A practice that really makes me uncomfortable has reached Quebec: the famous revenue promises to attract customers. When I teach the Business Start-Up program, it’s my responsibility to educate my students about this type of practice. It’s EASY to write on your social media that you make $150,000 per month and to promise your followers an income of 10K-15K a month, but proving it is another thing.
About 20 years ago, I was in the network marketing business, Herbalife was my first contact with entrepreneurship. At that time, you had to have a big float to be able to recruit and for people to think you were rich! So, at 24, I was driving a flaming Oldsmobile Alero to impress my prospects and it was a huge #FAIL! I was earning 32K a year at Bélair Direct and I was driving around with a car that I could not really afford because I had to look rich! Fortunately, these practices have now changed.
False promises of revenues
Recently, I came across this publication that I put as the main image of a business coach I know by reputation. He is claiming he is earning 150 000$ per month. To work with this coach, it costs $4500-$5000 for 12 weeks and then after your coaching, you will earn $10,000 a month, according to what it says on his sales page.
Earning $150,000 per month, in a market as small as Quebec, seems to me exceedingly difficult to reach with online coaching. Maybe I am wrong and I’m the one who hasn’t understood anything! So, I did some verifications with public and free registries. The first thing I found when I checked the Quebec business registry is that his business is a sole proprietorship.
Well, perhaps he was misguided!
Normally, when you make more than 60K-70K per year in income, it starts to be worth creating a corporation. So, at 150K in monthly income, I make 2 assumptions: either you like to pay taxes or you are bullshitting. Out of 1.8M of annual income, do you really want to spend 900K in taxes? (Our PM, Justin, will be very happy with that!)
Let us continue, there are 2 addresses listed in the Statement of Information of the Enterprise Register. After going through the property tax roll, I found that the 2 properties mentioned are not registered under his name. They are condominiums, or 6-unit apartment blocks. So, I assume that he is a tenant of a nice 4 ½ or 5 ½ in the suburbs of Montreal. Those informations are public and free of charge. I am going to make a projection and share with you that if I earned 150K per month, I would live in the “Tour des Canadiens” or in the Altitudes Condos in front of Place Ville-Marie.
150K a month… REALLY?
I would like to say that I live in a little 4 ½ in Saint-Eustache to be close to my family. I reduced my lifestyle by a few hundred dollars a month and I am finishing paying off my debts. The BIG difference is that I have never made any promise of income to sell anything, and I never will.
Moral of the story
I have chosen to write this article to raise awareness. You need to take responsibility for the choices you make when you invest your money in business coaching. Let me share the 4 C’s of my coach Marie-Josée Robert: CV, Competencies, Certification and Chemistry. When you are thinking about hiring a coach, check his CV, validate the competencies, get proof of his certification, if needed, and make sure the chemistry is there.
It is your responsibility as a consumer to do your homework. Before giving away your hard-earned money, if you are being promised revenue, do your homework. If you lose your investment with a coach because you have not done your homework, it is your fault!