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The Contrepreneur Formula — What It Is and Why It Works So Well
Controversial marketing tactics fake gurus use to scam disadvantaged people out of millions
If you’ve spent any time on Facebook, Instagram, or YouTube in the last decade, you’ve likely seen an ad inviting you to sign up for a free masterclass, webinar, or training that promises to teach you the “shortcut” to getting rich, losing weight, or attracting the mate of your dreams.
Typically, these “free” events are nothing more than a sales pitch in disguise.
But you probably already knew that.
While there’s nothing wrong with using a webinar or free training to sell legitimate products and services, the thing that sets “fake gurus” apart is:
Promising an extraordinary or unrealistic result that they have no ability or intention of delivering.
Mike Winnet, a YouTuber who exposes fraudulent marketers, has coined the phrase “contrepreneur” to describe this type of person.
According to Winnet, a contrepreneur is,
A con artist who makes their fortune by fooling wantprepreneurs into thinking they’re getting a great deal or coming into some easy money, when the reality is, it’s the contrepreneur making the real money.
Perhaps the most distasteful aspect of the contrepreneur is that they tend to prey on disadvantaged or desperate people — such as those suffering from financial hardship, health conditions, or loneliness.
They essentially find their victim’s pain points and use them as leverage to pull off their scam.
The Contrepreneur Formula
Most of us probably think we could spot a scam if we saw one, but plenty of highly intelligent people buy into them every day.
What is it that compels reasonable people to waste their hard-earned money on products that promise results that are clearly too good to be true?
According to Mike Winnet, this can be done using a combination of marketing tactics he calls The Contrepreneur Formula.
In all honesty, many of the tactics in the formula are sales strategies that have been around for decades.
However, if you use these methods to trick people into buying ineffective products that do not deliver the promised results, I’m afraid you have fallen into contrepreneur territory.
These are the main marketing tactics that make up the Contrepreneur Formula:
1. Relatable backstory
The first tactic that contrepreneurs will often use is to tell you a “rags to riches” backstory. Often, their backstory will sound eerily similar to your current life experience.
For example, many people selling “get rich quick schemes” will talk about how they struggled with their own finances in the past.
This is an effective marketing tactic because it builds an instant connection between the seller and the prospect.
It shows the prospect that the seller understands exactly what they are going through, and that’s why they are the best person to help them overcome the challenge.
2. Personal success story
Next up is the personal success story. Success in the contrepreneur world is often demonstrated with sports cars (Lamborghinis in particular), mansions, private jets, and an entourage of gorgeous models.
However, this demonstration can also be created with anything else that the prospect desires, such as the ability to travel or achieve fitness goals.
The reason why this works is because of a concept called “wishful identification.” In the prospect's mind, the contrepreneur has the life they want and allegedly knows the secret to get it.
The unspoken message here is,
“Listen to me and you can have this too.”
Unfortunately, many of these “success stories” are lies. Fake gurus have been caught renting mansions and sports cars, paying models to be in their videos, and even posing for pictures in fake private jets—all so they can sell an unrealistic (and fake) dream to their victims.
3. Promise extraordinary results
Once the contrepreneur has demonstrated that they were once just like you and figured out how to get exactly what you want in a very short amount of time, it’s time for a product pitch that promises extraordinary, unrealistic results.
Want to quit your job and make a million dollars this month instead? Buy my product. Want to lose 50 pounds in three weeks? Pull out your credit card and the life you’ve always wanted will be yours in a matter of days or weeks.
That’s the claim anyway. For a lot of people, it’s too tempting to resist.
Contrepreneurs will also try to make their prospects believe that they know a shortcut to get extraordinary results.
People are naturally lazy. No one wants to hear that real success takes hard work over a prolonged period of time. But they are willing to pay for instant gratification.
5. Heavily discounted product
When it comes time to pitch their product, contrepreneurs will often dramatically inflate their product price so that they can offer what appears to be a massive discount.
This is a sales tactic called “price anchoring.”
The idea is to make your prospect believe that the product you are selling is worth a very high price. When you offer a massive discount they feel like they are getting a great deal.
People naturally feel compelled to take advantage of discounts out of fear that they may have to pay more to get the same product later.
6. Time and availability limits
The final piece of the Contrepreneur Formula is time and availability limits.
Most people don’t like to make decisions. If you present an open-ended offer, most people will wait to make a purchasing decision until something forces their hand.
Putting a countdown timer on a special discount, bonus, or claiming that there are only 50 spots available in your program invokes “FOMO” or “fear of missing out.”
These two tactics (deadlines and limited availability) have the power to compel someone to purchase a product they may really not need or even want so that they can avoid feeling like they missed out on something.
Takeaways
The Contrepreneur Formula uses a set of psychologically-proven sales tactics to sell scams to people who are desperate or disadvantaged.
Some of these tactics, such as showing empathy to your customers and putting a true time limit on your offer, can be used to sell products and services ethically.
The point at which marketers and entrepreneurs cross the line into contrepreneur territory is when they start creating false success stories, promising results they cannot deliver, and dramatically inflating their product's price to offer fake discounts.
