The Trading Guru and His Money-Losing Disciples

Summary

The transcript highlights the experiences of individuals involved with IM Academy, a company that promotes financial trading through online lessons and team advice. Many users, enticed by promises of wealth and success, end up losing significant amounts of money and face personal hardships. The company, founded by Chris Terry, uses aggressive recruitment tactics and encourages a cult-like environment. Critics argue that IM Academy operates like a pyramid scheme, with most profits coming from recruiting new members rather than actual trading. The Federal Trade Commission is investigating IM for potentially deceptive practices.

Takeaways

• 💼 **Opportunity or Deception**: The company promises great wealth, but many end up losing money.
• 🌐 **Global Attraction**: It has drawn hundreds of thousands worldwide with the allure of financial success.
• 📉 **Financial Losses and Personal Costs**: Participants have reported losing not just money, but also sleep, relationships, and educational focus.
• 📱 **Democratization of Finance**: The rise of apps like Robinhood and eToro has made high-risk trading more accessible.
• 🎓 **Educational Facade**: IM Academy presents itself as a prestigious institution for trading education.
• 💰 **High Loss Rates**: According to the company, 94% of its members lose money, while it makes significant sales revenue.
• 💼 **Founder's Wealth**: The founder, Chris Terry, has become a multi-millionaire from the business model.
• 🔑 **Initial Investment**: Joining IM Academy requires a substantial monthly fee, with the implication of a life-changing opportunity.
• 📈 **Trading Signals and Copy-Pasting**: Members are encouraged to follow trading 'signals', often leading to losses.
• 📊 **Risks of Crypto and Forex**: The script highlights the high risks associated with trading in cryptocurrency and foreign exchange markets.
• ⏰ **Time Commitment**: The academy demands a significant time investment, often leading to social isolation from non-IM associates.
• 🚨 **Pyramid Scheme Allegations**: IM's business model is likened to a pyramid scheme, with a focus on recruitment over product sales.
• 🧘 **Religious Justification**: Chris Terry uses religious rhetoric to justify the business, appealing to some members' beliefs.
• ⛔ **Negative Feedback Suppression**: Team leaders dismiss negative experiences, pressuring members to stay and recruit more people.
• 🏃 **Exit Difficulty**: Leaving IM is portrayed as a challenge, with members feeling trapped due to financial and emotional investment.
• 🚨 **Regulatory Scrutiny**: IM is under investigation by the Federal Trade Commission for potentially problematic practices.

Q & A

What type of service is the company in the story offering that attracted hundreds of thousands of people?

The company is offering a financial service that promises wealth and opportunities for passive income, but actually leads to significant financial losses for its members.

What are some of the personal losses people experienced as a result of joining this company?

People lost all their money, sleep, weight, relationships, and some even stopped studying due to their involvement with the company.

How has the democratization of finance contributed to the rise of such companies?

The democratization of finance, facilitated by online trading apps like Robinhood or eToro, has allowed anyone with a phone to start trading in high-risk assets, making it easier for companies like this to attract a wide audience.

What was the initial cost to join IM Academy?

The initial cost to join IM Academy was around $250 per month.

What percentage of people who join IM Academy lose money according to the company's own accounts?

According to IM's own accounts, 94% of people who join IM Academy lose money.

How does the founder of IM Academy, Chris Terry, describe himself?

Chris Terry describes himself as the most humble person in the world, always working on self-improvement and different from the majority who go to work every day like sheep.

What is the four-step process that IM Mastery Academy claims to teach its members?

IM Mastery Academy claims to teach a four-step process to help streamline members into becoming self-sufficient traders, although the specifics of the process are not detailed in the transcript.

What is the nature of the trading that many members of IM Academy engage in?

Many members of IM Academy engage in trading in the cryptocurrency and foreign exchange (Forex) markets, which are some of the riskiest assets available.

How does the multilevel marketing structure of IM Academy resemble a pyramid scheme?

The structure resembles a pyramid scheme because people make money not from selling the products themselves, but from recruiting others to sell the products and getting those recruits to bring in more people, with only those at the top making significant profits.

What role does Chris Terry's use of religion play in attracting and maintaining members' loyalty?

Chris Terry uses religion to claim that he is fulfilling God's purpose, which resonates with some members and reinforces their belief in him and the company, making them more loyal and less likely to question the business model.

What kind of pressure and demands does IM Academy place on its members?

IM Academy demands a significant time commitment from its members, with many hours spent on Zoom calls and online trading lessons. It also encourages members to cut ties with people from their previous lives who may not support the company's philosophy.

What is the Federal Trade Commission investigating IM for?

The Federal Trade Commission is investigating IM for problematic consumer practices, potentially related to its business model that may resemble a pyramid scheme.

Outlines

00:00

💼 The Illusion of Wealth: IM Academy's Financial Promises

This paragraph introduces IM Academy, a company that has drawn in hundreds of thousands with the promise of financial success, but has left many in significant debt. It discusses the allure of the service, the personal stories of loss, and the rise of democratized finance through apps like Robinhood and eToro. The founder, Chris Terry, is portrayed as a self-made success story, while the company's business model is revealed to be largely based on recruitment and monthly fees, with a high percentage of members losing money. The paragraph also touches on the allure of a lavish lifestyle and the initial steps taken by new recruits to join IM Academy.

05:02

🏛️ Pyramid Schemes and the IM Academy's Business Model

This paragraph delves into the controversial nature of IM Academy's business practices, drawing parallels with multilevel marketing (MLM) companies and pyramid schemes. It highlights the legal distinction between MLMs and pyramid schemes, focusing on the fact that in pyramid schemes, profits are derived from recruitment rather than product sales. The narrative includes personal accounts of individuals who have become obsessed with IM Academy, the religious undertones used by the company's leadership to inspire loyalty, and the demanding lifestyle it imposes on its members. The paragraph also discusses the company's potential legal troubles with the Federal Trade Commission and the disillusionment experienced by those who leave the organization, often after significant financial and personal losses.

Keywords

💡Multilevel Marketing (MLM)

Multilevel Marketing (MLM) is a business model where individuals are incentivized to recruit others to sell a product or service, often in a hierarchical structure. In the video, it is discussed in the context of IM Academy, which is compared to an MLM due to its focus on recruiting members and the potential for those at the top to profit while those lower down may lose money.

💡Pyramid Scheme

A pyramid scheme is an illegal business model where participants make money primarily from recruiting new members rather than from selling a product or service. The video highlights that while MLMs are legal, pyramid schemes are not, and the distinction lies in the source of income. IM Academy is suggested to be at risk of being labeled a pyramid scheme due to its structure.

💡Financial Trading

Financial trading involves the buying and selling of financial instruments such as stocks, currencies, or commodities. The video discusses how IM Academy members are encouraged to trade in high-risk assets like forex and cryptocurrencies, often leading to significant financial losses.

💡Passive Income

Passive income refers to money earned with little to no effort by the recipient, often as a result of investments or one-time efforts. The video mentions that the allure of passive income is used to attract people to IM Academy, promising them a way to work from home and achieve financial freedom.

💡Recruitment

Recruitment in this context is the process of enlisting new members to join an organization, often for financial gain. The video emphasizes that IM Academy heavily relies on its members recruiting others, which is a key characteristic of MLMs and a point of concern regarding its legitimacy.

💡Risked Assets

Risked assets are investments that carry a higher degree of risk due to their volatile nature. In the video, it is mentioned that IM Academy allows anyone to trade in such assets, which can lead to substantial financial losses, as experienced by the individuals interviewed.

💡IM Academy

IM Academy is the organization being discussed in the video, which is described as offering financial trading education and opportunities. It is compared to a university for trading and is criticized for its high membership fees and the losses incurred by its members, raising questions about its ethical practices.

💡Chris Terry

Chris Terry is the founder of IM Academy, who is portrayed as a successful figure within the company. The video suggests that his image and the promise of success are used to attract new members, while also highlighting his use of religion and personal development as part of the company's philosophy.

💡Lifestyle Marketing

Lifestyle marketing is a strategy where a company promotes a certain lifestyle or image to attract customers. The video describes how the lavish lifestyle of an IM Academy member on Instagram was used to entice the narrator to join, which is a common tactic in MLMs.

💡Financial Loss

Financial loss refers to the reduction in value of one's investment or assets. The video script details how many people who joined IM Academy experienced significant financial losses, with some losing their entire savings, which is a central theme of the video's narrative.

💡Self-Sufficiency

Self-sufficiency is the ability to sustain oneself without external assistance. In the context of the video, IM Academy promises to teach its members to become self-sufficient traders, but the reality is that many end up losing money, suggesting a disconnect between the promise and the outcome.

💡Federal Trade Commission (FTC)

The Federal Trade Commission (FTC) is a U.S. government agency responsible for protecting consumers and enforcing antitrust laws. The video mentions that the FTC is investigating IM Academy for potentially problematic consumer practices, indicating that the company's activities are under scrutiny.

Highlights

A company promises wealth but leads to financial loss for many.

The allure of a democratic financial world through online trading apps.

IM Academy's rapid growth during the pandemic and global expansion.

Chris Terry's portrayal as the most successful man within the company.

High loss rates among IM Academy members.

Chris Terry's personal wealth and the company's sales success.

The initial cost and ongoing monthly fees of joining IM Academy.

The structured online lessons and group support within IM Academy.

The concept of IM Mastery Academy being likened to a prestigious university.

Members' reliance on 'signals' for trading advice.

The risky nature of crypto and forex markets.

Personal account of trading losses within a short time frame.

The recruitment process and the pressure to succeed within IM Academy.

Historical context of multilevel marketing and pyramid schemes.

The legal distinction between multilevel marketing and pyramid schemes.

IM Academy's potential classification as a pyramid scheme.

Religious elements and the founder's use of spirituality in the company's philosophy.

The demanding nature of IM Academy and its impact on personal life.

Encouragement to cut ties with non-IM associates and the psychological effects.

Personal account of the final day of trading and the decision to leave IM Academy.

IM Academy's response to negative feedback and the pressure to continue.

The FTC's investigation into IM Academy for consumer practices.

Transcripts

I

will

win!

This story is about a company that has attracted

hundreds of thousands of people around the world to join

a service that they think will make them rich,

but that they actually end up losing a lot of money from.

This is and always will be

the greatest opportunity in the world.

I talked to people who shared how they lost all their money,

how they lost sleep, they lost weight, they lost their girlfriends, boyfriends.

They stopped studying.

Those losses eventually caught up with me

and I couldn't keep up with payments anymore.

I couldn't afford to take any more losses.

The world of finance has become a lot more democratic

to a certain extent in the last couple of years.

This is partly due to online apps like Robinhood or eToro,

that allow anyone with a phone to start trading in highly risked assets.

I came across IM Academy via

a girl on my Instagram who was already with IM Academy.

I was in university and so I kind of was looking for an alternative

in terms of passive income, working from home, time freedom.

I remember the girl that I followed had a really lavish lifestyle,

really nice cars, high rise apartment buildings.

I actually messaged her.

It was kind of like, join IM Academy and you know, we can change your life.

IM was founded in 2013.

It really took off during the pandemic.

It's now all over the world.

Its founder is Chris Terry.

He is considered to be

the most successful man in the world for the people in the company.

I’m literally the most humblest person in the world.

I'm always working on myself because if you don't focus on yourself,

you're going to be like the 98% going to work every day,

coming back, going forth, coming back, going forth, like sheep.

You guys are three feet from gold at all times.

94% of people who join

IM Academy lose money as a result, according to IM's own accounts.

The company, on the other hand, makes more than half a billion in sales.

Chris Terry is a multi-millionaire.

Initially, to sign up it’s around $250, but this is per month.

It was kind of like, if you're not successful after this,

you know you've had the chance, you've had the opportunity.

If you miss it

you have nobody else to blame but yourself.

So when you join IM Academy, you join these online lessons

and you're also added to a group of team members

that share advice about what to trade and at what price.

Now I want you guys to think about.

IM Mastery Academy like an extremely prestigious university.

The Yale of Trading of the Harvard of Forex.

You're going to learn about a four-step process

that we've created here to help you streamline

becoming a self-sufficient trader.

A lot of members have reported simply copy

and pasting advice called “signals”, telling them to

buy currency at a certain rate and sell at another rate.

A lot of people are trading in crypto and in forex, foreign exchange markets.

Those are some of the riskiest assets out there.

Let me explain my first day

because I remember that really well.

So, I remember waking up – at the time I had university as well.

So my first signal came in in my second lecture,

which I left to place that signal, but my trade didn't

or didn't come out with the same results as other people’s.

Around about 3 a.m., there was another signal.

And so I remember I started off with £100, which I lost

not even in a day,

In a few hours lost that. Over a week

it probably started off at around £250,

and then that £250 turned into £500,

and then that £500 turned into about £750.

So what happens is that people join IM,

they learn to trade online or at least they learn the very basics of it.

They start copying and pasting signals.

Basically, they start losing money right away.

So pretty early on, a team leader or the person who's recruited

them will tell them, look,

They didn't explain that process was easier in terms of making money.

I would say was more focused on that

when I sort of became a little bit desperate myself.

That's how a lot of people get into

It started in the late

19th century in the US.

There was a soap salesman that was going door to door,

and that established a business getting associates to do the same,

and they would get a commission on every soap that they sold.

Some of the two largest companies in this game today

are Amway and Herbalife.

But using financial services as a product to sell, I would say

that IM is sort of the first one to really do that effectively.

Multilevel marketing companies often operate as pyramid schemes.

Multilevel marketing companies are legal, pyramid schemes are not.

And what makes a multilevel marketing company

a pyramid scheme is the fact that

people make money not from selling the products itself,

but from recruiting people who will sell it as well

and from getting them to recruit more people, etc. etc.,

where at the end of the day you have what's essentially a pyramid structure

of nobody making any money except the people at the very top.

There was this whole, not ritual,

but we would say chants.

Oh, Christopher Terry. Oh, Christopher Terry.

This is not man-made.

This is God-made.

This is supernatural.

IM is really an organization

that gets young people obsessed with it.

They have an entire philosophy around relying on yourself.

IM must become a part of who you are.

Chris Terry also uses religion, to say he's fulfilling God's purpose.

I've met some people who've told me

that's the main reason they believe in him.

They believe that he will lead them to success.

IM is incredibly demanding

in the number of hours you have to spend on Zoom calls,

on online trading lessons, so you're socializing more and more with

with IM people and less and less with people from your previous life,

and then they actually outright encourage you to cut ties

with those people and to not listen to their advice.

So you're constantly working.

It's a 24-hour job, and you felt guilty for leaving

or for even like just having a few minutes to yourself.

It was about six or seven months.

I knew I needed to leave, but I didn't really have the courage to leave.

Team leaders reject any negative comments.

If you post on your team's channel

that you've lost money, they'll tell you you made the mistake.

And then if you want to quit because you don't believe

in the product anymore, because you can't sell it,

they'll tell you that only losers quit.

The final day I had lost

I think it was around maybe £480.

I just couldn't afford to do it anymore.

I wrote like a long sort of message

to her explaining why this isn't for me,

and basically explain that I felt misled.

IM maybe running the risk of being labeled

a pyramid scheme. The Federal Trade Commission is investigating

IM for problematic consumer practices.

The biggest scam would be

to sort of promote a service

and it's actually, you know, they're entirely focused on

recruiting other people.