Opportunity due diligence · Market research
How to Verify Business Earnings Claims
An earnings number needs a defined population, time period, cost basis, and supporting record before it can inform a purchase.
- Originally published
- September 5, 2026 by Matt Herrera
- Reviewed and updated
- September 5, 2026 by Matt Herrera
Capture the exact claim
Save the advertisement, presentation, message, testimonial, and date. Record whether the claim refers to revenue, gross profit, net income, savings, leads, transactions, or another measure. Those figures are not interchangeable.
Ask for the denominator and costs
Find out how many purchasers were included, how many achieved the stated result, which time period was used, and whether inactive or failed participants were excluded. Rebuild required fees and operating costs from documents rather than a seller's summary.
Compare the claim with the disclosure
Where the Business Opportunity Rule applies, review the earnings claim statement and supporting substantiation. Check names, dates, population, geography, and assumptions. A testimonial does not establish a typical outcome by itself.
Do not rely on this page for legal or investment advice. A qualified attorney, accountant, or other adviser can evaluate the transaction and documents in context.