We’ve all seen promotions online that make promises like “Just take this one easy step to start making $10K on passive income!” or “Invest in this 10-day coaching program and make six figures while you spend time with your kids!” For new small business owners, it can be easy to get swept up by these “transformative” programs touted as “quick-fix” tactics to improve your business and increase your revenue. But it’s extremely important to determine what’s worth your time and investment so that you spend your hard-earned income wisely and take advice from the right people.
Here are four simple ways business owners can determine whether a sales tactic is a gimmick or legitimate (and therefore a good investment):
1. Vet the Seller
Don’t fall for the hype. Do your research and check for credibility.
When researching whether a business program is legitimate, it’s important to check the seller’s credentials. A quick 10-minute Google search can be enough to determine the essential information: Who is this person? What exactly are they selling? And how are they qualified to share this knowledge with me to help me grow my business? Have they been in the trenches of building a business? If so, how did their business journey turn out?
It’s also important to confirm whether you’ll have access to the program’s coach through live one-on-ones or if you’ll be investing in a premade downloadable digital program. With a live coach, you can ask questions specific to your business and niche, get real, personable advice from an actual person, and so much more.
While there are helpful downloadable digital materials out there, you should note what exactly you’re getting from them and reality-check yourself on whether you’ll implement them on your own.
Bottom line: Do your research to make sure the program’s creator is credentialed on paper and that the program is based on their experience as a small business owner. If you don’t (or can’t) find that information, it’s likely best to stay away.
2. Cross-Check References
When investing your time and resources into a program that is advertised as providing helpful tactics to support your business, it’s important to talk to actual people who have gone through the process and invested in the seller’s services. Get them on the phone, schedule a virtual call, or set up a meeting over coffee. Ask them these questions:
- What was your experience with the program?
- What did you enjoy about it?
- What do you think could be improved?
- Why did you decide the program was a good fit for your business?
- Did you see growth in your business after going through the program?
- Do you think it was worth the investment?
If a seller isn’t willing to give you more than one reference check or if their references are lukewarm about the program, these may be red flags that this particular program may not be a worthwhile investment.
3. Confirm Data, Statistics, and Major Claims
A solid business growth program will always be transparent about the numbers and success rates to show that their business tactics are truly effective. No guessing games, no sideways stories, and no secrets to unlock—only stats, data, and numbers that legitimize their claims.
An example: A business coach claims their methods have helped previous clients earn $10K a month and they can teach you how to do the same. In reality, this may not be their average case. It may be that they only had one situation where this happened, and it was due to the fact that this specific client already had a very particular niche, set of skills, background knowledge, expertise, or another distinctive factor, and the business program was just one aspect of their lucrative success.
Therefore, although the business coach is advertising this kind of success through their methods, every new small business owner’s situation is different, and these results may not necessarily be replicable.
4. Understand the Conversion Math
Break down the numbers. Take some time to think through the conversion math to determine if the success rates the seller is advertising check out. For instance, if they claim you’ll make $10K/month, ask yourself, what is a reasonable conversion rate for selling your product? Do the numbers add up?
Let’s take a quick example: say your product or service sells for $100. To get to a $10K revenue month, you need to sell 100 of those offerings. Then say you convert 0.5% of people who land on your website. (If you don’t know how to calculate this, consult a professional with a financial modeling background, such as a fractional CFO, business advisory with financial expertise, or an accountant.) This means you’d need 20K new viewers on your site every month.
Then ask yourself, is this realistic? Is what they’re teaching in this program actually likely to accomplish this?
Final Thoughts: Taking Everything into Account
At the end of the day, when it comes to making investments with the intention of growing your business, use discernment, listen to your gut, and stay consistent in working toward your goals. Success for new small businesses (or, really, businesses of any size) comes from consistency, determination, and passion, not an unvetted magic three-step program or fix-all solution.
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