You recieve a phone call, or you yourself call a company finding them on google, thinking them to be Authorized Adwords Reseller for Google. They too tell you they are the Authorized Reseller for Google Adwords. Some of them even fake a Google Adwords Authorized Reseller Logo on their website. After listening to their sales pitch many people make them their first choice for launching their campaign.
However, far from this, the reality is that most of them don't even have a single qualified person to handle your campaign. They are as confused about adwords as you yourself are. Some are so notorious that they will tell you they are directly from Google or "On behalf of google".
Before trusting anybody about the kind of affiliation they have with Google, one must check the Logo (Program Badge), by clicking on it. If it is not clickable, it means they are not what they claim to be. Also, they must have a Page on Google.com like this one, which is hosted on adwords.google.com.
India presently has no Authorized Google Adwords Reseller. So, when you hear about so many agencies claiming to be so, they are not having the status what they boast of. In case of any doubt, you should always ask them to show their Professional Status Page.
I recieve, many phone calls from people, asking me whether I am authorized Reseller or not. Well, I am a Qualified Individual and so authorized to sell Google adwords package and so I may call myself a reseller (I take care not to use this term). However, I am not a Reseller under Reseller Program, nor are the people claiming to be so. Hence, using this as a Sales pitch is Dishonesty.
Most sad part of this is that some of them are backed by Google staff too. Many of you might have attended, the so called adwords seminar of these companies, where, Google Guys too were present asking you to give your money to them directly. Well, Google want customers and they are their Sales Channel. However, to get better quality service, you should always prefer an individual rather than these companies who are just interested in burning your money.
Michael Wall has presented a near parallel scenario in Ireland in his post: Google Adwords Rip-off, you should go through it, and also so many people bringing their own experiences with this fraud in comment section.