Business Opportunities and Income Claims
Red Flag Rants: Business Opportunities and Income Claims report #1
This report is in our editorial queue. Visit Red Flag Rants for everything published so far.
Read the report →"Six figures in your first year" is a claim, not a guarantee, and the FTC requires specific documentation before a business opportunity can legally make that kind of promise. This section walks through how to read an income disclosure statement, why the highlighted success story on a sales page is rarely the typical outcome, and what questions to ask before paying a startup fee, licensing fee, or inventory minimum. We treat multi-level marketing, franchise pitches, and "passive income" course funnels under the same lens: what's the real, typical, documented result, not the best one anyone has ever gotten.
See also: Deceptive Advertising and Fake Reviews and Testimonials, or browse everything in Red Flag Rants.
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Business Opportunities and Income Claims
Red Flag Rants: Business Opportunities and Income Claims report #2
This report is in our editorial queue. Visit Red Flag Rants for everything published so far.
Read the report →
Business Opportunities and Income Claims
Red Flag Rants: Business Opportunities and Income Claims report #3
This report is in our editorial queue. Visit Red Flag Rants for everything published so far.
Read the report →
Business Opportunities and Income Claims
Red Flag Rants: Business Opportunities and Income Claims report #4
This report is in our editorial queue. Visit Red Flag Rants for everything published so far.
Read the report →Verified outside sources
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FTC Consumer Alerts
Official consumer alerts and scam warnings from the Federal Trade Commission.
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Fraud.com
Industry reporting on fraud trends, tactics, and detection across digital marketing and commerce.
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About-Fraud
A community and knowledge base covering fraud patterns, case discussion, and prevention.
Visit About-Fraud →Common questions
Are business opportunities required to disclose average earnings?
Under the FTC's Business Opportunity Rule, sellers must give prospective buyers a disclosure document before any money changes hands. If the seller makes specific earnings claims, they must have a reasonable basis and make supporting substantiation available on request.
What's the difference between a top-earner example and a typical result?
A top-earner example describes the best outcome among possibly thousands of participants. A typical result, when disclosed, usually shows most participants earn far less, and in many MLM income disclosures, a majority earn close to nothing after expenses.