Yellow Page ad co's filing suit-anyone experienced this?

[mhutch69]

I am in a battle with DexMedia, the Phx. YP directory regarding the return on a 2 page YP ad. The ad did not provide enough leads to even pay the advertising costs.

I stopped paying the ad 1-2 months into the annual contract and advised them it was not working. The rep had promised a significant advertising campaign on the part of Dex to get people to use the book more.

Regardless, the balance is $181,000 and I can not nor will pay as the ad did not generate calls. Anyone experienced litigation with Dex or another YP provider? How and what did you settle for? I have replaced the ad with another provide, Verizon, with the same ad at $20,000 annually. I believe that is what the Dex ad was and is worth. I hope to settle for that amount.

Any advice or experience would be appreciated. I also assume Dex would NOT appreciate the bad publicity about a client not getting any calls and being sued... That might slow new business a bit.??

I will take full page newspaper ads to clearly describe my return on the YP ad I placed but did not receive what was promised.

thanks

AZ INS Man

[sanddog1]

180,000 Wow ! now that's and impressive ad budget. Boy wish I had some advise, although I don't use YP anymore got dam tired of receiving calls from idiots' who needed SR22 filing 90% of the time, or there constant calls looking for quotes. Then they have the nerve to tell me there is 6 other agents bidding on this quote for my UGO so yo'a need to do your best. Or about the HO policy because there house was filling down or on pier & post. Commercial nothing.

[Big Dog]

Yoozah! You were ripped off. None the less, you're in a pickle as you signed a contract. Unless the contract specifies the ad campaign, or guarantees a specific number of calls and such, you may wind up having to pay the $180,000.

A quick search of the BBB's website shows DexMedia in Phoenix is part of the BBB there. You could enlist the BBB's help to resolve this.

[CATHIEA]

Sweetie you've been in this business and in this area far too long to get yourself in this situation. Good luck.

[92builder]

If the balance is 181K and you've been paying on it for a little while, please send me the name of the salesperson who sold it to you. I could make a fortune off of them.

Surely, you understand that ad campaigns are not a single-attack event. If you are spending this many $$$ on YP ads, what else have you devoted yourself to?

I don't believe I would mount a campaign to say how bad you were treated by Dex, either. If you really want to settle this for a fraction of what you owe, you're gonna need a really big favor from them.

Dude, I am sooooo sorry.

[bindscott]

$180,000?? I have few questions for you.

1. What were you expecting? ($180,000 ++ in investment should return no less than 5 times that amount in commissions revenue) Did you expect at least $900,000 in commision?

2. How did the salesperson present and what were their statistics? (They usually give you a rough return ratio. Closing ratio is strictly up to you)

3. When you signed a $180,000 ++ investment contract, were you prepared to receive all those calls? (Hope you were only targeting large accounts over $250,000 in average premium)

4. What do you find that was misrepresented by the AD company?

Clearly, you signed a contract with a huge, unrealistic expectation. Either you did not do your homework (You've learned your lesson) or the AD company ripped you off (This is gonna be hard to prove since this is what they do to sell ads and advertisers DON'T promise results)

Personally, it sounds like you bit off more than you could chew.

I say, you need to seek legal council immediately.

[mhutch69]

Sweetie you've been in this business and in this area far too long to get yourself in this situation. Good luck.

I did not mention the contract is with a different corporation signed by a non-officer of that corp. As well collectibility typically assists greatly with negotiating a settlement considering a certain corp has a UCC filing against it's assets properly filed in 2000.

You are right, I have been in this business a long time...

[92builder]

I did not mention the contract is with a different corporation signed by a non-officer of that corp. As well collectibility typically assists greatly with negotiating a settlement considering a certain corp has a UCC filing against it's assets properly filed in 2000.

HUH??? Are you sure you're not a lawyer? Are you just trying to say it wasn't your fault?

[sanddog1]

Man I am so sorry to hear of this problem its horrible. I need you in of my golf matches to negotiate the bate.

[mhutch69]

I had a partner purchasing half of the two page ad. He bailed and I structured the contracts so as to not have "direct" exposure. I obviously anticipated too much benefit. The balance includes all the interest and fees they can add. It did not cost that much.

If I played golf with you, I would take your wallet. That I know how to do!

I have been in the insurance biz for 30 years, so golf is easy.

thanks to some of your responses. No thanks to the smart asses who think they are so immune to such situations. I believe comparing financials might bring some people down a notch.
:twisted:

[sanddog1]

Gee just trying to cheer up the sad post. It's horrible what has happen. And i understand your golf position, shot everyone that plays Golf in AZ, thinks there a 3 handicap, Until they come play the old courses on the CA north coast then we take your wallet.

[AZINSAGENT]

I think the least they will require is that you pay for the advertising up to the point you disconnect and not forward any phone numbers, and change any internet site or e-mail address/s you listed in the advertising. The amount in question is sufficient enough for the YP to spend some $erious legal time going after it.

You may have structured the contracts to not have a "direct" exposure, but I dont think you will find a court that will allow you to continue to receive the benefit of the advertisement for the remainder of the contract term without paying for it.

Try stopping payments on a car just because you don't pick up as many women with it as the salesman said you would... YP can't repo your ad...

Good Luck!

[mhutch69]

You make a point but the actual issue is "what" benefit was truly received and the value of such benefit. Since the beneficiaries of the contract were not parties to it, the YP advertiser's lone avenue for recovery would be through an action for quantum meruit where the YP would be entitled to only "the reasonable value of the services rendered." RAJI (Civil) at 160 (4th ed. 2005) (contract instruction number 24) (internal citation omitted)

Therefore, the indirect exposure may provide exactly what it should and that is financial exposure for the actual value, not the price contracted. Competing YP ad's cost approx. 10% of Dex. The fact that the line can be disconnected even if a "remote call forwarded line" clearly indicates the actual value and/or cost of the ad to the YP company.

Everyone is pretty self-righteous when in fact a simple error was made in estimating the value of the ad upon the initial contract. I know of over 100 similar suits filed by the same YP directory with over 91 of them defaulting entirely. By responding, I believe it is fair to pay the actual value of the ad irrespective of the price placed upon it by the YP co.

have a nice day.

[tmout32]

I would be interested in knowing how big an Agency it takes to sign up for a $180,000 ad campagne?? I have been in the business for a while and and I would find $1,000 per month an adequate YP budget...in fact, I would like to lower it. However, I am sure the area of the courtry where the yellow pages are run would control the price. Sir...you must have a very large Agency. Just how large is it??? I would like to know

[AZINSAGENT]

MH,

I will re-iterate the issue in terms you might better understand. Suppose you sold a client a liability policy for $181,000. Two months into the contract, the client found another policy for $20,000 that covered the same risk. Your client calls you up and and tells your policy is only worth
$20,000 and that is all they are going to pay.... You know what will happen next. To mitigate damages the policy will be cancelled, and the company will go after the client for any earned premium due after the cancellation.

YP cannot mitigate its damages for your breach of the contract. It cannot cancel your ad. It cannot re-sell your advertising space, and the cost to delete your ad, reprint and re-distribute the YP books is well in excess of the $181,000 they are going after you for.

The contract for advertising in the YP is for a unique item, not a commodity, so balancing of value is not a consideration.

The contract does not promise a single call. It simple agrees for YP to print the ad copy you approved into their book and for them to distribute at least the number of copies indicated into the advertising area you indicated. In exchange, you agreed to pay them X$ each month for X months, and failing to do so, calls for X remedy.

Nothing more, nothing less.

Again, good luck.

Sweaty