Is iMergent a Biz Op?
David Phillips has an excellent due diligence article about iMergent Beware of iMergent's Sketchy Policies
Sales and marketing practices which are the subject of numerous State Attorney General investigations, a formal SEC investigation related to potential violation of securities laws (including the alleged disclosure of earnings forecasts to select investors, a Reg. FD ‘no-no’ ), and alleged accounting irregularities—all these price-busting concerns aside, the share price of iMergent, Inc. (IIG) has soared 95 percent in value during the last year.(my emphasis)Headquartered in Orem, Utah, the company sells its proprietary StoresOnline Pro software and training services, developed to help users build a successful Internet strategy to market products, accept online orders, analyze marketing performance, and manage pricing and customers. In connection with Internet software, iMergent also offers website development, website hosting, marketing and mentoring products and services.
iMergent typically reaches its target audience through concentrated direct marketing efforts to fill Preview Sessions, in which a StoresOnline expert reviews the product opportunities and costs. The sessions lead to a follow-up Workshop Conference, where experts train potential users on the software and services and encourage them to make purchases.
What potential distributors won't recognize is that the opportunity is subject to state and federal business opportunity laws or franchise laws.
Attending a workshop, paying $5,000 for the opportunity to do so, and then trying to sell services doesn't strike the average person as the purchase of a franchise. Or in the case of Utah, the buyer of a seller assisted marketing plan.
This is one of the biggest problems with the federal, state and provincial laws which are designed to protect individuals: the purchasers are completely unaware of the laws which are there for their protection -worse many of their advisors are also unaware of the requisite disclosure obligation.
