One problem was they didn’t take care of the customer or look for long-term value and the user interface required an overhaul or temporary band-aids. None of which were done. The online interface was actually an AOL-esque application and not a web-based interface.

Online issues were identified early yet there was no course correction. The senior management and directors did not have experience with an immature online business that needed to take care of the customer. Directors and VPs were hired who had little or no online experience. Early hiring strategy was to hire the executive staff, rather than hire workers. Several VPs was upset that they did not have a secretary to manage their schedule.

While the business model was solid, the executive management did not have the expertise to run an integrated online and direct marketing campaign. While their response will be – failure was caused by an economic downturn, this is far from the truth. For example, the executives gold-plated the IT operation, installed it and then saw funds were low and fired all the contractors who helped install this. Worse, the Executives purchased the new Mac Air Notebooks when their PC laptops were just fine. Proven web strategies were ignored in favor of driving accounts. Priorities were ever shifting and became a running joke amongst the staff. Also, the call center was moved in-house from an outside location, which may have redirected IT and other resources from existing priorities.

This failure will be a great study for B-Schools. Also, the lessons of the Internet business in the late nineties and 2000 were ignored.

I never keep much money in my RevMoney account, or any similar account like PayPal. I prefer to keep my money where it will earn better interest for me and isn’t at the mercy of a new company.

They have had three layoffs since September and no one knows if they are getting any more funding.

I wasn’t aware that RME didn’t have any consumer protection. I have used RME with no problems, but I have only used it for a few minor transactions. I’m sorry to hear you had this issue with them. At the minimum, RME should open an investigation, and I hope they do that. To open an account, one must register their SSN, so hopefully RME will be able to track the person down. If not, you may be able to track them down if the “buyer” wasn’t careful. I hope you get the jerk who did this. Good luck.

I just thought I’d update you on my RME issue. My bank refunded all of the fraudulent charges, so I’m ok there. I contacted RME and they didn’t really explain much. They just said they they saw the issue and it was resolved (they didn’t offer to refund my money or anything). I then got an email telling me that my account had been suspended due to suspicious activity. I think it’s disconcerting that they confirmed that there WAS suspicious activity on my account. I guess that was better than denying it, but I would still be wary. That said, it IS possible that the link could have been redirected, and that it wasn’t an error on their part. They were pretty vague in their message. Thanks for your concern, though! I would pass it on!