Led Astray? RIAs Lament Lead-Generation ‘Fraud’
Concerns and complaints have emerged from former clients of the lead-generator startup, Advice Chaser, as they recount their experiences with the company’s services not living up to expectations. These Registered Investment Advisor (RIA) firms express their frustration over lost financial investments in a service that promised much but delivered little.
Nelson Capital Management had high hopes when subscribing to Advice Chaser, anticipating that it would significantly boost their lead generation efforts. However, the firm found itself among the many who have voiced that they received inadequate service in return for their substantial investment, leading to a challenging situation where leads were scarce and responses from Advice Chaser were even scarcer.
Founded by former Riskalyze employees, Advice Chaser aimed to revolutionize the way financial advisors and investors connected. It offered financial advisors a chance to be recommended to investors through a ‘shortlist.’ Despite these ambitious goals, Advice Chaser has folded amidst accusations of scam from many of its clients and a consumer alert from the Washington State Department of Financial Institutions warning the public about potential fraudulent activity.
Former clients have shared their disappointment, citing instances where the leads provided were either non-existent or entirely irrelevant to their services. For instance, Darcy Smoot of Nelson Capital mentioned that, after an expensive engagement with Advice Chaser, they only received two leads, neither of which were actionable. Similarly, Doug Oosterhart from LifePoint Planning noted his own website was outperforming Advice Chaser in lead generation, flagging early concerns about their effectiveness.
Even with Advice Chaser’s policy of extended services for dissatisfied customers, many found it hard to justify continued investment when initial promises were not fulfilled. Gabe Hamideh of Axex Financial highlighted the dilemma many faced; deciding whether to continue in the hope of improvement or cut losses and move on.
Attempts to resolve issues directly with Advice Chaser often proved fruitless, with clients reporting unresponsive customer service and broken communication channels. Efforts to seek refunds or engage in arbitration were largely ignored, leaving many to count their losses without recourse.
As the remnants of Advice Chaser’s operations fade, the legal aftermath continues to unfold with outstanding legal complaints and financial obligations unresolved. The company’s legacy is now marred by the dissatisfaction of its clients and warnings from financial regulatory bodies about its practices.
In a surprising twist, despite prior challenges, records indicate that a new ‘professional referral service’ has been launched by one of Advice Chaser’s founders. This new venture, Asset Boost Pro Inc., suggests a continuation of efforts to connect financial advisors with potential clients, although the past troubles of Advice Chaser loom as a cautionary backdrop.
The case of Advice Chaser serves as a critical reminder for RIAs to carefully vet lead-generation services before committing resources. With the landscape of financial advice constantly evolving, the importance of due diligence and skepticism in choosing partners cannot be overstated. As the industry moves forward, the lessons learned from the Advice Chaser saga will undoubtedly influence how RIAs approach lead generation and partnerships in the future.
