Scam alert: Is it too good to be true?

Scam alert

Scam alert!

I work as a franchise consultant and I regularly have individuals from all over Canada and the USA contact me about advertisements I put out online. My law firm client (HART Legal) is a very reputable company that has been in business for 15 years and has three locations with many more opening soon. Regardless of the credentials of the company, the investors who respond to my advertisements always first respond with skepticism about the investment opportunity presented to them.

I had one individual who outright asked if it was a scam and another who said it sounds too good to be true. Others have said the rate of return they calculated from the financials are too high. They demanded I send the accurate ones. This first upset me but it got me thinking about why these individuals feel this way.

What are investors worried about?

Then it hit me… If you ask someone for money people are always going to be defensive, regardless of how safe or solid the investment is. If I offered you a fantastic deal on a car, what would your first thoughts be? Most likely you would ask yourself “What’s wrong with it?”

Once I figured out that any investor is skeptical and thinks the investment might be a scam at first, it changed the way I handle sales. I first address the credibility of the company before getting into numbers or the details of the investment. Once I feel the investor is sure that this is a real business opportunity, and the scam alert bells stop going off, that’s when I start getting into the details. This approach alone doubled the amount of franchise locations I  sold last month.

When you capture the investors attention, send them as much information as you can. Send them so much information that they feel they want to move on to the next step and get into the numbers. No one will invest in anything unless they feel they understand what they are getting into. So stop worrying about the suits you wear, the car you drive, and how your business card looks. Focus on putting yourself in the investor’s shoes. Think to yourself “What would I need to know to make this investment?”

The good news

And by the way… I signed up the investor who suggested it might be a scam.

If you are looking for some investment that offer good returns, I suggest the following links.

Bon Macaron

HART Legal

You can call me at 778-676-3808 to learn more about either.

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