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News & Updates - Tuesday, August 28, 2007

Sketchy A Place For Mom Gets Sketchier Still

A Seattle tech scene monitor tips us off to the continuing controversy over at A Place For Mom. The Web-based retirement-home business APlaceForMom.com raised $9.5M from Battery Ventures back in February 2006, part of which went to buy shares from the founders.

As we have reported, the husband and wife-founded company sells what it calls an online CRM for leads to nursing home companies (aggressively called You've Got Leads!), while at the same time offering a portal to advise children of seniors who are searching for a nursing home, which is supported by advertising.

The Inc. 500 company is a clear financial success story. On the one hand, we appreciate that there is a tremendous business case to be made here. But in our opinion last year, we wrote that we expected that as the company become a bigger name, it will face marketing migraines for pimping moms to Big Retirement.

It seems the company will face another PR battle, as its employees and former employees are expressing their disappointment at the lousy wages paid by A Place For Mom. The startup has a very high headcount with ambitious plans to continue it ramp rate. However, some voice the opinion that pay promises are met that cannot be approached. One commenter on the Seattle PI asks if the firm indeed pays $20-$30K base plus commission with six figure potential after a year. Another responds: "A base salary? Yeah right! The advisor position is commission ONLY with very few perks. You will be told about the glorious ramp up bonuses offered for making quota- but beware that is ONLY if you make quota. If you are good at the advisement you can expect a boom in your paycheck at around 6 months. Then you are pushed off to find business on your own with little support from the company. If you are successful you can make big money, if not then you will starve. I wouldn't do it unless you have sufficient savings to survive 12+ months without steady income."

One of the more balanced commenters tells her story:
"I lasted over 1 year with A Place For Mom, but had to give up. There is good and bad with the job. The view and mission of the company is a good one but there is much left for them to figure out. Helping families is rewarding but being a bill collector is not. Making $5000 in a month is rewarding but making $300 the following month is not. Don't be fooled into thinking this job is all about hard work. There is luck involved too. If you want an inside view of how employees are truly supported then ask the recruiters how the company helps advisors market themselves. There are no materials available to promote individual advisors unless they create and print them on their own. I loved my job with A Place For Mom. But when I looked up one day and realized that my headset and my computer looked more familiar to me than my children did then I knew it was time to go. I work part-time now and make the same amount of money as I did with A Place For Mom and I see my kids all the time. If you have it in you to ride out the rough times I think this company will go places but they still have some lessons to learn. If you are looking for family time and a decent income you may want to wait until they have a better representation of truly successful advisors under their belt."

We don't want to take the high moral ground here, but it does seem like this startup is building a strong business but putting it in jeopardy by not taking into account PR black eyes.

Read - A Place For Mom Controversy (Seattle PI)
Read - Sketchy Retirement Home Biz "A Place For Mom" Gets $9.5M
Read - Seattle PI story