As an affiliate, you are performing a business function and doing your best to refer prospects to a merchant’s offers. At this point, you’re not offering a business opportunity, especially if you’re doing traditional affiliate marketing (the first tier; see Chapter 12 for details on multi-tier affiliate marketing). FTC rules govern the offering of “business opportunities.”
However, if you are a merchant looking to recruit affiliates or you are affiliated with a multiple compensation model, you should be aware of the rules governing the sale of “business opportunities.” Don’t get me (author Paul) wrong – there’s nothing wrong with pitching business opportunities (heck, I do it myself!), but you want to be careful about making any financial or glamorous profit claims.
Don’t tell someone your business opportunity will make them a millionaire by the end of the week. Be careful with wild dollar amounts. Obviously, if you can verify and prove your claims, that’s a different story.
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