Gurus that require profit sharing - Unethical or par for the course?
I recently evaluated a mentor agreement with a nationally recognized expert in SFH investing. Let me state upfront that mentoring and expensive courses are not something that I believe actually work, yet this program really caught my attention.
The contract contains a profit sharing clause that requires 50% of profits associated with any investment during the mentor period to be given to the mentor. Further, if any losses result from the mentor's advice, the mentee is 100% liable. The mentor is not responsible in any shape or form.
My question - is this normal for the mentor market? I do not agree at all with either clause, but I need a sanity check.
Most Popular Reply
Does his Mentoring program also cost you money to join it?
If it does and he is also taking 50% then I say run run run as fast as you can. This is a rip off.
If he is mentoring you with no upfront monies and his "fee" is 50% of the deal then I do not see anything wrong with that. Please just make sure you are getting a great coach - so you don't waste your valuable time with some clown.
I have endorsed a couple of great coaches who offer this program and I really like it. This is good for the student who may not have the money to start a coaching program; however has the drive and ambition to become successful.