
Amplifei
A misleading income disclosure statement is just the tip of the iceberg with this supplement MLM.
Courtney Sanders — a self-proclaimed “full time, certified, seven figure life and business coach” — claims to be able to help working professionals create their own successful life-coaching business in just 90 days. Not only will this business replace your corporate salary, she says, but it will also allow you to do this “without downgrading your lifestyle, burning out, or gambling on unproven ideas.”
And if you don’t believe her, just take a look at a few of the testimonials advertised on her website:
Courtney doesn’t just target corporate moguls. Whether you’re a clueless beginner or a life coach looking to make your first $1 million, Courtney claims to have the keys to your financial success. But before you can start seeing dollar signs, you have to spend them. To get certified by Courtney, her clients may need to spend between $18,000 and $24,000. Courtney encourages consumers to look past this initial five-figure investment — “As long as you’re investing smartly, it brings you money back.” Because, after all, money is “everywhere.”
However, the statistics on life coaching paint a different picture. According to Indeed and ZipRecruiter, the average annual salary for a life coach is less than $45,000. (The average annual salary according to both these sources for a business coach is approximately $84,000). While this may not sound terrible, remember that an average salary is not the same thing as a typical salary. Further, the International Coaching Federation found that, globally, “more than one in two coaches (53%) reported less than $30,000 annual revenue/income from coaching.”
In October 2021, the FTC issued a warning to many companies pitching money-making opportunities:
Claims of “potential” earnings imply that such earnings are representative of what the typical participant achieves. Before making such a claim regarding potential earnings (e.g., via a testimonial of a well-paid member), the advertiser must possess adequate substantiation that the experience described is representative of what participants will generally achieve. If the claim is not representative, the advertisement must avoid giving that impression.
But as TINA.org has reported in the past, life coaching opportunities don’t always follow these guidelines. Of note, the FTC recently proposed that “business coaching” – the other kind of coaching Courtney Sanders claims to provide — be included in the Business Opportunity Rule. (This would require such coaches to have written substantiation to back up any earnings claims and make that substantiation available to consumers if they request it).
Neither Courtney Sanders nor a representative responded to TINA.org’s request for comment.
The bottom line
Consumers should always do their research before getting involved in any purported money-making opportunity, particularly one that may require a five-figure upfront investment. Ask questions like, “How much does a typical consumer earn with this program?” If the answer isn’t clear, proceed with caution.
Find more of our coverage on life coaching here.
Our Ad Alerts are not just about false and deceptive marketing issues, but may also be about ads that, although not necessarily deceptive, should be viewed with caution. Ad Alerts can also be about single issues and may not include a comprehensive list of all marketing issues relating to the brand discussed.
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