22 replies
I am 99.9% sure it is but want to get some clarification from the Warriors.

Is it illegal to guarantee someone will make a certain amount of money per month if they buy your stuff?

i.e. You will make $4,000 per month your first month if you join our program.

I want to advise a friend who is getting into the IM niche and he doesn't think it's illegal but I do.

Please advise.
#illegal
  • Profile picture of the author Michael Motley
    Its not illegal, but you'll shoot your credibility to crap in record time. You can't base your claims on someone else's work, too many variables, which means too many ways for you to look like a liar, and then sooner or later someone is going to come back on you and say 'i only made xxxx amount of money, you promised xxxxxxxx amount of money, i want a refund'
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    • Profile picture of the author BCNKing
      What I've seen many IM do is to tell you that you'll make that much money if you follow their plan and do as little as x work per day. In the end that little work builds up to being a lot, but then they don't have to refund anyone that hasn't done all that work.
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      • Profile picture of the author htwfh
        Originally Posted by BCNKing View Post

        What I've seen many IM do is to tell you that you'll make that much money if you follow their plan and do as little as x work per day. In the end that little work builds up to being a lot, but then they don't have to refund anyone that hasn't done all that work.
        Not quite ethical, eh?

        ================================================== =========

        I'd definitely stay away from that kind of guarantee! The FTC does indeed frown upon that sort of thing. As mentioned above the first one who doesn't make it puts the whole thing in the crapper, and whoosh... there goes your reputation.

        Brian

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  • Profile picture of the author raylm123
    Not to mention that if you guarantee it, and then they don't make that amount, they could raise issues with the FTC.

    There's a reason that business opportunities always have a legal disclaimer. Why risk it?
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  • Profile picture of the author dvduval
    What irks me a lot of time is "selling dreams" when the seller knows very well there is an almost zero chance of success for the buyer.

    Does your friend feel that ethics are important?
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  • Profile picture of the author Nonny
    Originally Posted by simmonsmike7 View Post

    Is it illegal to guarantee someone will make a certain amount of money per month if they buy your stuff?

    i.e. You will make $4,000 per month your first month if you join our program.
    Well it's not a problem if your friend can actually guarantee that.

    This is what the FTC says:
    Ads for Business Opportunities: How To Detect Deception
    "Earn $2,000 a month." If an ad claims buyers can make a certain amount of money, the law says the promoter must give the number and percentage of previous purchasers who earned the income. If an earnings claim is there, but the additional information isn't, ask for more information: the business opportunity seller may be violating the law. "$50K/yr" "Vending route nets $1,700/wk"
    Advertising and Marketing on the Internet: Rules of the Road
    The Franchise and Business Opportunity Rule requires franchise and business opportunity sellers to give consumers a detailed disclosure document at least 10 days before the consumer pays any money or legally commits to a purchase. The document must include:

    * the names, addresses, and telephone numbers of other purchasers;
    * a fully-audited financial statement of the seller;
    * the background and experience of the business's key executives;
    * the cost of starting and maintaining the business; and
    * the responsibilities of the seller and purchaser once the purchase is made.

    In addition, companies that make earnings representations must give consumers the written basis for their claims, including the number and percentage of owners who have done at least as well as claimed.
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  • Profile picture of the author Steven Fullman
    Of course, everyone assumes you're from the US.

    FTC? Meh.

    ...Can you guarantee those numbers?

    It's easy...you earn $4,000 or your money back.

    It's neither illegal nor immoral to quote a best case scenario...as long as SOMEONE has followed your method and hit the target.

    One person.

    Steve
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    Not promoting right now

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  • Profile picture of the author ramohr
    The FTC will want you to prove it...based upon results of typical people.
    Ask yourself this question is it something that the everyday ordinary
    person can do. The internet is still beyond alot of peoples comprehension.

    Even so called turnkey programs. Plus is the claim realistic or believable?
    People are bombarded with these type claims on the net everyday....

    If you give people something realistic they can believe you will have a better chance for success.
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  • Profile picture of the author The Pension Guy
    FTC is the most popular soccer club in Budapest
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    • Profile picture of the author htwfh
      Originally Posted by The Pension Guy View Post

      FTC is the most popular soccer club in Budapest
      Yeah, yeah, I know. We Americans are just so dang ethnocentric, aren't we?

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  • Profile picture of the author Jon Alexander
    yeah, depends on the guarantee. If you leave it blank, i.e. just 'guaranteed', I wonder if a case could be made against you for the amount if the customer fails to make the sum 'guaranteed'.
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  • Profile picture of the author OmarKhan
    Banned
    I am pretty certain that if the wording follows:

    With our product/service you are guaranteed to make $4,000 a month or your money back. (or we will refund your full price)...

    It is perfectly legitimate.
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  • Profile picture of the author OSContent
    It's probably illegal to make false claims about your product, but it is highly unlikely that any regulatory agency would take interest in your friend's business unless a) it became very large; or b) it involved outright theft or some flavor of ponzi scheme. It could happen, but I've seen a whole lot of highly questionable claims about IM products; and yet I can't recall a single time when a government agency intervened.

    I think the greater issue is why your friend feels the compulsion to lie to his customer base. Is it because his products don't actually provide any value whatsoever and he knows it? Is it because he thinks his products provide value, but he can't prove it, so he came up with the $4000 figure to put something on his landing page? Or is it because someone has made $4000/mo with the product--and others could, too--but he knows that most who buy it will not have the follow-through to do so?
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  • Profile picture of the author marketersva
    I wouldn't suggest it. "No guarantees in the western world ..." as the song goes.
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  • Profile picture of the author FredFarnes
    This forum is full of vendors over-promising and under-delivering. Is it illegal? Probably not. Is it good salesmanship? It sure works!

    For example, there is currently a WSO with the sales pitch

    "The best part is that it is dead easy to set up and repeatable over and over again."
    "Q.) Is it really as easy as you have made it sound? A.) Absolutely"
    "Even if you have NO EXPERIENCE ONLINE AT ALL, this method will work for you."
    "Even if you have never talked to ONE SINGLE BUSINESS OWNER, this method will work for you."
    "Basically, if you follow the steps that I outline for you, this will work for you!"

    I sent a PM to some people who bought it. Guess what? It's not that easy. They follow the steps, and it doesn't make money for them. They are faced with mounting advertising costs to "experiment" until they get lucky and find the right newspaper with the right advert. No, it's not easy.

    I'm willing to bet that most people who paid for this WSO are not making a profit. Aside from the first few testimonials in the advert, no-one else is bragging about their profits in that thread. If they exist, they are in the minority.

    I'm not saying that WSO is terrible, it's probably one of the better WSOs!

    Successful selling = BS and hype, much of the time. Is it illegal? Nah, it's just a salesman's BS.
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    So, you want to sell me another way to easily make "X" dollars in "X" days? ROFL too funny! IM success requires hard work and lots of time. Most newbies do not survive the steep learning curve. Anyone who says otherwise is probably selling you a fantasy.

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  • Profile picture of the author marius80kyu
    Banned
    [DELETED]
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    • Profile picture of the author Kevin Hoeffer
      Banned
      Look these practices have been going on since there was ever a product to market. If you aren't sure if what you're doing is legal, hire a lawyer don't ask a public forum. If you don't have the money to hire a lawyer, there are ways to hide your tracks and fly under the radar. People here will preach against these marketing practices, but for some people they want to do it anyways. Either cover your tracks and do low volume and try and fly under the radar or hire a lawyer.

      Good luck bro
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  • Profile picture of the author Zack Lim
    I feel that you can put a good headline on the salesletter in order to capture the attention of the visitors.

    Even if the method works very well, I will personally put a disclaimer at the end of the website.

    Just my humble opinion

    Zack
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  • Profile picture of the author Michael Rivero
    Originally Posted by simmonsmike7 View Post

    I am 99.9% sure it is but want to get some clarification from the Warriors.

    Is it illegal to guarantee someone will make a certain amount of money per month if they buy your stuff?

    i.e. You will make $4,000 per month your first month if you join our program.

    I want to advise a friend who is getting into the IM niche and he doesn't think it's illegal but I do.

    Please advise.
    I wouldn't say it's illegal but it's morally wrong. You will get a lot of these people trying to persuade others into joining their business by giving them a fake result.
    There is no way someone can make 4 grand in their month unless you happen to be very lucky and worked non stop at it.
    Building an income in a home based business does take time and the only way to reach $4,000 a month is to work consistently at it and make sure you have the right training and advice from sponsors who know what they are talking about.
    A few months ago I did fall into a very similar trap. This individual promised me the world and gave me nothing, he wouldn't even want to answer my emails with great honesty or help me out to achieve the same results he did.
    So beware of these kinds of people make sure you're working with someone you're comfortable with.
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  • Originally Posted by simmonsmike7 View Post

    I am 99.9% sure it is but want to get some clarification from the Warriors.

    Is it illegal to guarantee someone will make a certain amount of money per month if they buy your stuff?

    i.e. You will make $4,000 per month your first month if you join our program.

    I want to advise a friend who is getting into the IM niche and he doesn't think it's illegal but I do.

    Please advise.
    I would offer to refund their money if they don't make the target. It's entirely up to you, but I am guessing that is what your are guarantee'ing anyway. In anycase as long as you follow through with the refunds or partial refunds there is nothing wrong with it.
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  • Profile picture of the author MichaelHiles
    Off topic, but getting around the FTC issues is real easy.

    First of all... just be open and transparent. Don't puff up claims.

    Secondly, get your customer base to post their own testimonials on social media, and then link to those testimonials. You're not making the claim or testimonial, they are based on their own personal experience, and they aren't sellng the product, so they can say what they want.
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    • Profile picture of the author htwfh
      Originally Posted by MichaelHiles View Post

      get your customer base to post their own testimonials on social media, and then link to those testimonials. You're not making the claim or testimonial, they are based on their own personal experience, and they aren't sellng the product, so they can say what they want.
      Good advice for any product or service!

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