How an Old Yellow Page Company Scams New Investors

March 30, 2010

Someone recently made a comment to me that sorta bugged me, Bill Brewer, my one week former RVP at SuperMedia, was reported to have said that I am a former disgruntled “fat guy sitting on his couch blogging about the company while eating Cheetos.”

Hey Bill, I am actually in bed at 3:00 a.m. thinking about a meeting for tomorrow and reading a few Google Alerts.

Now that that is out of the way, let’s discuss how Yellow Page companies fraud old and new investors.

Investors of Idearc Media, like JP Morgan Chase, were not fortunate to have assets secured for the Verizon Yellow Pages brand. When the company declared bankruptcy creditors had virtually little assets to pursue or liquidate. The manner of which SuperMedia uses the Verizon brand, an asset, was not something creditors could liquidate to recover compensation from the bad investment. This was something that worked out well for the company and was initially discovered during the bankruptcy pre-planning wheeling and dealing that took place. (Honestly, Idearc was worth very little based on this fact.) Some of the bondholders ended up with a stake in the new company. In my opinion this is a terrible asset if these new creditors again did not secure the brand as an asset, which it likely did not since the value of the brand is more Verizon and not so much a super advertising media and more of a dinosaur method of providing referrals. Lol. Considering the company is just a few more years worth of double digit declines from being bankrupt a second time, it really is not worth much more than the employees and processes.

What investors don’t know is that (IMO) SuperMedia CEO Scott Klein directed sales managers to report cancellations on “good accounts” only to put these customers back in as new revenue to report to investors after bankruptcy. This is fraud. Unless employees take the honest path and report this activity, I am sure the company just might get away with fraud again. SuperMedia is also rumored to be reporting non paying clients in the RDS sales channel who are not paying (no pays is essentially a collections problem) for ads as sales fraud, another way to manipulate investors. It is not sales fraud. It is an attempt at hiding losses, SEC fraud, and further proof of the existance of a failing commission sales model that is the real problem at SuperMedia.

How mujch money did Dave Bethea’s next door neighbor and new Texas Division Sales Manager Lane Siddall make on Idearc stock during the companies “quiet time.” I hear the SEC wants to investigate these “rumors.”

Regardless of whether in, out, or during bankruptcy, SuperMedia has a leadership team committed to doing whatever it can to pump up the companies earnings (and hit a nice payday lick at to boot.) That is what happens when a crony CEO surrounds himself with an old executive team familiar with the companies revenue reporting tricks, the same tricks Ivan at Verizon got sick and tired of by Kathy Harless. Scott Klein just took it to an entirely new level of corruption and greed.

I challenge investors to ask Dee Jones and Scott Klein how much of the latest revenue growth results came from previously cancelled accounts that were reinstated and/or put on a new customer ID?

I also challenge employees to discuss my allegations that Idearc / SuperMedia is manipulating reporting by simply reporting collections challenges as fraud. Rumor is that this is the second time for such a scam, the first time was when they sued a 3rd Party Telemarketing firm for committing the same sales fraud that many reps (particularly the “Spanish Speaking Division Reps in Texas”) have been doing for years (all the while getting paid higher commissions.) They claimed more fraud in the lawsuit with the 3rd Party Telemarketing firm than what actually took place.

Spanish Yellow Pages sales fraud begins at a “day labor center” with an illegal immigrant and a cellphone number. According to former representatives, this activity is something that managers know is going on, including SuperMedia CEO Scott Klein, they just look the other way and ignore what is obvious and will like?y use a similiar excuse as Jeremy the CEO of does when accused of extortion by businesses. CEOs can state all day long to media that they are clueless to the degree of fraud and are not held accountable for the actions of sales consultanrs. I warn investors to take a quick look at the revenue numbers to commission ratios of the Dallas area Spanish Verizon Yellow Pages books. The disproportion is due to fraud. Just because someone signs a contract does not mean it was an ethical business arrangement. Existing clients are impacted by sharing call volume with prepaid cell phones owned by illegals or sales reps.

I am anxious to see if these concerns are investigated. How much revenue will be reported as SuperMedia revenue that was really Idearc revenue cancelled before January 4th? SuperMedia will soon report first quarter 2010 revenues. Might be a goodtime to grab a bag of Cheetos and watch this train wreck of a company unravel on my couch. Maybe Bill Brewer was right? Better to be on the couch providing his former clients advertising for less than so called inflated “market cost” with low overhead and a service approach vs the product focus and trying to convince clients that campaign managers have a clue and/or the time and tools to do the job right the first time. Investors and advertisers need a SuperGuarantee that SuperMedia is not going to rip them off. Good luck getting that one in writing folks!

How about selling the identity bundles and click guarantees as “leads” vs calling them clicks just to make a buck, and management actually knows it is happening. Or avoiding credit policy by putting painters and handyman under non risky headings?

By the way Bill, one of your former clients paid $27.00 per click from Google for “Criminal Defense Attorney” keywords with no calls. Today, quite possibly thanks to my brains and couch, these click thrus only cost him around $11.00 each and he receives many calls …….go tell that to your SMLocal team buddy!

Now this begs the question: How do you manage your companies reputation online when the value proposition takes profit away from the client and into the companies treasury to give to executives, all the while providing a terrible ROI for most clients? Broken business model anyone? Every dollar a client pays into your mandatory SMLocal 85% burn rate requirement, regardless of converting the traffic into phone calls, is another future negative post about your company on

To Bill Brewer, I may not have your big corporate salary anymore, but when I left Idearc I took my ethics with me….something you could learn a thing or two about.

Finally made progress on, take a look!

March 24, 2010

Whew, now I can shift all the disgruntled rants off of this wordpress blog and put them on the new forum. Let me know what you think about Scott Klein’s favorite domain, the narcissistic CEO of SuperMedia actually made a reference to all the media consultants that Yellow Book’s URL was, at the same time he lied and told employees that they would still have jobs, meanwhile he has made significant focus on cost cutting, terminating tenured talent with higher salaries, and reducing jobs.  Liar Liar Pants on Fire!

If you are at SuperMedia and feel that Mr. Klein needs to go, join the site and post your comments! Trust me, I have had countless emails from current employees, union representatives, folks in Klein’s inner circle.

Thanks Scott for the job security! How many jobs will the millions and millions of dollars you have awarded your executive team have kept on an American companies payroll?

Kathy lied to Ivan about numbers. We all knew it. For years Idearc has made Verizon’s managements “direction” of holding losses and reporting gains. We’ll, we can all say that you took this to a different level vs making the choice to clean it up. Maybe that is why Ivan got sick of Verizon Directories or Verizon Information Services and dumped them off? It is also interesting how the management is mixed with your buddies and Kathy’s former team that you hand selected.

I feel sorry for SuperMedia sales reps. You have very little understanding of how TBS became the “we know Drama” authority or why Polaroid lost out to the “digital camera.” You are far from innovative. Your employees do not feel you are qualified to run the organization and believe that you are corrupt and incompetent.

I am curious. Have you met with Swanson? Do you have his approval for the bonus and Long “Short Term” Stock that states fully vested upon “Change in Control?” Have you and Swanson been meeting frequently?

Did the AOL Time Warner merger happen under the cover of darkness without employee knowledge.

It is predicted that you are bailing SuperMedia. I believe it to be true. What are you going to do now to fix this problem. As a 9 year employee, I have never worked for an individual that was so concerned about himself and not concerned about the lives and careers of those he employs. You worked your way to the top. Credit is due. It is time to realize that your are not worthy of leading the organization.

Soon you will experience an uprising among your ranks. I am going to do everything in my power to share the secrets about YellowCrooks. Call it a Tea Party! Call it disgruntled former employee rants.

I want to hear a new chant for SuperMedia…… from a NEW CEO! Not sure if it is worth your fat payoff to get rid of you.

God Bless the Hard Working Employees of What COULD HAVE BEEN America’s Best National Small Business Advertising Agency.

Why a Google future is so important to small business owners vs yellow pages ads. Search/Mobile/TV?

March 20, 2010

Google has about 65% of the internet search volume currently, followed by Yahoo! at 15% and Bing at around 9%. Print directories have declined in usage by over 50% in the last 7 years. Consider that the local search “s-curve” began in the late 1990’s. Phone books started getting impacted by internet usage before 2003. The biggest problem with the phone book business was fragmentation or too many options. It took many years for yellow pages companies to experience real competition in small business advertising. The fragmentation that impacted print yellowpages happened much sooner for the internet, and Google quickly put distance on competitors, something telco-based (or spin-off) yellow pages publishers have not been able to do. They are all the same. (Even the SuperGimmick that Superpages copied from was too late.) They are a team of horses pulling in the opposite direction. The yellow page industry has very little direction. Day late and a buck short, if you ask me. Maybe the horses might consider getting back on the same team?

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Dallas SEO Guru via Google Search Suggest

March 19, 2010

No longer are SEO’s called NINJAS….. we are now GURUS!

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SuperMedia Executives Find Financial Riches in Former Bankrupt Idearc’s Treasury. Crony Capitalism

March 19, 2010 way to start out the description of the new “Long Term Incentive Plan Stock Unit Awards” with Departure of Certain Officers, and the repeated words “Change In Control” that they seem to emphasize. SuperMedia mid level managers, sales consultants, investors, and Board of Directors members (other than the Chairman whom is also the CEO!) need to really consider, do these executives, many of whom are directly responsible for the companies bankruptcy and pitched the 9 billion dollar debt to investors in the first place, deserve additional incentives for doing nothing to turn the business deep revenue  declines around?

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SMB SEO does great small business video production….. affordable!

March 17, 2010

Company Overview Videos.

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A look at the 2009-2010 traffic rankings for the top small business local search advertising sites by

March 17, 2010

Here is a look at the 2009-2010 traffic rankings for the top small business local search advertising sites.