FTC vs. Vemma is big news. What's it mean to them? And…what does this mean for the entire network marketing profession in the US?
In most of my posts, I almost never mention specific company names, but in this case, it is necessary.
The Federal Trade Commission recently issued a complaint and filed a lawsuit against Vemma, claiming they are a Pyramid Scheme.
I'm not going into the details of the lawsuit in this video or post, but simply wanted to give my perspective on how this potentially affects the entire network marketing and direct selling community. And, more importantly, the actions you need to be taking.
Now is the time for all of us to be aware of how CRITICALLY IMPORTANT it is to do things RIGHT. In saying that, I'm a big fan of Vemma, a huge fan of Bk Boreyko, and have a lot of very good friends in that company. My heart goes out to everyone involved.
The recent litigation with Vemma and the FTC has created a heightened sense of awareness for everyone in the network marketing community.
Understand a few things and LOOK AT YOUR COMPANY and your PRACTICES of building.
1. You MUST focus on gathering legitimate RETAIL customers. This means real people who buy your product or service and have ZERO attachment to your compensation structure. You have to be TEACHING this to your reps. Your group cannot consist of distributor only consumption. You…and all of your distributors MUST focus on gathering of retail customers who consume or use your products or services.
2. Do not make income claims. When you make income claims or show your checks, you're creating a problem. Be extremely careful of how you present your opportunity to people, and what you say when presenting your opportunity and what's possible with it.
Bottom line…and you need to watch the video above to get my entire input, we need to act and BE professionals. No false or misleading claims or statements.
Tell the truth. It's good enough. Don't exaggerate. Where you are is good enough. There's so much of this going on in this profession it makes me sick.
Someone on your team doing something that you know isn't right? Call them on it.
Train your people. TEACH them how to build and how to gather customers. Show them how to build a distribution network that MOVES product to end users.
Enough with my typing…watch the video. I welcome your comments.
It's a sad week in network marketing, but we'll get through this.
