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Earnings Disclaimers – Why Internet Marketers Need Them

To often, you read business opportunity sales letters online that promise that you can get rich quick. They typically claim that the person selling the product or service made six or seven figures in 30 days or less. More often than not, these claims are misleading at best and outright lies at worst.

Here’s an example.

Johnny Six-Figure is a one-hit wonder posterboy. He’s touted as an Internet expert after making over a hundred grand in just days as a newbie. What isn’t told is that (a) Johnny had a bunch of big name marketers who e-mailed to the hundreds of thousands prospects on their lists to pitch his product or (b) that the affiliate commissions paid to these marketers and other costs took the bulk of the money Johnny claims to have made. Since Johnny hasn’t repeated the process, let alone do it on a monthly basis, sales letters pitching Johnny’s product and methodology without making key disclosures or disclaimers are in fact misleading you.

Why is this important?

The U.S. Federal Trade Commission (FTC) and the states’ attorneys general want to shut down fraudulent and deceptive trade practices online. They want consumers to receive fair and full disclosure of all material facts necessary to making an informed buying decision.

What does that mean to you?

If you’re pitching a biz opp for yourself or as an affiliate, you should discuss with your business lawyer whether an earnings disclaimer should be posted on your website. A good earnings disclaimer can provide some legal protection by making it clear that your clients will not necessarily become the next Johnny Six-Figure.

You can learn more by getting your free FTC legal guide and by talking with your business attorney.

Mike Young, Esq.

Author Mike Young, Esq.

Mike Young has been practicing business and technology law since 1994 and is an angel investor in startups. He's been an entrepreneur since 1988. To get legal help from Attorney Young, click here now or call 214-546-4247 to schedule a phone consultation.

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