MUST READ FOR MLM-ERS: What CAN You Say (and NOT say) In Online Ads

Ever created your own capture page, online ad, website, banners, and so on, for your "online business"?

Did you just throw in whatever you think would capture a click, or are you aware of the LEGAL implications of what you write?

Oh, but you're thinking, there are LEGAL implications?

Of course there are, silly. Else you can be charged with false advertising, making deceptive claims, and not only get yourself in trouble (such as termination of your enrollment in the company), you may even get the company in trouble for allowing you to make such schemes!

Never happen, you say? Don't be a moron. FTC have gone after PLENTY of people who made bogus claims, and others have sued companies for allowing their affiliates to make such claims. Mannatech was sued by multiple Nobel laureates for letting its affiliates falsely associate the Nobel laureate to Mannatech products. Kevin Trudeau was sued multiple times by FTC for making fake claims selling various products.

Ah, but you ask... What do you need to know?

I'll bet this is something one of you or your uplines would know! They can't help you (probably).

What you need to do is read this article from Kevin Thompson:

http://thompsonburton.com/mlmattorney/2013/05/22/ftcs-disclosure-guidelines-for-online-marketing-how-to-get-it-right-part-1/

Bad Argument: The Open-Mindedness Strawman

Open-minded image
(Photo credit: Wikipedia)

When promoter of a questionable scheme that claims to have something new and exotic, cannot refute your logical criticism, they will often summon the "open-mindedness strawman". Basically, they accuse you of being closed minded and not accept their idea of business or product.

Here are a couple examples, all real comments posted to BehindMLM:

• I’M AN OPEN MINDED OPPORTUNITY SEEKER. This sounds like a good opportunity.
• We give away FREE “membership” cards to open minded people we choose to invite to share in our good fortune. 
• Open your mind! Maybe, just maybe, life does not have to be crap? You do not HAVE to LOOK FOR NEGATIVES in truly amazing opportunites?
• Since you are not ready to open up your minds and accept the new thing you will not be able to cherish this new concept
• and many many more. 

The problem is their definition of open-minded is NOT the dictionary definition. The dictionary definition of open-minded is "willingness to entertain new ideas". It means to consider and evaluate new ideas. It does NOT mean ACCEPT new ideas without evaluation and deliberation.

To promoters of questionable schemes, open-minded means "accept whatever I said as the truth, and ignore everybody else".

Never mind any proof or logic that points the other way.

Don't quite see it? Here's an example:

A: I believe in T because of X, Y, an Z.
B: T is wrong because of I, J, and K. Your use of X, Y, and Z are wrong because of _____.
A: You are just close minded! You refuse to accept T as real!

If A had analyzed B's position, and can explain why his rejection of X, Y, Z proof are not correct, and/or explain why I, J, and K does NOT disprove T, and they are all solid logic, not fallacies, then he would be open-minded. However, in this case, B was the open-minded one because he had studied A's position and have rejected it due to evidence and logic. A's refusal to even CONSIDER B's position is all the more ironic in that he's the close-minded one, yet he accuses B of being close-minded.

What If Online Scams are Real People At Your Door?

Hapstance Film made this short film called "The Inbox", and it's absolutely hilarious.  Imagine all those online scams in your Inbox... except they're real people in your home... And this is what it would look like.

http://gizmodo.com/what-online-scams-would-look-like-if-they-were-real-peo-508003494

CNN and AllVoices Spammed by Fake University Report

CNN has a feature called iReport, where it engages regular netizens into helping CNN with certain coverage of hot events as well as some local or national interest stories. Unfortunately, it seems that scammers have managed to infiltrate a fake article advertising a nonexistent university (so-called "empty diploma mill") called Riverbanks University. 

Below is the CNN iReport, as shown at 10PM, 20-MAY-2013

This alleged report was posted in March, and was the ONLY report ever posted by this user. 

A quick check of the photo provided shows it's just a stock photo from iStockphoto

Zeek Rewards Receivership Updates Claim FAQ

Any one who is filing a claim should read the FAQ

http://www.zeekrewardsreceivership.com/claim.php

China hands out Death Sentence to Ponzi Schemer (not the first time)

Wenzhou in China (Photo credit: Wikipedia)

As reported by court website in Wenzhou, China through Nasdaq news website, Haiyan Lin, 39, has been sentenced to death for her role in leading a $428 RMB ($70 million USD) Ponzi scheme since 2007. The scheme came apart in October 2011 and she was arrested.

A different woman in the same region, Ying Wu, had her death sentence commuted to life without parole recently when an outcry over equivocal evidence presented at the trial. She was accused of running a $60 million USD Ponzi when her attempt to expand her nail salon franchise tanked.

HILARIOUS: The evasive deflection of reasonable questions to MLM

English: Speech balloons. Question and Answer. Icon for FAQ or Help. (Photo credit: Wikipedia)

There are some perfectly reasonable questions to ask an upline that tries to sponsor/recruit you, and some folks out there, "veteran MLMers" have written answers to them.

Frankly, some of the answers are total crap. They are evasive deflections that may work on naive and gullible sheeple, not genuine prospects that you hope to turn into sales leaders that will sell a lot of stuff and make you rich in NMLM (if NMLM works the way it was supposed to work, but that's another story).

I ran into one such article, titled "Handling the Top 6 Questions People Ask About Joining a MLM company" written by a Melanie Michelle, and it's truly hilarious. Virtually every one of her answers could be cited as a "bad argument". Let us examine her article here:


Question: How much money are you making?

Her Answer: It’s really is none of their business. However, this is a great way to answer that question: “My lifestyle requires a different dollar amount than yours does. I am very happy with what I’m making. Don’t focus on how much I’m contributing to my household, but focus on how much you want to make and we can both work towards your goal.”

Why this answer is wrong: This can be roughly summed up as "How much do you want to make?"  And answering a question with another question is a deflection. Here's the same sort of Q&A, albeit about a much older profession...

Q: What's your name, pretty one?
A: What do you want it to be, sugar? 

A Much Better Answer: I think what you meant to ask is... How much can YOU make, realistically, in the first year, right? Honestly, I don't know. I am not you, I don't know how good you can sell, though I know you like the product(s), and that goes a long way....

Bonus Brutally Realistic Answer that no upline would give: First year? Almost nothing after expenses, perhaps not ever.

Chance of that answer being given? Zero.


Question: Why do I have to pay money to join?

Her Answer: What business can you get for free? If you start a traditional business you have to pay for a business license, storage, rent, overhead, and much much more. When you pay to join an MLM company you are starting your own business. It’s almost like paying for a franchise except that your investment is much smaller and you have minimal expenses. Don’t worry about why or how much does it cost, but rather ask how much it can make you.

Why this answer is wrong: The answer doesn't answer the WHY. Her answer is an evasion: "but a 'real' biz cost money too, then a half-lie 'you have minimum expenses', then a deflection 'think about how much it can make you'. Sheesh!

A Much Better Answer: (I am assuming this is a legal business)  The signup fee is $X for membership paperwork and setup. The rest is for a "starter kit" that contains ____, ____, and ____ that you can try out and start demonstrations almost right away.