Marketing strategy legality

6 Replies

Can i send people mail telling them what I do, how we can benefit each other and telling them I am looking for private money investors? Is any of it illegal? I think it’s only illegal to directly ask for money is that correct?

I had no idea that asking for money was illegal. If so.. how is that illegal? Can I ask mom for money?

If so.. ok how about my cousin. OK how about my neighbor, or my best friend?

If that is all allowed, I don;t see how  it could be legal. Am I missing something?

You can’t ask people that you don’t have a “pre-existing relationship” with to invest with you. You are selling a security without a license or registering the investment with the SEC. 

Look at the paperwork people, include with their syndications to get an idea of what’s involved. 

Originally posted by @Eric Konitski :

@Jerryll Noorden

Asking people who I have no connection with is illegal

Pretty much. It pivots on your intent and being able to prove intent after the fact.

Why are you asking? Because you want them to invest with you. So you can produce a profit by using their money. I get that you might not be used to financial regulations. That just means you do not know what you do not know about the topic. No foul there. Be very careful when trying to raise money. There are many rules, which have been around for decades, which limit what you can do without SEC or state-level approvals. 

Two more points. 

1. Many will tell you that you can use FB or other marketing means. That everyone is doing it. I counter with this. Just because you and I have a contract where I sell you a controlled substance and then you use it does not make it legal. The contract can not change the law. Second, if you travel in a car above the speed limit and do not receive a ticket, that does not make it legal. It just means you did not get caught this time.

2. Look at this recording. It is from a lawyer who handles the fund raises for some of the investors on the BP site. In under 2 minutes she will explain what a security is (more or less what you are thinking). https://www.crowdfundinglawyers.net/videos/

Originally posted by @Eric Konitski :

Can i send people mail telling them what I do, how we can benefit each other and telling them I am looking for private money investors? Is any of it illegal? I think it’s only illegal to directly ask for money is that correct?

 What are you trying to do? Let's start there 1st. Lay out the outline of your exact business plan here and we can go from there.

google the Howry test..  this is the base line to determine if your dealing in securities. 

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