How Can Our Clients Scam Us?
Hint: it has absolutely got to do with our fee and partnership structure
Another click-baity post from us, but 100% true as we will explain in this article. Hint: it has absolutely got to do with our fee and partnership structure.
We have full confidence that our existing client base is rock solid. They are trust worthy and highly accomplished individuals that will not do the thing that will be outlined in this article. So if you (our reader) happens to also be our client, give yourself a pat on the shoulder.
Before we begin, lets bring our attention to how our partnership works.
Recompound is an information provider or a data source if you will. We do not have access nor control to our clients’ brokerage firm. In our partnership, our clients make their investment decisions based on our information. Subsequently, we are eligible for a payout when their portfolio grows.
Our clients can also cancel our subscription, anytime they want. If they feel that they’d like to use their funds for other purposes they can liquidate their stocks and move on with life.
When our clients cancel their subscription with us, we will evaluate their portfolio value. If their portfolio value is at an all time high level, then we will charge our fees. Otherwise, we will wish them good luck with their new endeavours and say a proper good bye.
Behind the Scenes
With the setup above, it is easy to determine that behind the scenes, Recompound is responsible for finding great investment information sources that can be acted upon by our clients.
Contrary to popular beliefs, this information is not free. It takes up a tremendous effort to filter and figure out which stocks to avoid, purchase and sell.
But we are actually confident enough on the quality of information, that we are willing to accept payment later once our clients yield good results in the form of their portfolio growth.
It is quite akin to going to a restaurant, but you only pay when the food is good. If you think that the food is bad, you will never have to pay.
How It Works
The way our clients scam us is quite simple. When their portfolio reaches an all time high value (say in the middle of the month). They can cash out their stock investments and say bye bye without paying us anything.
That’s it? Yes that’s it.
The point of this article is to underscore that in our partnership, trust goes both ways. You trust us to find great information and we trust you not to run away after getting them.
Is this a deal breaker for Recompound as a business in the long run? Not really, for reasons that we have discussed in our Game Theory article.
Appreciate your time folks.