Networking Nasties

Are you sure you have read the fine print?

Today I wanted to write a blog to warn people to be more vigilant at networking events.

There are some unsavoury characters doing the rounds which it is wise to be forewarned of. We all know how great networking can be, heck, I even run my own networking event.

Few people realise that some of the bigger events can also be breeding ground for charlatans and cheats who are there to try and fleece the unsuspecting.

Amiable Sales Patter

Many of those folks who circulate the clubs are looking to ‘introduce’ you to a product or company, and they do it by attending events and chatting amiably, telling you how wonderful this that or other product/ company or service is- and that they know it to be true as they have used it personally. This is sales patter folks- recognise it for what it is and do some diligence on the person and the product or company that’s recommended. I had one such experience at my own club which you can read about here.

Read Their Web Site Small Print

When was the last time you read a web site small print. I’m thinking particularly here of companies that offer financial products or investments. If a site strives to tell you they are not responsible for anything, does that make you wonder why they would need such a disclaimer? Did you bother to read their terms and conditions before contacting them- and do their T&Cs seem unfairly biased?

When times are hard, and conversely, in boom times there will be more sharks in the water than usual, now is the time to be extra vigilant. We consider ourselves to be pretty savvy investors, yet we were caught out recently. We have been dealing with a well known company who stated they can offer finance via various methods including private equity, merchant banking, regular banking. This turned out to be completely false as we found out by testing the company and their claims over a 6 month period. Effectively they charge large fees for putting your details in front of a potential finance provider.In reality they string you along for a few months then refuse to refund the ‘fully refundable’ fee.

Our own point of view is to not recommend a product or service we have not tried ourselves, purely because our own reputation is very important to us. It’s why we never recommend or sell other peoples deals or off plan etc. The simple truth is that even if the provider starts out as great, you cannot in any way guarantee it will remain so in the future. And, the person purchasing tends to blame you as the introducer, even if it is not your own company or service. Caveat Emptor.

Our own ethical stance leads many folks who are ‘ in it for a fast buck’ to try and involve us in their projects, as, their reputation grows by being associated with an ethical one. It’s why we always report those that abuse the regulatory system too, although reporting them can be a big enough problem in itself as many of these companies fall under the regulatory radar.

Points To Look Out For

• Gushing about a company product or service.
• May call themselves Financial Advisors- if so are they regulated and by whom?
• Are they or the company regulated-if not you are speaking to sales people.
• Do they earn a commission for introducing and are they upfront about it?
• Have they written a testimonial for the company product or service?-are they just recommending their benefactors?
• Do they turn up in flash cars and show glossy literature/ brochures? (Ever watched hustle?)
• Does the company require upfront fees before doing business with you?
• Can they prove what they say?-can you talk directly to their clients-and are their ‘clients’ earning money for recommending them?
• Does their web site have disclaimers on it?- if so -why?
• Do they try to get you to be an introducer in return for a commission or fee?
• Remember that social networks are good hunting ground for this kind of behavior too.

This is not an exhaustive list, but should at least help you spot a warning flag or two. This month at our own event on Tuesday 23rd in Chelmsford, we are talking about alternative investments which will help grow your wealth. We have been testing these investments for nearly a year and we are very confident that they do what they say on the tin. If you would like to join us this month, please sign up here.

As always we welcome your input. Please use the comment box below.

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