|Recently I saw a post on a social networking site where a leader in a network marketing (MLM) company bragged about the number of people in their downline and the gobs of money they were making in such a short time.While it is fairly common especially on places like Facebook and MySpace to see people use income claims as a means for recruitment, this particular post got me thinking.
I know many good, well meaning people that talk about the money they or their upline makes as a decision point for joining their business.
Many don’t know that they are, in fact, committing a crime.
I know that sounds harsh, but the truth is the FTC considers making income claims as a means of recruitment illegal.
Many new to network marketing don’t know this nor are they advised by their company or upline to avoid income claims.
|What astonishes me is when leaders in the network marketing industry talk about how much money they make to get you to join their business. What does it say about the “leader” that engages in such practice? They are not only putting themselves in danger, but they are putting their entire company in a vulnerable position.Rod Cook over at MLM Watchdog has some good references including a specific court case. He says:
According to Rod Cook, the only way you can legally publish your earnings is if you also fully disclose the incomes of every single person participating in the business opportunity.
Len Clements of Marketwaveinc.com puts it plainly:
If you take some time to think about this, the FTC has actually done you a favor.
First, using an income claim sets false expectations and is one of the reasons why so many come into this business treating it more like the lottery than what it actually is – a legitimate business that takes time and effort to build. Besides, their earning potential is dependent on their effort and has little to do with how much money is made by you or your upline.
Second, this is the perfect response when a prospect asks you how much money you make in your business. Simply tell them that the FTC forbids you from disclosing your income. It is the truth. You avoid setting false expectations and at the same time demonstrate a high level of integrity. As their sponsor it is your job to help them avoid the landmines that may hurt them and their business.
Originally posted 2010-04-30 16:49:33. Republished by Blog Post Promoter