TheFoggBlogg: New Rules— The FTC Changes the Testimonial Game

I am a large fan of Tony Rush. Although I've never been able to wrap my head around the company & product he's with and offers (I just don't get it, but, hey...), I have developed a great respect for Tony over the years. I admire his commitment to his own personal & professional growth and his passionate stand for developing other people's. He is pragmatic, suffers few if any fools and foolishness and he has become a master of the game we're playing— a leader of leaders.

One thing Tony does oh so well for me is take concepts I have trouble grasping and explains & illustrates them so I understand. Here's one of his latest (and best). AND it's a vitally IMPORTANT "New Rules" deal EVERY person in direct sales, mlm network marketing MUST be aware and beware of.

That's NOT an alarmist remark. Just a professional "heads up" so you won't have to do your business with your head down.

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You Might Get A Call From The FTC....

Are you using result-specific testimonials in your marketing? Don't wait around for the FTC to contact you...get the scoop here.

Hey guys.

If you're marketing a product, service or opportunity online, you may have already heard some news about how the FTC is changing the rules. It's true -- they are. And it's a good idea for you to be familiar with the changes.

(By the way, I am not a lawyer and this should not be considered legal advice. Be responsible for your own business, look at the data and know for yourself what you should do.

With that disclaimer out of the way, here's the scoop:

In the past, it was completely permissible to show testimonials of your product, service or opportunity and share with the general public what kind of results someone got as a result of using the product or being involved with the opportunity, provided that you offered some sort of disclaimer that you weren't "guaranteeing" that everyone would have the same result.

In other words, as long as you smacked a line at the bottom of the website saying something like "Results may vary from individual to individual", you were in the clear.

That was yesterday. That's history. Today, the rules are totally different.

Here's what one FTC lawyer had to say:

“…The most significant change to the revised guides is the deletion of the “safe harbor” that has long allowed advertisers to use testimonials who reported specific successful experiences with an advertised product or service as long as the advertiser included a disclaimer such as “Results not typical.” Under the revised Guides, advertisements that feature a consumer and convey his or her experience with a product or service as typical when that is not the case will be required to clearly disclose the results that consumers can generally expect.”

Let's put that into plain English.

Let's say you're in network marketing and you have someone new in your business. Let's call her Fanny. Fanny starts following the system EXACTLY as it's taught...works the business with integrity and consistency and -- lo and behold! -- she winds up creating a $20,000 per month income in her first 6 months.

Then let's say that Fanny writes you a testimonial that says, "I got started in XYZ International six months ago and now I'm making $20,000 per month." And she's got the check stubs to prove it.

So far, so good, right?

Well, up until the FTC changed the rules, you could just put a disclaimer on that page that says something like "Results may vary and are based on the time, energy and commitment you invest in your business" type of disclaimer you've seen 100s of times.

But here's the key phrase that the FTC has added to the mix: "required to clearly disclose the results that consumers can generally expect".

What that means is that -- if you've got someone in your company making $20k per month and you want to display that testimonial on your website, you would ALSO have to disclose the amount of money that the average person earns in your company.

Stop. Wait a second.

You and I both know what the "average" person earns in any business. Zero or close to it. Why? Because "average" people are never successful. That's why they're called "average".

They don't follow the system.
They don't do the work.
They don't attend the events.
They don't go to the training calls.
And they quit before you can say the phrase "you're responsible for your own results".

What does the average person in YOUR company earn? $100 a year? More? Less? Whatever it is, you can be damn sure it's nowhere close to Fanny's results. Because Fanny is someone who's choosing to be very UNaverage in her life.

Wait, there's more.

The FTC lawyer went on to say:

“The FTC also said that it believes that it is “likely” that testimonials that present the specific experiences of a product user (e.g., the number of pounds or inches lost) will be viewed as claiming that those experiences are typical of what consumers will generally experience.”

Did you get that? Read it again: "testimonials...will be viewed as claiming that those experiences are typical..."

What that means is that -- if you put a testimonial on your site of someone who makes $20k in a month....then the FTC says you're claiming that the typical consumer should expect to earn $20k/month. Substitute any number in that sentence with any other number and it will also be true.

And this is true for non-financial testimonials, too.

Do you sell a weight loss product and say that someone lost 20 pounds? Then the FTC says that you're claiming that everyone will lose 20 pounds.
Do you have a testimonial on your site from someone who used a miracle fruit juice and their cancer was cured? Then the FTC says that anyone with cancer should expect to be cured using your product. (The FDA will get involved in that one, too.)

In short, if you use testimonials with specific results AT ALL....then you're affected by this change in the rules

If you want to continue to use those types of testimonials, you can't just say "individual results may vary". You have to say "Individual results may vary. The average person experiences ______."

It's my understanding, though, that not all testimonials will be affected so seriously. If someone is just expressing how happy they are that they use a product...they like the way it tastes....they've joined a business they're excited about.....they're a satisfied customer, those are probably okay.

It's only when you're offering a testimonial where someone is talking about a specific result of some kind.

So, what should you do with all this?

You should COMPLY, by God!

Seriously...I've been tracking this conversation for a long time and it's amazing how many people are investing their energy into trying to figure out how to "get around" the FTC...or how to outsmart the FTC....or how to shortcut the system so they can still offer wild testimonials and not be affected by the changes.

Let me give you a word of advice: your energy is far better invested into some other income-producing activity. The best thing you can do on this issue is to simply play by the rules. Because, if you ignore it and get a phone call or letter from the FTC...I promise you will comply or lose.

Here's the good news...

I've not used testimonials in my marketing in YEARS. And it hasn't kept me from making a ton of money in my business.

Why?

Because, while testimonials are a great form of "social proof"....testimonials are not the only thing that matters when someone is looking at an offer. In fact, it's arguable that they're not even in the top three reasons why people choose to raise their hand and ask for more information....or just outright buy right in the moment.

People are more attracted to your product, service or opportunity because of WHO YOU ARE BEING in your marketing than in how many testimonials you can pile up.

I know one thing for sure: the people who get started with me in my business don't get started because I show them a bunch of people who are making multiple six-figure incomes in their first 6-12 months. They're getting started with me because:

A. They want what I'm selling
B. They can see themselves easily duplicating what I do to earn a great income
C. They can clearly see a path from where they ARE to where they WANT TO BE.

It's not rocket science. Testimonials are great. But they're not the "be-all, end-all" of marketing.

So, my advice: don't use testimonials with specific results. Feel free to use all the testimonials you want about how happy people are with the decisions they've made.

Tony Rush

P.S. One other thing: in times of change like these, plenty of people will not comply and will be out of the game. Another bunch of people will have talked themselves into the belief that "they can't make money if they can't use testimonials" and they'll just quit altogether. Either way, there will be fewer people out there marketing or marketing correctly.

People who take the approach I've described in the latter part of this article will be in a GREAT position to rack up some serious cash in the coming months. Be one of them. There's never been a better time to earn the kind of income you deserve!

"In times of change, the LEARNERS will inherit the earth....while the LEARNED will find themselves beautifully equipped to deal with a world that no longer exists." -- Eric Hoffer

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I appreciate you!