Directory Revenue Scams: Buyer Beware
Don’t buy a directory without proof of earnings. Directory owners have the ability to play an interesting game using self-generated revenue. Here is how it works. They build a directory and add a few sites, then let it get indexed by Google. They link to it from a few of their existing sites, or buy some links on high PR sites so that the PR of the directory gets up to a 4 or so. (It’s tough to sell a directory without at least a PR4) Then they buy $300 worth of links in the directory for themselves and their existing sites. The money simply flows from one of their paypal accounts to another, so all it really costs them is a few dollars in transaction fees. They then post the directory for sale and say it had $300 in revenue last month, which isn’t exactly a lie. You bite. You buy. You pay a couple of grand. You make $40 a month. It’s a pump and dump website scheme at it’s best. Buyer beware.
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A reverse IP lookup comes in real handy in these cases. If all the premium listings in their directory are occupied by sites on the same server…