“You ever hear people talk about how they flip stuff?” asks Chance Anthony from Modern Millionaire in yet another spammy YouTube ad. “Like, flipping houses, flipping stocks, or even flipping items on eBay? Well the amount of money you can make is pretty limited when it comes to that stuff because of one reason: and that one reason is that you have to be present to make money.”
Chance goes on to explain how, with those other business models, they’re much more time and labor-intensive than flipping leads. So, with those, you’ll always be limited by the number of hours you can work in a day.
Hmm. I think he’s oversimplifying. With smarts systems and teams and management companies, traditional real estate investing can still be very scalable. And stock trading, I mean, how hard is it to click your mouse to buy and sell stocks? Or, better yet, set automated rules ahead of time?
That’s not to say those businesses don’t have other disadvantages. For example, flipping homes might come with a lot of headaches you don’t want. And short-term trading is risky. But that’s not what Chance is saying, is it? So it’s kind of a weak argument. That, or he just thinks you’re stupid and won’t question it.
But let’s move on. “Lead flipping is what allows me to run a seven figure agency from my laptop,” Chance continues. “So what is it, exactly? And how does it allow me to make money on autopilot? All you do is find cheap leads online by running automated ads we give you—that you just paste into Facebook, Instagram, and Google—and then you turn around and sell these same leads to local business owners for almost twice as much.”
Pause. What Chance glosses over is that “finding cheap leads” ain’t exactly easy. These copy-and-paste ads can be pretty pricey. And with so many gurus like Chance (and his partner in crime, Abdul) selling this same biz opp to thousands of students, what do you suppose that’s gonna do to the market? Saturate it. Which means Facebook, Instagram, and Google can charge more and more for the privilege of using their ad networks. It’s simple supply and demand.
End result? It’s getting harder and harder to run paid ads profitably. Especially when these small businesses can only pay so much for a lead. Right? I mean, it ain’t like Petey Pool Cleaner’s makin’ millions of dollars a year. Say he’s willing to pay $5 a lead. You think you’re gonna run a Facebook ad and get him leads for $2.50? If so, I’ve got a bridge to sell ya.
The YouTube ad rolls on and Chance once again brings up how him and Abdul were featured in Forbes, Entrepreneur, and Business Insider. I’ve already written at length about how that statement, more than anything, strips these two of all credibility. Long story short: it’s total bullsh*t. And if they’re willing to lie to you about that, what else will they lie about?
Onward. Chance then claims that these business owners will happily pay you “thousands of dollars a month,” but never addresses how you’ll actually get ’em to. Don’t you think that’s probably important to know?
Like, are you gonna be cold-calling these local businesses? And why would they give you the time of day? Aren’t they tired of getting hit up by marketing agencies and amateur digital marketers who all talk a big game but then don’t deliver? How will you overcome that?
He never says. He just breezes right past it and promises you a “massive, predictable return right away,” if only you click the button and give him and Abdul all your hard-earned money. Wow. These boys better hope they never get big enough to land on the FTC’s radar because you definitely can’t say that.
Oh, but it gets worse. Chance ends by saying, and I quote, “Over 2,100 regular people like you and I are making $10,000, $20,000, or even $40,000 a month.” Bro. You better redo this ad and link to an income disclosure that backtracks on that statement, hard, or your ass is gonna be making toilet wine in federal prison.