THE DIGITAL MARKETING SCAMS COSTING SALONS £1,000s

A worrying number of beauty professionals are losing money to online marketing agencies that promise huge results but don’t deliver. Solicitor Christopher Eddison-Cogan explains how to spot a scam

The beauty industry has embraced online marketing, with many beauty therapists successfully using social media, email campaigns, and other digital strategies to attract clients. The demographics of clients means that this makes perfect sense, but it also facilitates a variety of scams targeting unsuspecting professionals, including beauty professionals, lawyers and dentists.

While there are many reputable digital marketing agencies out there, as a solicitor specialising in business law, I have also seen many digital marketing scams.

I’m currently acting for a consortium of beauty business owners who have not got the results they expected, despite paying very significant fees, and much to my embarrassment, I personally fell victim to a similar scam some years ago. I therefore urge beauty professionals to remain vigilant and informed about the risks associated with online marketing scams.

Scammers often use sophisticated tactics – slick salespeople and websites present them as legitimate marketing firms that can promise immediate results, often providing testimonials that may not be true. These people are expert presenters and have a great deal of experience in convincing victims of their purported bona fides.

Common types of scam

False promises of rapid growth: One of the most common scams involves companies that guarantee rapid growth in followers, likes, or client bookings. These offers are deliberately enticing – they promise quick success, allegedly without risk or effort. However, such promises can be hollow: real marketing success takes time, strategy, and consistent effort, and any company that guarantees results should raise a red flag.

Subscription services with little value: Many scams masquerade as subscription services, charging monthly fees for marketing assistance while providing little in return. These services might offer automated content, generic posts, or access to dubious online tools that do not generate genuine engagement.

As a business owner, it’s crucial to evaluate the value of any service you consider; if it doesn’t provide measurable results, it’s likely not worth your investment.

Of course, the problem is that real results take time, so the scammers can appear credible for several months before victims realise they have been had.

Phishing scams: The digital landscape is rife with phishing scams that seek sensitive information, such as bank details, passwords, or client data. These scams can be highly sophisticated. Always verify the authenticity of requests for sensitive information, and ensure that all your data is secure.

Recognising red flags

Identifying the warning signs of online marketing scams is essential to protect your beauty business. Here are some to watch out for:

Unrealistic claims: If a marketing service promises immediate results or guarantees a specific number of clients, it’s likely too good to be true. Genuine marketing efforts take time and cannot guarantee specific outcomes.

Lack of transparency: Legitimate marketing companies should be open about their methods and provide detailed information about their services. If a company is vague or refuses to disclose how they achieve results, proceed with caution.

Pressure tactics: Be wary of companies that rush you into making decisions or require immediate payment. High-pressure sales tactics are often indicative of a scam.

Questionable contracts: Some scammers use easy-to-spot amateur agreements, perhaps downloaded from a website. However, many use very professionallooking agreements carefully crafted to protect their interests. For example, if they guarantee a return on your investment, the small print might state that you must keep reinvesting to retain that guarantee.

How to stay safe

To navigate the complexities of online marketing and avoid scams, conduct thorough research. Look for reviews, testimonials, and any red flags in their business practices. Don’t rely on success stories provided by the salespeople – reach out to fellow beauty professionals for recommendations on reputable marketing services, and independently check testimonials. Personal referrals can provide insight into effective strategies and trustworthy companies.

Focus on building your marketing strategy through authentic engagement with clients. Use social media platforms to connect, share valuable content, and showcase your services. Local advertising and community involvement can also help you establish a strong presence without falling victim to scams.

As a solicitor, my advice is to check vendors and contracts carefully. As a businessperson, you probably have some knowledge of contract law, and most local solicitors will have a quick look at a contract for a reasonable fee.

Don’t hesitate to ask the service provider about specific clauses in a contract – put them on notice that you will expect them to keep their side of the proposed bargain. If you have any concerns or questions about your marketing strategy, seek guidance from professionals with proven expertise.

It’s crucial to approach online marketing with caution and due diligence. By remaining vigilant about the risks associated with online marketing scams, you can protect your business and ensure your marketing efforts yield positive results

If you feel exploited by a digital marketing, please contact the team at Perfection Spa in Wiltshire, who are coordinating an industry-wide response to this issue: info@perfectionspa.co.uk