Do you know what’s the search volume for the keyword Tai Lopez Scam’? It is 18,100/month on SEMrush.
What does that tell you?
Well, it tells me that a good number of people actually think of Tai Lopez as a scam artist. To us marketers, the definition of a scam vary wildly. Someone who’s trying to sell an online course is not a scammer for sure (though it might seem like it with the social media ads that they are running).
It is now evident that MooC education is one of the best ways to make money online and courses are a big business. And believe it or not, it will only grow from here on.
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Social media has made it super simple to sell courses online. Disclaimer: I have a course in Bangla that sells very well in my native country – thanks to Facebook ads primarily. I have had an English Udemy course before when I was starting out which quickly grew to 70,000 students – and I was a nobody.
So online courses definitely work and social media makes it even easier. Companies like Clickfunnes thrive on helping course creators grow. There are hundreds of others who are benefiting from the ecosystem as well.
Almost all major universities have started offering online courses as well, be it Open Courses from MIT or platforms like Skill Share & Lynda where colleges regularly publish courses these days.
I remember Patt Flynn started selling his first course back in 2012 from Smart Passive Income. Social media wasn’t a thing back then. It was all about SEO traffic and he did well. We never think of Patt Flynn as a scammer, why do we think about it with Tai and stuff like his Accelerator program?
Why is Tai Lopez different?
There are a number of reasons why Tai Lopez is considered as a scam artist by many. I will go through them one by one in a bit but to summarize, he is pushy, he doesn’t teach himself in most of his courses, he tries to follow trends (he suddenly becomes crypto expert when crypto is hot) and he runs a LOT OF ADS. There’s nothing wrong with social media marketing but when your social media marketing strategies revolve around showing a ‘dream’ – it creates problems.
Now, I know, I just explained a good marketer. Tai is a good marketer. From his dating site days to the current social media marketing saga, he has come a long way and with a high net worth, Tai is definitely considered a great social media marketer by many which is tough to disagree with.
Now, If you are charging $1000 for a course, the customer will always expect a certain level of value within and when there’s not enough of that (and you already see Tai promoting a different product in 2 days of you buying one), it is evident that he might be seen as a scam.
I guess I should mention this now in case if I end up receiving a letter from Tai Lopez. Everything that I am mentioning in this article are my theories. I would appreciate a response from anyone of Tai’s team and will be happy to publish the response too on this post.
Why do I think Tai Lopez is a Scam?
I got 100 reasons. I picked the most obvious ones for you as there’s no point me rambling 5000 words about Mr. Tai being a scam. I will be a happy person if even 1% of my readers end up saving some money reading this post.
Do I Think Tai Lopez Is a Scammer?
I got 100 reasons to think that he is – but technically, he actually is not. You see, he is doing fine when it comes to legal structures of a course business but the issue becomes a moral one very quickly when you are trying to push broke people to give you their last pay check every day with dreamy ads.
I picked the most obvious ones for you as there’s no point me rambling 5000 words about Tai lopez being a scam.
I don’t mind seeing thousands of Tai Lopez ads every day in my news feed. I am a marketer myself and am happy to see someone grinding it hard with their social media marketing skills. But things get a little shady when you are using fake scarcity to get those sales.
Whenever you come across to a Tai Lopez ad (can be for his famous 67 steps course or anything really), you will see some sort of a scarcity tactic added to the marketing campaign. This is common in every course creator’s business model these days other than very few genuine ones – which is really sad.
The most common ones are:
- Offer finishes is 1/2/7 days
- Scholarship/Discount finishes in 1/2/7 days
- Beta Test Group Closes in 1/2/7 days
Here’re a few examples:
Of course, all his programs are always open & you can buy any of them, whenever you want from his official website.
Niall pointed out an interesting strategy that Tai uses on his blog at eBiz Facts . Tai has a video on YouTube and at 2:10 minute mark of that video, Tai specifically says that he is not going to keep the video up for long (another scarcity tactic in his business model).
The video, since being published in July 6th, 2017 was never taken down and has been used multiple times on many Tai Lopez landing pages across his ads and social media platforms. Now that’s just one example from thousands.
Here’s a glimpse of how it looks:
In summary, Tai does everything he can to lure you into his program. When it comes to reality, the courses will always be up for sale and it is mostly all lies to get you to buy.
PS: I will agree that Tai publishes a lot of free content as well on his YouTube + live streaming on social media. I am sure some people have found those helpful.
Tai Is Only a Marketer, Not an Expert
Tai Lopez, unlike what people think is just a good marketer who knows how to sell courses, 67 steps program etc. He is not an expert on any of his actual course materials (other than possibly the marketing related ones as he is a marketer) and it shows.
Remember the Bitcoin bubble (some people hate me for calling it a bubble, you know what I mean)
When Bitcoin was at it’s peak, Tai immediately became a Bitcoin expert and did one thing that he knows best.
He launched a Crypto Currency investment course.
And he pushed it hard with email marketing, with sponsored content, with video advertisement and with 100s of clever marketing tactics to drive people to his sales page.
Though Tai took out the page from the main menu of his site, it is still live here . You could buy Tai’s Crypto course for about $700 to change your life.
Thousands of people bought Tai’s dream of fancy car, big house and hot girls. It didn’t end well for most of them (as expected) and they were forever in Tai’s sales funnel for future courses, offers, etc.
They lost their money and Tai moved to another course once Crypto fad was over. I am sure he managed to increase his net worth a few decimals before that.
Tai then became a real estate investment expert next week and started selling his X steps program again but this time, it was about real estate. Same business model, same strategies with email marketing, social media ads etc. and similar results in his net worth growing even further.
This is a common trend with Tai Lopez. He is continuously running 10-15 courses at a time, picking new trends, be it Amazon FBA, Instagram influencer marketing to Crypto, real estate investment and god knows what else.
In reality, he is not an expert in most of the topics he teaches. He is only good at marketing the courses and partnering with people who may/may not have knowledge (I said knowledge) about the actual course material.
Never Disclosing any of his Investments/Businesses
PS: We know the latest businesses Tai is investing in. We know about his online education company, we know about the latest purchases and deals he made, we know about his book company – but all these happened after Tai made his money with courses.
We don’t know much about the investments/businesses Tai had which made him an expert to teach others.
I actually don’t have any issues with people not disclosing their investments or businesses with mass. They are not obliged to do so and you can’t force them, right?
But that’s not true in Tai’s case because he brags about his net worth, his past investments, his success stories literally all the time – funnily without mentioning actual company names.
You can’t go through any of Tai’s video without listening to him mentioning how investing in businesses changed his life, how he learnt investment from Warren Buffet and how he has built multiple successful businesses over the years.
In reality, his main business has been selling online courses.
Note: He now has another business called Mentorbox which is an interesting concept. It is like Netflix but for books and the company reportedly does about 20-30k/day in revenue. However, Tai started that company in 2018 with a partner named Alex Mentorbox is one of the worst reviewed subscription services online. Most common complains are not getting refunds, non existent customer support & very limited content.
This article is not about Mentorbox so I will leave it there.
According to Tai, he was born poor and had a single mother growing up. He then found a few mentors (he never names those mentors) who helped him change his life with investment ideas (he doesn’t mention his investments either).
That seems fishy, doesn’t it?
Using Lifestyle Marketing
I personally don’t see anything wrong in using fancy cars, great looking girls, lavish apartment condos to promote a certain type of lifestyle. Companies have been doing emotional and aspiration based marketing for years.
But people hate it So I thought I should include it.
Tai (Without directly saying it) tries to portray that if you buy one of his thousands of courses, you will be able to play with girls, you will be living in a big house and will be driving Lamborghini within years.
In reality, that rarely happens.
Initially when Tai broke out with his infamous here in my garage’ ads all over YouTube, people immediately started questioning the authenticity of his information.
Famous YouTube Channels like H3 Productions, Cody Ko and a few others did videos on this very topic showing where Tai rented his apartment from (it was listed in a property listing company), where he got is cars from (they were not owned but leased) and so on.
Later Tai himself admitted that everything he has been showing on his ads are rented or leased. I recommend watching (or listening) to this podcast interview Tai did with H3:
Once H3H3 and a few other YouTubers did their expose videos, Tai allegedly contacted them and paid big amounts to remove those videos. Those videos are not live anymore on these big channels.
As I said earlier, I personally don’t care about Tai using emotional marketing. It is a marketing tactic like most other ones but I sure have problems about using rented stuff to portray a certain kind of lifestyle.
To Conclude I definitely think Tai Lopez is a scam and I would advise anyone being very careful when you are coming across any of Tai’s stuff. Some of the information might be good but these are vague and top level info that you know anyways.
It doesn’t make a lot of sense for me to create a course about climbing Everest though I am sure, I can find all the information online and compile them in 2-3 hour videos with 8 classes.
Because I haven’t done it personally.
I have problems against people who only go surface level and theory.. Tai seems the perfect fit on that profile.
Then again, you are not bound to listen to my advise. It is your money at the end of the day, isn’t it?
What’s your thoughts on Tai Lopez? Any good experience? Any bad ones? I am interested to know.