There are always exceptions, but life coaching usually carries at least a bit of potential for fraud. There are at least two types of claims:
“Success” claims are the first. Success claims come from people who claim to have taken a course from the coach and made themselves better, such as increasing income, sales, income growth, profits, or profits per hour or percentage. In actuality what has happened is you have been given some simple and generic material and told to do some simple exercises.
Failure claims come from people who claim they have failed the course and gotten no help from the coach.
Success claims can even become frauds because people will say “success stories” from their own failure which is impossible, because there are so few successful people of any particular skill group. If your claim has been passed off as a success story, there is no chance that you will get help and the claim might be false!
The second type of fraud is failed course claim fraud. This is when a coach sends you out to teach and then you claim that your time has been wasted. They are basically pretending to give you a course but are actually teaching you something similar to whatever you are reading on their site or listening to on their TV show. You may be in a very high income category and feel like you have been wasting your time.
Many people are taught a specific topic and then told to learn or learn and then taught something else or learn something new. This usually leads to more success claims and a greater level of deception.
I don’t think that coaching an MLM is a great investment, but it is absolutely a great way to make extra cash. I would suggest you look into it because it might be worth it to you!
Is MLM a legal or illegal business?
There is this common perception that an attorney would say you have done a bad thing even though it is legal in your state. This usually implies that you should hire an attorney in your state. If this is the case, don’t! There is a huge difference between hiring a lawyer and committing an unlawful act with money.
The law is not on your side, but you can sue if the MLM company or person you are working for is doing something that might be considered an unlawful act (e.g., offering something like compensation based on the number of shares the company has or some other financial scheme). If MLM has a “lawsuit” name, then that means the lawyer
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