When someone advising you stands to profit from both sides of a deal, their loyalty is divided — and you're the one who pays for it. A conflict of interest occurs when an agent, advisor, or manager has financial incentives that don't align with your best interests. They might recommend a "trusted" vendor or marketing firm. But if they're earning commissions or ownership profits from those same businesses, their recommendations are no longer objective.
An agent represented several young athletes and required each to use his "preferred marketing firm" for endorsements. What the clients didn't know was that the agent secretly owned the firm and was charging double the normal market rate. Every dollar the athletes spent on marketing went directly into the agent's pocket — on top of his standard commission. The setup looked professional but was built entirely around the agent's financial gain.
Their gain shouldn't cost you more. True representation means your team acts solely in your best interest. If someone is profiting from both sides of a deal, you can't rely on their advice to be fair or transparent. Hidden incentives distort judgment and can drain your finances over time.
Always ask one simple but powerful question: "Do you make money on both ends of this deal?" If the answer is yes — or if the explanation feels vague — pause. Demand transparency and written disclosure of any financial relationships or commissions.
Your financial partners should work for you, not off you. Stay alert for hidden motives and ensure every professional around you is aligned with your goals.