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| INCOME CLAIMS DOs & THE DON´Ts OF INCOME CLAIMS Imagine that you earned a big bonus from Sunrider and were presented with an oversized cardboard check on stage during convention. You’re proud of the check and want to post it on Facebook. No problem, right? Wrong. The danger here is that by doing this you could lose your distributorship and place the company in jeopardy with the Federal Trade Commission (FTC). The example depicted above is related to a prevalent problem in the network marketing industry referred to as improper income claims. An income/earnings claim is a statement made by a company or its representative about the income an individual can earn from a business opportunity. THE FTC MANDATES THAT IT’S ILLEGAL TO MAKE MISLEADING STATEMENTS ABOUT INCOME. And examples of “misleading” cover a broad spectrum. At one end are actions that may appear harmless, such as stating actual earnings that you or someone makes if they are higher than average earnings. Showing your check— even an ordinary one—to prospects, and again, posting a photo of your check on social media is prohibited. Furthermore, the FTC doesn’t allow you to tell prospects about (or show photos that depict) lavish lifestyles. This means no scenes of exotic travel, fancy cars, lavish mansions, and yachts when prospecting. You also can’t tell someone that they can quit their job and easily earn as much doing a network marketing business. On the extreme side are examples of people doing things that can be viewed as unethical. For example, some top earners show their big bonus checks to prospects to entice them to join. Some even exaggerate or lie about how much they make to attract others. And it’s not uncommon for distributors to project examples of incredible incomes that can be earned as a distributor. The “income proposition” is the engine that drives many businesses in network marketing, so the FTC is vigilant and comes down hard on violators. 12 | SUNWRITER SPRING 2018

INCOME CLAIMS | SO, FACED WITH ALL OF THESE PROHIBITED PRACTICES, WHAT CAN YOU DO? Share the types of bonuses that new IBOs can earn. You can tell prospects about Sunrider’s Retail Sales Bonus, the Fast Start Bonus, the Unilevel Bonus, and the Star Elite Advancement Bonus. While you can’t provide prospects with modeled income scenarios (for example: if you recruit two people a month for three months, you can earn $1,000), you can ask your prospects to provide the scenarios they think they can achieve. For example, ask them, “How much volume do you think you can sell?” Based on their answer, you can show them how to calculate how much they could make on the Retail Sales Bonus using our Compensation Plan Brochure. You can tell them they can earn a $100 advancement bonus when they reach Star Elite in their first three months and that they can earn a $500 advancement bonus when they reach Ace Royal. The bottom line is that making false or misleading income claims in the network marketing industry is prohibited. Results always vary. How much you or someone in your upline makes has no impact on how much someone else will make in the business. Like in any other business, it takes hard work and persistence to achieve success. HONESTY AND MODESTY WORK BEST IN THIS BUSINESS. Earning trust is invaluable in growing your business. Good business conduct will ensure that those whom you sponsor don't feel misled or deceived, and as a result, will be more likely to stick with you. FAQ Q: What if a prospect asks me how much money I make in my business? A: Simply tell them that the FTC forbids you from disclosing your income if it’s above the average. (You can, however, share the average earnings disclaimer.) This allows you to avoid setting false expectations and at the same time demonstrates integrity. As their sponsor, it’s your role to help them avoid the landmines that may hurt them and their business. Rather than talking about your income or showing them your check, share the average earnings disclaimer from Sunrider. Earnings stated are not necessarily representative or typical of earnings Sunrider Independent Business Owners (IBOs) can or will earn through participation in the Sunrider Infinity Compensation Plan. These statements should not be considered as guarantees or projections of your actual earnings or profits. The average annual income of active Sunrider IBOs based on the months they were active was calculated using January 2018 income data, as that was the first month the compensation plan was in effect in its entirety, and then annualized. The calculated average annual income of an active IBO is $4,394.65. An active Sunrider IBO is an IBO who has 100 PV or more in a month. As with any other independent business, success results only from dedicated sales efforts, hard work, diligence, and leadership. WWW.SUNRIDER.COM | 13

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