This is a follow-up to my earlier post about the alleged Singapore Google Adwords scam. After digging a little deeper, talking to people in the industry, here’s what I found out about Company A… Once upon a time, a brother and sister pair worked for an online directory service - lets call it Company EG. After discovering that there was a lot of money to be made, e.g. S$36,000 for 3 article inserts, they started their own company (Company A), under their father’s name. The modus operandi was targeting doctors and representing themselves as sales people from Company EG but billing the clients with Company A invoices. Their explanation was that Company A is a subsidiary of Company EG. Now, since doctors and lawyers are very busy (but rich) people, and Company EG was part of a big UK-listed business, they didn’t question further. One day, a doctor called Company EG to ask for the sister and discovered the scam. This led to both brother and sister being fired from Company EG on the same day! Unfortunately, the two still went on to represent themselves as Company EG staff but sold Company A services. Company EG found out about this and sent legal letters to the doctors, warning them about the scam and explaining that the two were no longer Company EG staff. Since their reputation had now been tarnished, Company A signed-up to be an authorized Adwords reseller, commiting to delivering sales targets - it was the only way to rebuild their image. Fast forward to May 2008, Company A is making a bigger killing scamming doctors and lawyers, running Adwords campaigns for them. The clients were made to pay an annual fee (including ad spend) and asked to top-up on occasions with the excuse that their budget had been “used up” - there was no proper contract nor were they given account access. The clients were also never given campaign reports so they would never know how much actually went to their campaign and how much went to Company A. They have even “cornered” the particular niche because they represented many doctor clients going after the same keywords, hence controlling the CPCs and playing God in deciding who ranks tops. Fortunately, Company A’s competitors managed to convince some of the doctor clients and at least one of them had managed to get a refund. The question is if the above were true, why would Google appoint people with such backgrounds as Adwords resellers? Are they turning a blind eye just because Company A (obviously) is able to deliver high sales numbers? I’m not sure if my little “investigative journalism” bit will get me in trouble, but I don’t mind taking that risk because if the alleged scam is true, it would certainly dent the confidence of advertisers. I hope someone in Google is reading this.
Maybe they didn’t dig up the whole company background info before providing the authorization? Or, if you’re able to provide the necessary documents (forged or not) then they would approve your application. Otherwise, they’d be venting through much paperwork every time.
Well, that’s just my opinion.
Comment by Danny Foo on May 17, 2008 at 9:45 am
Hi Danny, long time no see. :)
Even if we overlook that, there’s no excuse for what’s happening now, i.e. no access to Adwords account, no reports, no visibility of the manager’s fees, etc. Maybe Google should set a policy on transparency, e.g. campaign manager MUST inform clients that there are reports available as part of the service.
Comment by Larry on May 17, 2008 at 3:34 pm
It is how google is making big money…one of my client who using Google adwords which managed by agent, also facing the same situation, the agent purposely raise the cost per click, causing my client have to pay more. But in fact, the cost per click shouldn’t so high in order to get the top 3 ranking in sponsor links. ( It means the agent want to earn more commission)
However, compare to your story, the company A is doing too far.
complain to Google ? well, unless the website owner personally do that, Google will not entertain you and me. I also suspect Google allows agents to do that as long as customer is not complaining.
It is advised that website owners do the Google adwords by themselves. Manage Google Adwords is easy.
Comment by james on May 23, 2008 at 11:36 am
James: in Malaysia too?
Yeah and it’s difficult to complain because it’s a willing buyer, willing seller transaction.
Comment by Larry on May 23, 2008 at 2:01 pm
Hi Larry,
Why don’t you provide feedback to Google directly? You can refer to this contact:
Q: If I experience a problem with my Authorised AdWords Reseller, whom should I notify?
A: Please submit all relevant details by emailing adwordssg-reseller@google.com and we will investigate the issue.
Hope this helps.
Comment by anonymous on May 29, 2008 at 10:19 am
Forget it Larry. It’s pointless complaining to Google about this.
Think about this:
1. As a Google Reseller Manager, your job is to appoint resellers and you do have a revenue target to meet.
2. There aren’t that many serious and sizeable Search Marketing companies in Singapore. Only 4 that i can think of: Activa Media, Bain & Mercer, HardWareZone and Purple Click.
HardWareZone was a reseller for just 1 year and didn’t renew.
Activa Media is a reseller, so is Purple Click.
3. If you were to terminate either one of your existing resellers, you sure you are able to rely on just 1 reseller to meet your revenue targets? What if your sole remaining reseller didn’t renew the reseller agreement by end of this year? well, you will be pretty much screwed.
So unfortunately, whether you like it or not, it’s the job of the Google reseller manager to protect the resellers, ensure they can survive and remain profitable so they continue to stay on as resellers. Otherwise, every year you will have headache finding people wanting to be reseller.
Being a reseller does come with conditions to comply, which explains not every Search Marketing company is excited about being one.
Of course, if you tell this side to Google Reseller Manager, you will hear the smooth “oh, but Google does want to protect its brand and we welcome your feedback. We do terminate reseller who don’t comply to our policies” yadda yadda yadda…
If this is Australia or UK where there are at least 30-50 serious Search Marketing companies each market, sure, go ahead and terminate the non-compliant reseller, because you do have alot of options.
In Singapore? Pls save that crap for somebody else who don’t know how this works.
Comment by The Guy Who Knows The Truth on June 2, 2008 at 5:51 pm
You’re absolutely right. But there’s still hope - I can convince the client and I’ll do it one-by-one if necessary. FYI, I’m very close to getting this specialist clinic to let me manage her campaign.
Pity I don’t live in Singapore because I can’t definitely do more if I’m there. However, I do have plans to get honest, local online marketing companies together to run an education campaign so that advertisers like these can make a more informed decision next time.
Comment by Larry on June 2, 2008 at 9:51 pm
Larry,
I don’t know which specialist clinic you are on but keep it confidential. If you are successful in converting it to you, you should do a good job of managing the ad campaign and use it as a case study to convince those other within the same medical practice before you move on to other medical niches. That’s how Company A moves. They will corner one Plastic surgeon, then use his name to convince other plastic surgeons. Before long, all the the plastic surgeons falls under its wrap. You will be surprised to find that with doctors, it’s really monkey see monkey do.
Don’t be afraid to teach these clients how Google AdWords really work. Don’t hide things. Be transparent. Clients will be thankful for it. That’s how it differentiate you from Company A and others.
I hope you gain more success.
I’m personally quite sick of what Company A is doing.
I would have thought a Google Reseller should be educating the businesses how Google AdWords really works, but it seems to be not the case.
Actually Larry..few doctors did discover they were “scammed” and raised concern…but you know what? well, Google stepped in and the Google Reseller Manager followed Company A around visiting doctors and assuring them “all is done above board”…
Understandably, it’s natural that the doctors thought “well, if Google can vouch for Company A, then surely Company A can’t be that bad right”…. and the “scam” continued.
My question is does Google really know what’s happening on the ground…or was it turning a blind eye…
Comment by Just Joe on June 2, 2008 at 11:30 pm
Larry,
Even if you are not based in Singapore, there are many ways to reach all the other doctors. I don’t wish to say more here but I am sure you are a smart chap to figure this out, and i know you have the competency to do it…You just need to do it fast.
Comment by Just Joe on June 2, 2008 at 11:40 pm
Larry,
You should consider a separate website that targets the doctors only. The website can have information to educate doctors on how Google AdWords really works, and wrong doings that you have uncover through your conversations with doctors (don’t have to name them).
Doesn’t have to be a complicated website, because I don’t think these doctors have time to plough through it and figure things out.
When the doctors have found that you are honest, transparent, they will be more open towards you.
It’s a very small circle amongst the specialist doctors. Words will get around very quickly.
Just simply focus on medical alone is lucrative enough…that’s what Company A has been doing all these years. Sure, they do have sales executives covering other SME business but the sales they got elsewhere is peanuts compared to medical.
Comment by Big M on June 3, 2008 at 12:11 am
Thanks Just Joe and Big M (are you the same person?)! Will take your suggestion into consideration - I’m already in the process.
Comment by Larry on June 3, 2008 at 5:46 pm