Masterminds Unmasked: Support System or Total Scam?

Masterminds are marketed as magical, transformational experiences where you can unlock your business potential, 10x your revenue, and surround yourself with “high-vibe” people who “get it.”

But how many of us have seen masterminds that seem like nothing more than a glorified group coaching program led by unqualified so-called “experts,” all while draining your bank account? Or worse yet, we’ve joined them?

In this episode, we’re peeling back the layers on something that’s become almost a rite of passage in the online business world: masterminds. We’re talking about red flags to watch for and what makes for a good mastermind experience.

We’ve all heard the buzz about masterminds. They’re sold as the ultimate solution to fast-tracking your success, with promises that you’ll get access to “high-level” peers, groundbreaking advice, and insider knowledge that will take your business to the next level.

The marketing makes it sound irresistible—join a mastermind, and suddenly, you’ll be part of an exclusive club where everyone effortlessly scales their business.

For many of us, the reality doesn’t quite match the hype. Instead of unlocking next-level growth, you find yourself sitting in Zoom meetings led by a so-called “expert” who’s never actually run a real business, throwing around the same tired advice you’ve heard a million times. Or maybe you’re surrounded by people struggling just as much as you are, and instead of actionable insights, you’re getting vague, feel-good pep talks.

Even worse? You’ve shelled out a pile of money for the privilege.

What is a Mastermind Anyhow?

Let’s start with what a mastermind is supposed to be. The original idea of a mastermind is to bring together a group of people who can help each other by sharing their collective knowledge, experiences, and wisdom.

It was coined by OG scammer Napoleon Hill in 1925 in his book The Laws of Success and then in his book Think and Grow Rich.

Ideally, you’ll get insights from peers in the trenches with you—people who understand your challenges and bring different perspectives. It’s meant to be a collaborative space where everyone contributes, learns, and grows.

We all need a support system, accountability, and people to bounce ideas off. A true mastermind is all about creating that kind of magic.

But here’s the problem: in the online business world, masterminds have morphed into something entirely different, and not in a good way.

The Problems with Masterminds in the Online Business World

The mastermind model has been hijacked by online business coaches who are more interested in scaling their own businesses than in helping others succeed.

We’re not saying all masterminds are bad, but many are a total waste of time and money. Here’s why.

Lack of Qualifications

You’ve got coaches who have maybe run one or two online courses and suddenly decide they’re qualified to lead a mastermind. These people have no real-world business experience outside of selling their courses or masterminds. They’ve never built a brick-and-mortar business, worked in corporate, or led a team outside of a Zoom call. But now, they’re charging big bucks to get their BS advice.

Overpromising and Under Delivering

Many masterminds make big promises like, “This mastermind is going to be transformational,” “We’re going to 10x your business,” “You’ll be making seven figures in no time.”

Then what happens? You join, and it’s a glorified group coaching program. You sit through hours of fluff, vague motivational speeches, and you’re left with nothing actionable to take back to your business. Or worse, they force you into these awkward group situations that waste your time.

Cookie-Cutter Advice

So many masterminds operate under this one-size-fits-all model. They’re telling you to follow the same blueprint as everyone else because your business, clients, and goals might differ completely from the next person.

Plus, there’s the fact that often, the advice isn’t specific to your type of business. I’ve seen so many service business owners be lumped in with creators or passive income people and get so messed up.

Culty Group Think

Many of these groups can get more than a little culty. The mastermind leader becomes this almost untouchable figure, and groupthink takes over.

Dissent is discouraged, and if you dare to speak up or ask too many questions, you’re painted as ‘negative’ or ‘not a good fit for the group.’ It’s toxic and hazardous for anyone trying to make intelligent, strategic business decisions.

Red Flags to Watch For When Considering a Mastermind

So, how do you avoid falling into one of these mastermind traps? Because not all masterminds are bad, but you must proceed cautiously.

Here’s what you need to watch out for when considering a mastermind:

High-Pressure Sales Tactics

If they tell you, “There are only 5 spots left!” or “You have to join now or you’ll miss out on the opportunity of a lifetime….RUN. A legit mastermind leader won’t need to pressure you to join—they’ll trust that you’ll see the value and make an informed decision on your own.

Lack of Transparency

If the leader can’t clearly tell you what’s going to be covered, who’s in the group, or what specific outcomes you can expect, that’s a huge red flag. Vague promises of “growth” or “accountability” aren’t enough. You need to know exactly what you’re paying for, and if they’re cagey about the details, it’s probably because they don’t have a solid plan.

Unqualified Leaders

Do your homework. What’s the leader’s real-world experience? Have they actually built a business outside of online coaching? If their only claim to fame is running masterminds or online courses, you might want to reconsider. A mastermind leader should have tangible, relevant business experience—not just internet fame.

Exorbitant Pricing with No Proven Value

Don’t fall for the “you have to invest big to get big results” myth. Sometimes, a mastermind is just a fancy name for a money pit, and you must carefully consider how you’ll possibly get ROI on your investment.

Unrealistic Promises

If they claim that this mastermind will 10x your business or that you’ll hit six figures in six months, walk away. No mastermind can guarantee results like that—especially if they don’t know your business inside and out.

Lack of Peer-to-Peer Support

If the leader dominates the mastermind or it feels more like a lecture series than a group of equals, it’s not a mastermind. A true mastermind thrives on the contributions of everyone involved, not just the person at the front of the room.

What a Good Mastermind Should Look Like

Maggie runs masterminds, so obviously, she sees value in this model, and not all masterminds are doing what we talked about above. So we wanted to balance things out as the right mastermind can be an amazing support system.

Here’s what you should expect from a mastermind that’s actually worth your time and money:

Real Peer Support and Accountability. The leader is there to facilitate, not dominate. You should be getting insights and feedback from everyone in the group, not just the person running it.
Qualified Leadership. Look for someone with real business experience, not just a flashy Instagram or TikTok following or slick marketing tactics.
Specificity. You’ll get the most value from being with people who run businesses like yours and similar goals.
Group Size: If you’re in a massive group, that’s not a mastermind, it’s a group program. You shouldn’t be a number in a real mastermind as it’s relationship-driven.
Clear Expectations. You should know exactly what you’re getting, how the mastermind will help you, and what kind of people you’ll be interacting with.
Real Value. You should walk away with actionable insights, meaningful connections, and a sense that your time and money were well-spent—not just another pep talk about mindset or manifesting.

At the end of the day, not all masterminds are bad—but too many of them have become cash cows for unqualified leaders looking to make a quick buck.

The best advice we can give you is to approach every mastermind with a healthy dose of skepticism.

Ask questions, dig deeper, and don’t be afraid to walk away if something doesn’t feel right. Trust your instincts, and remember: you are the expert on your business, not someone else.