Tag Archive: laws

I Want to Start a Home-Based Business. How Do I Make Sure It's Legitimate?

With tough times, people are looking for ways to either save a little or make a little more money. We’ve been getting more questions about part-time and/or home-based business opportunities. Specifically, we’re being asked how to tell if they’re legitimate.

 
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One of the first things to look at is what they’re promising you. Specifically …

Do they make earnings claims?

george "Many offers will tout how much you can make. Legitimate operators will do one of two things: they won’t make any claim at all, or … they will tell you both the number and percentage of people who actually earn what they’re claiming. In my experience, they’re more likely to not make any claim at all."

Some real world examples

marylynn "I did a search for “home based business opportunities.” I saw six on my screen without scrolling down. Of those six, five made an earnings claim. I saw claims like “$250 thousand or more at home”, “$500 to $8,000 per month”, and $30 to $150 thousand in 12 months”. Then I looked at the most regulated business opportunities – franchises. I typed in “franchise opportunities”. One out of the four franchise opportunities made an earnings claim and it was also one of the home-based business opportunities!"

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We’re not saying that being a franchise automatically makes it a legitimate opportunity. Nor are we saying that just because it’s not a franchise means it’s a scam. But from these examples, you do see differences in behaviors of companies that are more regulated and those that are not.

Do they stand behind their own claims?

marylynn "I went to the site of one of the home-based business opportunities. This was the one that claimed you could make $250 thousand. I scrolled way, way, down to the bottom of the page and clicked on the tiny, little link that said 'Earnings Disclaimer'."

george "Mary-Lynn printed it out. It was in ALL CAPS. Unlike the small font used for the Earnings Disclaimer, this was in 13.5 point type. They’re covering their you-know-what."

Here are some highlights …

“ANY EARNINGS OR INCOME STATEMENTS,  OR EARNINGS OR INCOME EXAMPLES, ARE ONLY ESTIMATES OF WHAT WE THINK YOU COULD EARN.”

“ANY AND ALL CLAIMS OR REPRESENTATIONS, AS TO INCOME EARNINGS … ARE NOT TO BE CONSIDERED AS AVERAGE EARNINGS. TESTIMONIALS ARE NOT REPRESENTATIVE.”

And our favorite part …

“WE DO NOT GUARANTEE OR IMPLY THAT YOU WILL … GET RICH, THAT YOU WILL DO AS WELL, OR MAKE ANY MONEY AT ALL. THERE IS NO ASSURANCE YOU'LL DO AS WELL.  IF YOU RELY UPON OUR FIGURES; YOU MUST ACCEPT THE RISK OF NOT DOING AS WELL.”

So they make a claim and then they disclaim their claim!
When you see this, exclaim your skepticism!

We’re NOT (sorry, we got used to seeing ALL CAPS) saying this particular example is a scam, but you would definitely want more information before proceeding.

The thing about earnings claims, at least here in the U.S., is they are required by law to disclose both the number of people and the percentage of people who are earning any amount they quote you.

So don’t be afraid to ask for documented proof of any claim. Then check out our article that describes your next steps are when investigating a business opportunity.

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Related posts

Success Snake Oil – Know When You’re Getting Scammed

Freedom Or Security – Which Do You Choose?  

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5 Laws of Stratospheric Success

The Go-Giver is a great story about Joe, an ambitious, young go-getter who desperately needs to make a sale before the end of the quarter. So he goes to Pindar, the wise consultant, for mentoring. Pindar doesn’t help Joe make a sale.

Today, we were fortunate to have Bob Burg, one of the authors of The Go-Giver on The Bigg Success Show. Here are the highlights of the conversation:

 
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Mary-Lynn: So Bob, your character Joe learns the 5 laws of stratospheric success. What are they?

Bob: #1 – Law of Value. Your true worth is determined by how much more you give in value than you take in payment.

Now that sounds counterproductive. How do you give more in value than you accept in payment and still prosper? We need to understand the difference between price and value. Price is a dollar figure; value is the relative worth to the end user.

For example – You hired an accountant to do your returns, and they charged you a fee of $500, but through their diligence, hard work, and knowledge, they were able to save you $2,000. They provided you $2,000 in value while charging you a $500 price. They made a profit, but you felt great about the transaction. That’s the kind of transaction that we want to have with our customers.

Mary-Lynn:
Alright, #2.

Bob: #2 – Law of Compensation. Your income is determined by how many people you serve and how well you serve them.

Law #2 tell us that the greater the number of people we provide exceptional value to, the more money with which we’ll be rewarded. So Law #1 talks about the value; Law #2 talks about the reach.

Mary-Lynn: The word-of-mouth, right?

Bob: Exactly. And when you provide great value to people, you have all of these people who feel so good about you that you develop an army of, what I call, personal walking ambassadors.

George: What’s #3, Bob?

Bob: #3 – Law of Influence. Your influence is determined by how abundantly you place other people's interests first.

Now again, this sounds polyanna, at best, but it’s actually quite practical. Because all things being equal, people will do business with (and refer business to) people they know, like, and trust.

And as you guys know, there’s no faster, no more effective, no more powerful way to elicit those feelings toward you in others, than by finding ways to put the other’s person’s interests first. Always thinking – How can I add value to this person? How can I help this person in their life?

George: Boy, it seems like you see people do the opposite. They think – What can I get from this person, rather than what can I give them?

Bob: Well, and that’s why a lot of people are broke!

Mary-Lynn: Alright, Law #4.

Bob: #4 – Law of Authenticity. The most valuable gift you have to offer is yourself.

All the techniques and all the skills are all for naught, if you’re not authentic and if you don’t come across as authentic. However, when you are your true self, then what happens is it takes those skills, those techniques, and it multiplies them geometrically.

So please understand, skills are necessary, the knowledge is necessary, it’s all necessary, but without the authenticity, the power just isn’t there.

Mary-Lynn: Yeah, people are pretty smart. They can see a fake when one’s out there.

Bob:
Exactly.

George: Bob, what’s the fifth law?

Bob: #5 – Law of Receptivity. The key to effective giving is to stay open to receiving.

Pindar, the mentor, says to Joe, “Joe, I want you to breathe out and don’t breathe in.” So Joe tries. After eight seconds – he’s gasping … ten seconds – gasping … twelve seconds … he cannot do it any longer.

He finally starts coughing, He says, “Pindar, I have to breathe in. I can’t just breathe out.”

Pindar says, “Well, Joe, what if I told you it’s been scientifically proven that it’s healthier to breathe out than it is to breathe in?”

“That’s crazy! You have to do both.”

You must breathe out, which is giving, and you must breathe in, which is receiving.”

George:
Bob, it seems like sometimes we give and give, but we run into those people who do nothing but take. What’s the advice for that?

Bob: You know, you’re right. There are some people who have really mastered the art of giving, but haven’t mastered the art of receiving, which is one thing we really show you how to do in the book. We’ve had some nice feedback on that.

Regarding your excellent question, I think we have to be careful, because being a go-giver should never be confused with being a martyr or being self-sacrificial. We need to make sure we’re associating with, and attracting, the type of people into our lives who are go-givers themselves, or can learn to be go-givers.

Mary-Lynn:
Thanks, Bob for visiting with us!

Get the book to see all that Joe learns about being a go-giver.

Just to show you that Bob believes what he says …

you can get a free chapter of The Go-Giver by visiting his site.

Our bigg quote today is by Taisen Deshimaru:

“To receive everything, one must open one’s hands and give.”

So give unselfishly and receive abundantly.

Next time, we’ll discuss 5 success factors. Until then, here’s to your bigg success!

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Rich Dad, Wise Son

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