Beware of Home-Based Business Systems

Jul 16, 2018

You’ve no doubt heard the old adage, “if it sounds too good to be true, it probably is.”  That’s a good thought to keep in mind when it comes to ads for home-based business systems.

The Federal Trade Commission recently charged several defendants with deceptively claiming consumers could earn substantial income by purchasing and subscribing to their online business coaching programs.  The defendants advertised and marketed the programs on websites and social media platforms , including Facebook and Instagram.

According to the FTC, the defendants falsely promised consumers they could quickly earn large sums of money by operating their own business online. For example, the ads included a promise that consumers could  “make six figures online in the next ninety days or less ” and a claim that the programs and systems were “developed by 7-figure digital marketers, for digital marketers.”

The ads directed consumers to a website controlled by one of the defendants. Once on the site, consumers were asked to enter an email address to obtain more information.  They were then directed to a video message in which one of the defendants repeated the promise of making six figures in 90 days or less. in the video, the defendant explained that consumers would be able to make that much money because he would  give them his own “million dollar business” if they subscribed.

The defendants then sent follow-up emails to consumers who provided their email address. These emails repeated the same promises to any consumer who subscribed to  the defendants’ home-based business systems. For example, one email stated:  “The ASPIRE program has been tested and proven by tens-of-thousands of people. The 18 steps WORK. You just have to follow them. Step 1 lays the foundation for you to build a 6-Figure digital business in 90 days… even if you’re starting from scratch.”

Consumers who paid the subscription fee received a series of training videos, some documents and a promise they would receive business coaching from a mentor. But the videos provided little if any training. Their real purpose was to convince consumers to buy higher-tier memberships at a higher cost. And the so-called “business coach” was actually a salesperson on commission.

Not surprisingly, few consumers earned substantial income, if they earned any income at all. While the FTC’s case is still pending against some of the defendants, several have agreed to preliminary injunctions  that prohibit them from deceptively marketing and selling business coaching schemes.

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