MLM Networking Women

This is the third and final article in my series on Make Money Fast Scams.  

The first part was on Chain Letters, and the second on Pyramid and Ponzi Schemes.

Whenever financial times turn into times of financial hardship, people start panicking and looking for ways to make extra money.

They are usually looking for a quick fix to their money worries.  When people are desperate, it is easy for us to believe in a slick sales pitch that promises easy money with little or no effort on our parts.

One such pitch common today is Cash Gifting.  This is also referred to as “Mailbox Money”.    Cash Gifting programs are all over the internet.

They seem like a no work way to make a lot of money simply by giving gifts of cash to people in the organization…usually a “Gifting Club”.

To “join”, you give a “gift”, generally $500 – $3500, to a member higher up in the organization. The new member is promised that they will receive similar “gifts” once they recruit more members into the organization.

Sound like a Pyramid Scheme?
It is.

Cash gifting programs are illegal.

The Federal Trade Commission reminds you to:

* Consider that a legitimate gift has no strings attached and is not an “investment.”
* Avoid being misled into thinking a gifting club is legitimate because the ads say that members consider their payments a gift and expect nothing in return. This is an attempt to make an illegal transaction look legal.
* Be wary of success stories or testimonials of tremendous payoffs. Very few members of illegal gifting clubs or pyramid schemes ever receive any money.
* Take your time. Don’t buckle under to a high-pressure sales pitch that requires you to join immediately or risk losing out on the opportunity. Remember, solid opportunities – and solid friendships – aren’t formed through nerve-wracking tactics.”

 

Just remember, the famous P.T. Barnum quote:

“There’s a Sucker born every minute”

Be smart and educate yourself so you know the difference between a scam and a legitimate MLM business opportunity.

Believe in Your Success, I Do!
Karen
mentor.karen.j.miller@gmail.com

This is a hot topic these days for network marketers using the internet to advertise.  These new FTC guidelines must be heeded.

I’ve blogged about this previously and wanted to pass on the FTC’s final guidelines for how we publish testimonial advertisements in our blogs and articles.

1.  Consumer Testimonials

When using a consumer’s testimonial, and they have had unusually successful results, you MUST make a statement that “clearly discloses the results that consumers can generally expect.”

In the past, you were allowed to include a generic disclaimer “results not typical”.

If I say that I lost 50 pounds in one month eating my company’s Diet Crunchies, and this result is not typical, I would have to state: “usual weight loss experienced is 10 pounds a month.”

2.  Material Connections

When an endorser (you, the blogger) receives a payment or free products in exchange for the blogger’s review of the product, that fact has to be disclosed.

In the past, you didn’t have to say a thing.

If I do a comparison review of face creams, like Oil of Solay, Super Value Face Paste, and the Most Incredible Facial Cream Ever, and I received $100 from the Most Incredible company, I have to tell my readers. 

“I love the Most Incredible Cream.  All of my wrinkles disappeared, my sagging chin lifted, and my skin is as soft as a baby’s butt.”  Oh, and the company paid me $100 to use and review this product.

3.  Celebrity Endorsements

Celebrities and advertisers can be made liable for false or unsubstantiated claims or for failure to disclose material connections.

In particular, a celebrity has to make their relationship with an advertiser clear while making and endorsement  when on talk shows or social media.

Most home-business bloggers and network marketers will not have an opportunity to use a celebrity endorsement.

On the FTC site, it is explained that these are Guidelines and are interpretations of the law, not the actual Federal Trade Commission Act.

If you’d like to read a 12 page PDF document, Revised Endorsement and Testimonial Guides, you’ll find specific examples that help explain what is an endorsement and what isn’t.

It is important to keep in mind that the Federal Trade Commission Act and these Guidelines exist to protect consumers from the deceptive use of testimonials or endorsements.

Remember, if you are blogging about the products you sell from your Network Marketing company, you must be truthful. 

You also must never, ever

• make claims that your products can heal a disease or disorder, or
• attempt to diagnose someone’s problem or prescribe any products.

Your only objective is to introduce your products, give your own testimony or that of your customers, and invite people to try your product to see if they like it.

Always be truthful and honest.  Run your business with integrity and you will always be operating within the law.

I Believe in Your Potential for Success!
Karen
mentor.karen.j.miller@gmail.com

Is the FTC Monitoring Your Blog?

Blogging has created a lot of opportunities for people to make money online.

Women wanting to stay home and raise their children themselves are able to earn an income from home through their blogs.  Most of the topics our audiences are interested in are about things going on in our daily lives.

Other bloggers are building blogs in support of their businesses….whether bricks and mortor or an online home based business.  Whatever the money making goal is behind the blog, it is important to add value to the blogger’s niche community.   Bloggers should be offering advice, tips, and educational pieces to attract readers.

A blogger can make money with a blog through

1. Affiliate programs like Clickbank
2. Selling space to advertisers
3. Google Adsense
4. Being paid to write product or service reviews
5. Promoting their own products

Recently, the FTC (Federal Trade Commission) has taken an interest in the money making activities of bloggers.

The FTC plans to start monitoring blogs in the areas of product or service testimonials and endorsements.  The FTC has received numerous complaints from consumers who were looking for impartial reviews of products or services just to find out later that the blogger was paid by the company or received the product or service free in exchange for the review.

So, what could this mean for moms who blog to creat an income for their families?
Take a look at this news video on Mommy Bloggers Cashing In.

Are moms working from home through blogs criminals?  Are Mommie Bloggers breaking the law?

I don’t think so…at least not intentionally.
The concern the FTC has, and the blog readers, is that bloggers are being honest with their readers.  When writing reviews, recommendations, or testimonials, the FTC wants the Blogger to disclose when being compensated in some way by the product/service’s company.

Sounds simple enough.
But how much government regulation actually simplifies our lives?  Every drop of regulation to protect has the potential of restricting our activities and rights.  We must be aware of any unfair restrictions disguised as part of these consumer protections.

It turns out that this law has far reaching consequences beyond anyone writing reviews on their blogs.

Take a look at the MLM Watch Dog website and read what Rod Cook has to say about this FTC proposal at MLM Watch Dog.

According to Rod’s article, the FTC proposes…

• not allowing paid blog reviews
• not allowing product reviews when the product was supplied to reviewer for free if it isn’t disclosed the product was received for free
• posts made on forums or message boards by affiliate without disclosing they are an affiliate
• testimonial section also including negative testamonials

You can read Rod’s editorial notes on the above and on the FTC’s statement at the MLM Watch Dog website.

The concern raised is that the FTC’s monitoring would unfairly restrict the web marketing activities of Network Marketers and MLMers.

The Network Marketing Industry is full of bad deals and scams.  But it is also full of legitimate companies offering realistic income producing opportunities.
Another factor to consider is that Network Marketing (and Direct Selling)  is designed to offer business opportunities to the average person who has no prior business or marketing experience.  This creates a segment of the Network Marketing community made up of novices who do not yet understand the proper methods and ettiquette of marketing behavior.  

Some of these novices…along with a portion of experienced network marketers…may spam or misrepresent themselves, either intentionally or not.  This behavior creates distrust and suspicion in the community, and causes people to file complaints to the authorities.

I suppose the government, the Federal Trade Commission, is doing the best they can.  However, buerocrats are notorious for over regulating industry, especially when they have no personal experience in the field.  Somewhere we have to be able to strike a balance.

My thoughts are that Network Marketers must act as a community to educate each other on how to do this business effectively and ethically and conduct ourselves as examples of effective and ethical behavior.

Lastly, it is easy not to notice our liberties being taken away from us when it is done drop by drop.  Unfortunately, it is only when the gallon buckets are full that we cry for justice.

Wishing You the Success of a Lifetime!
Karen Miller
karen@mlmnetworkingwomen.com
skype ID: karen.j.miller