Vemma FTC and Network Marketing – What it Means For You and Me
Welcome to the Street Smart Wealth Podcast, show #185. Click the icon, top left (right between to two title links) to open the player and listen in!
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Vemma, the FTC and What It Means For You
On August 26, 2015, a federal judge in Arizona issued a temporary shut down of Network Marketing company Vemma, based in Tempe, Arizona.
According to the ruling, Vemma is operating a pyramid scheme that promised college students riches if they sold its nutritional drinks, but most ended up losing money. And, a lot of parents were not happy!
Unfortunately, most of the claims do involve college students who claim they were duped into thinking they could easily make $50,000 a week, and were encouraged to incur debt to do this.
The challenge with this age group is that they can often get extremely overzealous in their claims, excitement and what they share with others, without regard for laws, FTC compliancy issues, or how this might ultimately affect their company.
So, as we all await a September hearing, what can we do, as members of the Network Marketing profession?
First, let’s all be supportive of Vemma. I am no expert, but I don’t believe they are an illegal pyramid scheme, and I doubt that the CEO, BK Borekyo is guilty of violating laws.
I don’t know, and I am not an attorney, nor am I with Vemma, but I have met him; and know many from the company who are solid, stand up individuals.
Let’s not be vultures, circling those who have just lost their vision, their company, for the time being, and for many, their paychecks and livelihood.
Instead, let’s band together as a profession and show compassion, and integrity so that other’s aren’t left shaking their heads, saying – “See, I told you so!”
Next, how do we protect ourselves?
First, don’t make claims of any kind.
Not income claims, or product claims, especially for those in nutritional companies.
Do not use the word – investment.
Do not make any promises of what can happen if you just do this.
Instead of making income claims, show the income earnings disclaimer offered by your company, no matter how pathetic it might look.
Here is what I say when soneone asks me about what they can expect to make –
Well, we have people making 7 figures and people making nothing. Where do you want to fall in that range? Let’s sketch out a launch strategu and business plan to get you there.
Share your own personal stories and never use the word – cure. You can say your symptoms are better. Share the stories of others, and again, be careful with word choices.
And, never under estimate the value in customers. Choose a company that values the customer model and have some ongoing, steady customers who are not part of the pay plan.
Learn more about building an effective Network Marketing business both online and offline in my Direct Sales Online Coaching Program!
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