DSEF and Earnings Claims

The Direct Selling Education Foundation, created by the DSA, was established to help spread positive information about the many benefits of the direct selling industry. They prepared a very clever video below that illustrates the struggle a distributor goes through when presenting the financial opportunity to prospects. Should you call your time share a “summer home?” Should you refer to your 18 foot fishing boat a “yacht?” Should you talk about the opportunity to earn millions upon millions of dollars? In basic terms, it’s mandated by the Federal Trade Commission for marketers to provide income disclosures whenever above average income is presented. It’s perfectly normal for distributors to discuss the income opportunity, especially when the prospect is presented with enough data to make an informed decision. However, it’s highly unethical and arguably illegal when a distributor grossly exaggerates their personal results in the enterprise.

Do you have any suggestions to help curb aggressive income claims?

  • Anonymous

    This is a minor issue compared to the flip side lie. Having an 18′ boat and describing it as a yacht, or having a time share and claiming it as a summer home would be found out quickly and easily. The bigger problem is the bigger lie about claiming money came from the primary MLM whereas most of it came from the tools the upline sells to downline. This lie has caused literally millions of people to lose 10s of billions of dollars for the past 3-4 decades in the case of Amway alone. The DSA was spoon-fed this information by me then ignored it. The DSA puts on a good show, but there’s nobody backing up the talk.