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I actually had a conversation with this guy on the phone. His sales pitch is basically this:
He will drive 20,000 uniques per day to your main site (in this example your main site is a paysite) and he can roughly guarantee that the traffic he pushes to your site will convert 1:1000, thus giving you 20 signups per day, based on the work that he does.
He does this work mainly by building and submitting free sites for you. He will submit X (I think he said 5) free sites per day. He also build TGPs, submits gallery pages, and will administer affiliate programs.
It will take him 3 months to do this. If at the end of 3 months, you are not getting 20K unique/day, you get half your money back.
Incidentally, I was quoted 3 months x $3k/mo = $9k total.
[you can see there's a lot of things "going on" in his regimine, which if someone KICKED ASS at implementing all these strategies, then $3500 per month seems reasonable--that's a big muth fuckin IF though]
Your best bet in this business is to not give the too many jobs to any one person. Unless you've had great results with the same person over a period of time. If you're going to out source, it's best to spoonfeed a couple of small tasks and see how those work out, then bump it up. You've got to compartmentalize your outsourcing expenses--like a ship has water tight compartments, if one compartment gets flooded you don't sink your ship, errr bank account.
I'm curious, did you check his references???
I'm not a lawyer, but did you have a lawyer look at the contract you signed? Even if you didn't I'd look into some kind of legal action. Accounting-wise it will be costly to sue and make any money back, unless you just go to small claims. But if you have a friend who's a lawyer, you could buy him dinner in exchange for a very threatening (and totally legal) letter. That might light a flame under his ass.
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