Oh Tai Lopez…
Chances are if you are reading this, then you are familiar with the infamous YouTuber, internet marketer, and online “guru” best known for his “Here in My Garage” ad and “67 Steps” program.
And in today’s article, I’m going to discuss and dissect all of the myths surrounding the “great” Tai Lopez scam.
Unlike other online reviews of Tai, I have actually met the man. I have interviewed him, purchased his products, and visited him at both of his mansions in the Hollywood Hills and Beverly Hills…
So if you are have considered investing in one of his products or wondered whether or not he’s the real deal, this is the last article you will ever need to read.
Because I am about to reveal it all.
In the below video I talk in great detail about all the myths surrounding the YouTube star selling you the good life:
-Who is Tai Lopez REALLY? What did he do before being a guru? Are his claims true?
– What’s with all the girls, Ferrari’s, Beverly Hills Mansion
– Does he rent his exotic cars and mansions…
– Why are his ads everywhere on YouTube?
– Are his products crap and the 67 steps scam.
– How Tai Lopez REALLY makes money finally exposed. No one has the truth until now…
– Overall, is Tai Lopez a scam and will he be around 5 years from now?
*Disclaimer: I am NOT an affiliate of Tai or any of his companies. I am simply trying to provide an objective opinion and debunk many of the popular myths perpetuating the youtube celebrity
Also, thank you to Casey Boticello from Quora for finding many of the sources shared inside of this article*
Who Is Tai Lopez? Really?
Tai Lopez is a 43-year-old online marketer and entrepreneur famous for his over the top YouTube ads, 67-step mentoring program, and new company Mentor Box.
Although he was born in California, he grew up (in relative poverty) in Clayton, North Carolina and graduated from Sunny Hills Highschool before beginning his forays into entrepreneurship.
Although Tai claimed to have dropped out of college, he has yet to specify which college he attended and therefore, the claims cannot be verified (which doesn’t mean they didn’t happen).
After his alleged dropout, Tai immediately dove into the world of internet marketing (I believe he was the second person ever to use Google advertising) and records indicate that his first business, in the life insurance industry, was a big flop.
However, shortly after launching this company, he pivoted and created a string of dating websites with his friends which seem to be where he found his first real success.
Although few of his sites still exist today, the sheer number of sites he operated (and still owns–some 100+ dating related domains according to some registries) suggest that Tai made most of his “startup” money through these websites.
Most of Tai’s claims about his early life cannot be corroborated. Not because they didn’t happen, but because of the nature of those claims.
His time with the Amish. His visit to a Leper colony in India. His outings with billionaire mentors. These all occurred in a pre-social media era, making it hard to determine with any certainty whether or not they are true.
However, as is the case with any “investigation”, you can look at the evidence available today to help determine the veracity of claims made about the past.
And what better place to start than looking at, cars, and the team of gorgeous models who seem to follow him everywhere he goes?
Ferraris, Mansions, and Models: Is Tai Lopez House Real and Does He Own His Exotic Cars?
So at this point, many of you have probably seen data pointing out the fact that Tai’s exotic sports cars (at least most of them) are leased.
Regarding Tai’s cars, two of the most commonly cited examples are:
1) This video with an envelope clearly indicating that his Ferrari is leased:
2) This video where it appears that Tai has a rental tag attached to his keychain:
But here’s the thing.
If you’re wondering, “Is Tai Lopez a scam”, the fact that most of his luxury cars are leased doesn’t provide any substantial evidence.
Think about it objectively.
As soon as you drive a luxury car off the lot, it depreciates in value by almost 20% (admittedly they hold their value better than most cars, but depreciation still takes a real toll). You have to pay property tax on those vehicles and are solely responsible for their maintenance and upkeep.
So as someone who is a proponent of financial intelligence and sound investment strategies, wouldn’t it make sense for Tai to lease many, if not all, of his cars?
As Neil Patel, one of the world’s most respected SEO experts and internet marketers said in a podcast interview:
“If you talk to Tai and you get to know him, and I’ve been to his home, I’ve seen a lot of the stuff. You know, he’ll talk about cars. He’ll tell you he leases them. It’s not like he’s saying he bought it outright.”
And also consider for just a moment that even though he does lease most of the cars he shows off in his videos, the cost of the lease is not cheap.
The average lease for an exotic sports car hovers somewhere between $1,500 and $2,500/month.
That’s more than most people’s rent!
When you multiply that by the 6+ luxury cars in his garage at any given time (plus all the maintenance and insurance required for the lease) the numbers add up quickly.
Also consider (and I’m not encouraging you to do this), but it’s likely that he’s writing off the lease payments on these cars as “promotions” since they are used in all of his many videos and advertisements.
But what about his house?
Now, I can already hear some of you asking “What about the Beverly Hills Mansion! I looked on Zillow and saw that it’s rented!”
Tai Lopez’s house is indeed rented and this information is readily available to anyone with an internet connection.
The real owner of the house is Bohbot Marc & Michele Trust, not Tai Lopez.
And once again, this is a sound decision on Tai’s part.
The housing market, especially the market in and around L.A. is volatile, to say the least. And with the predicted bear market on the horizon, why in the world would you want to invest millions of dollars of your own money into a liability?
It doesn’t make any sense and think about it this way.
You also have to consider the property taxes on these homes (which are astronomical) and the fact that most successful people–like the famous Grant Cardone–don’t own their own homes either.
The vast majority of the actors and directors in Hollywood will rent out a house (or several) long before they make the decision to purchase one and settle down.
Do you immediately assume that just because they rent out their homes that they are fraudulent artists just trying to make movies to rip you off? Do you feel cheated and pissed off because they don’t own their homes outright? Are you angry with me because I live in a leased apartment in Downtown San Diego?
Of course not! It’s just part of the game.
Yes, Tai uses his cars and homes to get attention, but that’s a sound marketing tactic that many beverage, clothing, and food companies have been using for over a century… Not a scam.
And finally, what is up with all those models?
I mean, isn’t it absolutely immoral and screwed up that he would hire beautiful women to appear in his ads to get your attention?
But that would mean that it’s immoral for Bud Light, Hardes, Victoria’s Secret, Abercrombie and Fitch, and Hollister (just to name a few) to deploy the exact same tactic.
If you look at prominent advertising firms of the 50’s and 60’s (think Mad Men and David Ogilvy) nearly all of them used attractive women to help sell products.
Do you hate those companies for trying to get your attention with hot girls?
And you probably shouldn’t hate on Tai either. Beautiful people, especially women, have always been prominently featured in advertising and marketing because that’s what people want.
So when you consider the actual implications behind Tai Lopez’s marketing–the fact that his cars are leased, his mansion is rented, and the models are likely paid–you quickly realize that these facts in and of themselves do not make Tai a scammer.
Simply a savvy and unapologetic businessman who knows how to get people’s attention.
This is true IF…
The products that he offers actually deliver on their promises.
Tai Lopez “67 Steps” Scam: Your Keys to the Good Life or a Waste of Time and Money?
Tai is probably most known for his product, “The 67 Steps” which is a $67 program that offers you key insights, tactics, and techniques to achieve the “Good Life”.
And many of you are probably wondering “Is his program legit? Isn’t it just a summary of other people’s ideas?”
And the answer to both questions it yes!
Yes, his program is completely legitimate and valuable.
And yes, the program is primarily a summation of other people’s ideas and lessons.
And guess what? Tai owns this fact.
In his 67 steps program, he lays out the best information that he has learned after reading thousands of books, being mentored by millionaires and billionaires, and building several successful companies on his own.
And very few of the ideas that he shares are original or groundbreaking.
But just think about some of the other big personal growth programs on the internet today.
Are any of them truly original?
Tony Robbins draws from Jim Rohn’s mentorship.
Grant Cardone draws from Zig Ziglar, Brian Tracy, and Og Mandino.
Heck, even the Knowledge for Men brand is mostly built on the ideas and insights from the 350+ guests that I have interviewed and learned from.
And for those of you thinking that it’s unfair for him to charge $67, I want you to think about this for a moment…
How many of you reading this went to college?
Without a question or concern, many of you were willing to put four years and tens of thousands (if not hundreds of thousands) of dollars into an education that has been proven time and time again to provide a (comparatively) nominal ROI.
I am not here to bash college. I went to SDSU and am glad that I did, but just think about the value you really get.
For $67 (or $500-$1,000 depending on which course you buy) you can get the best ideas and lessons from hundreds of the world’s smartest entrepreneurs, philosophers, and scientists, all distilled into an easy to digest and understand format that can be completed in a matter of months.
For $10,000 you can get 1 semester of lessons that may or may not be applicable to your goals and dreams.
Which one sounds like a scam to you?
I have purchased many of Tai’s programs and can tell you from firsthand experience, although some of them are better than others, all of them offer value and deliver on their promises.
And if that wasn’t enough, Tai offers 30-60 day money-back guarantee on all of his products.
Which actually brings up a valid concern regarding the integrity of Tai’s company.
Many people on the internet are quick to point to the numerous customer service complaints and claims that Tai failed to refund the money in accordance with his promises.
And I’ll admit, these claims are probably true.
This still doesn’t make Tai himself a scammer.
What most keyboard warriors fail to realize is that running any business is hard. And when your business experiences unexpected and unprecedented growth in a very short time frame?
It can be all but impossible to train and deploy an effective customer service team to handle all of the incoming requests and complaints.
I’ve experienced this first hand with Knowledge for Men and know just how hard it is to scale your team to match your revenue.
So yes, Tai did receive a number of complaints and yes, there were probably a few people who did not receive back the money they were guaranteed.
However, if you look at those complaints, very few of them come from 2019.
Tai has grown his team and patched many of the problems his company was facing before and this is exactly what you would expect in any real business (seriously, go look at some of the reviews for popular online software and services…all of them have the exact same problem).
So now, the only question we really have left to answer is…
How the heck does Tai Lopez really make all of his money?
How Does Tai Lopez Really Make His Money Online?
His previous companies, investments, and startups notwithstanding, Tai currently makes money through a business model detailed in Gary Vaynerchuk’s Jab, Jab, Jab, Jab, Right Hook.
Which boils down to the simple principle that you should offer value, offer more value, offer even more value, and then ask for something in return.
Let me break it down for you step-by-step:
Step 1: Build Goodwill and Offer Value
The first step in all of Tai’s funnels revolves around one thing.
Providing massive value for free to prove to his audience that he knows what he’s talking about.
If you go over to his YouTube channel, blog, or other social media platforms, you will find (literally) thousands of hours of free content designed to help people live the “good life” faster.
These videos get people engaged. They provide results in advance (since you can use his free advice to improve your life immediately). And they get people interested enough in what he has to say that they want to learn more.
Then comes the next step in Tai’s business funnels.
Step 2: Leverage That Good Will to Capture Leads
Once someone has watched enough of Tai’s videos or read enough of his content, they’ll naturally want to find out how they can get even more value and see if Tai has any paid offers for which they might be a good fit.
So, Tai offers an “ethical bribe” where he will give someone even more free content in exchange for their contact information.
For example, on YouTube, you’ll see this:
By clicking on the first link you’ll land on a page promoting one of Tai Lopez’s latest products, The Website Funnel Building Agency.
If you click the link to his website, you will get his list of recommended books, but you’ll also have the opportunity to join his “Mentor Tips” newsletter in exchange for your email address.
And this is where the magic starts to happen.
Step 3: Make Offers, Close Sales, Provide More Value, Repeat
If you sign up for Tai’s webinar, the rest of his funnel is pretty simple.
You show up to the webinar, learn about “funnel building” (or social media marketing, or real estate, or crypto, or eCommerce), and then, at the end of the Webinar Tai gives everyone the opportunity to invest in his high level program and get access to his best training (this usually costs anywhere from $1,000 to $3,000 depending on the program).
If you click “purchase” then that’s that.
However, if you’re still on the fence, or if you decided to join his “Mentor Tips” instead of registering for his webinar, then Tai will use email marketing to add more value and drive you towards a sale.
For example, in the P.S. line of an email I received from Tai (that talked about his business partner buying a $600k Lamborghini), you’ll find this:
And when it’s all said and done, that’s pretty much Tai’s entire business model.
Sure, he uses YouTube advertising (a bit too much if you ask me!), Instagram, and Facebook retargeting, but his core business formula is almost identical to every other serious influencer on the planet.
“Offer Value + Offer More Value + Ask for a Sale + Offer More Value + Ask for the Sale Again = Success”
Gary Vaynerchuk, Grant Cardone, and even Tim Ferriss all operate under the same principles.
Heck, I even use this “business model” with Knowledge for Men.
At the end of the day, everything Tai does is about providing value first and asking for money after he has proven his merit.
What is Tai Lopez’s Net Worth?
Finding reliable information on Tai Lopez’s net worth is, “challenging” to say the least.
As none of Tai’s companies are traded on the stock market and he doesn’t publically share information on the exact amount of profit he makes, the best that anyone can do is speculate.
However, Tai has said on multiple occasions that he makes about $100,000 a day or roughly $36,000,000 a year.
But it’s important to understand the difference between Tai’s gross and net income.
While I have no doubts that his various businesses and investment holdings bring in upwards of $100k/day, I doubt that this amount is pure profit.
When you consider advertising costs, payroll, partnerships, and affiliate fees, I would estimate that Tai likely keeps only 15-20% of his total revenue.
This means he probably nets anywhere from $8 to $10 million annually before taxes.
However, considering that many of his personal expenses (cars, private jets, mansions, vacations, etc) can be written off as business expenses–a massive benefit of his particular business model–it’s probably safe to assume that his tax burden is significantly lower than you might imagine (if I had to guess I’d say somewhere around 40%).
When it’s all said and done, Tai probably keeps about $4 million in net profit each year (after paying for his house in Beverly Hills, his exotic cars, and taxes). So I would estimate that his total net worth, including equity, investments, and liquid cash, is probably somewhere between $20 and $35 million.
But only he can say for sure.
The Verdict on the Tai Lopez Scam
So is Tai Lopez a scam?
To be blunt…No he is not a scammer.
He is a genuine businessman with real value to offer.
But before you go out and invest in any of his programs, I want to leave you with a word of warning.
Tai is not a scam, and his products do work.
But they will only work to the extent that you work.
Most people who claim that Tai’s programs were a rip off never actually took the first damn lesson!
So if you are looking for a course or tool to help you accelerate your results, then Tai is a great person to turn to.
But if you are looking for a guru who will achieve your goals for you, then move on, because none of us have anything to offer you.
And to the question, “Will Tai Lopez still be around in 5 years?”
Yes, he will be around in 5 years and he will likely:
– own majority stakes in several up and coming startups.
– have created joint venture partners with other leading influencers dominating the information marketing space at a greater scale.
– will be seen as a more legitimate influencer as he will be speaking at major universities and conferences around the world.
Tai is not going anywhere and honestly if anything he is just getting started. Most entrepreneurs don’t reach their prime until their 50’s or 60’s and I expect that Tai has a few more decades worth of “knawledge” to share with the world. The more money he accumulates the more money he will reinvest into his brand which means he’ll be everywhere…
Listen to my interview that I did with Tai Lopez before he blew up: http://www.knowledgeformen.com/podcas…
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