a profit, correct?

A profit would have been, you got the initial $4,009.00 that you laid out back PLUS an additional amount over and above that investment, after all expenses are deducted from it!

Sure, if you're touting the business as a write off for tax purposes, perhaps that might make it a good strategic tactic, but to invest $4000 CASH to get a $4500 tax write off? Not my idea of a sound financial strategy.

And undoubtedly not a justifiable reason to defend SMC flaws.

Take care and good luck.

About SMC Corporation,
I tried to work their system after spending $350.00. I got a big box in the mail full of paperwork, video, and catalogs. I watched the video and done just what it said to do.

I even dropped off catalogs all around my town. Done all the advertising, website and still to this day I have not gotton one single order. Most everywhere I left a catalog I seen some other catalog from some other company. I never even got a mentor like they said I would.

The TRUE FACTS: 80% of what you learn is lost in three days "IF!" you don't reapply yourself. Also, 90% of all businesses fail in the first to three to five years. Only 10% are still in business after ten years. Lastly 90% of those who buy order a program, small business adventure, or other info-commercial material ever follow through with what they start! I have ordered a number of programs from t.v. But not for the fact to get rich. Success leaves clues! If you read about a number of successful people you will find that that are all doing the same things. Like for example: SMC, Don Lapre, Carlto Sheets, Tony Robbins and others.

They know like me that only 10 to 20 percent of people ever follow through on their programs! That is part of the secret to their success. And like me, how did I find out all this stuff? My government! On the federal, state and local levels.

If you want to start a business Don't spend your money on SMC Corp. or others false companies. Yes, they make money from what the general public doesn't know. As I said about the majority that doesn't follow through. I suggest think about what you are good at and LOVE to do. From there use Matthew Lesko's advice on "Government Giveaways". From there using the government pages of your local phone directory which is FREE! Call your state capital and ask for the "One Stop Permit Center" in your state. They will help you on your way. Oh yeah! They normally have a toll FREE number to call. Also find your nearest S.C.O.R.E. Chapter (Service Corps Of Retired Excutives) who will also guide through your business venture. Oh!, Did I tell you that this is FREE too? Don't forget about the SBA (Small Business Administration) Another FREE service to the public! And one Last one your local Chamber of Commerce. Which can provide and overwhelming amount of services and information FREE or at little charge.

Now do you see how SMC and others are making hugh amounts of money off of you? You have all these FREE sevices at your finger tips. Yet you don't know about them or use them! SMC, Don Lapre, Carlton Sheets, Donald Truimph, Bill Gates, Tony Robbins, Matthew Lesko (and the list goes on) all use the type of stuff, services and agencies to their advantage! Meanwhile you get charged for something they most likely got for FREE!
A word of advice! Don't start any business, any program you see/bought on tv or from any other source UNLESS you PLAN and COMMIT to FOLLOWING THROUGH!!!

I have three business and average 30 to hours a week. I got started using the FREE information I have listed. The catch! When I first started I put alot of effort and time in to accomplish my GOAL (to follow through). It is not easy and there are no handouts. But!, there plenty of people that will help you along if you are commited. I'm not rich, don't want to be. Never have forgotten where I have come from. And I have a Great Life! Do what I want, whhen I want.

As for SMC, well you do whatever you want, but before I invested any capial (money) I would seriously check out all the free sevices first! I started my first business with $0.64. Yes, less than a dollar! And so can you if you use the FREE services I have given you (most have web sites, so check them out! Don't take my word for it!) I have the complete SMC kit FREE if you want to check it out. You pay the postage! If you make money with it..more power to you! Contact me at [email protected]. Just remember...with life, relationships, or any business: "You only get out of it what you put in to it!"
Dean G.

P.S. if you want FREE advice / information on how to start a business, please post it!

Adolph,

My advertising (search engine, pay-per-clicks, etc) and web creation costs far exceeded my profit. Simple as that. You may or may not know that SMC distributors buy their products from SMC for 25-30% below their retail catalog price, thus that is where the profit comes from.

My "diatribe" about the tax deduction is that you can spend thousands of dollars for a website, advertising and marketing, but the competition for retail customers is very tough even if you have good quality products. Hey, look at all those zillion of Herbalife distributors with their websites and ubitquitous signs "Earn 500-1500 part-time, 3000-5000 full-time".

Adolph,

My advertising (search engine, pay-per-clicks, etc) and web creation costs far exceeded my profit. Simple as that. You may or may not know that SMC distributors buy their products from SMC for 25-30% below their retail catalog price, thus that is where the profit comes from.

My "diatribe" about the tax deduction is that you can spend thousands of dollars for a website, advertising and marketing, but the competition for retail customers is very tough even if you have good quality products. Hey, look at all those zillion of Herbalife distributors with their websites and ubitquitous signs "Earn 500-1500 part-time, 3000-5000 full-time".

Adolph,

My advertising (search engine, pay-per-clicks, etc) and web creation costs far exceeded my profit. Simple as that. You may or may not know that SMC distributors buy their products from SMC for 25-30% below their retail catalog price, thus that is where the profit comes from.

My "diatribe" about the tax deduction is that you can spend thousands of dollars for a website, advertising and marketing, but the competition for retail customers is very tough even if you have good quality products. Hey, look at all those zillion of Herbalife distributors with their websites and ubitquitous signs "Earn 500-1500 part-time, 3000-5000 full-time".

OK, 'Wilson', I read your supposedly positive report on Specialty Merchandise Corporation. You made one statement that puzzles me: "My accountant was able to deduct $4,466 as business loss on my 2001 tax return."

Are you promoting SMC as a tax write-off because of it's unprofitable nature? Now THAT's a new ploy to promote a business!

One severe draw back to the value of a (tax deduction) write-off is the fact there must first be profits against which the write-off may apply. Your statement would indicate you had some other means of income. (Hence allowing a write-off on the loss encountered with SMC)

Do tell us what other endeavors produced this income. That would be of infinately more value to the readers than the information on your losses with SMC.

I'm quite familiar with businesses that intentionally generate no profit. I've had many through the years to provide a write-off on my main one that proved quite profitable. One hitch though, the IRS declares a "business" that's continually unprofitable for five years, no longer a "business". It then, legally, becomes a "hobby" offering no future loss advantages.

As I said initially, I'm puzzled. Just where are you going with your diatribe on SMC. You lost me, Holmes! Did I miss something? I guess you have four more years to benefit from your alliance with SMC. Is that where we're going?

First, a little background about myself. In November of 2002, I became an independent SMC. I have an internet background having worked for three internet service providers. I checked out the existing websites of other SMC distributors and I decided to start a business of my own.

I did everything: California resale permit, city business license, full catalog (3000 products) from e-Merchant club (SMC company) for $2195, ecommerce gateway to process credit cards ($395), search engine submissions including pay-per-clicks ($1,419), a few display ads in the Berkeley and San Francisco papers, window decals for my car (iprint.com) along with business cards.

Using the search engines, toomanyhits.com and exitexchange.com, my website generated over 12,000 hits; however from Nov-Dec, I only received 12 orders from around the country. I did not have to refund nor return any customer orders. My accountant was able to deduct $4,466 as business loss on my 2001 tax return. A website business requires lots of advertising and marketing no matter how great the merchandise.

Summary: 1) SMC can dropship merchandise to your customers so you don't have to keep an inventory. 2) You can order from as little as 1 to 36 items per packing depending on the item (1 teddy bear or 36 pens in a box). You are not required to order in large volumes unless the packing is such.
3) You can order catalogs from 1 to hundreds, no minimum. 4) SMC provides you with ten different ways to market the business. 5) The SMC merchandise is very good quality. 6) Customer service reps are very busy on the phone. The best way to place and track orders is through the SMC members website. Orders are immediate and you can track the UPS status after a couple of days. 7) The SMC membership kit is only $199 and the catalogs start at $2.75 each. 8) Order processing is done by human beings who must package orders in a warehouse as big as three football fields. Mistakes in packing can happen. All my orders were packed fine.

I did not want to have an inventory of unsold merchandise at home so that was why I decided on the dropship website. Keep all receipts so you can write off the losses. Advice, don't start an inventory business like Herbalife or any other similar type or you will be stuck with unsold crap that you would not want to use yourself.

Bottom Line: SMC is not doing false advertising. You COULD make thousands in your spare time. If you don't have the sales personality which I don't, think you should go into personal sales.