Thinking about starting your own business and using the internet to launch your product? A Victoria woman's costly experience shows why you need to do your homework before you jump into anything.

Toni Graeme wanted to sell holistic health products on the internet

"I had about 25 or 30 products and a Pay Pal account," Graeme said.

She heard about StoresOnline and went to a free introductory seminar. She returned for a one-day workshop and she signed up for the full program.

The cost was $5,000 plus tax. Halfway through building her website, Toni says she was approached by another company, which said it could assist her with marketing -- for another $5,000.

Still not getting the results she hoped for, Toni says she was contacted by a third company which said it would optimize her website.

"I said ‘I don't think so. You guys have come to the end of the money line with me,'" Graeme said.

Toni asked for refunds and didn't receive any.

The Better Business Bureau in Utah, where StoresOnline is headquartered, has given the company an "F" rating and recorded 805 complaints against StoresOnline in the past three years .

Among the complaints cited were:

  • False claims and misrepresentation
  • High pressure or dishonest sales tactics
  • Failure to honour refunds.

All the complaints have been resolved or closed.

"I think the complaints speak about not having the services that were promised to them and instead getting more sales pitched," the Better Business Bureau's Simone Lis said.

The BBB also notes actions taken against StoresOnline in several American states and Australia. 

We contacted StoresOnline and talked to senior vice president Jeff Korn.

"There was a time in the seminar when we probably did not make all of the necessary disclosures, or give all of the information to people as to how much work and how much time and effort are necessary to have a successful internet business. And we probably could have done a better job of it back then and we certainly could have done a better job of customer service. But we've corrected those errors," he said.

Still, there is no guarantee of success even with the StoresOnline program.

"Almost 90 per cent of all businesses fail; the advantage of a web based business is the start-up cost is much lower," Korn said.

Tell that to Graeme,who's put out about $10,000.

"I should have done my own due diligence," she said.

After CTV spoke with StoresOnline, the company has offered her more assistance, a personal coach and site optimization, but no refund.

With a report from CTV British Columbia's Chris Olsen