New FTC Changes Effecting MLM Industry
How many MLM sales meetings have you been to where you heard testimonials? All of them right? Well that’s about to change and soon. The Federal Trade Commission (FTC) is putting a stop to all of the hype that people have to listen to when they look at a network marketing program.
I’m sure you know what I mean. You go to a hotel meeting, webinar, teleseminar, or whatever to look at a network marketing program (although you probably thought it was about something else) and you hear one person after another tell you about how much money they are making with this wonderful business opportunity that has come along at just the right time and if you don’t get involved NOW, you are going to be missing out.
Well the FTC has made a revision to their guidelines as it pertains to endorsements and testimonials . Here is the excerpt from the FTC:
”Under the revised Guides, advertisements that feature a consumer and convey his or her experience with a product or service as typical when that is not the case will be required to clearly disclose the results that consumers can generally expect. In contrast to the 1980 version of the Guides – which allowed advertisers to describe unusual results in a testimonial as long as they included a disclaimer such as “results not typical” – the revised Guides no longer contain this safe harbor.”
Frankly, I am a little upset about this new rule, only because now that people won’t be able to use testimonials without disclosing the typical results that someone can actually expect, marketers will be forced to use a different technique. I actually like it when marketers use hype to sell there network marketing program because when I come along and tell the actual MLM truth, it hurts their chances of making the sale. Now that marketers won’t be able to use this technique anymore, they will probably start using the methods that I have been advocating for years, creating more competition.
That being said, I am also glad for the changes because money shouldn’t be the main reason for someone to join a network marketing program. Yes, everyone wants to be rewarded for their efforts but let’s not make money the main focus. Instead, I prefer to help people get what THEY want and in doing that if I happen to make a dollar, well that’s okay too.
The new changes start December 1, 2009. That’s right, in just a few weeks! Are you ready to market your business without the hype?
Tags: mlm training, network marketing, network marketing training
