Tai Lopez encourages accredited investors to pool their cash onto Retail Ecommerce Ventures (REV). “If you miss the 1994 opportunity, I wanna present something to you that we’ve been doing,” Tai said to relate his program with Alex Mehr to Jeff Bezos’ Amazon, “now we’re focused on the acquisition of distressed (brick-and-mortar) brands and transforming it into eCommerce brands.” But then, you have to sign an NDA to know more about this. Is this worth signing an NDA for? Scroll below to find out.
Before anything else, let me explain why Tai mentioned Jeff Bezos in the introductory sales pitch posted on REV’s site. Well, you can say that he’s lowkey implying that he’s the next Jeff Bezos. Huh, Tai really had the audacity to do just that.
For those who aren’t familiar, Jeff is one of the pioneers of eCommerce we’ve known today. Before we associate eCommerce to online stores on the internet, Jeff already said “f*ck it” and made the switch to it. The result? A traditional bookstore turned eCommerce retail behemoth in Amazon.
And just like Jeff, REV is also turning offline stores into online ones. The main difference, a very notable one, is that REV is working with distressed brands aka companies with little to no value as of today. Also, REV isn’t working on a timeline where turning your focus on eCommerce is a guaranteed hit. Most importantly, Tai Lopez is definitely not close to having the skill of a savvy businessman like Jeff. And no, not even Alex Mehr who was able to cash out millions from Zoosk, a dating app he co-founded.
Bottomline here is Tai saying misleading things in a sales pitch, as usual. To start, they’re showing pre-acquisition figures of brands they have in their hands now like Pier 1, Dress Barn, Linen-n-Things, and Stein Mart. They have nothing to do, Tai and Alex, about the brands’ glory days at all. It’s not a result of their genius but a mere blast in the past. Yet, they’re flaunting the impressive numbers from that era like it’s their achievement. Grabbing credits at its finest, nothing new for Mister steal all your sh*t Tai.
Also, they’re using the said numbers from the past as the main reason they say that their investment will work out. Like no, that’s not how it works. Show me the positive changes REV has brought upon acquisition and we’ll start talking. Apparently, they have none of that.
The current market situation is also very different from what it is in the past. What worked before won’t likely work now, especially for brands they acquired that reportedly succumb to not keeping up with the trend. Slapping eCommerce on it now won’t usually do sh*t, too late and too irrelevant for that epic comeback.
Worse, they are manipulating the past figures to make it look better. Take their claim for Pier 1 for example. They always put on display on how the brand has over $1.5b revenue in 2019 to make it look good. But looking past the revenue number is the $1.7b expense that they deliberately pulled out of the picture. You’ll only get the profit, the clean take-home money, by subtracting revenue and expense. Turns out, it’s operating on a net loss of millions. From take-home money to take-home debt, hell to the f*cking no to that.
Don’t get me wrong, there’s a very very slim chance that it’ll work out in the end. But the said odds is not worth locking your $500,000 or more to the hands of Tai and Alex for at least 5 years. With that crazy amount of money, you’re better off choosing a different program with a proven business model than whatever Tai and Alex is selling in REV. Heck, even the biz I don’t usually recommend like real estate investment is much better than this.
To answer the question earlier, my answer would be NO, this program is not worth signing an NDA for. Too steep of a price for a high-risk investment is an automatic cross in my books. Besides, why would you trust your money on shady individuals like Tai and Alex? Not only are they marketers at best (and not investors), they are already dubbed as charlatans and frauds in the past. Just a quick google and you’ll see the nasty stuff I’m talking about.