search
cart
facebook twitter linkedin youtube instagram Spotify Podcasts Apple Podcasts Spotify Podcasts Apple Podcasts
  • Sign In
  • Create Account
  • Sign Out
  • My Account
  • NEWS
  • TOPICS
    • Cool Roofing
    • Event News
    • Latinos in Roofing
    • Low Slope
    • Legal
    • Metal
    • Project Profiles
    • Roofing Supply Pro
    • Roofing Safety
    • Steep Slope
    • Sustainable Roofing
    • Technology
  • EXCLUSIVES
    • Best of Success
    • Contractor Profile
    • IRE Show
    • Roofing Contractor of the Year
      • Enter Roofing Contractor of the Year
    • Top 100
      • Enter the Top 100
    • Young Guns
    • State of the Industry
    • Century Club
  • MULTIMEDIA
    • Videos
    • Podcasts
    • Interactive Spotlights
    • Roofing Quizzes
    • IRE Videos
    • Webinars
    • Photo Galleries
  • PRODUCTS
    • New Products
    • Featured Products
  • COLUMNS
    • Editor's Note
    • Exit Planning
    • Legally Speaking
    • Safety Advice
    • Technical Details
    • Guest Column
  • EVENTS
    • International Roofing Expo
    • Webinars
    • Best of Success Conference
    • Industry Events
  • DIRECTORY
    • Associations
    • Distributors
    • Manufacturer/Supplier
    • Business Services
    • Get Listed
  • MORE
    • Roofing Contractor eNews
    • RC Store
    • Roofing Supply Pro
    • Custom Content & Marketing Services
    • Market Research
    • Sponsor Insights
    • Company Spotlights
    • Classifieds
      • Auctions
      • Business For Sale
      • Business Opportunities
      • Equipment For Sale
      • Positions Available
      • Products
      • Safety
      • Software
      • Services
      • Training
    • Contact Us
  • EMAGAZINE
    • eMagazine
    • Advertise
      • Media Kit
      • Editorial Calendar
      • Contact
    • Archive Issues
  • SIGN UP!
Columns

Small Businesses are Vulnerable to Scams

By Jim Olsztynski
February 28, 2001
Con artists count on personnel being too harried — or greedy — to notice their devious intent.

Several years ago I got a letter from a Nigerian “prince” inviting our company to participate in an exciting business proposition. He and his cohorts had millions of dollars they wanted to deposit in the United States, but because of legal technicalities weren’t able to do so. Desperate for a partner, they would gladly cut our company in on a sizable fraction of their loot, if only we would give them access to our bank account so they could deposit the money.

As scams go, this one was laughably crude. The letter was in broken English, riddled with typos and printed on cheap paper lacking even a printed letterhead. I also happened to be familiar enough with geopolitics to know that Nigeria doesn’t have a royal family. I turned the letter over to my state’s attorney, urging him to go after his royal highness.

Unfortunately, many other business-to-business scams are much trickier to detect than the Nigerian caper. A variety of swindlers — some protected by law — are out there preying on small firms that don’t have their guard up. Here are some of the gambits to watch out for.

Bogus Telephone Directories

Many businesses receive a solicitation for a paid listing in some dubious telephone directory. The solicitation will look like a bill to be paid but have, in big, screened letters printed in the background, a notice to the effect, “This is a solicitation, not an invoice.”

This enables the perpetrators to remain legal, but they are counting on the background printing being overlooked by the casual observer. Otherwise the sheet is designed to resemble a payment invoice. The amount billed is typically a little under $100, which is carefully contrived as not enough to draw undue attention from a busy accounts payable clerk. Many are apt to simply stick it in a pile and write the check on bill-paying day.

Payment entitles you to a listing in some cheap telephone directory with little circulation and usage — if it exists at all. For instance, our company routinely gets solicited to pay for a listing in something called the Illinois Services Directory, which lists various businesses in the state and supposedly gets distributed to state agencies. It’s a good question how much distribution actually takes place, but even if the publisher keeps its end of the deal, there’s no value to such a directory. Most recipients would dump it in the trash or some out-of-the-way corner.

These bogus directories may be in technical compliance with the law, but their business is rooted in deception.

Invention Marketing Firms

The same goes for myriad companies that operate as invention marketing firms. Trade workers, many of whom are mechanical hobbyists, are especially susceptible to their pitch.

The invention marketers offer a free or low-cost evaluation of an invention based upon the flimsiest of descriptions. Almost always this evaluation will conclude that the device does indeed have sales potential — because in a world in which people have gone ga-ga over everything from Pet Rocks to nose rings, who’s to say that any idea is unmarketable? About the only inventions these companies will decline to represent are perpetual motion machines and other contraptions that defy natural law. Overall, though, few inventions are too ridiculous for companies that have mastered the art of picking inventors’ pockets. By the time the inventor gets done paying these firms for a patent search, superficial market research report and a few press releases, an average of about $20,000 will pass from his pockets to the invention company’s coffers. Many of the marks are people of limited means who dream of striking it rich with the one great idea they’ve had in their lives. The invention marketers will play up that dream for all it’s worth, and help the inventor tap into every possible avenue of financing. Some have their own finance subsidiaries, which enable them to drill even deeper into the mother lode for interest.

What services do they render for all that money? Their patent search may be legitimate, but you could hire your own patent attorney to do the same thing for one or two grand. As a trade magazine editor, I’m on the receiving end of what passes for some of their marketing efforts. Basically it consists of a one-page press release with a vague description of the device and an invitation to contact them if anyone is interested in developing it. Your odds would be about as good, and a lot cheaper, knocking door-to-door trying to find a backer.

The invention marketing companies make their money fleecing inventors, not from actually bringing products to market. A recent Time magazine article on the subject got one company’s publicity manager to admit that of 5,324 clients represented, only 11 had made more money than they invested, and Time hinted even that number might be inflated. The contract may specify a cut of royalties in the unlikely event a product they represent actually goes into production, but that’s just part of the show put on to enhance credibility with inventors. None of these companies will agree to represent an inventor strictly on a contingency fee basis.

Monthly Website Fees

If your company is not yet on the Internet, you are ripe for plucking by a Website development company looking for a long-term commitment. They are perfectly legal, and may even render a worthwhile service in producing a Website for your firm, but watch out for any agreement that calls for a monthly maintenance fee. Usually it’s only $25 to $30, but the fee still adds up to hundreds of dollars over the course of a year, and is totally unnecessary.

Registering a domain name, that is, your Web address, costs merely $35 a year. You can do it by logging on to www.networksolutions.com. Many Internet service providers (ISPs) will help you design your own Website. For a better result, you may want to hire a professional Web designer, who may charge anywhere between $30 and $100 an hour. This is a one-time fee, with additional payments if you choose to do periodic updates. Beyond this, your site should cost you nothing except what you pay your ISP for Internet access. There is no need for continuing monthly payments to a Website developer.

Keep Your Eyes Open

These are only a handful of the business-to-business scams that are out there. Watch out for shady companies that try to sell you toner cartridges or other office supplies at what sound like bargain prices, but which in reality are highly inflated. These solicitations often come by fax. (Fax solicitation is illegal in many states without prior permission, although this tends to be poorly enforced.)

Also, get in the habit of carefully checking each month’s telephone bill. This is a difficult task nowadays, which is why many scammers have figured out ways to ding unsuspecting users for services they may not have ordered, at least not intentionally. Operators of psychic hotlines, among other dubious characters, are skilled at getting their services tagged onto your phone bill. The line items typically cost $10 to $15 a month and can be easily overlooked amid the confusing array of charges attached to a modern phone bill.

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Jim Olsztynski is editorial director of Plumbing & Mechanical and editor of Supply House Times magazines. He can be reached at (630) 694-4006 or wrdwzrd@aol.com.

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • Roofing Contractor Group Publisher Jill Bloom

    Physics, the Power of Authenticity and You

    In February's Publisher's Note, Jill Bloom describes a...
    Columns
    By: Jill Bloom
  • The Family Food Fare supermarket in Midland, Mich.

    ‘Rooftop Ninja’ Discovered Living on Roof, Inside Grocery Sign

    A bizarre tale out of Midland, Mich.: a woman dubbed the...
    Roofing News
    By: Bryan Gottlieb
  • A before and after heat measurement comparison

    How Hot is Too Hot in the Attic?

    If the ventilation is working, how hot should the attic...
    Steep Slope Roofing
    By: Paul Scelsi
You must login or register in order to post a comment.

Report Abusive Comment

Subscribe For Free!
  • eMagazine Subscription
  • Sign Up for the eNewsletter
  • Online Registration
  • Manage My Preferences
  • Subscription Customer Service

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the Roofing Contractor audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of Roofing Contractor or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • Snow Guard Solutions for Metal Roofs by S-5!
    Sponsored byS-5!

    Safeguard Your Building: How Snow Guards Prevent Costly Roof & Property Damage

  • A hand holding a wooden block that reads 'EVOLVE'
    Sponsored byWatercress Financial

    Embracing Change: A New Era for the Roofing Industry

Popular Stories

QXO closed its acquisition of Beacon Building Supply on April 29, 2025.

QXO Closes Beacon Acquisition, Rebrands Immediately; Jacobs to Ring NYSE Bell

New executive orders signed by President Trump will likely further constrict an already tight labor market for the construction industry.

New Executive Orders Will Further Squeeze Labor Force

President Trump’s trade war is causing real harm to the construction sector, including roofing contractors.

Trade War Fallout: Contractors Are Delaying Projects and Cutting Crews

Roofing Contractor Webinar

Events

May 22, 2025

Remote Teams 101: The New Way to Hire

Our industry experts will guide you through what remote hiring and outsourcing should look like, how it can help you grow, and why it’s easier (and less scary) than you might think. If you want to save time, find great talent, and grow your business, this is one session you don’t want to miss!

December 3, 2025

The Premier Roofing Conference: Best of Success

Join roofing professionals from across the nation at the 2025 Best of Success conference, the ultimate destination for roofing professionals seeking the latest industry insights and networking opportunities. Pick up strategies for critical challenges like workforce shortage with innovative solutions, explore the latest advancements in roofing technology and sustainable practices, and gain valuable insights from industry leaders on navigating the evolving roofing landscape.

View All Submit An Event

Related Articles

  • 10 Survival Strategies for Small Businesses

    See More
  • Stressed Out? Here Are Some Ways to Cope

    See More
  • Smart Business: The Bigger They Are, the Harder They Fall

    See More
×

Be in the forefront of the roofing industry!

Join thousands of professionals today. Shouldn’t you know what they know?

JOIN NOW!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • eNewsletter
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • Instagram
    • YouTube
    • X
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing