Revealed: Don’t Be Scammed by a Slick Salesperson! Reading this post before buying a Business Opportunity could SAVE YOU BIG!
by Kevin James Culp
Here is a sample of my upcoming eBook series to be published on Amazon that exposes many hidden secrets that sellers of opportunities don’t want you to know about and buyers need to.
Let me give you some background on myself really quickly. I’ve been selling leads to advertisers for a decade and have helped hundreds of brands large and small alike market their opportunities. In addition, I’ve been on the other side of the aisle selling business opportunities to folks just like yourself who are reading this wondering how best not to be scammed when buying. Am I right? I thought so and that is why I put my eBook series together to save you effort, stress, money, energy and most of all time.
So, having sat on both sides of the aisle, I can tell you firsthand that many sellers are not following the FTC.gov* rules and many buyers are unaware that this FTC disclosure law exists often until it is too late. They bought the opportunity, they invested the money and – never make a profit. You did read that correctly – never make a profit. Then your mind races to the FTC rule and disclosure statement mentioned? What FTC rule you ask yourself? Read on my friends and I will open your eyes to a better way to evaluate your bizopbuy.
The first fun fact that I want to share with you that no seller of any business opportunity wants you to hear is that almost everyone fails to turn a profit over time. It is true sadly. Many end up with cases of product, legal forms galore that they can’t dump even on Craigslist to other unwitting buyers to enough make-up to paint your face and every face you know for a year! The truth is that very few people make millions from buying a business opportunity or even a few hundred thousand.
So, go into your new opportunity evaluation without rose-coloured glasses on and with a lot of questions on whether to buy or not to buy. Don’t be excited by other people’s performance or any numbers that can’t be backed up with real stats, figures on good old paper in black & white or that can be confirmed in some manner. It is worth noting, that you can make an income from many opportunities if you have the skills and, in some cases and financial backing to do so. You can also get into more than one and create multiple small revenue streams to make that big money everyone desires when they buy an opportunity. Just be very aware of what you are buying and you are buying it from as step one.
The next fun fact I want to share with you is a whopper. Did you know that 8 out 10 Business Opportunity buyers never open the proverbial box? That is correct, and that information is a studysome smart Franchise folks who did the study a few years back. When I read that then I took issue with that ratio given what I heard from my 800+ clients at the time. Their claims of success were much higher in many cases and that peaked my interest to find out who is really making money from both at sale inception and post-sale. So, after completed over 22,500 call-verification calls and doing thousands upon thousands of follow-ups calls I can now see how that statistic could be correct. Yes, I have made over twenty thousand calls and it is unreal what I found from these interactions that I’ll share with you in my eBook series coming soon. I share with you that there is hope. I helped one owner sell 115 million dollars in a product in a few years using the leads I provided from a system I was working on at the time. That is a lot of paper for one owner to have made in a pretty short period of time. That is rare though and if everyone made 100 million+ well, the world would be fabulous, wouldn’t it?
Back to reality, think about the opportunity for a minute after hearing that super cool sales pitch from the highly-excited sales rep or owner whose job it is to recruit you. These sellers are NOT your friend’s and usually far from it. They might grow to be down the road, but you need to understand they make money when they sell you an opportunity or say you get into their downline with an MLM. If you’re working with a broker, that is fine, just be aware of the broker’s history and track record. Ask for some success stories from them before taking their work on it. They make money when you make money in almost all cases are they sell you the “opportunity”. They’re selling you a product and you need to understand that upon incept and heck, I’ve been there selling so I understand the pressure to close ethically. I never fell into the abyss of bad sales tactics and always provide the required FTC forms.
FTC! I hear you and you want to know what the heck is all the kerfuffle about? Now, laws vary State-to-State and this is by no means to be an overarching blanket statement for all Business Opportunities, Licensee Opportunities or Distributorship salespeople, firms, or brokers selling them. It is important to note that most brokers and advertisers on portals are straight-shooters and will supply you with references that can be double checked as not close friends with the person trying to sell you said business and they will almost always supply an FTC disclosure that is required by law. Some though, are not so ethical and care only about selling you the fastest way possible for the most profit possible.
So, get this my interested friends, the FTC law was changed and updated not long ago to not only cover the Franchise Industry to tame some nasty sales tactics used in the 90’s that continued into the 00’s but many promoters of business opportunities were able to evade coverage under the Original Franchise Rule and the interim Business Opportunity Rule by pricing their offerings opportunities below $500, the monetary threshold of coverage. This is still the case in so many cases that buyer beware!!!! So, the result was that the FTC cracked down and in almost all cases and in almost all States a seller of a business opportunity that is priced over $500 is required to give you an FTC disclosure statement.
What is the FTC Disclosure Statement form you ask? Great question, this FTC statement form will supply you with the companies’ name, address, phone and it should include up to at least five if not ten references that can be called by you to check on them. If you didn’t receive one with your presentation information about the latest and greatest opportunity you should ask for it even if it is under $500. This one form has serious power behind it. It also shows the company is aware of the law, that they’re willing to comply and that is a sign of a company you should look farther into. No FTC discloserand no references … in my opinion, I’d keep looking for another opportunity.
Make sure to read my next blog next Sunday. I’ll be discussing ‘helpers’ and how their help isn’t always helpful at all. Often these “helpers” and “gurus” who show fabulous travel photos enjoying their success is mostly smoke and mirrors. Actually, in almost all cases it is, and I can pick one company who flew a ton of reps out to “shoot a commercial” and in reality, each rep got to sit on the front of the Yacht, taking turns reading to their children on a cabin and eating lunch the world of lesser people flies on by. Folks, do not believe what you see, believe what you can dig into, get real numbers on and real reference before you buy.
Thanks for Reading and Carpe Diem My Friends