Guaranteed Income Claims $2000 a Month? Comments?

[sherry5225]

Hi everyone. Question, feedback!

There is a company that is guaranteeing their distributors that join that they will be able to earn $2000 a month in 10 months.

Any comments on to whether or not this is truly doable or if it is even legal?



Am I out of line?

Should I just mind my own business?

I hate this kind of stuff because it gives us all a bad name and it hurts new people to the industry who aren't familiar with the industry.

[sherryw76]

I don't think it is the company itself that is guaranteeing the $2000 a month, but an independent consultant using this to build a team. I have questioned these ads too. I want to know who pays the money back when a consultant doesn't reach the $2000 a month, the person leading the team or the sponsor who sponsored the person.

[sherry5225]

For the record, here is a good ezine article I found on this exact subject:

Network Marketer - Why Making Income Claims is Breaking the Law

I'm just really concerned because the way the company is running this "guarantee" they are doing it for 90 days ONLY and they are "doing it in writing" so there are going to be a very specific records of all who join this company with guaranteed income, and also specific records of all who enticed others to join with the guaranteed income claims too.

I usually try to mind my own business but I really felt I had to call attention to this because this is more than just potentially "losing money" or "losing out on the guarantee." A criminal lawsuit and/or civil lawsuits can be filed toward the leaders and towards any distributor who has a record of recruiting others by offering the guarantee. Ignorance of the law does not make one immune from prosecution and several people promoting this have been in the industry for 10 years or longer....so they know it's not right.

I'm not attacking anyone personally (other than the owner and the very top distributors of the team.) I write this out of caring and concern for other wahm ladies. Ladies with families and children. I know times are tough and a lot of people are feeling very desperate but if this post/thread causes some people to re-think their position and make the right, ethical decision..........then it could save alot of heartache and grief. People think it can't happen to them but when the summons to court comes it's a complete shock to them and their lives. Lately when prosecutions have occurred they aren't just going for the owners anymore...they will summon individual distributors too.

My understanding is that this company does have millions of dollars in assets....so that makes them an even higher target for the FTC. And in this environment of the government being broke....they will go after this is they get word of it. The case would be a slam-dunk for them.

[coloradowahm]

Ok, not sure why this is such a hot topic for debate...and why one would try to personally demoralize a CEO of a company...

I am proudly part of that teambuilder system that has that wonderful guarantee for the time being. This is not an income claim saying you will make $2k a month. This is a "written guarantee" stating that IF you are not making that amount in 10 months they will refund the amount you spent on our team advertising coop. Why does this bother you so much?

Because of the nature of our teambuilder system and because it's new that for a LIMITED time because of how many people are signing up due to the advertising they are able to do pooling all of our coop fees together ($29.95/mo) that they have worked the numbers and because of how our comp plan works and how it will be filled like a matrix they have been able to figure that out and make that offer. It is an offer that comes from our teambuilder system, however the company has approved this marketing system to go along with the compensation plan.

Once this grows to a certain amount they will not be able to make the same guarantee, being that if someone does nothing it will fill up as fast in 10 mos, impossible once it grows..so this will not last forever.

The company is at the forefront of the green/organic movement. It's debt free, reputable and the products are quite impressive. We have been invited onto TV numerous times, to red carpet celebrity events and have some big names as distributors, one of them being a well known author in this industry...

I'm not understanding why you must make assumptions and have this as an open discussion on a forum? I'd be happy to set up a time that perhaps you can ask these questions to the key leaders themselves if you have an issue? I'm sure they will be happy to address your concerns?

There are many great companies out there with great products. You have chosen to participate in your current companies for your own reasons. We are very happy to be a part of ours. You are more than welcome to get the proper information on our company if it is something of interest to you, however if it's not, that's fine!

It was my impression that we remain positive and upbeat on these boards and not bash any person or company?

[KeishaWilliams]

I feel that I am a fair person, non-biased and make my statements speaking from a non partial point-of-view.

When I heard of this guarantee, Sherry, it was a concern not only for me but a couple others. Those in networking KNOW about income claims etc.

I asked many questions. I am 100% with what Cindy said, was well said. No one is going around saying we made $2k a month and now you can too we can guarantee it. Repeating what Cindy is saying, they worked those numbers etc...(see her statement above)

In addition, this is also in writing. It's not just a statement touted - it's in actual writing.

I can understand if you don't like that our Team Builder offers that, no offense taken on that. That system is also OPTIONAL. But you have people who are excited about the product, and our compensation plan (separate from the Team Builder).

I guess I can't be surprised b/c there will always be stuff said about every company anyway.

What I will say if there is anyone that is questionable/skeptical about what our company offers, not only do we have a FAQs area to answer these questions, we can also get those questions answered directly for you.

That is my only issue. Just come and ask us and we can get the necessary people to help. Its really that simple.

I am going to stay focused, keep promoting this company b/c it's not just about the $$ its a positive message for what our CEO is trying to accomplish. Not everyone will like every company and I respect that. But we have distributors working hard, this is their livelihood, keeping the message clear and nothing to hide. I think a phone call to the distributor you had concerns with would have been warranted to gain peace of mind.

For the record this guarantee is a promotion and temporary. Our top leaders know exactly what they are doing...and I again urge anyone who has looked and have questions, please do ask questions and please do contact one of the distributors directly to get their questions answered.

I won't post here again..I've been a member of WAHM for a very long time, and have seen the back and forths on stuff, and that is not my goal. My goal only is to properly inform of info instead of assuming something is correct without getting all of the information, and to spread the word on organic products that heal and educate people on the harmful affects of products we use now.
ETA ====> I won't come back here so please PM me direct if any questions. ;o) I'd appreciate that. Thanks...

Sherry I've known you for a while and no animosity here, I think yes it's okay to be concerned but I don't think it's okay to 'be on a mission' and spread rumors where people can't get the answers from the horses mouth and tarnishing what we are building.

To everyone's success in ALL of our businesses. ;o)

[vhawthorne]

Thank you Keisha and Cindy is all I will say on this one.

[Nuvia3pays]

There is no way one distributor can guarantee you 2K a month. In this industry, on YOU can guarantee that. Research all of the companies you may be interested in, do your due diligence and find the compensation plan and product you think will get you there. Network marketing doesn't work unless you work it and whomever is claiming that, should stop. It's illegal and they can be kicked out of their current company. All in all, Network marketing has something for everyone, just have to have the WILL/WANT to work for it and they can attain as much as they want.

[sherry5225]

Cindy...I don't know you, but I'm sure I would like you if we met.

Lakeisha and Vickie, I "know" both of you from here for a few years now, and I like both of you and have nothing against either of you.

I've heard many things very good about the company's products.

I looked at the system thoroughly that Paula S has put together and that the company has endorsed.

Have you all worked with Paula before? Have you been on any of her teams before? She's had alot of automated systems with different companies on the net going back to 1997. Most of them have been legal. But this one is not.

I have worked with Paula before and I know clearly that you all are being taken for a ride.

There has been alot of explaining about the system on this thread so far...but so far no one has explained how this advertising is legal.

"Is it legal to make guaranteed income claims to prospects or distributors joining an MLM or network marketing program?"

It's not....if you want me to go find the FTC regulations regarding this I will look them up and post back here for you.

[sherry5225]

Yes the promotion is temporary because of course this type of scheme cannot be kept up for long.

Cindy...to answer your questions...I purposely opened this discussion on an open forum because I wanted people to be informed....that they are liable for what they individually say or present to the people they recruit.

This is especially important for people new to the industry.

Take care.

[sherry5225]

Here is a statement straight from the FTC website regarding liability of the individual distributor for passing on an unrealistic promise.

"Keep in mind that if you solicit new distributors, you are responsible for the claims you make about how much money they can earn. Be honest, and avoid making unrealistic promises. If the promises fall through, you could be held liable, even if you are simply repeating claims you read in a company brochure or advertising flyer, or heard from another distributor. "

Found from: The Bottom Line About Multi-Level Marketing Plans | BCP Business Center