Last Updated on February 24, 2024 by Eric Cantu
Have you fallen victim to an online business coaching scam? Are you able to spot the most common red flags that so many online business training platforms are using to slowly empty your bank account? Let’s take a look at the most common online business coaching scams out there and expose them so you don’t fall victim to one.
How Do I Avoid Online Business Coaching Scams?
Red flags like an overvalued price point, “done for you” systems, unrealistic promises of revenue, and high pressure sales tactics are just some of the most common online business coaching scams you find. Knowing how to spot them and avoid them will save you thousands.
I’m going to break down 8 of the most common online coaching scam techniques and give you several examples so you know what to be on the lookout for. Unfortunately, the more aware of them you are, the more you realize just how common they are. Don’t be the next unsuspecting victim!
High Ticket / Overvalued Price Point
When it comes to online business training platforms, you should understand that it’s going to cost some money to get quality training. But an inflated price tag doesn’t suddenly make the training any better.
Often you will see a training platform with an extremely high price point and then a listing of ridiculous arbitrary price points for all the modules that make up the training. This is done to imply that you’re getting an amazing package deal.
Nine times out of ten, with high ticket marketing, the entire point of the whole system is to just buy and resell that expensive system. I recently put together a Wealthy Affiliate vs Legendary Marketer review highlighting this exact point.
Here’s another perfect example from a review I did on John Crestani’s Super Affiliate System Pro. This is the overvalued price point red flag in action.
Remember, 99% of the time none of the items listed are ever sold on their own. In other words, these price points are basically made up. It’s a common and easy to way to inflate the value of a training course.
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“Done For You” Systems
Anytime you hear something described as a “Done For You” system, do yourself a favor and run! No business is “done for you”. There is never a business where you sit back and do 10% of the work while a “system” does 90% of the work and you become successful.
This is by far one of the most common online business coaching scams you see online. You see it all the time with affiliate marketing training platforms or platforms that claim that all you need to do is use their “done for you” paid ads or “done for you” sales funnels, and you’ll sit back and enjoy the profits.
Keala Kanae’s training courses use this all the time. Whether it’s his Digital Freelancer platform or his Freelance Affiliate Guide review that acts as a lead-in to his Fullstaq Marketer training, “Done For You” systems never work.
Unrealistic Promises of Revenue
Piggybacking on the unrealistic expectations of “Done For You” systems comes unrealistic promises of revenue. This red flag preys on the desperation of someone who has been trying so hard to reach success and hasn’t gotten there yet.
Let’s analyze this graphic.
- First the promise of a “proven system” that’s “given” to you: “How would you like me to give you the EXACT system…”
- This is immediately followed by a massively unrealistic promise of revenue. “… I personally used to generate over $25k in the first 9 days,”
- It closes with how easy and effortless it is to set up, “… (and have it up and running in the next 90 minutes!)”
Anytime you see a claim like this understand it is preying on desperation. Listen to your gut. When you’re seeing these, know for a fact online business doesn’t work this way. If it did, everyone on earth would be doing it, right? Don’t fall for a “get rich quick” scheme!
Major “Guru” Cliches
There are so many “guru”-led training platforms aimed at teaching how to how to make money online that utilize every single cringeworthy cliche you can imagine. You’ll see a guru walking through a mansion, driving fancy cars, surrounded by bikini-clad girls on an exotic beach, stacks of cash laying around everywhere, all while describing how incredible their platform is.
This is a huge red flag that acts as a distraction to take away from the actual meat of the content. We see all the expensive toys and the a millionaire lifestyle and we’re instantly drawn into it instead of paying attention to the details of the platform.
“Coaching Call” After a Webinar
When you see that after a webinar for a particular training platform you’ll be receiving a “coaching call” you might think to yourself, “Okay, that’s not such a big deal.” However, this will not be a simple live coaching call. Make no mistakes about it, this will be a pressured sales call.
There’s a part of human nature in play here and the person on the phone with you is counting on it. When we’re confronted with something, especially in person or via a telephone call, there’s something about us that we don’t want to keep saying no. So during these coaching calls, they will hit you over and over again with tactics like, “How bad do you want this?” pushing for you to spend way more or buy another module or two until you eventually cave.
Anytime you find yourself in a situation like this, remember, they can’t force you to do anything. You have the power to say either no, or just hang up. More often than not, they will not only hit you with calls, they’ll hit you with texts, emails, etc., all aimed at getting you to make a purchase that you didn’t want to make.
Low Buy-In Followed by Massive Upsell
Next on the list, the low buy-in followed by massive upsell. An extremely common tactic used in online business coaching schemes is to show off what seems like an unbelievable value with a very low buy-in. “Pay $99 and jump right in!” only to have to pay sometimes tens of thousands to complete the training.
Keala Kanae’s Fullstaq Marketer for example, begins with a very affordable buy in that balloons to almost $15k to complete the training.
Understand that most of the time, if you only buy that one low buy-in, whatever they give you for it (usually some introductory training), you’ll usually be ahead.
But the entire purpose of that introductory module, or pdf, or webinar is to entice you into the upsell. They will give you just enough info to make you really intrigued, and then it’s “for the next step in this process purchase the next training module!” And each module is more expensive than the last.
And this pattern won’t let up. Before you know it, to complete their training, the low buy-in has ballooned into sometimes tens of thousands of dollars. Be diligent and understand what you’re getting into!
Convoluted Compensation Plan
The convoluted compensation plan is a tactic you see this a lot with network marketing. Now, I’m not saying that network marketing is by any means a scam, but in my opinion, when you have a convoluted compensation plan filled with arbitrary bonuses and a not-at-all straightforward approach to compensation, it tends to be a massive red flag.
Also, because of these ridiculous compensation plans, a lot of times these businesses just aren’t sustainable. You may be able to make some quick money in the short term, but in the long term, the bonuses become harder and harder to actually trigger.
It’s one of the main reasons I am a huge proponent of affiliate marketing vs network marketing. Affiliate marketing involves a much more straightforward approach to online business with zero recruiting.
Pay Attention to Terms of Money Back Guarantees
When you see a money back guarantee, that usually gives us the feeling of having a huge safety net. It makes you feel so much better about taking a chance with something because you feel that, if for any reason it doesn’t work out, you’ll get your money right back.
But, when you have a money back guarantee on an extremely high ticket item or you have unrealistic promises of revenue that are supposedly backed by a money back guarantee, you have to read the fine print.
Sometimes a money back guarantee from a training platform doesn’t cover the entire amount you’re spending. Often times there are additional recurring expenses you are required to take part in as part of the platform to “make the system work”. Additionally, you may have a very small window within which you can even trigger the money back guarantee. Be careful!
Now, if after reading the fine print and user reviews of the platform everything looks legit, then by all means take full advantage of the risk free opportunity. Just don’t let yourself be taken by this common red flag. Read the fine print!
The Online Business Training You Can’t Afford to Miss
This post may read like doom and gloom, but that’s not the point of it at all. As someone who has done countless reviews on different online business training platforms I’ve just about seen it all, but there are several solid affiliate marketing and online business training platforms that do deliver without all the red flags.
The training I owe all my personal success to is one of those training platforms. I’ve had nothing but a positive experience from it, I’ve learned so much, and I can honestly say it’s the best business decision I ever made. Want to check it out in full detail? Check the link below.
Want training that delivers? Check out my detailed review and full walkthrough of the affiliate marketing training platform I owe all my success to! The training is straightforward, affordable, and you can test drive it first to see if it’s a good fit. Click here to check out my full review!
Final Thoughts
By being aware of the most common red flags and online business coaching scams you can make sure you steer clear of them. Always do your due diligence and read the fine print!
Learning how to build your own successful online business doesn’t have to cost thousands and can actually be fun! Which of the online business coaching scams listed in this article stood out to you the most? Which have you encountered personally when searching for ways to earn revenue online? Are there any I left out you’d love to see added to the list? Let me know in the comments section below! I look forward to hearing what you have to say and I always respond!
Great article! My story relates very much to Amanda’s. After joining WA, I also found out about another platform promoted by Dean Holland, I bought his book for 7$ watched a few videos sent via email. I was pretty disappointed in the lack of good specific information and didn’t finish the videos and I’m not thrilled about going through the book either…
Finding good training can really be a struggle… What do you think about Dean Holland’s training platform?
I’m not familiar with it. What’s the name of his program. Sounds like a good one to do a review on.
https://www.internetprofitspartners.com/
His platform seems quite private and mostly accessible by social media ads funnel, videos and email lists once you buy the book.
I’ll have to look into it. Thank you 🙂
There are so many business coaching courses and scams out there. You must separate the good ones and the lousy ones. In my own case, I’ve fallen in the scams of business coaching that really served nothing for my goals and purpose. Fortunately, I’ve found teams that encouraged me and allowed me to start my business on my terms. You only have to study what they offer before making the right choice. Thanks!
Thanks for the comment!
It’s funny I came across this article. The second I read your contents section of a post it brought me right to the program I tried before finding Wealthy Affiliate. You hit the nail right on the head. Everything you said was exactly what the other program did. Luckily I only bought this initial thing which cost me $7. And scheduled the call after the webinar. But I didn’t go through with it. You hit everything that people need to watch out for when looking into money making programs. Good job!
There online business coaching schemes are so prevalent out there. Thanks for your perspective and I’m really glad you were able to listen to your gut and not get taken! Thanks for the comment!