td, I agree with you completely with one exception. I'm pretty sure you overestimate the increase in sales due to posting calls/results.
Otherwise, I think you hit the nail square on the head, though. It's all about expectations not being met. Clients tend to have unrealistic expectations and there are certain unscrupulous people in all walks of life who feed into/off that. I would say that if anyone promised you X amount per week/month/year not only are they lying/ignorant in the first place (real results are too random to make such statements) but they're likely in violation of regulations. I know the CFTC specifically forbids this in the US.
Aside: Many vendors will tell you they are exempt from registration with the CFTC, but this is not true either. Those providing any form of trading advice to US persons involving futures including system vendors are required to register with the CFTC and with the NFA as a non-member CTA. What is the motivation for avoiding regulation anyway? The total cost is $100/year and if folks are making what they say it is laughable to try to use avoiding this cost as justification for anything.
That said, I acknowledge that I am in an industry with a pretty dodgy reputation, and that reputation is well-deserved. It's really been an uphill battle as a result. I would be very interested in helping to develop a sort of a "due diligence questionnaire" to help protect clients from unscrupulous vendors. I think this would accomplish the goal of this thread if done properly and would be an invaluable resource. What do you think?
jj