In August I signed up and paid a fee to be an associate of this company to help homeowners get thier loan modified, and to make an income. I chose them because they promoted themselves as being in business for 24 years. I felt they were reputabale.
I submitted 5 applications along with the customers money totaling $6,225.00. My comission on that amount would be $3,232.00. After months of trying to get paid I received an email from the owner, Stan Schultz. He told me that they could not afford to pay me. Below is his emal. After that is his reply. I strongly urge anyone thinking of doing business with this comany to stay away.
Tom,
Apologize for not replying quicker but the reason is limited to our lack of cash-flow and the pressing economy's affects to our business model. Please understand that our operation has the intention of meeting our organization's operational expenses as it has always demonstrated in the past.
You are one of a very small group of older affiliates who are in the same boat (so-to-speak) who we plan on paying when able.
The economy has affected us all and continues to trickle down to all and organizations and we have to be mindful and make quicker decisions to react to changes in the economy and how that affects our maintaining viability.
The majority of our members participated in the $495, or older best method program of $350, in outsourcing their fulfillment needs. This eliminated the need of my organization having to pay them as they are already compensated. If we coud have read the future then we would have recommended everyone, as we do now, to participate in the best method model.
We have many happy and successful operations out there and we believe the cash-flow issue is just a small challenge to our operation.
Thank you for you patience and understanding as we strongly believe this challenge will be overcome in a short window of time although, no definitive date to resolution has been understood. Thank you.
Sincerely,
Stan
My Reply:
I definitely understand the affect the economy has on most businesses, but I would think that yours should be booming. Loan modification is the hottest thing right now, and with your 24 years in business I should think you would be benefiting greatly.
Are you implying that you are that you are paying the newer people and not the older because the business model you have had for so many years does not work? Since I have only been an affiliate for only 8 months I have to assume your retention is very low because of you not paying people what is due them.
I own a mortgage company and I certainly would not survive if I didn't pay my loan officers their commission. How do you expect to succeed when you don't pay the people that are generating the income for you? I have people to pay whom have families to feed.
You have collected $6225.00 from my 5 clients including my $395.00 start up fee. According to our contract my portion, including reimbursement of my start up fee after 3 deals is $3,232.00. I will expect payment by next Friday 3/13 or I will be forced to proceed with the other actions I mentioned before. I will now include your e mail of admission that you company will not pay your affiliates as agreed.
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