Outrageuos Income Claims

Discussion in 'Network/Multi-level Marketing' started by Greg82, Mar 24, 2008.

  1. Greg82

    Greg82 New Member

    Ok I am starting to see so many people making all these income claims. Throwing around so called "proof." bragging about how much they have made, flashing their "house" or their "car". It is getting out of control. What ever happened to being humble? First of all what difference does it make how much they made? Shouldn't you be concerned how much they are going to help you make? I cant tell you the number of top income earners I know that do NOTHING to help there team duplicate. The other problem is their team members naturally fell like they have to do what there fearless leader is doing. So they start to make these claims even if the results aren't true out of desperation. This is a huge problem and there are not very many people doing anything about it. I found this site were this guy goes may more in depth about it and talks about what we can do to help put a stop to it. www.incomeclaims.com is the website check it out. This guy really knows his stuff and brings up some great points.
     
  2. BillChechel

    BillChechel New Member

    I agree with you that income claims are getting out of control.

    If you advertise an income claim, you need to be able to back it up with hard evidence. Thats why if you have a good upline, they should be able help you with that. If a new prospect needs a snapshot of a google checkout account, they should be able to provide that.

    The company you are with should provide you with all the legal pitfalls to avoid. If not, you should have an attorney look over what you are doing as far as advertising any income claims.

    If you are looking into a new company, remember these are just "claims" of an income that is possible. They are not average income amounts.
     
  3. Breanne

    Breanne Guest

    I don't believe that it is the best way to lead your business opportunity with anyway. Many people do make outrageous claims to try to convince people to join their business. I think if they really understood what most people want when they are first getting started in a business then they would be more successful and so would their team.

    I think that when most people start a business they are going into it to make money, but it will be very difficult for them if they don't know how to work the business. So I believe that the mentor or sponsor is the most important part, and if they are willing to hold their hand through the process at least to get them started so they can begin making an income faster.

    Making outrageous claims is a major sign of desperation....unless they really are making that kind of money and then should be easy for them to prove if needed.
     
  4. Greg82

    Greg82 New Member

    Even if they are making that kind of money and can provide proof I still think it is wrong for various resons. On top of that how easy it is it photoshop or fake proof? I could show you "proof" thats I made a lot more this year than I actually have. EVEN still even if its real I still dont see the point? What does how much you have made have to do with me and how much I am going to make?
     
  5. BillChechel

    BillChechel New Member

    I agree that income claims should not be the first thing you look at. You should really be focused on the product, business system and commission plan. If you choose a company strong in all those categories you will have no problem making a significant income.

    Be realistic though. No one is going to be attracted to a business where there isnt the potential to replace their income and/or financially set themselves free. By showing the potential of a business is not a problem as long as the new person understands that the income claims are not typical and what the average home business owner is earning, but that it is possible to earn what the income claim states.
     
  6. Greg82

    Greg82 New Member

    Bill,

    You have a excellent point. I agree that you want to get in a company where there is potential to make a lot of money. One way of seeing that is looking at what others before you have done. Looking at how well the product is actually selling.

    With that said another way I could find that out is looking at the total sales that the COMPANY made the year before to see if there is a market for the product.

    I don't personally care what the individuals have made though because If i am good at what I do and a quick learner I will make more. Why would I want to limit my self If i could do better?
    On the other hand I may not be good at the business, I may not have good mentors, So i might not get as good of results as the person before me.

    My point is individuals incomes have nothing at all to do with me or you. Its simply fluff. What you should look for is content not fluff.
     
  7. malibumentor

    malibumentor New Member

    When somebody makes income claims basically what I see
    is a guy trying to impress me.

    Yawn.

    What impresses me is the guy who shoots straight and doesn't
    puff himself up. Furthermore, as a salesman and marketer
    its a good idea to focus on the prospect and his/her needs,
    not upon your own need to impress people.

    Kapish?

    This stuff is proven in scientific market testing. People don't
    respond nearly as well to advertising that puffs up the seller
    as they do to ads which show the benefits to the buyer.

    How to turn your marketing around is a big topic. Its
    something I emphasize when I coach people.

    Just suffice to say that a lot of the dudes who are doing this
    are all hat and no cattle - I have been watching them come
    and go for quite a while in internet years... they come through
    forums, etc... making boasts and then you check out their
    sig-line 6 months later and they have let the business lapse.
     
  8. andyj00

    andyj00 New Member

    This guy: http://www.jimkarter.com/ makes $50K per month. I've found his blog is very helpful and I geniunely belive he is earning this kind of money through online marketing. If you have a look around his blog there are some graphs and charts showing his income.
     
  9. kevin664

    kevin664 New Member

    I agree.

    Bogus income claims have no place in MLM.

    To recruit, lead and grow effectively in MLM means:

    - putting yourself on the line first
    - taking more knocks than the average
    - being a constant student
    - being a constant teacher
    - setting the example
    - growth in all ways, shapes and forms, even when it's uncomfortable
    - being bigger and better than you think you can be

    Let these characteristics spur you into action to running
    your MLM business with integrity.

    - Kevin Tyler Smith
     
  10. mountainmom5

    mountainmom5 Gold Member

    Greg82: I don't personally care what the individuals have made though because If i am good at what I do and a quick learner I will make more. Why would I want to limit my self If i could do better?
    On the other hand I may not be good at the business, I may not have good mentors, So i might not get as good of results as the person before me.

    That is very well said - I totally agree that it is bogus to promise someone they will make thousands their first few months in any online or home business.

    It may happen for some but let that be a happy surprise for them...[​IMG]

    For most online marketers, it will take some time to build up your business and it will all depend on a number of variables...

    Some only have an hour or two a day to build their business... some have no money to advertise...others have all day to work at it, or may have a good avertising budget to get started with...

    Bottom line is - the only way to fail ~ is to quit, in my opinion..[​IMG]
     
  11. BillChechel

    BillChechel New Member

    Whats funny is that I went on everylink in every sig file of someone that posted here and all the sites have a claim of some sort. So I think before anyone is critical of claims in general, they should not have them on their own webpages.
     
  12. mountainmom5

    mountainmom5 Gold Member

    Is there a difference between claims and testimonials - maybe?[​IMG]
     
  13. BillChechel

    BillChechel New Member

    Yes I believe there is but they are kind of intertwined.

    You can make a bogus unfounded income claim that has no proof or testimonial to back it up. At our company we use testimonials to back up our income claims.

    In my opinion, having a testimonial on a site is just a round about way of making an income claim. I never saw a testimonial from the thousands that failed at their businesses. Only the successful ones. They are there to show a new prospect what the potential is, the same as an income claim. But I dont see a problem with any of it, we use it in our marketing too.

    The real problem is for new business owners is the amount of these claims they have to sort through. You ultimately have to address the real reason they came to the business whatever that reason is(more money, more time , etc.) The income claim or testimonial usually is what gets them in the door the rest is up to you and your system.

    I just thought it was funny how everyone does it yet they criticize it when others do it.
     
  14. malibumentor

    malibumentor New Member

    Actually there is a difference between explaining the
    profit-potential of an income opportunity and boasting
    of one's personal income.

    Without some mention of a lucrative pay-plan many
    prospects will be turned away - because they DO want
    to earn some money.

    It is the making of personal income claims and boasts
    that is problematical. Whenever I have told anybody
    how much money I have made in the industry I have
    regretted it - its sets up a difficult "point of reference"
    for the hopeful prospect.

    In any conversation its fairly easy to establish that
    BUSINESS is for PROFIT - and its also fairly simple to
    convey that profits are in direct proportion to EFFORT.

    Once that is established there is no need to talk about
    how much money I am making. The conversation is
    (and should be) about how I can help the prospect to
    set up the foundation for a profitable business.
     
  15. Greg82

    Greg82 New Member

    Bill,

    Everyone does not do it. A lot of people do it. And thats the problem. There are plenty of other ways to sell someone with out telling them exactly how much money you are making.
     
  16. Mark_Worthen

    Mark_Worthen New Member

    Greg82: Bill,

    Everyone does not do it. A lot of people do it. And thats the problem. There are plenty of other ways to sell someone with out telling them exactly how much money you are making.

    I took Bill to mean that everyone who posted in this thread has some kind of income potential statement on at least one of their websites.

    I tell people in my blog exactly how much money I'm making: revenue, expenses, profit.

    Some people say I shouldn't do that because I'm not making $20000 a month. I think that's silly.

    Everyone knows that only 0.1% (or some really small percentage like that) make six figures with a network marketing business.

    I therefore believe that my more modest numbers show prospects:

    a) A more typical 'income statement' from a relatively experienced Internet & network marketer;

    b) By showing my expenses as well as revenue (gross receipts), I subtly encouraging prospects to keep in mind that the most important number is their profit (revenue - expenses), particularly since most testimonials refer to revenue, not profit.

    For example, someone might say they "make $20k a month" but if that's their revenue and they have $19k a month in advertising costs, they are actually earning only $1k per month.

    c) They can earn a decent part-time or full-time income. I say "part-time or full-time" because $4000 a month would be considered a part-time income by some and a full-time income by others.


    I've had one or two prospects question whether my numbers are real right off the bat, i.e., its the first or second question they ask me.

    Frankly, I resent the implication that I would lie and I simply tell those folks that if they don't even take the time to ask some preliminary questions and get to know me first, then I wouldn't want them to sign up with me.

    Questioning the veracity of someone's numbers right away is rude and offensive. I figure if they are rude and offensive now, they'll probably be rude and offensive later. I don't want to even entertain the notion of inviting such negative energy into my life.

    In terms of substantiating my income, the only thing I've felt comfortable doing is providing some documentation to the owner of this web site (Work-At-Home-Forum.com) to substantiate that I generate gross receipts (revenue) of more than $1000 per month, which is the threshold he set for his thread on the subject.

    Mark
     
  17. westfam11

    westfam11 Member

    With most of the leads that I have contacted that is one of the first questions they ask, "How much have you made?" So even though we don't like the big claims, etc. it must be pretty important if that is the first thing your lead is going to ask you?


    Becky
     
  18. malibumentor

    malibumentor New Member

    Hi Becky,

    If a person demands to know how much money you are making
    you are inviting that question through "posture" on the phone.

    When you are just starting out with prospecting you will get
    the question sometimes - and it can be turned around and
    refocused on the prospect - who is probably beligerant and
    would be a PITA to sponsor - so he or she is no great loss
    to you.

    If your leads are demanding to know ohow much money you
    are making it is because YOU are not controlling the conversation.

    Perhaps your script is illiciting the question - or your reading
    of it.
     
  19. mkidd6

    mkidd6 New Member

    When people call me regarding my business, How much do you make is almost the first questions. I tell them that I don't believe it is fair to share that information because what I make is no guarantee what they will make. (They may be much better than I am - LOL)

    Seriously, I may tell them how many people I've signed but I don't believe it ethical to tell someone how much you've made - it can be very misleading. I try to keep the focus of the conversation on the training and support they will receive and give them the information they need on the products so they can make the choice that is best for them.

    I try t be honest to a fault - If lose a sale so be it. Here's the thing, I want them to know up front they will have to work. If I have to pull them in I'll have to carry them as well. My job is to make sure they have the information they need to make their business successful. (That does not include what I make)
     
  20. jschuman

    jschuman New Member

    Money seems to be a natural thing to want to know more about because it's the reason that most people do network marketing.

    I always found that to be an odd question, though, because in all the years I was in sales and marketing in the off-line world I never once had anybody asked me how much money do you make.

    I don't really feel that it is a relevant question in MLM business either because what I make is important is what the income goal of the prospect is.
     

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