Last Sunday I had the pleasure of being a guest host with my friend Tom Chenault of the Tom Chenault Show. It wasn’t my first time on the show and I am glad to say it won’t be my last either. Tom and I are working together to help people achieve their goals working from home by providing them with direct mentor-ship… maybe this would be right for you.
I wanted to provide you with the recording from last weeks show and provide you with the details for this Sunday also. Regardless if you are already building a home based business or just doing research in an effort to learn how to make a full-time income from home, the radio show will provide you with a ton of actionable content and inspiration to move forward in pursuit of your dreams. (To Read the Complete Post and Listen to the recordings of the show, click on the title link above)
Wrapped up another Friday Worldprofit Bootcamp with George Kosch with a great appreciation for being with Worldprofit since May 2010. As I write this article I have enjoyed real profits for 28 straight months. The company is 18 years old, so it has a proven track record of success. Everyone gets giddy about new launches which I have no problem with, but what I get giddy about is quality and the value of businesses that are built to last.
If you are a regular reader of my blog you know I am a HUGE fan of the multiple income streams model and I work to master the model every day. Yes, I want to master the art of creating endless unique income streams.
My advice is that you should focus on one primary business and created automated sales funnels that create multiple congruent income steams to support a diverse and sustainable business.
I joined Worldprofit because it serves as the perfect traffic and lead generation program to support my primary business. Worldprofit is a training, traffic, and lead generation platform designed to help you leverage up any viable business you are building.
I wanted to provide another sneak peek behind the curtain to see a small part of what is available to you when you join me and my mentor-ship program in Worldprofit. In this video George Kosch reveals the core components of our system which evolves with new benefits and features every month. (Click on the Title Link above to read the complete article and watch the video)
The #1 topic of conversation the past two weeks on my web-conferences and forums has been the FTC, SEC, Zeek Rewards, and how to correctly evaluate business opportunity programs. I have made the comment several times that the Federal Government makes it all very clear in their rules and supporting documentation. In the end their intent is not to harm you as the entrepreneur, but rather to protect consumers and provide guidelines so that business owners remain compliant with the law.
I have previously posted articles concerning the FTC rules concerning website compliance and I certainly will continue to write on this topic in an effort to help you stay clear of the law. One of the keys to building a business that is sustainable is building it legally based on integrity within the rules and recruiting in an honest way.
I am not an attorney, so to share my opinions about the rules or offer my interpretation of the rules would provide little value for you. Therefore, I have decided to provide you with three crucial resources to help you better understand your obligations under the law.
1.) The Business Opportunity Rule Video
2.) The FTC Facts for Consumers PDF Document for immediate download
3.) A Summary of the Key Points (taken directly from the FTC)
Once you have watched the video, read both the PDF and the summary below… you will possess the knowledge to make better informed decisions about what program(s) to join and how to promote them with integrity.
Step 1. Watch the Video
The Business Opportunity Rule Overview and Key Provisions
Under the Rule, sellers have to give you a one-page disclosure document that offers five key pieces of information. Use the information in the disclosure document to fact-check what the seller tells you about the opportunity and what you find out from your own research.
The document has to:
identify the seller;
tell you about certain lawsuits or other legal actions involving the seller or its key personnel;
tell you if the seller has a cancellation or refund policy. If so, what are the terms of that policy?
say whether the seller is making an earnings claim. If so, the seller has to give you another document called an earnings claim statement; and
give you a list of references.
The Rule says that a seller has to give you the disclosure document at least seven days before you sign a contract or pay them anything. Use that time to check out the information in the disclosure document, including contacting references. Be aware that some questionable bizopp promoters have been known to name “insiders” who give glowing – but bogus – recommendations. Don’t just talk to the few people they suggest. Choose whom to contact. What if what the seller is telling you is different from what’s on the disclosure document or what you hear from another buyer? Step on the brake. An inconsistency could be a tell-tale sign of a bizopp rip-off.
In addition, the disclosure document has to be in the language the seller used to offer you the bizopp. If you discussed the deal in a language other than English, the document has to be in that language. Also, the seller has to make it clear that if you buy a business opportunity from them, your contact information will be given to prospective buyers in the future.
The earnings claim statement
What if the seller makes a claim about how much money a person can earn? Under the Rule, they have to give you a separate document that says in big type across the top: EARNINGS CLAIM STATEMENT REQUIRED BY LAW.
This document has to include:
the name of the person making the claim and the date;
the specifics of the claim;
the start and end date those earnings were achieved;
the number and percentage of people who got those results or better;
any information about those people that may differ from you – for example, the part of the country where they live; and
a statement that you can get written proof of the seller’s earning claims if you ask for it.
Since the Rule gives you the right to see written proof for the seller’s earnings claims, savvy buyers exercise that right and study those materials carefully. Compare that information to what the seller has told you about how much money people make. If the dollar amounts don’t line up, your best bet is to walk away. Like the disclosure document, the earnings claim statement has to be in the same language that the seller used to communicate with you.
The revised Business Opportunity Rule spells out that certain practices are against the law. For example:
It’s illegal for bizopp sellers to say anything that contradicts what’s in their disclosure document and earnings statement.
Under the Rule, sellers can’t claim they’re offering you a job when they’re really promoting a business opportunity.
The Rule makes it illegal for sellers to misrepresent the nature of the investment – for example, to claim they’ll help you line up locations, outlets, accounts, or customers or that you’ll have an exclusive territory if it’s not true.
The revised Rule puts new protections in place for prospective buyers. But for added protection, take the time to find out what the Rule requires of sellers. Did they give you the disclosure document with the five key pieces of information? If they made earnings claims, did they give you a separate statement with the specifics? If you spot a seller who isn’t complying with the law, it’s a red flag: You could be in the cross hairs of a bizopp scammer.
What else can you do to add an extra layer of protection? Before you buy a business opportunity:
Study the disclosure document, the earnings claim statement, and the proposed contract.
Insist on seeing proof in writing for earnings claims, including statements like “Earn up to $10,000 a month!” Phrases like “up to” aren’t a way out for the seller. It’s an earning claim and it’s your right to demand proof.
Interview current owners of the seller’s business opportunity. Ask the tough questions – like if the information in the disclosure document matches their experience with the company.
Listen to sales presentations with a critical ear. They are – of course – trying to sell you something.
If a seller doesn’t give you the information you know they have to provide, walk away.
Consider getting professional advice. Ask a lawyer, accountant, or business advisor to read the paperwork before you sign.
Check out the seller with your local consumer protection agency, state Attorney General’s Office, and the Better Business Bureau. Do a few internet searches by entering the company’s name and “complaint” or “scam.” You could get an eyeful. But be wary: No complaints doesn’t necessarily mean the company is legitimate. And scammers have been known to post phony testimonials online.
My Final Thoughts and Advice
In the end… it is your responsibility to understand the rules!
The network marketing, direct sales, and Internet Marketing professions all present a tremendous opportunity for anyone interested in creating a part-time or full-time income. In my experience, the legitimate programs require work and consistent application of daily disciplines to achieve results. There are no shortcuts, so make a commitment to yourself.
When evaluating any business opportunity engage in a disciplined approach to due diligence, make sure you know the program is compliant and set-up to provide you with a fair chance of accomplishing your goals.
Don’t be afraid to ask tough questions and require the person recruiting you to measure up to the standards you would require of any professional.
Please feel free to post a comment below and share your thoughts and questions about the FTC Business Opportunity Rules and the experiences you have had within our profession.
I am here to help you succeed, please let me know how I can make a difference and impact your life!!
(c) Copyright 2008-2012 and Beyond James A. Holmes All Rights Reserved
Contact James by phone at 303-523-9503 or email at james@AskJamesHolmes.com
Note: If you’d like to reprint this article on your blog or in your newsletter you have permission to do so as long as the copyright information and the resource box above remains with the article.
It would sound better if I told you that I have made great decisions 100% of the time during my four years in the home-based business industry. But as you know, I am all about keeping things real with you at all times. So, I must confess that I have fallen for the “big deal” twice and I am going to share those stories with you here. Before I do, I want to share a valuable lesson that I learned from my first network marketing mentor Eric Worre.
I entered into network marketing for the first time in 2008 with Agel Enterprises, where I met Eric Worre, Randy Gage, and Randy Schroeder… I know that is quite an impressive field leadership team. Early in my experience I flew to Los Angeles to attend an Agel event hosted by Eric Worre, during his opening comments he made a revealing statement that I remember as if I heard it just yesterday.
So what was the big revelation? Eric said “every time I hear about the ‘big special deal,’ I know that the end is near.”
I heard what was said but I didn’t really accept it as true, so along my journey over the past four years I have been seduced twice by the tempting and all too good to be true ‘opportunity’ and I want to share my experience with you to help you learn from my mistakes. (To read the complete article click on the think link above)
I interact daily with dozens of people all driven by a common goal to make money online and change their lives in meaningful ways. Among the most commonly asked questions are those focused on whether or not it is difficult to make money online. This is understandable because the Internet can be a very confusing place with so many promises of easy riches and push button profits, it is easy to see why people become discouraged when these programs fail to produce results for the great majority of people who try.
The key to succeeding online is approaching your business objectives with the proper mindset, one that allows you to see the possibilities and determine a path that will lead to your success. There is a transition must be made to become a successful online business owner… a transition I call going from ‘e to E.’
What is e to E?
Understanding the difference between how e = employees and E = Entrepreneurs are paid is a critical piece of the success formula, failure to understand this foundational concept will lead to discouragement and frustration on your journey. Let me go one step further, the lack of understanding of the transition from e to E is responsible for the failure of more budding entrepreneurs than any other single factor.
How are e = employees compensated?
employees are compensated by exchanging time for money, which is usually predetermined based on an hourly rate or salary.
How are E = Entrepreneurs compensated?
Entrepreneurs are compensated as a derivative the problems they solve and/or the value they provide to the marketplace. Typically, the level (or amount) of compensation is proportionate to the size of the problems solved or sheer amount of value provided. Isn’t that a beautiful thing?
Based on this truth, you can understand why you must avoid logging hours when you launch your new business. Forget about the hours you spend and understand that you will likely be under compensated for a period of time. If you refuse to quit you will eventually reach a tipping point and begin to earn based on a whole new set of guidelines. Once you have broken through to the entrepreneurial standard you will earn based on your true worth and not as a result of the number of hours you work.
What do you mean by hard?
Understanding the degree to which you are willing to sacrifice to achieve your dreams is another critical piece of the success formula. I have always believed that the definition of ‘hard’ is an individual one and is directly tied to your mindset. So what if it is hard…what matter is whether or not your dream worth it to you.
Here is a short video that might change the way you see your world and redefine the meaning of the word hard in your life. This video changed me, I already possessed a strong mindset toward self-sacrifice and hard work… yet this still caused a change in my perception of challenges. (Click on the title link above to watch the video and read the full article)
It has been a while since I updated you on my growing success with Worldprofit both as a viable income opportunity and a traffic platform I use to grow multiple income streams. As I write this post, I am completing my 19th consecutive month in profit since joining Worldprofit in May 2011… November will be the second most profitable month to date.
Recently George Kosch, Co-Founder and Chief of Technology for Worldprofit, Inc. conducted a live webcast detailing several key elements of their amazing systems. It is difficult to highlight more than a handful of dozens of innovative automated traffic and search engine optimization tools available to Worldprofit dealers. In this video Mr. Kosch details several core benefits available to Silver and Platinum members, which allows you to see what Worldprofit sells and discover how you can make money with Worldprofit.
(Please click on the title link above to read the full article)
I am often asked what is the best model to use when starting a business online and the simple answer is the one that works for you. Sounds logical but the best answer requires a bit more explanation along with a few examples of the core types of businesses you should consider.
I recorded a new podcast episode that addresses each of the core models along with additional insight and advice. Here is my show player… click the start button and be sure to take notes.
Assuming that you are clear on your objectives and the motivation behind your desire to start your business you should be able to build your business around one of these core models. As your experience grows you may venture into more than model as I have done… this is my advice as long as you maintain disipline in runing your businesses.
(Click on the Title Link to Read the Full Story and Listen to the Audio)
I was interviewed by Elysse Curry author of “How to Get the Real Deal Without Getting a Raw Deal.” I was her inaugural guest for the “Spotlight on Business Professionals” podcast. we discussed a wide range range of topics on how to achieve Internet marketing success. I recently received some nice comments regarding the interview and the content we provided. I thought it might be of interest to my readers and I hope you take away at least one great idea that will become actionable in your business today.