Love the new ruling - it will keep the hypesters at bay but hopefully they'll see these videos and want to be less hype - more network marketing pro.

It is not a problem for me. I don't misrepresent anything. I also don't pay endorsers.

Thank for keep me up date... :)

All this is thanks to the scammers out there.

I really don't know how companies will be able to arrive at a typical outcome.

Good information. Thank you.

Great topic...I don't think it will have much impact on responsible Network Marketers and responsible companies. Tighter regulations can be good in many industries as they help to weed out those who either don't know what they are doing or do know what they are doing yet doing it in a "shady" way. Thanks for sharing!

Thanks for this. I've been listening to a lot of stuff about it. Here's a link to a looonnnng but detailed interview with an FTC guy about it. Some mentions of MLM but mostly of interest to those running websites etc. http://jimedwards.s3.amazonaws.com/ftc-advertising-interview/index.html

I think that if you want to be network marketing professional you also need to have some guidelines to keep the unprofessional people out. Professionals do not need to hype claims. I like the ruling

I think it's awesome! For those of us whose companies already do this, and operate above board, this now levels the playing field! Other companies will have to stop making outrageous claims!

Wouldn't it be great if truth in advertising applied to all industries and businesses? What if celebrities who endorsed products were actually required to use them...

Bravo to those Network Marketing Professionals whose personal values require that they speak honestly and are truthful!

It sounds to me that the ruling the FTC made, is a bit ambiguous. Without a gragh showing the range between typical and atypical, the ruling leaves it pretty wide open. I mean one persons reality can be much different from another.
I am new to network marketing. I just wanted to express how great it is to have discovered NMP. You have been the encouragement and enthusiasim that I have needed. It is tremendous to have the insight and wisdom of the those who have had success in network marketing. I am convinced! We do have a better way!
Merry Christmas everyone!

Interesting decision, although I've never really been one to spout about how much they can make. What I prefer to do is paint the picture with their dreams and what can be possible. Ultimately, with our pay plan, they usually go home and lose sleep with numbers dancing in their heads. As for product hype, I am simple and straightforward. I let them know what the product was designed to do, what it's done for people and what it is doing for me.
All in all, this decision will boost the fairness awareness within the mlm industry, especially when you talk to someone about it. In fact, by telling them about this decision, one can open up with prospects and allow them to feel comfortable and not like they're going to be fed a pipe-dream which usually leads to the lottery dream.
98 more to go ( but I see it being more because it will be a habit by then. )

This law is great for us, the entrepreneurs, who chosed NWM as a profession. People will realize that when it comes to purchase a service or product, the best is to get recommendations and consultation from those who experienced and those they know that can give them a genuine recommendation.

Some great comments on this issue. I`m proud to be a part of this " Club " - Merry Christmas

I think it's awesome! For those of us whose companies already do this, and operate above board, this now levels the playing field! Other companies will have to stop making outrageous claims!

I think that what might be typical for one,may not always be for another. Maybe the companies will just have to take an "average" amount from the middle of the range associates or distributers.

I dont think it will be a problem for most MLM companies. I think the problem is the reps the are too hungry for a sale and say anything to get people to sign on the dotted line. Then leave the new prospect sitting in the dust not knowing what to do next. Thats where our industry gets a bad name. Just like any other job or business this is not for everyone. As mentioned in the video alot of people join after a fancy presentation with the Big Ring earner and they say WOW I think I can do this if they can. Where I think the disconnect is there is little training or knowledge transfer after the initial buy in to the opportunity. Thats one reason I highly recommend this site to anyone in or looking at MLM as a way to have a real inside look at our industry.

My view is the industry did nothing to stop even top tier companies making claims that anyone could make a 6 figure some in their first year, pick their highest earners and then get sworn affidavits. It's only after I joined I learned that in a properly conducted survey of 8 top earners in 8 different opportunities it took on average 11 years to get to a 6 figure income. Would I have still joined knowing that - heck yes I just wish someone had been honest and said guess what in 10 years if you stick at it you will be in the profit system and financially independent. The alternative stuck in the wage system and with my debts and mortgage. I have no problem with the FTC Regs.

Great comment. We need to tell the truth

Thanks

Let's just hope that people don't get so bogged down in trying to work this out that they stop building their business. I know I wont!
Happy Christmas y'all.

We received the FTC news from our company a few days ago. My opinion is: honesty is always the best policy. We will use scripts like; it can be life changing and/or it has changed my life. I believe in the product so much that I want to say it will change your life. Wondering when wanting to help people became misleading.

I really don't know how companies will be able to arrive at a typical outcome. Too many variables to account for. I liked the example of the Christmas card below from Tyler. What next?

Thank you both for being on top of regulation that can affect our profession, it is very much needed. I think this is a good shift for our industry. If you're in a nutritional based company you won't be able to provide typical results of a product if you don't have that information, so give them a sample and let them experience their own results. I believe this will cut down on claims that tarnish our efforts.

I'm actually confused on what will happen when it comes to explaining income. As I understand it, you can still show what you or others make as long as you also provide typical income information (most likely in the form of an Income Disclosure Statement). Is that correct? So if your company does not have an Income Disclosure Statement, are you not allowed to disclose any income information?

It may actually be better if we're not allowed to show income and instead focus our conversations around how the compensation plan works and what the prospect would have to do to earn the desired income (see Eric's 4 Consulting questions). Also it might provide a universal answer to that common question "How much have you made?", being "Due to FTC regulation passed on Dec. 1, 2009, I'm not allowed to disclose my income." Eric (or anyone else in this community), should we talk about Income (especially with this new regulation) and if so, how?

I agree with Nando, and I'm also wondering about income. I think it's good to come down on people who are using false claims, but I don't think there's anything wrong with stating the truth, whether it be about income or something else. But maybe it's better just to avoid talking about income altogether. People can still give great testimonials about how NM has made a difference in there life without giving a number. What do you guys think?

great insights from the both of you.

QOTD: As for day to day operations of what we do as network marketing professionals I don't think it's going to change much. My personal attitude is: If I loose 17 lbs using a particular product I'm going to feel free to tell people about the product and my experience with it... period.

The company I'm now with does this already. It files an Income Disclosure with the FTC every 6 months, and that statement must be given to every prospect. I think it's an outstanding opportunity for the mlm industry.

If the FTC sent Christmas cards, here's what they might say:

Merry Christmas*

* Results not typical. Average Christmas participant experiences 1.39 hours of actual merriment.

Of course other lawyers might recommend the card say:

"Happy non-denominational period of celebration."

:-)

Hahahahahahahahaha

Very interesting interview. I looked up the FTC ruling. (http://www.ftc.gov/os/2009/10/091005endorsementguidesfnnotice.pdf)
Per your (Eric's) comment about word of mouth, it offers the following:
"Thus, a consumer who purchases a product with his or her own money and praises it on a
personal blog or on an electronic message board will not be deemed to be providing an
endorsement. In contrast, postings by a blogger who is paid to speak about an advertiser’s
product will be covered by the Guides, regardless of whether the blogger is paid directly by the
marketer itself or by a third party on behalf of the marketer."

Following The Golden Rule is the best way to market ANYTHING... "Do Unto Others As You Would Have Done Unto You". There is even more desperation in the world today than there was a couple of years ago. Many people are looking for a "Silver Bullet" answer to their problems ... as Network Marketers we do have a better way... not a magical silver bullet. Up front honest communication about what is possible through the use of products and/or through the systematic development of an action based business plan over time is what will allow people to make the right decisions for themselves....decisions that everyone can feel good about.

It's kind of funny...ever since the new ruling went into effect at the beginning of the month...I have found that the "hypsters" are being even more "hypey" with the their email communication - after all there is a disclaimer now in the email that says that they will be compensated for any product purchases and maybe they figure that gives them more leeway ... there are STILL photographs of commission checks all over the place .... bottomline ... nothing has really changed. Marketers with integrity prior to 12/1 are still marketing with integrity and the hypsters are still hyping things up...

The choice is up to US...to either do things with integrity...help and serve other people first ... or to do things that can hurt other people and our profession in the long run. I choose to help and serve ... and that is what I expect from the people around me.

I am totally with you and Len on this Eric. Great information as always !!

FTC new ruling will just keep everyone in mlm honest about what we are upto.

And if we are following the FTC ruling then we are not a scam....

So I think it is great!!!!

I agree on the essence of the ruling, just hope the FTC can enforce it making sense. This should be great for our industry, making it harder for the people that give false expectations to their prospects.

I am all for transparency...I believe this will be good for our industry.

With respect to network marketing...

This ruling will only serve to create further distance between those conducting business in the industry with transparency, honesty, and integrity and those in the industry that operate though hype, manipulation, and a total disregard for others.

Bottom line it's a good thing - it's going to be a lot easier in the future to differentiate between the true Network Marketing "Professionals" and the MLM douchebags.

Hi from Mexico
In many matters, here in Mexico, our legislators many times follows what is done in other countries, mainly in the USA. We are now seeing the same sex marriage beeing discused in the Mexico City congress. Talking about my country I hope that we could apply some control like the FTC new rule. Many times advertising is so exagerated that people get confused. I believe that for MLM, is better to claim not so spectacular stories that at the end of the day, when people see that maybe it´s true but one in a million story, the quit and starts talking negative things about the industry. The water is going to reach it´s level and we will can go on in this marvelous world of MLM.

From Puebla Mexico, I am Sergio Quintana

I am all for keeping stories real and letting people understand MLM industry is hard work but will pay off if you apply hard work, ethical practices and consistency. Share the opportunity the right way. I am in the process of collecting stories within my company so that I will have a "data base", if you will, to use as need comes up in sharing opportunity. If that makes sense. So I would hope that this is allowed.

Thanks Len for sharing with all of us your thoughts.

QOTD: I believe that this will enhance MLM/Network Marketing. Those that make false claims will be exposed both in traditional businesses and our industry. I'll be interested how this will effect the Jenny Craig, Nutrisystem and Bowflex ads. It also will will only help those of us who learned from you to " BUILD TRAUST AND TRANSFER BELIEF." Those of us who learn that lesson well and share the opportunity the right way, will in the end, make 2010 an UNBELIEVABLE year. Thanks again Eric.

Keep it real when delivering the messages and the MLM industry will set the standards for the others.

My first comment didn't make it so I will try and recreate it. Thanks so much for providing this information to the masses - I did not know anything about it. I think it will create a higher degree of professionalism in that you will have to choose your words more wisely, succinctly and accurately. I think it will increase the ethics and integrity of the industry. However, with so many people representing a company - who will pay the price of regulation - the individual or the company? How do you regulate the few reckless individuals who create hyperbole in any situation. I would also like to know how this impacts those particular companies that offer "sweetheart deals"?

The large income hype some compabies have used to recruit has given the Network markeing industry a bad name. It is not a "pie in the sky", sign up and be rich industry. It takes a plan and a focus followed with dedicated and disciplined effort. Thanks, Eric, for providing info on the ruling.

The intentions of the new rules appear to make it more difficult for some people to market their wares online and off. Already there are organizations and people pitching they will insure your marketing materials will pass muster with the FTC. Someone always turns a situation into an opportunity. General Mills is defending its factual claims about Cheerios at great cost and expense instead of just removing the information from the box. My gut says that the number of complaints has risen to a point where the FTC is tired of telling people in the nicest way possible they should get off the internet, stay out of stores and quit watching TV until they stop falling for every scam and con invented. Al Capone was put in jail for income tax evasion not murder, fraud, terrorist threats, money laundering or selling alcohol. I wonder who they are writing the new laws for. Gifting and Ponzi programs are ALL illegal and there are dozens everywhere online and off designed to fit everyone’s budget. Bernard Madoff proved that. Some innocent people will eventually get hurt by the rules too but in the long run if you are honest and broke they will leave you alone. If you are honest and making too little to warrant their attention they will leave you alone... unless you are the perfect person to make an example of OR you happen to sell something to the mother or wife/husband of a senior FTC enforcement official or state AG. “Magic” words are already appearing on advertisements entering my inbox. I am waiting for enough of them to appear so I can develop my own statement. My current rough draft… The person sending this email will likely, but not always receive money from the sale of anything you buy emanating from this email, links you visit originating from this email or any future conversations you may have with the originator of this email. Others you are unaware of and too numerous to mention may also profit from your purchase. [Imagine that?!!]

Lots of informations we can learn about. Both of you thanks for this, all of this makes us the Network Marketing Professional we should be. Best regards from your biggest fan.

If the rule is to protect the public then it is ok, but in my Country we have yo follow this rule, but other " normal " Companies can buy a Sportsperson and claim he or she gets results on the products. Then the person I`m talking abouth was asked abouth the products and told that he or she did not use it. But the nutrition Company still uses the person in Magazines, papers an on TV saying he or she did. We can`t do the same in our business ( I`m not saying we should , I don`t think we should lie ) but I think it unfear that a " normal " Company have different rules.