#192: Analyzing the gurus: Endorsements
We wrap up our series about analyzing the gurus by talking about endorsements!
Top takeaways:
- All the “gurus” endorse a product
- Be aware of the conflicts of interest with any guru’s recommendations
- Anyone who endorses their own product has a conflict of interest
- Public gurus or “entertainers” have no obligation to make recommendations based on what’s in your best interest
- Endorsed products may not be vetted by the person recommending them
- In general, more money is paid for products that aren’t vetted, while less money is paid for products that are vetted
- Not all endorsements are bad, but you can’t trust what your favorite guru endorses without doing your own research
- People are almost always getting paid for endorsements, though there may be a few exceptions
- There are many different ways people can get paid for endorsements, and disclaimers on websites can be misleading (read and understand the meaning of the legalese in the the fine print)
- If you click on a link for an endorsed product, the endorser may get a percentage of anything else you buy from that company for a period of time, not just the endorsed product (e.g., Amazon)
- A guru’s own product is likely aligned with what they teach publicly
- Following a guru’s (“be like me”) course will likely not make you as successful as them if most of their money was made through the course (their success was from selling the shovels, not mining the gold)
- Gurus who recommend you work with their “expert” coaches likely receive revenue from those secondary coaches
- Recommending secondary “expert” coaches provide a layer of safety to the guru, in case the secondary coaches are advising in areas they are not allowed to by law (e.g., credentials and certifications are required for some advising such as taxes and investing)
- Look for consistent messaging and ask, “Are the details of this product consistent with what they’ve said about other similar products?”
- Trust in a guru may not translate to trust in a product they endorse
Take the time to understand what an endorsement means – what did that person have to do to receive that endorsement – look for rigorous testing requirements rather than agreeing to teach a guru’s methods (e.g., AFC® Professional, CFP® Professional)
