There are busines opportunities around every corner. The legitimate ones follow:
- The FTC Business Opportunity Rules:
- Provide 7 days in advance of signing contracts, making payments, etc. a Business Opportunity Disclosure Document.
- If any claims about how much money a person could earn; or examples of how much money others have earned are made; or implied, include an Earnings Claim Statement. It is illegal to make a claim about earnings without having backup materials to substantiate the claim. It is also illegal to not provide them when requested.
- Avoid all illegal practices
- Keep records for three years
- Here is a video by the FTC that goes over the Business Opportunity Rules:
- The FTC Advertising and Marketing Rules; including the truth in advertising rules
- The FTC Endorsement Guides. Here is a video done by the FTC:
However not all business opportunities follow the rules of the road. I’ve run across some recently that have employed the standard tricks and some new ones. They use things like high pressure presentations to encourage people to sign up for the limited, great, life altering opportunity. They can include statements like*:
- Don’t miss out on this great money making opportunity.
- You too can make 6 figures in as little as 30-60 days.
- For very little investment, or knowledge, you too can get the income you want.
- In 60 days you too can quit your day job and do this full time making tons of money.
- It doesn’t matter what you sell**, anyone doing our system and following our techniques will earn money.
- You have to join right now to get this incredible deal that will go away at the end of this webinar presentation. You have to take advantage of this incredible offer before we will disclose anything about the average earnings of those who have signed up.
- You have thirty days to decide if you want your money back.
- Only people who invest and/or purchase the premium option are serious, will get the most help from us, follow the system, and earn the most money.
Of course when asked about the average earnings or any of the disclosure statements they either can’t or won’t release them. Yet they can tell you how much a few other people who followed their techniques and “made an effort” were able to make. Some other techniques I have seen lately include:
- Using cheerleaders/supporters in webinar chat to encourage others to sign up. These people can also help deflect people away from questions they don’t want answered. Some could be used to ask the questions that they want to answer in the very limited amount of time devoted to answering audience questions.
- Using a sense of scarcity in the selling to get people to sign up faster. This is done by statements such as “very limited amount of seats to let you get in on this very exclusive deal”, and “only those who attend our limited capacity webinar will get this life altering deal”.
- The “hesitant signer up” person. The person who expresses hesitation because of some financial concern. The concern is then addressed by a supporter/employee vaguely. Then the “hesitant signer up person” posts that they will “go for it” and encourage others to “go for it too” because they are ready for the life altering opportunity and everyone should jump on board too.
- In the webinars they make statements that indicate employing Bait and Switch is not only okay, but completely legal. Even though Bait and Switch is illegal.
When it comes to business opportunities that employ techniques such as these it is always a good idea to take a step back. Research the company and the person selling the product to you. Keep in mind you can also file a complaint with the FTC:
Here is the link to the website at the FTC to file the complaint: https://www.ftccomplaintassistant.gov/#&panel1-1
*The statements are generic. Any similarities between your company and it’s business opportunity selling practices are coincidental and something, perhaps, that you should reflect upon.
**In most cases they have a product for you to sell; in some there is either a vague product mentioned or it’s bascially any product you have to sell.
The information contained within this site is done for informational purposes only and does not substitute professional advice or information on those topics. The end user assumes all liability for following the tips and advice on this blog. I’m not a lawyer.
Before signing up for any new business opportunity take time to research the industry and the company offering the opportunity.