It is bonus time once again for YellowCrook Scott Klein


SuperMedia CEO Pay up Millions while company struggles.

SuperMedia CEO Pay up 30% while company struggles to evolve.

SuperMedia’s Employee Union Members and Non-Union Members want to ask other Yellow Pages Industry Executives if they believe that formerly Idearc Media, the spun off and quickly bankrupt yellow pages publisher of the Verizon Yellow Pages, now called SuperMedia, CEO Scott Klein is fit for his job and whether he has earned his million dollar per year CEO Salary, recent 2 million dollar bonus, recent 9 million dollar longterm stock incentive and 1 million dollar short term stock incentive that he gets to keep once the company is purchased in a deal he struck behind closed doors with Hedge Fund Company Paulson?
SuperMedia purchases Beach Boys for YPA

To SuperMedia Mr. Tom Rogers….  do you have a clue how angry the sales force of the company is? They are scared and angry. Many have been with the company for 20 years and some in the local advertising industry even longer. Since the days of Bell Atlantic and Nynex. You are the CEO of Tivo. You must be paying attention to Google TV, the iPad, Local Search Verticals like Zillow who now offer rental information, and many other great ideas? Why is SuperMedia only selling products that need unmeasurable research from industry sponsored firms like YPA and the Burke study? Do you honestly think the company can afford to pay debt obligations paying sales reps for fraud? Why does Klein continue to manipulate the companies pay plan while planning golden parachute escape with a simple “Change in Control?”

Local Search is not product it is service. Yellow Pages is still used heavily in rural areas and many suburban areas. Do you think the SuperGuarantee subscriptions and impact is sufficient to sustain the company into the future? Why have all of Scott Klein’s internet directors left the company. They do not want to work for him.

If this was not a deal struck in the dark, why have other executives in both local search or yellow pages not follow suit? Why has the man Paulson put on the companies Board of Directors not spoken up? Oh, that is because it is not just the CEO who is raiding the coffers… it happens to be the companies Executives and the board of directors also gets a nice bonus in the process.

I say employees show concern at the next board meeting. I look forward to meeting you there. As a shareholder of the company I am asking other shareholders to voice concerns. If you knew of the corporate frauds of Enron, Bernard Madoff, Acorn, or Countrywide Mortgage ahead of time would you speak up?

Join the conversation at www.YellowCrooks.com

Form 8-K for SUPERMEDIA INC.

5-Apr-2010

Change in Directors or Principal Officers

Item 5.02 Departure of Directors or Certain Officers;
Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On March 30, 2010, the Human Resources Committee of the Board of Directors of SuperMedia Inc. (the “Company”) established the performance objectives and other terms of the Company’s 2010 Short Term Incentive Plan (the “2010 STI Plan”) pursuant to the Company’s 2009 Long Term Incentive Plan. The 2010 STI Plan provides for a payment of incentive compensation to each of the Company’s executive officers and to other eligible employees. These incentive compensation payments are determined by the Company’s achievement of specified performance metrics for 2010, based on: (i) EBITDA (earnings before interest, taxes, depreciation, and amortization), which comprises 70% of the total performance opportunity; and (ii) total published revenue, which comprises 30% of the total performance opportunity.

Each of the performance objectives will have a threshold, target, and maximum level of payment opportunity. Achievement of 100% of the performance metrics will result in award payouts equal to the target awards. At 90% achievement for EBITDA and 92% achievement for total published revenue, which are the minimum thresholds for award payouts, award payouts will be equal to 25% of the target awards. At 120% achievement for EBITDA and 110% achievement for total published revenue, which are the maximums, award payouts will be equal to 200% of the target awards. If achieved, awards will be paid in cash during the first quarter of 2011.

The target awards under the 2010 STI Plan for each of the Company’s named executive officers are set forth below:

Named Executive Officer Target Award

Scott W. Klein – Chief Executive Officer $ 1,000,000

Samuel D. Jones – Executive Vice President, Chief Financial
Officer and Treasurer $ 337,500

Frank P. Gatto – Executive Vice President – Operations $ 280,000

Michael D. Pawlowski – Executive Vice President – Sales $ 262,500

KEY INFORMATION for SUPERMEDIA from HOOVERS.com
DUNS Number 787911986
Doing Business As Verizon Drectories Disposition
Company Type Public – NASDAQ (GM): SPMD
Location Type Headquarters
Year of Founding or Change In Control 2006
KEY NUMBERS
Fiscal Year-End December
Sales (mil.) $2,512.0
1-Year Sales Growth (15.5%)
Net Income $8,257.0
1-Year Net Income Growth 4,412.0%
Total Employees 5,500
1-Year Employee Growth (9.8%)
Employees At This Location 10
KEY PEOPLE
Scott W. Klein CEO (Mr. Let Me Rob My Way Out The Door)
Frank P. Gatto EVP Operations
Samuel D. (Dee) Jones EVP, CFO, and Treasurer (Mr. Lets Not Tell Investors About Raising Credit Limits and Collections)
Dave O. Bethea EVP Sales (Mr. Drunken Fight Guy)
Sandra L. Henjum EVP Transformation and Marketing (Mrs. Heading Jumping Director)
SuperMedia — then called Idearc — was spun off from Verizon Communications in 2006.
HISTORICAL FINANCIALS
Income Statement
Year Revenue ($ mil.) Net Income ($ mil.) Net Profit Margin ($ mil.) Employees
Dec 2009 2,512.00 8,257.00 328.7% 5,500
Dec 2008 2,973.00 183.00 6.2% 6,100
Dec 2007 3,189.00 429.00 13.5% 7,200
Dec 2006 3,221.00 772.00 24.0% 7,400
Dec 2005 3,374.00 1,025.00 30.4% 7,100
Dec 2004 3,600.00 — — 7,400
Dec 2003 3,675.00 895.00 24.4% —
Dec 2002 3,760.00 1,095.00 29.1% —
Dec 2001 3,831.00 1,203.00 31.4% —
Notice how he is using sales fraud and collections to pump up the numbers for the company?
This one was requested to be removed. I later learned via email that it was true. I was contacted by SuperMedia to remove it. Someone lied to me. Said that they are filing a suit. I have emails that state otherwise.

Company information:
SuperMedia
United States

I have read many reviews of SuperMedia/Superpages.com from many angry customers that feel that have been ripped off,
but have not really read any solid explanations of why Idearc/Superpages.com is a rip off.

My name is Lisa, I work for the company in Everett, WA and have done the research to know why. It is my hope that by divulging
the truth someone will be able to use the information to take action against this company. I’ve made a lot
of money selling worthless advertising and this is my attempt to make it right.

First off, it’s important to know that SuperMedia/Superpages.com employs a very specific sales tactic that they
refer to as “Salesology.” This is the very basis of all training and as an employee of the company, if you do
not follow this method, you will be repromanded. Salesology is taught to all employees by Jay Hughes
(www.salesologyonline.com). Utilizing this sales method, most customers don’t even realize that they just purchased
advertising. Here’s how it works:

1) A Business receives a cold call and they are asked if it’s “a bad time.”
2) Rep tells them that “We have people in your area looking for (fill in blank) in your area, are you
currently taking on more work/new customers?”
3) Then we ask how much more work they can handle and how much they make per job. Multiply the amount of work by
the profit per job and that’s their gap. Let’s say an Electrical Contractor averages $500 per job and can take on
10 more of those per month. “So, if I were able to help you close that $5000 gap per month in your business,
would it be fair to ask for $500 on the back-end in return?”
4) Customer says “of course.”
5) Almost no explanation is given on how we are going to get them this promised work. We get GTI
(General telemarketing international) on the phone who records the customer agreeing to a 12-month
contract. They are told we’re doing this “To enter them into our database.” Most people have no idea
what just happened, but this is 100% legally binding. Our only goal is to get them through GTI.

In the initial training, they state we’re to find the gaps in small to medium sized businesses and help
them grow. The funny thing is that no matter what state their business is in, no matter what they sell, how
much they make per sale…it’s all the same. The soloution to every business is a minimum $500/month program to
meet their objectives. They don’t really encourage anyone to sell over a $500/month plan because that
requires a signed contract in lieu of a GTI recording. If you sell less than $500 you’re scoffed at, even if the
business doesn’t need it.

So, what does a business get for $500/month? We are told to tell businesses that we are selling “SuperLeads.”
However, these are nothing more than clicks with a theoretical conversion rate. Their collateral even shows how
this works. So, for $500 worth of SuperLeads a business will get 125 clicks with the minimum of $4/click (some
categories are more). They state that, on average, for every 5 clicks, a customer will actually make a call
to the business. $500 should then relate to 25 calls in a month. Again, this is how we are trained and this
is what the collateral we can send out states.

If the above actually worked, then it wouldn’t be a bad deal. However, most businesses will not get any calls
for their $500 per month. Why? Most (at least 90%) of these clicks aren’t even from SuperPages.com, Google, Yahoo
or anything you’ve ever heard of. They are from obscure partner sites that pull out a single keyword from the
business and get the needed clicks to bill out $500. As an example, let’s say a kitchen contractor installs sinks.
Let’s say someone googles “sink holes.” A few wrong clicks and the contractor is out $4. Again, at least 90%
of these clicks have nothing to do with what a business does. The customer doesn’t have any access to
these click reports, and there are no audits done to ensure it’s actually working at all. The fact is that
most sales are made to oversaturated markets where businesses will not get any return on their
investments. We can sell to the same type of business in the same cities as much as we want and tell everyone
“we have people looking for your services.” In all actuality, Superpgaes.com gets little traffic, and if a business
gets even one call per month for $500 they are doing better than average.

Next, is there click fraud going on? (i.e. the company clicking on it’s own ads to turn a profit.) I’m not 100%
sure here. We used to be able to see the IP addresses that were clicking on the ads, but not any more.
In the past, I did random sample searches to cross reference the IP addresses by location and a large amount
of the IP addresses were not even in the same state as the busnisses. Many of these IP addresses seemed to
track back to where Idearc has physical offices. I have asked many times if I click on someone’s ad from work, will
they be charged a click and have always been told no. I’m not so sure about that.

We also sell postcard mailers. When these came out I was excited to sell something that actually works. We are
told to tell customers they can expect a 0.5% – 2.0% return of them. I’ve heard of a few businesses getting
work from these, but I also know of businesses that have sent out 10, 000 cards (at $5000) with zero return.
The artwork on these is generally poor, as they have the sales reps do the basic design and ad copy for
them with very little training. It’s mostly a joke to see just how bad they come out. Many contractors have
actually gotten in trouble from the State because License numbers have to be on their ads. This also is not
audited.

SuperMedia Complaints – The Truth About SuperMedia

Review all Idearc Media complaints

SuperMedia

Posted: 2009-10-21 by IdearcEmployee
The Truth About SuperMedia
Complaint Rating:  75 % with 4 votes

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4 Responses to It is bonus time once again for YellowCrook Scott Klein

  1. Superconscience says:

    I am no genius but doesn’t performance generally indicate you did something of some use? Just askin.

  2. Rusty Rectum says:

    SuperMedia is a gigantic shit-bomb getting ready to blow shit everywhere.

  3. Just me says:

    I just read the post from someone in the Everett, WA office. She is very correct in many ways but some things are very different in other areas. The click fraud thing, well heck what company is not screwing you with a pay per click product. I am not so sure that the company is actually clicking on customers sites to gain clicks but I can confirm that about 90% of the clicks that customers do get come from other sites and they are very often in the wrong heading or Geography. Now, as a matter of fact. If you are not meeting the guarantee that they offer they put you on the top of the list. Above the people that are paying to be at the top so you will get the guarantee.

    The whole GTI thing is very misguided. Yes, if you do it the way that you are taught, these people do not know what happened to them. However, the GTI is very transparent and explanatory. There is no “adding you into the database” in the end they know that they intended to purchase something. But overall, Salesology is a great sales tool and versions are tought by many companies. The sales call process is what she is referring to and yes that is very misleading and intentionally avoids the topic of product. Many things you can product dump and still make a sale. Here most often if the contact knows what the product is they will not even speak to you.

    Another thing about the customer getting no sales after placing an ad. There is no guarantee in advertising, the .5-2% return in direct mail is average. which means there are people that get zero and some people get major response. This is the law of advertising, internet or otherwise.

    As you can tell. I work here. Many things I do not agree with ethically or morally, but I want the facts to not be distorted just in the name of ruining the company name. The Execs are doing a great job of that all on their own. But my name, even though I did not give it here, will travel my entire life with me and I do not feel like I am being unethical just for selling advertising. I am very upfront with things and yes I take a chewing sometimes. But it is not the frontline employees that are causing the ethics problems.

    • Mike Stewart says:

      Great post “JUST ME”. I agree with what you have said.

      I build PPC accounts for clients. With email accounts that they own. Campaigns that they own. If and when they decide to move on, I don’t hold my service over a clients head. This in essence is “not screwing you with a pay per click product” as you state. Clients pay for the build and for the management. Fair prices. No Gimmicks.

      If you understand PPC the factors that drive results depend on the business situation, much like who can and can’t afford the first double double truck in the book.

      Results, considering how picky most real agencies are with clients and that companies like SuperMedia overprice every single component of search:

      PPC mgmt fees for $500+ per month (vs $199.00) videos for $2400 (vs $1000) and websites you never own, how hard do you think it is for a real boutique agency to beat the YP companies? Agencies like mine charge clients for search marketing services, much like a CPA or stock broker charges for trades. It is an action. Not a concept. SuperMedia charges for the SMLocal Concept… if you think they charge for service, why do so few accounts really get SERVICED?

      Guarantee? If that was the case, why a 12 month contract? I understand the need for a phone book that you can’t pull off the street, but the internet? Seriously!

      The reason for the contracts is to be able to afford high commissions and not be in the red in the event the client decides not to pay.

      One of the reasons the service needs to be an investment that is month to month.

      Personally, I love competing with other “SEO Experts in Dallas

      Local Search Engine Advertising should not have contracts. It should also not be product specific and be more holistic.

      I also agree that many of my previous co-workers have ethics. It is a challenge to be ethical and succeed at the company. Considering that sales fraud is a serious issue due to the pressures created by management and very unobtainable budgets among a decreasing revenue and market share environment, I commend all that do. Do you consider that budgets are higher as well due to this very same unethical fraud? If you were graded on a curve but the top of the curve was full of liars and cheats, does this not also create a larger gap to fill for the satisfactory ethical reps and exemplary unethical sales consultants?

      Cheers,
      Mike Stewart

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