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Complaint Repair Consumer Complaints Remove Ripoff Report

 




Complaint Repair in the News

January 31, 2002

Daily Herald (Chicago Suburbs)

Complaints won't keep entrepreneur from success

by S. A. Mawhorr Daily Herald Business Writer

Posted on Thursday, January 31, 2002

Mention the phrase dot-com and people think of overblown hype and sure-fire failure.

Gone are the heady days when people scrambled to secure domain names and then threw money into a frenzied attempt to claim market share, all before they had a product or service proven to make money.

But not all dot-coms are gone.

Take for instance Matthew Smith of www.Complaint Repair in Naperville.

His is an old-fashioned story. After coming up with the idea in the shower, he is slowly and painstakingly building his business from scratch.

Complaint Repair is a Web site where consumers can post their complaints about a defective product or poor customer service free of charge. Other consumers can browse the site for free and do research before making buying decisions.

Posted complaints talk about cars with engines that "seize up," fast-food restaurants serving up cold fries and telephone companies that can't keep a line open.

More than two years into the business, Smith is still the only employee and he's still working out of his home.

After a career in the international import and export business and a master's degree in international business, Smith didn't know much about computers when he got started on Complaint Repair in May 2000.

Now he maintains the computer network that supports the site himself. The network needs an upgrade and he's doing the vast majority of it one his own. He's designing the system, running conduit through the basement and cutting into the concrete walls to install the extra ventilation ducts needed to keep all that computer hardware cool.

He jokes about a steady diet of macaroni and cheese.

He doesn't know when the business will start turning a profit, but he knows he's not giving up.

What gives him hope is the steady stream of visitors to his site.

With 55,000 [unique] visitors counted in November, Complaint Repair has one-third the visitors of its closest competitor Planetfeedback.com, according to numbers from Nielsen's NetRatings service.

But PlanetFeedback.com, which made its debut in February 2000, has $31 million in venture capital behind it and spent $6 million on television commercial and print ads before cutting out advertising to save money. Smith started with his own money he had saved and has spent nothing on advertising.

Smith thinks people visit his site because it has value. He figures he can match Cincinnati-based PlanetFeedback's traffic in five years.

As more consumers use the site, it will become a more useful tool for marketing research.

And although Smith doesn't charge consumers who lodge complaints or browse the site, he will charge companies looking to use it as a method of gathering consumer opinions.

Right now, employees of major corporations do cruise the site quite often and Smith can only surmise that they are on the lookout for mentions of their products or services.

Smith will post a response from companies who'd like to post one, but most decline the offer. And although some smaller companies have threatened to sue him in court, no one has actually done it.

If someone does sue eventually, Smith figures it will be good publicity.

And any publicity would help.

The site will make money for Smith when it draws an audience large enough to command substantial advertising rates.

Right now, Smith makes money off the banner ads that appear on his site. But the revenue is too low to support the business.

Recently he started a daily newsletter sent out over electronic mail to subscribers that lists the top 10 complaints of the day.

He's got more than 1,000 subscribers and when he's got 10,000 signed up, he'll be able to sell banner ads on the newsletter for a substantial price.

In the mean time, Smith doesn't mind waiting.

"I'm weathering it out," Smith said. "I'll be here in the years to come. I always was in it for the long term."

   

 

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