• Report: #379454

Complaint Review: Magic Kids & Company, INC.

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  • Submitted: Wed, October 08, 2008
  • Updated: Tue, January 13, 2009

  • Reported By:Cordell Oklahoma
Magic Kids & Company, INC.
8235 Remmet Avenue Canoga Park, California U.S.A.

Magic Kids & Company, INC. has great marketing--but just rips you off! Canoga Park California

*UPDATE Employee: We have addressed the issue(s).

*Author of original report: Update

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When I first received the 16 page letter detailing the opportunity to become a dealer it all sounded wonderful and very doable. The letter said you must respond within 24 hours to get more free tools to start you off and they wouldn't even charge you for a month in good faith. He also guarenteed that if after a month you weren't pleased a full refund, and then went on to say give the business a good two months to make at least $3000 if not more and if you're still not pleased after actually giving it a good shot for two months you could still have a full refund. My computer had crashed so I didn't have a way at the time to look up the business but everything looked really great and doable. I should have found a computer somewhere and checked it out first, now I definetly wish I had!

So I ordered my kit for $147, it took a couple of weeks to arrive and came with a couple of flyers and about 10 business cards. I quickly gave those away. The kit also came with all kinds of perk reports on things to order to help perk up your business so I read intensely every report he had. They all said repsond within 5-7 days to be able to get the great deal. I choose the perks I wanted--to receive 80% commission instead of the 50% every dealer gets, to be a dealer affiliate and receive $100 for every dealer I signed up, their clothing package to show to retail shops (that came with catalogs, envelopes and letterhead paper), to order thier Directory that had retail shops, wholesalers, and non-profit organizations, and then off course ordered wholesaler postcards, dealer postcards, business cards, catalogs, and regular flyers to mail and hand out. It took another couple of weeks for everything to arrive that I needed to start advertising for the business. Meanwhile I had spent about $2500 on my credit card to get the business going with all of the perks. Their advertising reports have great marketing in them, if they would only follow through with what they said it still looks like a great business.

While I was waiting for more flyers, postcards and business cards to arrive I read and reread everything in their manual on how to advertise and succeed with the business. I was committed to giving my best and at least a full two months of work to try it and see how it worked. I received my first batch of flyers and business cards, wrote my "discount" code on each one (this ties the customer to me and that is how I am supposed to receive commission) and then that weekend drove a 100 miles to the nearest mall and handed out 300 flyers and business cards to people with kids and buying items in clothing stores. That first weekend was August 8th (easy for me to remember since it is my birthday) and the next three weeks I proceeded to continue advertising for them with all of the ways they recommended in the manual. After 3 weeks my online account still showed 0 orders. I called the helpline and spoke with a coach, told her all of the work I had been doing and asked how come I didn't have any orders? I asked her if their tracking system was not working? She seemed offended that I would ask that. She said I just wasn't trying hard enough and that sometimes it takes a little while for people to order and that I needed to be more positive about it. I asked her how come all of these testomonials were saying they got orders in the first day or two from handing flyers out, doing mailings to wholesale companies, and the other things I was doing. She said because they had contacts of retail stores and they already knew those people. Funny, that wasn't one of the several things mentioned in the manual was that you needed previous contacts in order to make money. In fact he had said you don't have to bug your friends and neighbors like typical MLM to make money.

So anyway, I concluded every business takes a little time and I was committed to the two month mark so I kept advertising. By then I had received my computer back as well, so I even started advertising online in several forums I am a part of. After two months I had given out 300 flyers and business cards at the mall, mailed wholesale postcards to botiques and wholesalers from that list and then the non-profit flyers to the non-profit organazations (200 total addresses on the directory list), sent out messages to 43 yahoo groups that I was already a member of--mostly kids clothing and mom's lists, advertised 359 posts on Mom's forums (they keep track for me, that's how I knew), mailed out postcards to home business seekers and put out ads for that side of the biz, signed up a local homeschool group of 120 families as a fundraiser for them and gave each family a catalog, handed out my remaining business cards and catalogs to folks around town and to retail stores, and then I also did two newspaper ads in two papers that each canvas 2/3 of the state.

By October 7th and all this time and work handing out, writing addresses and mailing it still showed 0 orders for my account. I just simply do not believe that is even possible. Their testomonials alone from mailing postcards to wholesalers were saying many wholesalers and botiques made $2000 and $3000 orders. I believe this company has made thousands of dollars off of my efforts but has not given me a dime of it.

I called the company October 7th, one day before the two months that I had actually been working the business, to request a refund since it was showing no orders for me. I told the lady all of the effort I had put in, everything I described above, thankfully I had kept fairly good records of what I had done. I told her how Isaac's letter had said that even after a person had given the business a full two months good honest try and wasn't satisfied they could request a full refund. But the lady told me that the two months included the date from when the kit was ordered, which is not at all what the letter said, and it took two weeks just to receive the kit and then another two weeks just to start receiving the materials needed to start advertising for them. I kept iterating that that is not what the letter said, but she just said that I did not qualify for a refund. I asked to speak to her supervisor so she put me on hold, when she came back she said that the supervisor was away from her desk but that she would call me back that afternoon. It's been over 24 hours and I still have not received a call back. I am going to call again tomorrow and be a little stronger with them, if I do not receive a full refund of all charges made by them I will file with my credit card that they are simply a scam and I want the charges reversed. I am glad I used my credit card, and that is the only thing I am glad about. I'm sad that I wasted all of that time and energy trying to really give it my all. If they would have simply paid me for my efforts as they said they would I believe we would have both mutally benefited, I'm sure they received many many orders from the advertising that I did and I deserved to be paid the agreed amount for my efforts.

TruthSeeker, the employee of Magic Kids, if you are still here and offering to help those who have been ripped-off by this scam I would appreciate any help you could give me.

Caitlin
Cordell, Oklahoma
U.S.A.

This report was posted on Ripoff Report on 10/08/2008 03:38 PM and is a permanent record located here: http://www.ripoffreport.com/r/Magic-Kids-Company-INC/Canoga-Park-California-91304/Magic-Kids-Company-INC-has-great-marketing-but-just-rips-you-off-Canoga-Park-Califor-379454. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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Updates & Rebuttals

#1 UPDATE Employee

We have addressed the issue(s).

AUTHOR: Magic Kids Rep - (U.S.A.)

Customer was contacted by Magic Kids & Company and a refund in the amount of $1491.00 was issued to her on 10/31/2008. We have apologized to this customer and explained to her our reasons for the 24HR delay in responding to her. This was a difficult and unique situation, since she was a very active customer and could not produce any sales. We had to carefully review and analyze every possible detail before proceeding with discussing her major issues. After a very in depth conversation, it was concluded that the area where she resided may have played a big factor in regards to why sales were not produced!!

Although we could not verify all of her efforts, she does sound very smart and genuine. She also explained to our general manager Joseph S. that she didn't understand the terms of the contracts she signed. She claimed that she thought that her trial periods would start when she notified us or when she receives additional supplies and tools ordered to help her produce more sales. This assumption was her error. Our terms are very clear, and every individual knows that free trial terms start once product was delivered, and that goes for any company offering free trial periods to their clients. The resolution that was finalized with this customer was that management had decided to give her a partial refund on her account even though her account was significantly past the free trial period on all items purchased.

The rest of the transactions were non re-usable supplies and samples she had bought from us. We buy these items from a third party and various companies. We don't profit off of these supplies, we offer them to our customers as a service, to help their business become more effective and successful from the get go. As of now she remains a distributor in hopes that all of her efforts will produce sales before the holidays. Customer thanked management for all the help and for now things ended on a good note. On October 31, 2008, management spent a lot of time speaking with this customer, coming to an agreement that was acceptable to both parties and a refund of $1,491.00 was issued to the customer. The refund does not indicate that the company was at fault in any way because our terms are very clearly stated on everything the customer ordered, which she agreed to upon ordering. We were willing to compromise because we believe in keeping our customer's happy
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#2 Author of original report

Update

AUTHOR: Caitlin - (U.S.A.)

A supervisor never got back with me, upon calling again I still got the run around and waited yet again for a supervisor to call--which has never happened. I also asked a friend to place a small order using my discount code, the order never showed up. I did however receive a commission for my own order, my order amount was $72.76 and the commission check was $11.98. I paid $699.00 to receive 80% commission of the profit so do they really expect me to believe that 100% of the profit on that order was $14.97 and that they only made $2.99 and then gave me 80% of the profit for a grand whopping total of $11.98?? Not when they're examples in the letter were showing $20 profit per item on many items and that the profit from my entire order of $72 was less than $15. This company is just a scam all the way around!

To detail exactly how much I spent, $175 just for the kit and "expediated shipping" which was laughable, took two weeks. $699 for the increased 80% commission, $792 for the affiliate and signing up dealers, $276 for the clothing kit, $107 for the directory list and shipping, $209.96 total for flyers, postcards, and business cards. Plus the $109 in stamps. So in total I have spent $2367.96 on this scam, gave them tons of free advertising, probably thousands of dollars worth of orders, and received a measly $11.98 in return--for my own order.
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