Misleading Income Claims

This is the 4th in a series of 6 Open Letters to Direct Selling Companies and Organisations. Every Tuesday for 6 weeks commencing 11 th June, we’re looking at some of the problems faced by the Direct Selling industry.

As enthusiastic advocates and supporters of this industry, it pains us to see the damage done to this legitimate industry sector, by new entrants who do not understand, or who sadly perhaps choose to disregard the ethos of the industry.

Such damage is not confined to new companies entering the sector. Equally, damage may be caused by people who have joined an established business, as a direct seller or as an employee, and then fail to follow the standards required.

We hope you find this series useful…

Open Letter Series – No. 4 of 6 – 2 nd July 2019

In each of our Open Letters we deal with a troublesome topic (or two) and make suggestions for further consideration.

Our focus in this, our fourth letter in the series is Misleading Income Claims.

It is true that direct selling can be a route to substantial earnings and wealth, and it is fair to refer to that possibility. However it is demonstrably true that substantial earnings and wealth are the exception, rather than the rule, and their achievement will depend upon numerous factors. There is
no magic answer.

If the exceptional success of participants features in a DSO’s marketing messages, we strongly advise that it be used i) with great care and ii) alongside relevant material to put the exceptional success possibilities, into context. This applies to claims made by direct sellers, as much as to claims by DSOs themselves; a DSO cannot simply disown a misleading statement made by its direct sellers. As such claims are liable to encourage people to over-commit themselves, the regulatory authorities are particularly hot on enforcement in this area.

It would be wise for DSOs to remember that many drawn to this type of business and role choose to participate for reasons other
than the accumulation of great wealth.

…more from our OPEN LETTER challenges and solutions Series

Be sure to come back here to our LinkedIn Page every Tuesday for the next two weeks so you are sure to snap up the next two Open Letters in the series.

…and if you’ve found this useful/interesting, please share and remember to pop back next week and each week thereafter for the next 3 weeks, for our Open Letters Series.