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Attn: Internet Marketers...It’s Time to GROW UP!
What you decide to do after reading this article will spell either the success or failure of your businesses.
It’s a bold statement- but it’s true.
Here’s why…
For far too long, the “rules” of Internet Marketing were pretty lax.
Why?
- You can start your business without filing any paperwork.
- Need an email address? Get one for free.
- Need a website? Grab a Domain for $12, hosting for a few bucks a month, and install WordPress for next to nothing.
- No need to get insurance, or pay sales tax- because, hey, you’re selling electronic products, right?
- Don’t want to give out your home or cell number, no problem-o- grab a free number with Google Voice.
- No need for fancy business meetings, you can “chat” with people in your PJs over “Skype”.
As a result of the “informal” nature of Internet Marketing, everyone from beginning internet marketers to the “Goo-Roos” have developed some REALLY bad habits
- Thinking that they don’t need an attorney until they start making “the big money”.
- Thinking that they can’t be sued…or that no one wants to sue them until they start making “the big money”.
- Thinking that formal contracts are for brick and mortar business owners only.
- Taking the whole “Faking-it-til-you-make it” to a whole new level, by Photoshop-ing results.
- “Ripping off” someone else’s content- because, “Hey- the Internet is HUGE, they’ll never catch me.”
- “Ripping off” images from other websites- because. “Hey- the Internet is HUGE, they’ll never catch me.”
- Using other people’s “Terms and Conditions” or disclaimers- because surely they know what they’re talking about.
- Not using Terms and Conditions because they think no one will sue them.
- Getting a result like generating 10,000 leads(for the low price of $100,000)- then Launching a product boasting: “I’ve Generated 10,000 Leads in 10 Days! See How!” (while leaving out the actual cost- because “Hey- that’s ‘marketing’, right?”)
- Advertising Results like “How You Can Make $987 next week using this simple trick” or “Earn a Full-Time Income on Auto-Pilot with this System”.
- Creating seemingly unbiased “Product Reviews” that include an affiliate link without disclosing the fact that they are an affiliate.
- Thinking that the major advertising platforms like Google, Facebook, etc. won’t “ban” them because they spend a lot of money each month in pay-per-click advertising,
These are just SOME of the major mistakes I’ve seen online, and if you’ve done or are thinking of doing any of these things- you better think twice!
Why?
Well, the time has come where you are no longer “safe” behind your computer …
The Government Is “Protecting Consumers” From You
In an effort to “protect consumers,” agencies like the Federal Trade Commission in the United States are starting to crack down on internet marketers.
In fact, the FTC recently filed suit against 10 Internet Marketers (go here) for various violations
(I’ll be launching a training video in the next few weeks discussing this case).
One internet marketer's business was recently shut down completely. (go here)
Advertising Platforms Can Ban You Tomorrow
Many advertising platforms are sick of the reckless nature of internet marketers promising easy money.
So, they’re disallowing ads that promote work-from-home opportunities.
Others just outright banned advertisers that promoted work-from-home opportunities or perceived “Get Rich Quick” sites at any time.
Lawyers Are On the Prowl
Lawyers are now trolling the internet to find people who have “ripped off” other people’s copyrighted information, then going to the copyright owner and offering to take their case for a share of the proceeds.
Then the attorney makes a demand for compensation from the violator (YOU), who, not wanting to spend a fortune on legal battles, is pretty much just forced to pay up.
Your Informational Products May Be Subject to Sales Tax
Many states have decided that e-books and other electronic media are now subject to “Sales Tax.”
So if you aren’t collecting Sales Tax, an auditor may be knocking on your door.
Oh, and on top of the money you failed to collect, you'll get slapped with penalties and interest on the sums you failed to collect too.
Lawsuits=Lottery Tickets
The US is notorious for being litigious.
Add in high unemployment, and you can guess that many people see lawsuits as an alternative to lottery tickets or a job…
If someone takes your advice about a particular health juice, and then gets sick- you could be sued. Same thing goes for people who are advertising monetary results.
Companies Can Sue You For Trademark Violations
Using the name of a company or product in your advertisements to sell something other than that company’s product?
Guess what?
You can be sued for violating trademark law- even if the trademark isn’t registered.
Companies aren’t afraid to make an example out of a “little guy” like you…. ask the 16 year-old that got sued by a record label for downloading copyrighted music.
Your “JV Buddy” Will Rip You Off
Decided to do a JV with someone you met at a live event, but don’t want to “ruin” the opportunity by requiring a formal written agreement?
You’re a fool. (Sorry.)
People will take advantage of you. People will not pay you what they promised.
Don’t have a written agreement?
Good luck in Court with that “oral contract”…
Your Network Marketing Company Doesn’t Care About You.
Remember when you joined your Network Marketing company, and checked that box that said you agree to abide by the Company’s Policies and Procedures and the terms of the Distributor Agreement….
Yea, those things are legally binding contracts.
If you break one of their rules- they more likely than not can kick you out of the company, not pay you AND take your downline.
Ouch!
Guess what?!?
If you’re selling other products to your downline…
If you’re using your company’s name or their product name in your advertising or on your blog without their written permission…
If you’re involved with more than one direct sales or network marketing company…
You may be breaching your contract with your network marketing or direct sales company.
Planning To Beg for Forgiveness Later?
Ahhh yes…the “Beg For Forgiveness Later instead of Ask for Permission Now” plan.
Yea- that plan TOTALLY stinks.
Especially when you’ve got a process server at your door handing you a Summons and Complaint that just cost some person or company $1500 or more to write.
Or better yet…
The government comes knocking at your door…..
You break the law, you’re gonna pay. And your “Begging for Forgiveness” isn’t the kind of payment they’ve got in mind.
Why Should You Care About Any of This Stuff?
Well, my point in writing this is very simple.It's a major wake up call!
You need to treat your business LIKE A BUSINESS. Even if your daily commute is from your bedroom to the kitchen.
Otherwise, you’re building your business on a foundation of quicksand.
That’s not smart.
If you’re building a business just to see how fast you can be forced to file bankruptcy- ignore my warnings.
If you’re building a business because you are DYING to see the inside of a Courtroom and see just how big legal bills can really be… close this article now.
But If you’re building a business because…
You actually want to make money…
You are retired and want some extra money…
You were laid off from your job and need some extra money…
OR
You want to have the freedom to enjoy time with your family…
You might want to start considering the “legal and business-side” of internet marketing in addition to learning marketing strategies.
That means educating yourself a little bit about the various “legal or business” issues that come with owning your own online business. Things like...
- Business entity formation
- Basics on taxes
- Various rules and regulations governing advertising online (Privacy, Intellectual Property including Trademarks, Copyrights, etc.)
- Contracts: When You Need One and How to Read One
Now, I’m not saying that you need to become a lawyer, or a CPA, or anything like that.
What I am saying is that it is important that you start acting like a real business owner, who RECOGNIZES potential issues and KNOWS when to get an “expert” involved so that all of their hard work is protected.
In other words, stop acting like a kid when it comes to your business, it’s time to Grow Up!
Help is On the Way
There aren’t many people out there who are able to speak on this topic, so at the urging of several leaders in our industry (and despite my determination NOT to mix my legal background with my internet marketing), I’ve been convinced to focus my efforts over the next 6 months on helping YOU learn more about some of the issues I just discussed.
Why?
Trust me.....It's not because I love talking about business basics. (Just ask my husband, Rich Hazlett or my friend Jim Yaghi- they know how much I DON'T want to have to discuss this stuff)
BUT I feel like I really have no choice.... because I see a lot of well-meaning entrepreneurs in the path of a coming Legal Tsunami. I can't just sit by and watch the impending disaster... if I can just save one person from having all of their hard work destroyed, it'll all be worth it!
So, that's why I'm doing this :)
That being said, my new website isn’t even up yet….but if you want to learn more about these topics so that you aren’t one of the poor marketers who are blind-sided by what’s coming over the next couple of years- and you want to learn the RIGHT WAY to advertise when using Pay-Per-Click, so that you’re the one who’s left standing when others get “Slapped” then GO HERE.
Like this Article? Think this topic is a Snoozer? Let me hear from you!
WAIT! BEFORE YOU GO! If you learned something NEW or AGREE that this is something that your fellow entrepreneurs need to know about, please VOTE (at the top left of the article)! ; )
To the Top,
About the Author: Natasha Nassar Hazlett
Member Since: 03/10/2008
I'm a Distributor For:: PRO U
Other Company: Fast Forward Marketing, LLC
Industry: Communications and Networking
Primary Web Site: http://www.NatashaNassar.com
Thanks Natasha...
Great information Natasha...this should open people's eyes as to what they are/should be dealing with today. As you said people are on the prowl on the internet just looking for things and people to make an example of. Correct me if I'm wrong but are there other things as well that people need to be aware of.
What about the people online that try and make others look bad such as flaming, accusing them of being SCAM artists with no proof whatsoever, telling people to stay away from a certain person because the will rip you off and take your money, slander, character defamation and putting out false information (because they are an SEO expert) so that Google picks it up and spreads it all over the internet.
Re: Natasha, Just want to say...
Richard-
Thanks SO much for your kind words! For the rest of the community- Richard got a sneak peek at the book I have been researching and writing for the past 5-6 months about some of the legal issues relating to the advertising platforms like Google, Facebook, YouTube and others.
I've gotten some great feedback, and like I said in my article, if it even helps one person from having their business destroyed, then it'll all be worth it! :)
Interesting...and Straight up.
Wow Natasha much of that sounds threatening and ominus.
What about ALWAYS GIVING CREDIT when doing a review
or piggy backing on an article as I just did with
content that is not mine.
I put the company's disclaimer at the front of my article as I always do.
And wrote a blog post around it.
Is that fine?
Some big net workers here teach that.
I'm in Canada and not sure any more
which of our 2 countries is more socialist..
heading toward communism.
I think with your new socialists in charge
you may have us beat.
I know I'm getting political but it matters.
I like the internet with no GOVERNMENT AT ALL.
I would really like to see massive massive down sizing of governments.
Needs to happen.
Bu also know that's not reality.
I don't like much of what you say here.
I want to stand up and rant.
I know you are trying to help us.
Thanks for that.
But you know what...this crap can't continue Natasha.
Growing governments I mean.
I work hard producing my own content because
I am very concerned about two things.
1.Too much government
2.Too many government lawyers.
You are correct ...they do what ever the f---
they want.
MY words.
Thanks for your advice.
Re: Thanks Natasha...
Don,
You are ABSOLUTELY correct that there a lots of other issues presented as well. I was just afraid my post was getting too long ; )
But not to worry- I've set aside the next 6 months to discuss as many of the issues facing our industry as possible. If I think it warrants longer- I guess I'm up for the battle : )
In answer to your question, it really depends on what the individuals are saying, where they are saying it and why they are saying it. The law is extremely FACT SPECIFIC, so things aren't always so black and white.
BUT- Saying, for example Company ABC SUCKS- Check out Company XYZ.... That's not a good idea. Same thing in trying to use a big marketer's name or picture (without their written permission) to sell a competing product. This raises not only defamation/slander issues but also trademark violations as well.
More on this in other articles/videos :)
Suffice it to say, you won't see me bashing other marketers or talking smack about other products. Not only does that not jive with my philosophy of running my business with impeccable integrity, and being honorable in all of my business dealings....but it's also not my style and not to mention, extremely immature.
Thanks for sharing your thoughts!
Re: Interesting...and Straight up.
Yea, it is ominous and people should be threatened. This is serious stuff, and since it's not the BRIGHT NEW SHINY OBJECT, most people will just continue to bury their heads in the sand.
I don't care one way or the other. I reiterate my initial comments in the article, if I help keep one person from destroying their business, it's all worth it.
The rules on using other people's material vary. Usually, if you get their permission (in writing) to use the content, or it's on a site like eZine Articles, which outline how to properly re-post their content, You're ok.
I'll say this a MILLION times over the next 6 months- but here it goes...
I'm not giving out legal advice here. If you (I'm talking to everyone here) need legal advice, hire an attorney... I'm just helping educate folks on spotting the issues. :)
If you're doing a review, and you're an affiliate, you need an appropriate disclosure that lets people know that you may be compensated.
If you're just writing an educational article on a topic and use a company name in a descriptive manner. That may fall under what's known as the "Fair Use" exemption.
Not sure what "the company disclaimer" is..... but just make sure that the Company is cool with you using their name. And be careful about promising results from the use of a product- you can be held liable if the product doesn't work as expected or someone gets hurt (physically or financially) as a result of using the product at your recommendation.
Glad you stopped by Nicholas :)
Good Post Natasha
That's good info everyone should pay attention to. Fortunately for me, I'm taking David & Jim's PPC Supremacy which helps us along those lines.
Thanks
Re: Good Post Natasha
Hey Bobby!
Fortunately for you- as a member of PPC Supremacy, you get my new book for free ;) Look in your back office in the compliance module, and you'll get a link to sign up for it.
There's a lot more than just what's in my book- so stay tuned because I'll be discussing a whole lot more of the issues in depth :)
Natasha => BRAVO!
Hey Natasha:
Thank you very much for addressing this!
It IS a critical issue that needs to be embraced by all Online entrepreneurs - it is long overdue within our industry.
Anyone seeking to be a true 'professional' here will want to become a 'student' of legal compliance guidelines.
Warmly / Peter A.
Peter Arnold, CLU, CFC / Founder
Business Achievers Academy / Canada
Great Stuff
Great points. I have to say that I have been guilty of the "ask for forgiveness" strategy in other areas of my life and it did not work so well. As my wife and I are putting our business together your advice will be well taken. Where can I can get a copy of your book? Thanks for the post.
Great Info Natasha,
Thank you very much. I signed up for more. I always learn something when I read your posts.
Teresa Baine
re: Natasha => BRAVO!
Thanks Peter! You're right. This is one area that will separate the hobbyists from those who are serious about building a sustainable business.
Re: Great Stuff
Sam-
I can assure you, that you aren't the only one guilty of that strategy ;) The important thing is that you recognize the fact that it ISN'T a viable strategy and move forward with sustainable practices.
My book isn't available quite yet- but if you click the link in my article and get on my new e-zine mailing list, you'll be the first to know when it's available! : )
Re: Great Info Natasha,
What a coincidence Teresa... everyime I read your articles, I learn something new also!
Well done Natasha
With a background of nursing I am all too aware of the legal implications that can arise from apparently innocent actions. I haven't been network marketing for very long, but have been amazed at some of the advice given by well meaning people, such as copying other peoples blog posts. Even such a greenhorn as me knows that it infringes copyright laws. I understand your reluctance to use your knowledge of law in this field, but I am sure there will be many that will be grateful for your input into this minefield. Bless you.
Excellent Information as always Natasha
You've touched on a subject that should be brought out into the open. For too long novice network marketers and even many of the so called top producers have been getting away with outrageous and misleading advertising that preys on ignorant people.These people epitomize everything that is wrong with the industry.
RE: Well done Natasha
Margaret- I appreciate your kind words. You are so right that so many people just don't even realize that what they are doing can get them in trouble. THOSE are the people I want to help. There are always people wanting to bend the rules or just think they are 10 feet tall and bullet proof. Those people will just have to figure things out the hard way : )
RE: Excellent Information as always Natasha
Thanks Graeme!
Your comment touched on another motivation of mine- which is to try to salvage the industry's reputation. It's unfortunate that a batch of rotten apples can ruin an entire industry, and cause the FTC and other organziations to come in to try to "police" things.
Best thing to do is to educate people and keep building our businesses with integrity!
Thanks, I'll go check it out.
Hey Natasha,
I just logged back into Betternetworker and saw your reply. I'll be looking into your book in my PPC Supremacy Backoffice. It's good info everyone should check into.
ABSOLUTELY LOVE IT NATASHA!!!!
This is the kind of leadership we need. I salute you!
Great Info - People need to pay attention.
Natasha,
Not much to add to what you have already spelled out so well. I can attest however to the need to avoid the legal issues and take the high road. In my other company I was sued by a very large company and I was a very very small company of $250K annual revenues at the time. Their goal was to put me out of business for an alleged contract violation. If what you stated does not scare people into action consider this. The legal tab I accrued in 8 weeks was $180,000!!! Over 70% of my revenue for the year. This is not to mention the time lost in depositions, collecting and delivering endless requests for documents and records, and the intimidation of them deposing every one I knew both professionally and personally. It was a horrific experience I wouldn't wish on my worst enemy and begging forgiveness was not an option even though I had done nothing wrong. I have also been party to a patent infringement accusation in another business I was part owner of. It was pure extortion but we paid the royalty request because fighting it was more than we could afford. In the long run, by the grace of God these issues worked out in my favor, but for anyone on this forum that thinks Natasha is just saber rattling, think again! It is time to grow up, do it right, take and stay on the high road! Thanks Natasha for a great and honest heads up!
Awesome Wake Up call!
Natasha, thanks for the heads up on major legal issues that most aren't aware of marketing online. Thank you for what you will be doing in the next six months to enlighten us with your expertise and leadership in spite of your own personal reluctance to take on the task. Many will thank you for it and appreciate your leadership in this arena.
NATASHA I LOVE YOU...for
NATASHA I LOVE YOU...for once someone tells it like it is...JESUS im relieved...just a smile on my face right now
Thanks!
Thank you all so very much for taking the time to share your thoughts on this important topic!
@Dave- I'm so sorry to hear you've had to suffer the terrible effects of a legal battle. That's why I'm determine to protect others from a similar experience.
@Mike- Thanks :) You know you were integral in this mission...
@Christina- Thank you so much for your kind words my friend!
@ Contempo- Wow! Legal stuff never puts a smile on anyone's face- you've given me hope! LOL :)
Internet Marketers
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