Coin Flip Scam

00:00:00

Hello, everyone.

00:00:01

It's Stephen Whiteside here, of course, from theuptrend.

00:00:03

com. And in this presentation, we're going to

00:00:06

take a look at how a lot of investment products are marketed on the internet.

00:00:11

And I call it the coin flip scam, and you'll see why in a few minutes.

00:00:15

The reason I'm bringing this to your attention is I was talking to a member

00:00:18

yesterday and we were going through some of the emails she'd received recently and

00:00:22

wanted to know if I'd ever heard of this particular person.

00:00:25

And I said I hadn't, but I certainly knew how she got those emails.

00:00:30

Let's just run through it.

00:00:32

It's probably happened to you, but you just need to be aware of it.

00:00:36

If you've been an investor for any length of time and you've signed up to different

00:00:40

email groups and lists and you've subscribed to newsletters, you know that

00:00:45

that will usually result in you getting emails from parties you've never heard of

00:00:49

before because these companies typically share our email addresses.

00:00:52

They either sell them or rent them out.

00:00:55

And so in this example, I'm just going to talk about selling a $99 investor

00:00:59

newsletter from somebody you've never heard of before.

00:01:02

And typically,

00:01:04

when you send out a cold email to people that have never heard of you before, you

00:01:08

can expect to get a 1 % to 5 % success rate.

00:01:11

So let's imagine our email list is a

00:01:13

million people and 10,000 to 50,000 of those people are going to respond.

00:01:19

And we consider those email addresses to

00:01:22

be cold email addresses because these people don't know who we are.

00:01:26

So you might get a 1 % response, you might get a 2 % response.

00:01:31

But if it's a very successful email, you could get up to a 5 % response.

00:01:37

That's what could happen with a cold email list.

00:01:40

Now, what we want to do is we want to take that from a cold email list of a

00:01:44

million people to a warmer list to a hot list.

00:01:48

And a hot list means that people are going to buy more than you were expecting to

00:01:53

originally sell them, or they were expecting to actually buy.

00:01:56

So remember, we had a $99 a year investor newsletter.

00:02:00

We want to get more money from people than just the $99.

00:02:04

So how do we do that?

00:02:06

Well, you start off by acquiring the list,

00:02:08

whether you're renting it or buying it, but you're going to use that list.

00:02:11

Right now, we consider it a cold list

00:02:13

because nobody on that list knows who we are.

00:02:16

And just for the sake of the math, for

00:02:19

this presentation, we're going to have a million people.

00:02:22

And what are we going to do?

00:02:23

Well, we're going to create two unique emails.

00:02:27

One of them is going to go to half a million people, and

00:02:31

we can tell them that the stock market is going to go up in the next three months.

00:02:36

And why is it going to go up?

00:02:37

Well, we're going to give you all kinds of great reasons why it's going to go up.

00:02:42

Biden's the greatest President ever.

00:02:43

The Fed knows what they're doing.

00:02:45

Inflation is over.

00:02:47

There's no recession.

00:02:49

At the same time, we're also going to make

00:02:52

the most amazing email that says the exact opposite.

00:02:57

So Biden is the worst President.

00:02:59

The Fed doesn't know what they're doing.

00:03:00

Inflation is out of control.

00:03:02

The recession is going to kill us all.

00:03:05

We're going to do two exact opposite emails.

00:03:08

We're going to split the group up.

00:03:10

Half go to one group, half go to the other group.

00:03:12

Now, it doesn't have to be market direction.

00:03:14

It could be individual stocks.

00:03:16

It could be individual sectors.

00:03:18

It could be I think Bitcoin is going to go up dramatically in the next three months,

00:03:23

or I think Bitcoin is going to crash in the next three months.

00:03:26

It doesn't matter, but it's going to be

00:03:27

two completely opposite views, whether on the market or individual items or sectors.

00:03:33

It doesn't really matter for this particular explanation of how this works.

00:03:39

So time passes and maybe we're going to let it wait a month, two months,

00:03:44

three-month, whatever the time length is, but we're going to come back and half of

00:03:49

the emails that we sent out were right and half of them were totally wrong.

00:03:54

Well, which people do you want to continue to talk to?

00:03:57

Well, of course, the people that we sent the right email to.

00:03:59

So in this example, let's say the market did go up.

00:04:03

So we come back, we congratulate ourselves, and then we tell this group of

00:04:07

half a million people two different stories.

00:04:11

Once again, we're going to tell half of this group that the market is going to go

00:04:14

up, and half of the group the market is going to go down.

00:04:18

Now we move on to the next step.

00:04:19

Remember, we started with a million cold people, and now we've shown them several

00:04:24

times that we know what we're talking about, and we've gone from a cold list of

00:04:29

a million people to a list of 125,000 people that are either warm or

00:04:35

hot, depending on how active they are in the market.

00:04:38

And so originally, we were looking to get a response between 10 and 50,000 people.

00:04:44

Well, not only can we do better than that now, but we can also

00:04:48

sell them more than just that original $99 email newsletter that we started off with.

00:04:55

In fact, what you'll notice is more

00:04:57

options have been added as the they become more successful.

00:05:02

So if you're on your second, third, or

00:05:04

fourth email in which they've said X is going to happen, X is going to happen, X

00:05:09

is going to happen, they've now added new products.

00:05:12

So not only can you buy that $99 email,

00:05:14

but you can also buy the $249 gold package, or they're probably going to have

00:05:22

a $995 platinum package, or you can become part of the elite club

00:05:29

that they reveal all of their secrets and their best picks.

00:05:33

And that's $2,495.

00:05:36

So instead of just selling you a $99 investor newsletter when the list was

00:05:42

cold, now that the list is hot and they've proven over and over again by flipping a

00:05:48

coin that they know what they're doing, you're more willing to not only sign up

00:05:53

for that $99 newsletter, but do you want fries with that?

00:05:57

That's when they can upsell you.

00:05:59

And that's the most important part of this

00:06:01

is that they're not really trying to sell you a $99 newsletter.

00:06:04

They're really trying to sell you probably a $500 product or even a $1,000 product.

00:06:10

They couldn't do that when you didn't know them.

00:06:13

But now that they've proven over and over

00:06:14

again by just flipping a coin that they know what they're doing, they can get a

00:06:19

lot more money out of the average investor than they could when they started.

00:06:23

Okay, folks, as always, it's a buyer

00:06:25

beware, but remember for all those emails where people tell you how right they were,

00:06:30

there's somebody else who got the opposite email telling how wrong they were.

00:06:35

So just remember that.

00:06:37

Next time you're checking your inbox and

00:06:39

seeing emails from people you've never heard of before.

00:06:43

Enjoy the rest of your weekend.

00:06:44

Next time you'll hear my voice is on Sunday.

00:06:46

And at that time, we'll take a look at the North American stock markets.

Transcription