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  1. #1
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    Questions to ask from the FTC before joining an MLM

    https://www.ftc.gov/tips-advice/busi...evel-marketing

    If you are looking to join an MLM as a business opportunity the FTC gives some great advice in the link above. Remember to get everything in writing and to never sign during a pitch or meeting, give yourself a couple of days to review all the information before making any decisions. Ask someone you trust who understands business to review the MLM before you join.

    If you cannot get answers to all your questions from the person recruiting you get the contact information from someone in the MLM who can answer all your questions. If it is a legitimate opportunity they will have no issues answering your questions.

    Some great questions from the FTC to get answers in writing for:

    How much money did you make last year — that is, your income and bonuses, less your expenses?

    What were your expenses last year, including money you spent on training and buying products?

    What are your annual sales of the product?

    What percentage of the money you've made — income and bonuses less your expenses — came from recruiting other distributors and selling them inventory or other items to get started?

    Do not be a low information consumer, get all the information and make sure all your questions are answered.

    If they refuse to answer your questions or try to give evasive answers it is probably not a legitimate opportunity.

  2. #2
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    Re: Questions to ask from the FTC before joining an MLM

    Quote Originally Posted by dank111 View Post
    https://www.ftc.gov/tips-advice/busi...evel-marketing

    If you are looking to join an MLM as a business opportunity the FTC gives some great advice in the link above. Remember to get everything in writing and to never sign during a pitch or meeting, give yourself a couple of days to review all the information before making any decisions. Ask someone you trust who understands business to review the MLM before you join.

    If you cannot get answers to all your questions from the person recruiting you get the contact information from someone in the MLM who can answer all your questions. If it is a legitimate opportunity they will have no issues answering your questions.

    Some great questions from the FTC to get answers in writing for:

    How much money did you make last year — that is, your income and bonuses, less your expenses?
    I would say "none of your business, that's between me, my wife and the taxman". I could also say that I don't know as, because of residual income, I am being paid into the future for work I did this year and this opens up the conversation to explain this.
    If they need to know how much they could earn I can easily explain the comp plan to them.

    What were your expenses last year, including money you spent on training and buying products?
    Training expenses are minimal for me personally and personal product purchases are not an expense, ask the taxman.

    What are your annual sales of the product?
    Nil. We refer people to the company if they wish to buy products.

    What percentage of the money you've made — income and bonuses less your expenses — came from recruiting other distributors and selling them inventory or other items to get started?
    Nil in my case, we don't get paid for recruiting (neither does any other legitimate mlm) and we don't sell new recruits anything.


    Do not be a low information consumer, get all the information and make sure all your questions are answered.

    If they refuse to answer your questions or try to give evasive answers it is probably not a legitimate opportunity.
    Not true at all, for my reasons given above.
    Last edited by ChrisDoyle; 05-22-2015 at 01:55 AM.
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  3. #3
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    Re: Questions to ask from the FTC before joining an MLM

    Quote Originally Posted by ChrisDoyle View Post
    I would say "none of your business, that's between me, my wife and the taxman". I could also say that I don't know as, because of residual income, I am being paid into the future for work I did this year and this opens up the conversation to explain this.
    If they need to know how much they could earn I can easily explain the comp plan to them.



    Training expenses are minimal for me personally and personal product purchases are not an expense, ask the taxman.



    Nil. We refer people to the company if they wish to buy products.



    Nil in my case, we don't get paid for recruiting (neither does any other legitimate mlm) and we don't sell new recruits anything.




    Not true at all, for my reasons given above.
    It looks like you are selling people a product and not a business opportunity, that is a different thing. If you do not claim this MLM is an opportunity to make an income the questions about income do not apply.

    According to the FTC your non answers are a sure sign that this MLM is not a real business opportunity. If anyone wanted to join the FTC says they should push for someone who could answer their questions.

    Also I am not sure were you read about paid for recruiting, the question was how much was made from getting new recruits to buy products, services or training. That is very different than a straight pay per recruit question.

    Do not be a low information consumer, ask many tough questions and do not sign until you get real answers.

  4. #4
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    Re: Questions to ask from the FTC before joining an MLM

    Quote Originally Posted by dank111 View Post
    It looks like you are selling people a product and not a business opportunity, that is a different thing. If you do not claim this MLM is an opportunity to make an income the questions about income do not apply.

    According to the FTC your non answers are a sure sign that this MLM is not a real business opportunity. If anyone wanted to join the FTC says they should push for someone who could answer their questions.

    Also I am not sure were you read about paid for recruiting, the question was how much was made from getting new recruits to buy products, services or training. That is very different than a straight pay per recruit question.

    Do not be a low information consumer, ask many tough questions and do not sign until you get real answers.
    Nope, I don't sell anything, I show people an explanation of how MLM works and its benefits such as passive income and the tax savings of running your own home business.
    Not a real business opportunity? Au contraire, many people have been making full and part time income from my company for decades.
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  5. #5
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    Re: Questions to ask from the FTC before joining an MLM

    Quote Originally Posted by ChrisDoyle View Post
    Nope, I don't sell anything, I show people an explanation of how MLM works and its benefits such as passive income and the tax savings of running your own home business.
    Not a real business opportunity? Au contraire, many people have been making full and part time income from my company for decades.
    According to the FTC if you cannot get some answers on income in writing than it is not a legitimate business opportunity.

    The FTC says to find someone in the company who can answer your questions before joining, so maybe you should refer and recruits to the people making an income to get questions answered.

  6. #6
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    Re: Questions to ask from the FTC before joining an MLM

    Quote Originally Posted by dank111 View Post
    According to the FTC if you cannot get some answers on income in writing than it is not a legitimate business opportunity.

    The FTC says to find someone in the company who can answer your questions before joining, so maybe you should refer and recruits to the people making an income to get questions answered.
    I find that our explanation of the MLM business answers most if not all their questions.
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  7. #7
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    Re: Questions to ask from the FTC before joining an MLM

    Quote Originally Posted by ChrisDoyle View Post
    I find that our explanation of the MLM business answers most if not all their questions.
    According to the FTC you should should not join any MLM presented as an income opportunity until all your questions are answered in writing. The FTC says people should not be afraid to ask tough questions and insist on answers.

    A good example would be asking a follow up question to your statement of how much your expenses were. You should not stop asking questions until they are answered.

  8. #8
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    Re: Questions to ask from the FTC before joining an MLM

    Quote Originally Posted by dank111 View Post
    According to the FTC you should should not join any MLM presented as an income opportunity until all your questions are answered in writing. The FTC says people should not be afraid to ask tough questions and insist on answers.

    A good example would be asking a follow up question to your statement of how much your expenses were. You should not stop asking questions until they are answered.
    I find people are happy with our presentation, which is of course, in writing.
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  9. #9
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    Re: Questions to ask from the FTC before joining an MLM

    Quote Originally Posted by ChrisDoyle View Post
    I find people are happy with our presentation, which is of course, in writing.
    They should still ask questions and push until they get answers, maybe they are happy because most people do not ask the right questions and are satisfied with a low amount of information. They should also have a trusted advisor look over all the documents before signing up for anything and never sign up on the same day as the presentation.

    If they make any health claims for the product they should also ask their doctor to review the claims and provide advice.

  10. #10
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    Re: Questions to ask from the FTC before joining an MLM

    Quote Originally Posted by ChrisDoyle View Post
    I find people are happy with our presentation, which is of course, in writing.
    What specific information is in your presentation that would answer the questions outlined by the FTC?

  11. #11
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    Re: Questions to ask from the FTC before joining an MLM

    Quote Originally Posted by dank111 View Post
    What specific information is in your presentation that would answer the questions outlined by the FTC?
    A quick history of MLM and how it's legal.
    An explanation of geometric progression.
    An explanation of residual/passive income.
    A basic explanation of the tax benefits of a home business.

    All information is generic, with no mention of the name of the company or any of their products. That information is for the next stage, if the prospect is still interested.
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  12. #12
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    Re: Questions to ask from the FTC before joining an MLM

    Quote Originally Posted by ChrisDoyle View Post
    A quick history of MLM and how it's legal.
    An explanation of geometric progression.
    An explanation of residual/passive income.
    A basic explanation of the tax benefits of a home business.

    All information is generic, with no mention of the name of the company or any of their products. That information is for the next stage, if the prospect is still interested.
    Why could you not answer all the questions the FTC says need to be answered in the first stage? Why should a person need to show interest in something they do not know everything about?

  13. #13
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    Re: Questions to ask from the FTC before joining an MLM

    Quote Originally Posted by dank111 View Post
    Why could you not answer all the questions the FTC says need to be answered in the first stage? Why should a person need to show interest in something they do not know everything about?
    We find that those are the subjects that will determine if people are interested enough to look further into the business. The next step will teach them about the company, products and pay plan. There is no need to go into how much their sponsors earn, knowing how the comp plan works and how much is potentially available to them along with knowing that all those pin levels have been achieved by someone is enough.
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  14. #14
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    Re: Questions to ask from the FTC before joining an MLM

    Quote Originally Posted by ChrisDoyle View Post
    We find that those are the subjects that will determine if people are interested enough to look further into the business. The next step will teach them about the company, products and pay plan. There is no need to go into how much their sponsors earn, knowing how the comp plan works and how much is potentially available to them along with knowing that all those pin levels have been achieved by someone is enough.
    According to the FTC that is not even close to enough information to make a truly informed decision.

    Why would you not want to give everyone all the information they want so they could make the best decision?

  15. #15
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    Re: Questions to ask from the FTC before joining an MLM

    Quote Originally Posted by dank111 View Post
    According to the FTC that is not even close to enough information to make a truly informed decision.

    Why would you not want to give everyone all the information they want so they could make the best decision?
    With respect to the FTC they're not in the business of building an MLM business just as I'm not in the business of policing them.
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  16. #16
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    Re: Questions to ask from the FTC before joining an MLM

    Quote Originally Posted by ChrisDoyle View Post
    With respect to the FTC they're not in the business of building an MLM business just as I'm not in the business of policing them.
    They are in the business of protecting consumers, they do this by helping consumers ask the right questions.

    The FTC is in the business of policing MLM.

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