How many times does a co-worker come up to you and ask you how much the company you are working for is paying you? No one, NO ONE asks another employee how much their pay check is. It just does not happen. During your annual physical check up, you do not ask your family doctor how much he/she is making a year.
So why are people in network marketing so interested in the size of your bonus check?
That question used to frustrate us and have us tongue tied. Like many network marketers we were very hesitant to answer the question. And when we first got started in network marketing we did know how very wrong it was to even ask the question let alone answer it.
According to Assistant Attorney General for the state of Maryland:
Dale Cantone, “Before investing any money with a company that promises to help set you up in a business, contact your state securities agency to find out what laws protect you and what you should watch out for — including unsubstantiated claims about income and earnings. As with any investment, be prepared to take the time to do your homework. Surfing the net can be a good place to gather information about business opportunities, but prospective investors shouldn’t be fooled by a flashy web site.”
Income claims by companies and individual distributors are for one reason only…that is to ENTICE and trap YOU into joining the opportunity! It is presented to your emotions and to sense of fear. Fear that you will miss out on a great opportunity. It is emotional marketing at its best. Or should we say worst?
How many cash gifters have you seen displaying their “income” through the mail… you know that Fed-Ex envelope they all like to open in front of a camera? The funny thing is some of these guys video the themselves opening the envelope of money and put it on YouTube for all the world to see. We sure hope they are reporting ALL of their earnings to the IRS. You can bet Uncle Sam will be looking for his portion of the taxes owing on the income that was just reported in the video.
The FTC & Attorney Generals do not act in favour of earnings claims that are very prevalent in Business Opportunities and MLM.
From the FTC http://www.ftc.gov/opa/2011/03/emptypromises.shtm
From MLM Watch Dog Rod Cook regarding making an income claim (which can be in the form of a produced video, showing off all the cash just received from people being trapped into the opportunity, producing company checks and showing videos of others receiving checks at company conventions:
it’s illegal for you to make the claim unless you publish the income of EVERYBODY in the company in a FULL disclosure.
WHAT MAKES Claiming EARNINGS ILLEGAL? It is enticement!
FTC (used in many court cases) From Rod Cook of MLMWATCHDOG
“should be allowed to make a wide variety of simple, truthful, non-deceptive statements concerning the earnings of their distributors. At the same time, they must be prevented from bandying about high earnings achieved by a minority of purchasers with no indication of the unrepresentativeness of such earnings. If respondents lack evidence that the high reported earnings of a few distributors are in fact representative of the earnings of large numbers of other distributors, then it is clearly deceptive for them to portray the minority results reported to them without a clear indication of their unrepresentativeness.” *
*The FTC also held that National Dynamics must maintain records which substantiate that any past or present sales, profits, or earnings represented are accurate. Where ranges of sales, profits, or earnings are represented, such records shall be sufficient to substantiate the number of purchasers achieving results within any stated range and the time period during which such results were achieved. Where average or median figures are represented, such records shall be sufficient to substantiate that such median or average figures are accurate.
It appears pretty straight forward. If you plan to make an income claim either in an email, video production or verbal/written comment you better be able to back it up with a lot of company proof and your own documents and be able to disclose not only your income, but the income of EVERYONE who is in the company. From the top earner to the little guy who is making nothing.
It is fact that in many network marketing company there is a small handful at the top making the huge incomes while many struggle to even get a check.
Did you know that there are some states, Louisiana, Maryland, Georgia, Puerto Rico and Wyoming that have statutes that limit earnings claims made by any sales company. These are either because of Business Opportunity laws or DIRECT SALES laws. While Wyoming and Massachusetts prohibit making any income representations.
Bob and Anna Bassett tell of
A cocky prospect who once told them that he only joined successful people making over $5000 per month, to which they replied …
How fast can you run? We only sponsor people who can run the 100 metres in under 10 seconds.
What kind of thinking does this prospect have?
If you would like to learn what to say to prospects so the “How much are you making” question never comes up… you will have to learn what to say. Join the free webinar on Saturdays at 12:55 pm Eastern. Register for upcoming webinar’s at www.mlmreadysetgo.info and let them know that Dave and Darlene Mills invited you to the skills training.
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Extra bonus footage for the email spammer.
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Dave and Darlene Mills
Leadership With A Vision
Vision without action is merely a dream. Action without vision just passes the time. Vision with action can change the world. by Joel A. Barker