As a coach or business owner, sharing income claims has become one of the most effective ways to showcase the potential of your services. Particularly if helping other’s make money is your specialty. However, it’s never been more crucial to learn what you need to do to ethically and legally share income claims in your marketing. Because it’s clear that the FTC (or CMA in the UK) are beginning to crack down on the apparent BS that is being shared in the online industry.
For context, in any industry, there will always be liars and scammers. Those who risk giving the rest of the industry a bad name. But in my personal AND professional opinion, I think there are far more people out there doing good who deserve to be celebrated and shouted out more.
The Rise of Digital Marketers
That being said, 2024 was the year we saw a huge uptake in “faceless social media accounts”, digital marketers (who aren’t actually digital marketers but content regurgitators at the most), and MRR (master resell rights) digital product sellers.
This has meant that we have seen even more content on our feeds promising that with just this secret hack, you too can learn how to make money in your sleep.
The issues with this type of content (other than being illegal and unethical in most cases) is that even if the results shared are indeed true for the creator, those results are certainly not typical. And, the rest of the time, they’re not even true to begin with.
About Money Mindset
From a money mindset perspective, I fully believe there is more than enough wealth in this world for all of us to create life-changing money in our online businesses. I also don’t want the fact that because these results aren’t typical, it means it’s not likely for you to be able to achieve the same.
Of course it is possible for you to make that level of wealth and then some.
But, it is never worth the risk of financial or moral ruin.
This content that we see being shared is opening the realms of what is possible for many people who otherwise may never have strived higher or further than their current reality, and this is amazing.
What it is also doing is shaming and misleading people into handing over the life-savings and putting their families at risk because one creator will do anything to close a sale for their own benefit.
These are creators who have openly and admittedly shared that taking a loan out to purchase their course or program is a safe risk and a positive form of money management.
Yes, YOU are the best investment. YOU. Investing in your own growth and skills can lead to a lifetime of wealth.
But, loans and life savings are not the way to do that.
The Role of Ethics as Sellers
On the other side of this, as the seller, encouraging a client to take a loan or use their life savings is more often than not going to set them up on the backfoot, literally. Even if they can make the money back, it is not worth the risk of what could happen if they don’t.
So, as coaches and service-providers in the B2B industry (aka the helping other businesses make more money), how can you ethically and legally share income and money claims in your marketing, since it is a part of what you do to help others?
*First, a disclaimer. You should complete your own research or seek advice relevant to the country your business is registered in to find out exactly what is required of you to be compliant as you learn how to ethically and legally share income or money claims in your marketing. I am primarily referencing the regulations set in place by the FTC (USA based) and the CMA (UK based). Whilst these are some of the strictest governing bodies, please ensure you are being fully compliant with your own country and, of course, if you are using Stripe or PayPal, be aware these platforms tend to follow FTC regulations.
Be Honest and Transparent
Honesty is the best policy. When discussing earnings, always be truthful. Don’t inflate numbers or suggest that results are typical if they’re not. Transparency builds trust, and trust is key in any coaching relationship.
Provide Clear Disclaimers
Disclaimers are your friend. Clearly state that the results you’re sharing are not guaranteed and may not be typical for every client. This helps set realistic expectations and protects you legally.
Please note, adding a disclaimer at the bottom of your caption after you share something that is misleading or implying results are typical does not protect you. You still have to follow the regulations and you cannot share results of yourself or your clients
Use Actual Data
Stick to the facts. Use real data and examples when sharing income claims. If you’re showcasing a client’s success, get their permission first and ensure the information is accurate and verifiable. Consent must be clearly and fairly given by the client.
In some cases, it is not enough to simply have it written into your contract. In some other cases, also, it is considered not ethical to share the name or faces of the clients if the data has a financial result attached. This could put your clients at risk of being targeted. Whilst named and photographed reviews and case studies build trust faster, it is important to ensure your client’s safety above all else.
Avoid Misleading Language
Keep it clear. Avoid using language that could mislead someone into thinking that success is easy or guaranteed. Phrases like “instant success” or “quick cash” can be problematic.
Even saying you “could” is misleading, even though it is the conditional tense.
Follow FTC/CMA Guidelines
Know the rules. The Federal Trade Commission (FTC) or Competition and Markets Authority (CMA) has guidelines on testimonials and endorsements. Familiarise yourself with these rules to ensure you’re in compliance.
Regularly Update Your Claims
Stay current. Make sure that any income claims you share are up-to-date. Outdated success stories can be considered misleading. In other words, if you made 7-figures one year back in 2018 but haven’t since, selling yourself as a 7-figure per year entrepreneur is misleading.
Educate Your Audience
Teach, don’t just tell. Explain the work that went into achieving the results you’re sharing. This educates potential clients about the process and sets appropriate expectations.
Not only is it more ethical but in some cases, it’s the legal approach, to only use income claims as a means to educate and not as a way to sell.
As the FTC says, “The promise of significant earnings is a powerful inducement to purchase or invest time or money.” This can be seen as unethical and misleading.
The CMA restricts you from using false urgency as well. This includes using countdown clocks falsely or hosting a “sale” that never ends.
Document Everything
Keep records. Maintain documentation of all income claims and testimonials you use in your marketing. This will be invaluable if you ever need to verify the claims.
Keep these tips handy so you can ethically and legally share income or money claims in your marketing, but even better, head to the sources below to continue reading further to ensure you are being compliant.
It’s time to hold yourself and those around you to higher standards. It is no longer acceptable to bury your head in the sand and believe that since everyone else is doing it, you can get away with it, too. But, if you’re reading this, I’m not worried. Your morals and priorities are very clearly in a good place to have found this post.
Sources:
- https://www.federalregister.gov/documents/2022/03/11/2022-04679/deceptive-or-unfair-earnings-claims
- https://assets.publishing.service.gov.uk/media/64232b153d885d000cdadd30/OCA_business_open_letter_FINAL.pdf
Enjoyed this post? You’ll love my podcast, Becoming CEO. Check it out here.
