WritersWeekly.com Warnings Report

WritersWeekly.com Warnings Report

Date Filed: 07/18/01
Company: PowerProse.com

UPDATE - 07/27/06:

POWERPROSE PAID ANOTHER WRITER, YEARS AFTER THE FACT!

From: "Catherine"
Subject: RE: PowerProse
Date sent: Wed, 26 Jul 2006 16:37:03 -0700

Hi Angela,

Just following up with you on Powerprose - the check cleared!

Weird.

Best,
Catherine

UPDATE - 12/04/02:

We hate to say it, but we told you so. We've had numerous complaints about this firm over the past couple of years. Just a few months ago, they emailed me asking what they could to do change our opinion of the firm. This was our response at that time:

WRITERSWEEKLY.COM EMAIL TO POWERPROSE

That is a problem. I looked at your site and realize he is the founder.

He was very belligerent and downright rude to one writer in particular and used verbiage to indicate that he is sexist. These comments were made on the answering machine of Cathi Stevenson. She still has the tape.

I do not wish to rehash old grievances. But I can tell you that I will never feel comfortable referring anyone to a company that has any association with Al Marsocci. Not withstanding the problem above, he also stopped answering our numerous emails months ago which were sent when writers complained. He chose, in the end, to simply ignore us.

And, because PowerProse hired some new people and claims to have changed, I simply can't, with good conscience, endorse PowerProse, nor do I feel comfortable removing the warnings page. I certainly don't feel comfortable sending writers there.

There is only one way to have a warning removed from WritersWeekly.com. Every writer who has issued a warning would need to retract their warning. This would, of course, include Cathi Stevenson.

Angela Hoy
WritersWeekly.com

UPDATE

Several writers have forwarded copies of the "going out of business" email sent to them by PowerProse.com's CEO Keith Johnson. It states, "Upon advice of legal counsel, PowerProse can only make payments on the acceptance of a payment plan."

Two weeks ago, we began forwarding new complaints to PowerProse listing specific amounts owed. As of this writing, they have not responded to any of our correspondence. They have since sent out another letter to their writer which seems to suggest that writers should not try to force them to file for bankruptcy because they'll only receive "pennies on the dollar." It also states, "Several entities have approached me inquiring about resuming conference call brief production. These discussions could result in PowerProse receiving money for you."

This seems to imply that PowerProse is going to try to remain in business? If so, I do so hope you will all read everything here before deciding to trust them with your future income. There are many writers who were depending on payment from PowerProse for their holiday finances. Their families are now suffering because of this situation. And, PowerProse refuses to respond to our request for information.

RECENT COMPLAINTS RECEIVED:

Hi Angela:

Unfortunately, I'm one of the writers stung by PowerProse's recent announcement that they're out of business. (Yes, I knew about your warnings page, but several people on WorkForWriters said that they had been doing financial summaries for the company for a while and were getting paid without a hitch, so I assumed the waters were safe to swim in.) I just started working for them in October and had only submitted one invoice for $800, so I'm probably better off than some of their other writers, but it still hurts, especially with Christmas coming up and a family to take care of.

Thanks. I've been reading Writers Weekly for a while and appreciate everything you do for freelance writers, especially those of us making a living from it.

Brad Cook
Writer/Editor
Digital Inkwell, Inc.

Although I have heard some good things about this company for the financial summaries, I also read some negative reports concerning their syndication. Unfortunately, I read this information AFTER going through all their training. Independently, I stopped requesting assignments within a week because I thought something fishy was going on although I couldn't put my finger on it nor did I have proof.

Two days after making this decision, I received a "we are out of business and you must take payments on a payment plan per our lawyer" letter. I'm assuming this letter went to every writer/editor. However, as mentioned in the weekly newsletter, their website showed business as usual and seems to be recruiting new writers and editors. I then checked the "private" area for writers which also shows business as usual without a memo or letter of any kind stating the problems. In checking, I found my password was changed sometime between November 8, 2002 and November 13, 2002. I don't know who changed it but I wasn't informed. Currently, they owe me $550. I realize they owe others a great deal more but it's the fact of the matter, they owe me this money. Thanks for your assistance.

Brenda Ramsbacher

PowerProse has not paid writers and editors for work done over the last 60-plus days. I have been editing financial briefs for PowerProse since May, 2002. I was paid more or less on time each month until my September invoice (which was due October 31), although several times I had to call and ask where my check was, and I was told my invoice had been lost , etc.

When my September check did not arrive by November 5, I was told there was a problem processing invoices . On November 8, I received an email saying that the company had not been paid and would not be paying writers. It also stated that they were negotiating with their client and hoped to be able to pay us at some point. I am now owed a total of $7000 for briefs I edited in September, October and November.

Several points beg to be made:

* The PowerProse web site clearly states that PowerProse will pay writers regardless of whether they receive payment from their client(s).

* I was still doing assignments as late as November 5. Given that September checks were due to have been mailed by October 31, they surely knew by then that they weren't getting paid. Yet they continued to assign work.

* If PowerProse hasn't been paid by their client, then the client, is using the material that I and other writers produced without permission or compensation.

* There are at least several dozen other writers and editors in a similar circumstance.

You may quote me. You can expect to get complaints from many other writers and editors as well - there are a bunch of us and we're organized!

Thanks for getting the word out.

Karen Doyle

I know you have received other complaints about PowerProse and its treatment of its writers; I would like to add my own comments. Like Karen Doyle and the rest of us, I fully expected payment for the assignments I completed for PowerProse in September and October. I have two invoices outstanding, totaling $2,200.

I have been working for PowerProse since the end of August, when I left my former job. For over two months of work, I have received $125. This, after I was told by Liz Gallese of PowerProse that I could look forward to a long list of assignments. Because the contract they offered provided reasonable protection for the writer (the clause noted by Karen Doyle that writers are to be paid whether or not PowerProse gets paid), I assumed the 'long list of assignments' would result in appropriate financial compensation.

This is extremely difficult for myself and my family, as I am sure it is for all the PowerProse writers and editors. I understand a notice has already been sent to PowerProse regarding this situation. We appreciate the action taken and look forward to any developments.

Regards,
Cathy Brock

UPDATE - 10/02/02:

Just to comment on your reports on PowerProse. They are totally focused on the new financial briefs angle of transcribing corporate conference calls with analysts and stockholders now. The former format of syndicating articles seems to have ceased or at least slowed to a trickle. I sold several articles with them in syndication and was paid for them after about a six month lag. The financial briefs works I have done for them now for over 6 months is invoiced at the end of the month and paid 30 days later. I have just been informed that beginning in October, they will be paying in 15 days. So, writers who are still trying to freelance non-fiction articles thru their former syndication network need to realize this is no longer their focus, no doubt because of the dot com bust and lack of payments to everyone including PowerProse. It is too bad they didn't communicate this better to all their writers who participated in the site. I get a newsletter two or three times a year. Linda

PowerProse has completely revamped its format and audience since the initial complaints were lodged. It is now focusing on financial writing and appears to have a very robust client base. It has also worked with the National Writers Union to develop an appropriate contract. I have been freelancing for the company since May. I invoice at the end of the month for all assignments completed in the month. I have been paid within 30 days each time. I also have open communication with the current managing editor and other managers, including Al Marsocci. There is also a very open network of writers and editors freely communicating. It sounds like the company didn't have its act together before, but it does now.

Nancy Hendryx

UPDATE - 09/25/02:

I have been working for PowerProse since May 2002, and have been paid on time and in full every month, including for invoices of a couple of thousand dollars. Their business with iSyndicate no longer exists, and their current work for writers and editors, both of which I do, is paid just as they state in the information available on the website.

Ann Ernst

Summary: After receiving many complaints about non-payment by this firm, we contacted Al Marsocci at PowerProse. From what we understand from our phone conversion and emails, PowerProse doesn't pay writers until they receive payment/statements from their customers. However, these statements are the only way that PowerProse knows that one of their customers has published a writer's article. Therefore, there is no tracking done by PowerProse and no way for writers to know what is owed to them until several weeks and often months after the article has been published. Also, the writer is at the mercy of the honesty and viability of PowerProse' customers. One writer found her article online while surfing. Only then did she know she was owed money. She then spent months trying to obtain information from PowerProse and subsequent payment (see her letter below). In addition, PowerProse claims some of their clients haven't paid them and that they can't pay the writers. Some of the complaints we received concerned non-response by PowerProse to emails sent by writers. Much of the confusion may be attributed to inadequate communication by PowerProse to writers concerning how their company works and when writers actually get paid. However, we received complaints from one writer who sold an article on contract to PowerProse but couldn't get a check out of them. She was subsequently paid after WritersWeekly intervened. We only suggest writers write for online syndicates if they're not concerned about when they'll be paid and if they're not concerned about knowing who published their articles where or when.

We have received numerous complaints about this firm and are still aware of money they owe writers. They no longer respond to our requests for information. Therefore, IF YOU ARE OWED MONEY BY THIS FIRM, please contact:

Federal Bureau of Investigation
One Center Plaza, Suite 600
Boston, MA 02108
Phone 617-742-5533
Fax 617-223-6327

Massachusetts State Attorney General
Tom Reilly
One Ashburton Place
Boston, Massachusetts 02108
Phone 617-727-2200
Fax 617-727-3251

BBB of Central New England
P.O. Box 16555
Worcester, MA 01601
Phone 508-755-2548
Fax 508-754-4158

National Writer's Union
113 University Pl. 6th Fl.
New York, NY 10003
Phone 212-254-0279
Fax 212-254-0673

YOU WILL NEED THIS INFO. FOR YOUR COMPLAINT:
Al Marsocci - powerprose@massbusiness.com, al@powerprose.com
PowerProse
16 East Main Street
Southborough , MA 01772
Phone 508-303-2418
Fax 508-303-8520

UPDATE - 09/26/01:

Brette McWhorter Sember wrote:

Power Prose sold one of my articles on 11/24 of 2000 to AdOut for $75. I have never been paid and the status is listed as "open" with the pay date blank. Power Prose has also sold many of my articles in syndication (a long list on my desktop). The desktop was last updated by them on 11/30/00. I have received payment from them before that date, but I have no idea for what -- they never tell you what they are paying for. I would like my $75 for the AdOut article and I want my desktop updated -- it's been 9 months!! I sent my latest request to them on 8/15/01 (to 2 different email addresses listed on the site) and as always I received no response.

WritersWeekly.com forwarded this complaint to Al Marsocci at PowerProse. Our system says the message was delivered. But, again, Al Marsocci did not respond.

UPDATE - 08/08/01: More letters from writers...

Rita Milios:

Power Prose editors assigned me two articles
to write for a specific publication. I wrote
the articles and they were accepted and
published on the site. I have sent in
invoices, emailed, called and written several
letters requesting the agreed upon payment.
Yet I have never received payment, nor have
any of my correspondences been answered. I am
still owed $300.

Jim Bleyer:

1. Article used several times by one company.
PowerProse reneged on its agreement by
sending payment for one appearance.

2. Author website contained incorrect
information. In my case, it took months to
correct.

3. Authors should not be paid contingent on
PowerProse getting paid. That is totally
unprofessional.

Summary: It's not "miscommunication" or
"oversights" that are screwing authors. It's
PowerProse and its policies.

RESPONSE FROM AL MARSOCCI AT POWERPROSE:

1) Mr. Bleyer needs to furnish more detail
for us to investigate his claim. Also, see
item B below.

2) His desktop has been inactive for months.

3) This is your fault. We do not wait for
clients to pay us prior to paying writers.
You miscommunicated this fact in a recent
newsletter. We do however need to wait for
our distributors to provide us with a list of
what was sold - we have no visibility into
their sales until this report is received. We
have paid out tens of thousands of dollars
for copy sold to publishers who went out of
business before they could pay us. I would
appreciate it if the error where corrected.

4) His final comment - those who can, do;
those who can't, teach;  those who can
neither do nor teach, try to pin the blame on
someone else.

As for your other messages:

A) I will not tell you who we owe money to
and who has been paid. Our books are
confidential

B) The woman who claims we owe her $300 is
mistaken - we reformat all of our newspaper
copy into four different file types - TEXT,
PDF, InDesign and Quark. It is the same copy,
we try to make it more attractive to
prospective buyers. We do not pay the writer
for the different formats. Some writers do
not read the information on their desktops
nor do they read out newsletter where these
problems areas are identified and explained.

We are very disappointed.

WRITERSWEEKLY.COM RESPONDS TO POWERPROSE:

You told me via phone that you pay writers
when you get reports from your customers and
get paid.


Confusing paying vs. reporting is not the
issue. The fact that it takes months for
writers to even know if their article has
sold...much less get paid for it, is the
primary issue.


I will quote your statement below for next
week's issue.


I will forward your note to Mr. Bleyer. It
would help if you would respond to these
writers immediately when they contact you so
they won't have to contact us. 


I will also forward your note to Rita Milios
(the one owed $300). She, too, claims her
emails have been ignored.

JAMES BLEYER EMAILS ANGELA DIRECTLY ABOUT POWERPROSE LETTER:

Frankly--and I know you probably disagree
with this because we shouldn't let these
things go for the sake of other writers--but
I don't feel it's worth my time to chase this
character. I think they will be out of
business soon anyway.

RITA MILIOS RESPONDS TO THE POWERPROSE LETTER:

Thanks for the forwarding of the letter to Al
and for your attempt to rectify my situation
with PowerProse. I am disappointed, as well,
that Power Prose and Al attempt to infer that
I was somehow failing to understand our
agreement, when in fact, my work involved two
specific assignments made directly to me by
the editor, Karen Nerney. It was not
"desktop" material that was up for sale to
whomever might want it. I was contracted for
two sets of articles which were produced for
a specific web site, following their
requested guidelines. Upon completion, the
articles were immediately placed on the site.
I know that my work was acceptable and
accepted. It was simply not paid for.

I do not expect to see the money that is owed
me. I have chosen to look at my experience
with PowerProse as a learning experience.
Because of PowerProse and one other Internet
site that I wrote for (again on assignment,
with lengthy contract in place) , I have
given up on all Internet writing and have
vowed to stay away from all Internet
"publishers" and Internet "publishing".

The main reason I take the time to
communicate with you and other writers about
my experience is so that these "publishers"
do not get off scott free doing such awful
things to writers. At the very least, they
should be held up to public scrutiny and
their cheating of writers exposed, as you are
doing.

Thanks again for shining the light of truth
into the dark corners of the some of the
publishing industry's more shameful areas.

UPDATE: In June, PowerProse paid several writers via PayPal. We emailed them on July 10th asking if all writers have now been paid. Al Marsocci responded that with two or three exceptions that are being researched, and one writer who is owed $900, that all their writers have been paid.

On July 16th, we received this letter from Heather Guidone who specifically asked that this statement be published in WritersWeekly.com:

PowerProse is *by far* the most unprofessional, writer-unfriendly resource I have ever worked with. Their administration and "housekeeping" of the Writer's Desktop is sloppy; their response time to writer inquiries - if and when they respond at all - is lousy; and their "customer service" (I use that term loosely) is appalling. I would not recommend PP and their questionable ethics to ANYONE in the freelancing industry. I highly advise any writer or creative professional who a.) cares about their work and b.) would like to be compensated for it to steer far clear of this outfit.
-- Heather Guidone, Freelance Writer

Another letter:

Angela, Just wanted to let you know that due only to your intervention, I finally got paid my $50 by Power Prose. A booklocker purchase was the first thing I did with my windfall. Again, thank you for taking the time to help all of us.
-- Regards, Iyna

Response WritersWeekly received to its inquires into the matter:

This is what PowerProse ran in a recent newsletter concerning payments from their clients to them:

iSyndicate: As you may be aware, iSyndicate is in the process of being sold to YellowBrix.com. As we understand the agreement, iSyndicate must declare bankruptcy prior to completing the sale. We are in receipt of a memo from iSyndicate indicating that, as soon as the bankruptcy has been completed, they will forward money owed to its customers. More importantly, PowerProse will receive information on what PowerProse supplied content iSyndicate has sold. You can find more information at http://www.yellowbrix.com or http://isyndicate.com (Please note that the iSyndicate site is now resident with YellowBrix.)

Screaming Media: PowerProse stopped shipping content to Screaming Media on March 31, 2001. Their last report was received in late May, and included all items sold in December 2000. Screaming Media has been surviving by offering their customers deep discounts, thus eroding everyone's margins. Payments through the last report will be made as soon as the data has been entered into our system.

PayPal: Effective immediately, PowerProse will send all writer payments via the PayPal system. This is not only less expensive for us, but will also expedite our accounting processes. Additionally, you will not need to wait for snail mail to receive your payments.