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Federal Regulations And Full Disclosure About Testimonials & Endorsements
The FTC (Federal Trade Commission) introduced new rules about the use of testimonials effective December 1, 2009. (See full text here: http://www.ftc.gov/os/2009/10/091005revisedendorsementguides.pdf)
The basic rule is: From now on you can't just quote the happiest and most successful testimonials, you have to disclose how "everybody" does and what "average" is. And anyone getting paid to promote as an affiliate must disclose that fact in any online promotions or endorsements.
Some people are very, very concerned about this because their business is built on the foundation of misleading their prospects. And these people should be concerned, they are a stain on the entire network marketing industry.
Leaders Club welcomes these new rules...
The only problem for honest marketers is that knowing what "average" is, isn't always that clear. So for the purpose of transparency, we created this page to fully explain what's average and not so average for Leaders Club members/subscribers.
Here at Leaders Club we have never resorted to hype, have never directly paid for a testimonial or endorsement nor have we posted fluke success stories that in any way misrepresent the success a subscriber can expect with Leaders Club.
We confess that when we get emails or members posts with glowing success stories we ask for permission to use them on our website and in publications. When we get complaints and gripes we don’t, and we don’t post them.
What we post, however, tends to be a cross section of the typical results our customers receive. Over the years we have conducted extensive research into the success of network marketers in general as well as our own members and subscribers.
As crusaders for the good of network marketing we reject all tactics related to manipulation, deception, or dishonesty. Moreover, under the new FTC rules we hold that marketers using such tactics are hurting the companies they represent as well as our entire industry.
In the interest of full disclosure, here is the entire spectrum of our customers' success and failure - from bottom to top:
60% - do little or nothing at all. They may listen your our audio training or skim through one of our courses or browse through our articles. They may pick up some pointers, say on prospecting, leaving messages, or generating leads. While they get some benefit, they don’t invest themselves into fully taking advantage of it. Most sponsor the industry average of about one person every 7 months. This is what we believe the typical customer gets.
23% - take the education process seriously. These people read, listen, learn and apply what they find here at Leaders Club. They may learn about Consultative Prospecting, Collateral Marketing, or the open communications process and they typically apply it to their own marketing, phone prospecting, websites, blog topics, emails and more. They find that their investment easily pays off in easier, more natural and more consistent sponsoring.
10% - make improvement a habit. They don’t just prospect once, they do it every day for a period of months and begin to see very significant improvements. They set achievable goals with clear action steps. They test, track and adjust their marketing and prospecting process as they learn and as their confidence improves. They get 3 to 8 times the typical industry sponsoring results.
5% - are dedicated to being true leaders. In addition to doing all the above these people truly attempt to understand the mindset of their prospect and customer. They have working multi-layered follow-up campaigns for prospects that are not yet ready to do business with them. They become active participants in our live coaching programs and get specific answers to their marketing, prospecting and leadership questions. If they don't know how to do something they find out how. Their sponsoring numbers tend to be at least 30 times better than average.
2% - embrace total mastery. They don't just understand their prospects and customers; in some ways they know them better than the customers know themselves. They test their marketing religiously, they track results and they adapt what they learn to their process. They avail themselves of every educational opportunity and they have the attitude that they only need to learn and implement one solid idea from a seminar or coaching program and it will pay for itself several times over.
(More disclosure: just because you're in the top 10%, top 5% or top 2% does not guarantee success. Even the best students of ”conceptual network marketing” fail from time to time. Some may fail as much as two thirds of the time. Wrong product/service, wrong timing, wrong company, takes too much money to reach the target market, the reasons are endless. BUT: They look at unsuccessful projects as testing and not failure. We learn to not take it personally.)
Leaders Club Bottom Line Stats: In multiple industry and customer studies we have conducted since 1994, less than 3% of marketers industry wide earned over $200 a month. In contrast, we found that approximately 30% of Leaders Club subscribers earned over $200 a month, that's a 1000% improvement over the average. Still, our stats do not guarantee your success. We know really sharp people who despite giving 100% have taken a beating during the last year or two. Some of them have even gone bankrupt. Simply buying things from us or anybody else won't save you from the reality of life on our planet. But they are resilient and they have developed real conceptual network marketing skills. They'll be back and when they return they'll be tougher, savvier, and better able to weather storms.
(There are some people - a bunch of opportunists that just happened to be at the right place at the right time - who will not "be back." They never developed prospecting skills in the first place, they were just lucky.)
We don’t promise success. We just promise that we will deliver the highest quality of fact driven network marketing business advice we can. Advice that is actionable and will deliver immediate results and that is testable, measurable and accountable. (See All The Benefits of Membership)
Regarding affiliate promotions. Leaders Club does not participate in, nor are we in any way compensated by any affiliate or network marketing companies. Our staff is prohibited from participating in activities that could be seen as jeopardizing the neutral status of our company. As a member, or even just as someone who has requested info from us, you won’t be subjected to pitches for other affiliate programs or products and services that don’t come directly from our company.
Note: The failure of marketers to disclose the full nature of sponsorship and typical customer results is now a violation of US Law - specifically Section 5 of the FTC Act (15 U.S.C. 45). If you find claims of above average or unqualified success on other site without a full disclosure, chances are you are being scammed.
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