This article was written by Martin Kay, co-founder and chief editor of the biggest anti-scam binary options community BinaryOptionsThatSuck.com.
If ‘bonus’, ‘account manager’ or ‘unable to withdraw’ complaints sound familiar to you, you’re probably not doing it right.
Launching a new binary options brand? Already own one? You’re not alone. There are dozens, might be even hundreds, just like you. Everyone seems to want their own brand; everyone wants to be a broker, to have their own army of Agent Smiths as personal account managers and sales reps.
Binary options is the hottest trend nowadays, but don’t be fooled, there’s a raging wind outside: news of lawsuits, fines being dished out like candy, e-magazines screaming ‘scam!’ and regulators banning binary options in their countries are just a few mentions. Still thinking of opening a binary options brand? Recently launched a brand? You’re not alone. Let me help you do it right.
Why do Complaints Matter so Much?
A study shows that the chance that you will share a bad experience is 30 times higher than sharing a positive experience. People always complain, a lot, and that’s a fact.
As a brand owner, your goal is not to avoid complaints; it’s more about avoiding complaints that have nothing to do with the preferences of the complaining client.
When a client is complaining about too much salt in his food, it has to with his own personal taste. But when a client complains about a weird smell and finger nails in his food, it has nothing to do with his preferences. No client wants to eat inside a stinky restaurant or to find stuff in his/her food.
Now let’s see how it works for binary options complaints. The next 3 types of complaints are probably the most common; here is how you avoid them.
Bonus Related Complaints
Broker: “Deposit and we’ll give you a bonus!” Client: “Great!” A few days later, client lose a couple of trades, now he wants out. Broker: “You’re not able to withdraw. You must fulfill the bonus rules.” Client: “What? I didn’t know I have to trade $3000 to redeem it, I want my money back!”
See the problem? Now your client is highly unhappy, he feels cheated, and he knows he’ll never be able to achieve that goal which he had no idea about. He is also tied to strange rules which prevent him from withdrawing the money he deposited. Some people don’t wait to get things sorted out; they just go out and start complaining.
I don’t see any good reason for such demanding bonus rules, and certainly no reason to hold on to the $200 the client deposited like it’s the last income on earth. You want to have informed clients – after all they can’t complain about something they were aware of and have accepted right from the start. And please, cut them some slack, use a pending bonus* module and let go of unhappy clients. You don’t need that trouble.
*Pending bonus: trader receives with each milestone a part of his bonus, this way the trader can always withdraw his funds. Stockpair for example uses the pending bonus and it has almost zero complaints concerning wager/turnover.
Managed Account Complaints
I might make some brand owners and sales people angry, but I must say it: managed accounts are a big no-no. This selling tactic is being used by too many brokers, big and small alike, and it’s the number one cause of horrible complaints. Honestly, I don’t see any room for managed accounts in the industry of binary options.
Brand owners once told me that their client wanted it, and there is nothing they can do about it. Nothing? Tell your client no, it’s his money, and we cannot manage your account for you. I’ve seen complaints about account managers who promise 10%-50% return per month… that’s insane! In my opinion, it’s also misleading.
Boosting Profits in Low FX VolatilityGo to article >>
Avoid it at all costs, it’s better to teach your clients a few basic strategies and tools they can use, or just let them have fun. Looking at the complaints coming from users who lost tens of thousands of dollars on managed accounts, it’s going to kill your brand.
If you ask me, I think managed accounts aren’t ethical at all. Now if you really, really want to offer your clients a managed account solution, you should only allow it via a 3rd side company that specializes in binary options managed accounts.
Unable to Withdraw Complaints
One of your clients happens to become a successful trader, and manages to make some $1000 out of his $250 account. Your client had enough, and now he wants out. What would you do, brand owner? Will you let him go, or make it hard on him? If you choose the second option, you’re certainly not here for the long run.
I know how expensive it is to get clients, and I also know how rewarding a good client could be but don’t panic, hold it together. If you keep thinking small, your business will stay small.
If you decide you’re not going to let him go without a fight, your army of Agent Smiths goes into action: they start calling him, almost begging him to stay, support keeps asking for papers, color or no color, what’s the difference?
During this process, your client starts complaining. He goes here and there, trashing your company, filing complaints to regulators and making sure the world knows what happened. The damage has been already done.
Do not hesitate and do what’s best for the business right from the start, without being afraid to lose some in the short term. There’s much more where that came from, and you can use the positive feedback.
Let your traders withdraw, it’s that simple. Think of the long run!
Last Tip – Damage Control Could Work Miracles
Every brand is prone to complaints. Even if you’re the most legit binary options broker ever, people will complain. With that in mind, make sure you keep a damage control team (even 1 dedicated person could be a team). It wouldn’t hurt if you had a company representative registering to forums, answering complaints, solving issues and promoting your brand in a non-aggressive manner.
I love brands that try to reply to complaints or just simple questions on the forum that I moderate. It doesn’t matter who you are and what your brand is, you’re always welcome to join and speak your mind.
Having someone say “Hey, we’re the support team. We’ve received your complaint, and we’re working to solve it. Please contact us via X or Z, we’re sorry to hear your story but that’s not who we are” makes clients feel that you care.
Even if you didn’t solve the clients’ issues, it shows others you’re there, and you’re willing to help. Be polite, official, and respectful, and you’ll gain the respect of potential clients and site owners. Who knows, you might even find another contact to work with.
Bottom Line: Invest in Your Brands’ Future, Invest in the Future of Binary Options
Trading binary options is cool, it’s fun, it’s addictive and I’m happy to be a part of this industry. We’ve seen brokers come and go, brands become sponsors of football teams and brands charged in courts of law. Planning to launch a new binary options brand? My recommendation is to think about your clients, not about a regulation that will provide you a stamp of honesty. Be honest, plan ahead and make the best of this guideline to create the next leading brand!