Is Internet Speedway a Scam?
I've heard those radio commercials for Internet Speedway saying 'Make thousands of dollars a week with your own Internet business.' It sounds too good to be true... so is Internet Speedway a scam?
Internet Speedway - A Good Home Business?
Internet Speedway advertises heavily on radio and TV as a home-based business opportunity, offering to provide you with everything you need to run your own Internet business. That sounds great, but does it really work, or is it just another work-from-home scam? I've done some research on the subject and found both plusses and minuses. Here's the scoop on the Internet Speedway business opportunity.
If you contact Internet Speedway by phone, they will offer to send you a preview CD, which contains mostly success stories. But the premise is basically this -- you pay $9.95 for the first month, and the company will set you up with a basic e-commerce framework. You then customize your site, choosing from hundreds of available templates.
After establishing the look of your online store, they give you access to thousands of products that you can sell. Fortunately, you don't have to stock or ship anything. The company ships to the customer so you don't need to get involved in order fulfillment, and you don't pay for products until an item is sold. In addition to Internet Speedway's merchandise, you can also include some of your own, or items from other sources. At least you don't have to buy a boatload of merchandise and take the risk of getting stuck with the goods.
Another plus is that they help you set up a merchant account so you can get paid by credit card or Paypal. So how do you make a profit? In effect, you buy an item at a "wholesale" price and receive a percentage when you sell it. Looking at a couple of their sites, I noticed that they are big on listing a "Your Price" and a "List Price" for items you can sell. But here's one problem: Often times these items are available at the same or lower prices from the manufacturer or other online discounters. So clearly Internet Speedway is taking a piece of the action.
Internet Speedway - The Down Side
Selling anything on the Internet is difficult at best. Your e-commerce shop has to be distinctive in terms of usability, credibility, and pricing so that it will stand out from the pack. And then there's findability. Internet Speedway gives you assistance with their TrafficBuilder, which lists your site in search engines and directories, but ultimately you have to take time and spend money to advertise your business. Also, the inventory that you sell is undoubtedly being sold by thousands of others like you, not to mention discount sites like Amazon and Overstock.com.
And then there's the cost. (It took some time to find the small print.) You can try the program for 30 days, and if you cancel within that first month, there will be no further charges. If you continue with Internet Speedway, you pay a monthly subscription fee. The first month they ding you for $99.95, and thereafter it's $69.95 per month. You must pay the subscription fee even if you don't sell anything.
It also appears that in addition to the down side, there may also be a dark side to Internet Speedway. In my research, I discovered a few people who said they were having modest success with the program. But the overwhelming majority of comments were from people who never made a nickel, those who had trouble cancelling their service, and others complaining about being overcharged. One common complaint was that when people contacted the company to cancel during the 30-day trial, they were treated rudely, and some ended up getting charges on their credit cards after cancelling. Scan the forums at sites like Ripoff Report or do a bit of searching on "Internet Speedway scam" yourself and you'll get an eyeful from the naysayers.
Another problem with work-at-home business opportunities such as this, is that not only does it take a great deal of work, but there are thousands of other people with the same idea. I had a friend who tried selling products on Cafe Press for a few months, but with all the charges and competition, she never established enough of a clientele to make it pay off. Zlio is another example. They have a list of companies that they deal with and you select the look and products you wish to sell. This is a free site, but again you are competing with over 350,000 other online shops.
Should You Try Internet Speedway?
It all comes down to this. My gut feeling is that very FEW people will make much more than pocket change using Internet Speedway. You can't just create an online store in the vast expanse of cyberspace and expect anyone to find it. If you want to succeed at any e-commerce venture, it will require some creative marketing. That takes time and money, which most people just aren't willing to invest.
If you have time on your hands, a bit of marketing savvy, and $179 to burn, you might want to try a 3-month Internet Speedway experiment. But before you commit, do your homework. Check out competing services like Zlio, and consider affiliate marketing. At Commission Junction, you can join free affiliate programs offered by reputable online retailers, and earn a commission on any sales you refer. But competition and finding ways to reach customers will be your biggest challenge no matter which route you choose.
Have you tried Internet Speedway? Tell me how it worked out for you. Post a comment or question below...
This article was posted by Bob Rankin on 6 Apr 2009
|For Fun: Buy Bob a Snickers.|
The Top Twenty
Free Apps for iPhone and iPod Touch
Post your Comments, Questions or Suggestions
Free Tech Support -- Ask Bob Rankin
Subscribe to AskBobRankin Updates: Free Newsletter
Copyright © 2005 - Bob Rankin - All Rights Reserved
Article information: AskBobRankin -- Is Internet Speedway a Scam? (Posted: 6 Apr 2009)
Copyright © 2005 - Bob Rankin - All Rights Reserved