Page 2 of 4 FirstFirst 1234 LastLast
Results 26 to 50 of 85
Like Tree47Likes

Thread: Why MLMs Never Release Their Financial Statements

  1. #26
    Unsaved Trash is offline Another site bit the dust
    Join Date
    Jun 2010
    Location
    Not here
    Posts
    376

    re: Why MLMs Never Release Their Financial Statements

    Quote Originally Posted by iamwil View Post
    Somehow you think I owe you something?

    Yes I'm a typical MLM blowhard, telling you that I live on a yacht, commute from my bedroom to my computer, living in the lap of luxury, making huge MLM money?? Where do you see that? I tell you the truth....I work, I do mlm on the side...what a braggart I am...

    No I don't lie or deflect. You ask and I answer. However I don't have to answer all your questions nor live upto your expectations. You have your little visions of how I live my life, those are your dreams, not mine. You want to quit conversing with me...do so...but you can't...you are enamoured with me.
    NO, you do not. I have asked you several questions which you totally avoid or twist around into nothing. So let me ask a few again:

    Do you feel it's ethical to post while you're at work being paid to work, not post on internet boards?

    Do you work by the job? Not with a salary, but for each task/project?

    Do you mostly work from home?

    Now this is one that really interests me. Why isn't your employer licensed by the State of MD as required by law? Don't tell me you don't get into his business either, because if you're employed in this industry, you are also breaking the law. Was your training from OSHA and do you have a license yourself?

    Those are just starters. Don't give me the bullshit either about this being personal. You're the one that brought up your work and commute. It wasn't us. For once, back something up. And yes, there are more to come. You're by no means off the hook and I will continue to hammer your ass.
    GEORGE DRANICHAK - OWNER OF SCAM.COM, PORN MOGUL AND KING OF THE PORN SPAMMERS

  2. #27
    iamwil is offline Senior Member
    Join Date
    Jul 2010
    Posts
    172

    re: Why MLMs Never Release Their Financial Statements

    Quote Originally Posted by Unsaved Trash View Post
    NO, you do not. I have asked you several questions which you totally avoid or twist around into nothing. So let me ask a few again:

    Do you feel it's ethical to post while you're at work being paid to work, not post on internet boards?

    Do you work by the job? Not with a salary, but for each task/project?

    Do you mostly work from home?

    Now this is one that really interests me. Why isn't your employer licensed by the State of MD as required by law? Don't tell me you don't get into his business either, because if you're employed in this industry, you are also breaking the law. Was your training from OSHA and do you have a license yourself?

    Those are just starters. Don't give me the bullshit either about this being personal. You're the one that brought up your work and commute. It wasn't us. For once, back something up. And yes, there are more to come. You're by no means off the hook and I will continue to hammer your ass.
    So I said I drive to work...that opens the door for some sort of interrogation?

    So the rest of people here don't drive to work? I'm sure some telecommute but what do the rest do? bilocate?

    So somehow my personal employment is something of your concern?

    And I have to answer your questions?

    Is there something in this scam site that says everyone must post their employers name address and license information?

    No I am not licensed for anything but driving.

  3. #28
    Unsaved Trash is offline Another site bit the dust
    Join Date
    Jun 2010
    Location
    Not here
    Posts
    376

    re: Why MLMs Never Release Their Financial Statements

    Quote Originally Posted by iamwil View Post
    So I said I drive to work...that opens the door for some sort of interrogation?

    So the rest of people here don't drive to work? I'm sure some telecommute but what do the rest do? bilocate?

    So somehow my personal employment is something of your concern?

    And I have to answer your questions?

    Is there something in this scam site that says everyone must post their employers name address and license information?

    No I am not licensed for anything but driving.
    Well thanks for not answering the questions I asked you but for reporting them instead. These are valid questions. It deals with your integrity or severe lack of it.

    Here's another question for you to ponder. You claim to be at work while you're posting away. Yet while I was a mod over yonder, your IP never changed. That would lead the informed person to believe that you are not leaving home or you are always at work. I'm not buying it.

    If you choose not to answer any questions about ethics and morals, then that's fine. Just say so and stop bringing your occupation into the conversations along with your personal life. When you do, we have the right to question you and call you out. Or don't you understand that?

    Now, back to the questions. Does your employer pay you to post on the internet all day while you're supposedly at work? If not, is this an ethical business violation? You stated that you have the daily commute yet your IP never changed from your residence to your work location. Or is that laptop wireless and permanently glued to your thighs?

    Are you familiar with the licensing laws in the State of MD for your occupation and the business involved? You should be. You should be very concerned also.

    Do you get paid the job task/assignment and do you work mainly from home? That would be my educated guess and would dispel the daily commute.

    Why have you been totally unable to verify the amount you have placed on your TriVita business being worth "in excess of 50K?" Facts, please.

    I have asked repeatedly for documentation on your claims that Sonora Bloom has had independent documented studies on the proven benefits of the product. You have not given any. You should be able to back up your claims and not testimonials from TriVita employees and the likes. You stated studies. We want to see them.

    You have several options Wil. You can either document your statements and back them up or remain to be in doubt as to everything you state. The choice is yours. Why you even post is beyond me except for the fact that you're a lifeless slug. You could change that if you're serious. You think I'm picking on you? And it's not deserved? That would be like me claiming that I made millions in travel profession and you asked me for documentation or some form of validation to my claims and I in turn just blew you off. But you'll never have seen me make those claims because I'm honest. You?

    You can continue to report my posts but for what reason? I'm not insulting you, calling you names, attacking you, or using any form of vile language. If the questions are too difficult for you, that's just in reality...tough. Back up your claims.
    GEORGE DRANICHAK - OWNER OF SCAM.COM, PORN MOGUL AND KING OF THE PORN SPAMMERS

  4. #29
    Unsaved Trash is offline Another site bit the dust
    Join Date
    Jun 2010
    Location
    Not here
    Posts
    376

    re: Why MLMs Never Release Their Financial Statements

    Quote Originally Posted by iamwil View Post
    The revenue is worth mentioning, the benefits are worth mentioning, I'm completely appreciative of my time in MLM...and my current results...it is funny how disapointed you guys are, thanks for caring.
    11 years without a profit is worth mentioning, so you are correct there. Your current results are telling as are your past results. 11 years and no profit.

    I'll be using revenue to fly to Australia to market for two weeks in October...this will reduce most of the potential profit for this year...
    As in the past, you will not be using revenue for your trip when there is no profit and hasn't been. This will be out of pocket expenses and not tax deductible. Revenue and profit go hand in hand. You're confused in the business area in more ways than one.

    I'll enjoy the adventure, I've never been beyond North America...my travels have been restricted below Alaska/Calgary and below; Baja/Keys and above; east of Victoria Island/Olympic Penninsula/Baja and east of Newfounland and the Caribean... So Australia... not profit, but using revenue to build future business I consider a benefit. Interesting...according to you folks wouldn't actually 97% of them be scammed?
    Again, you're quite the financial wizard. Ever consulted with an accountant?
    GEORGE DRANICHAK - OWNER OF SCAM.COM, PORN MOGUL AND KING OF THE PORN SPAMMERS

  5. #30
    iamwil is offline Senior Member
    Join Date
    Jul 2010
    Posts
    172

    re: Why MLMs Never Release Their Financial Statements

    Quote Originally Posted by Unsaved Trash View Post
    11 years without a profit is worth mentioning, so you are correct there. Your current results are telling as are your past results. 11 years and no profit.



    As in the past, you will not be using revenue for your trip when there is no profit and hasn't been. This will be out of pocket expenses and not tax deductible. Revenue and profit go hand in hand. You're confused in the business area in more ways than one.



    Again, you're quite the financial wizard. Ever consulted with an accountant?
    of course I have...please post the name and number of your accountant and I will talk to him so he may educate you.

  6. #31
    Unsaved Trash is offline Another site bit the dust
    Join Date
    Jun 2010
    Location
    Not here
    Posts
    376

    re: Why MLMs Never Release Their Financial Statements

    Quote Originally Posted by iamwil View Post
    of course I have...please post the name and number of your accountant and I will talk to him so he may educate you.
    I don't have an accountant and if you do, you're getting some terrible advice. I do have a financial advisor though and when I asked him about MLM, he chuckled. A lot.
    GEORGE DRANICHAK - OWNER OF SCAM.COM, PORN MOGUL AND KING OF THE PORN SPAMMERS

  7. #32
    calvinandhobbes is offline Junior Member
    Join Date
    Jun 2010
    Posts
    27

    re: Why MLMs Never Release Their Financial Statements

    Quote Originally Posted by Unsaved Trash View Post
    I don't have an accountant and if you do, you're getting some terrible advice. I do have a financial advisor though and when I asked him about MLM, he chuckled. A lot.
    he's stated that his accountant believes there no problem with purposefully operating a business such that there is no profit. nevermind the IRS specifically calls that a hobby.

  8. #33
    Unsaved Trash is offline Another site bit the dust
    Join Date
    Jun 2010
    Location
    Not here
    Posts
    376

    re: Why MLMs Never Release Their Financial Statements

    Quote Originally Posted by calvinandhobbes View Post
    he's stated that his accountant believes there no problem with purposefully operating a business such that there is no profit. nevermind the IRS specifically calls that a hobby.
    And please don't forget that his business is now "worth in excess of 50K." I'm still waiting on some sort of documentation of that claim. I won't get it though. I've only asked about 50 times.
    GEORGE DRANICHAK - OWNER OF SCAM.COM, PORN MOGUL AND KING OF THE PORN SPAMMERS

  9. #34
    A Life Aloft is offline fled troglodyte invasion
    Join Date
    Jun 2010
    Posts
    908
    Blog Entries
    1

    re: Why MLMs Never Release Their Financial Statements

    Quote Originally Posted by iamwil View Post
    of course I have...please post the name and number of your accountant and I will talk to him so he may educate you.
    You should ask for a refund from H&R block then. For someone that claims to have a business for 11 years you don't even know, understand, nor can you even use basic bookkeeping terminology (let alone the definitions) correctly. If someone needs an education on here regarding business bookeeping/accounting and IRS regulations, it's not us Wil, it's you. lol

  10. #35
    Ballinamuck's Avatar
    Ballinamuck is offline Junior Member
    Join Date
    Jun 2010
    Posts
    4

    re: Why MLMs Never Release Their Financial Statements

    Quote Originally Posted by calvinandhobbes View Post
    he's stated that his accountant believes there no problem with purposefully operating a business such that there is no profit. nevermind the IRS specifically calls that a hobby.
    I thought they just considered it a hobby and gave a tax break if you profited under 10k? At least that's how is was 8 or so years ago.

  11. #36
    wserra is offline Senior Member
    Join Date
    Jun 2010
    Posts
    143

    re: Why MLMs Never Release Their Financial Statements

    Quote Originally Posted by Ballinamuck View Post
    I thought they just considered it a hobby and gave a tax break if you profited under 10k? At least that's how is was 8 or so years ago.
    You'll have to cite that law from "8 or so years ago". That's not the law in the U.S., and the law in this area is basically unchanged for far longer than eight years.

    The short version of the law is that, if the IRS considers your activity a "hobby", your expenses are only deductible to the extent of your profits, and even then the deductibility of those expenses are subject to a 2% of AGI floor. In practice, depending on the amount of your income from other sources, this means that your activity can have a net loss and still result in taxable income.

    There are two ways to avoid this result: (1) don't accept revenue or (2) convert your hobby into a business. Most folks won't get into something planning on not being paid, thus disposing of (1). As for (2), the factors used in differentiating hobby from business are contained in 26 CFR1.183-2, essentially as follows:

    1. Manner in which the taxpayer carries on the activity.
    2. The expertise of the taxpayer or his advisors.
    3. The time and effort expended by the taxpayer in carrying on the activity.
    4. Expectation that assets used in activity may appreciate in value.
    5. The success of the taxpayer in carrying on other similar or dissimilar activities.
    6. The taxpayer's history of income or losses with respect to the activity.
    7. The amount of occasional profits, if any, which are earned.
    8. The financial status of the taxpayer.
    9. Elements of personal pleasure or recreation.

    The IRS looks at repeated losses from a claimed business very closely, especially if they are used to offset other income. If your activity turns a profit three years out of every five, the law presumes it to be a business; if it doesn't, the law presumes it to be a hobby. 26 USC 183. You can fight the presumption, but will likely lose.

    Bottom line: if someone is trying to sell you on an activity s/he claims will result in increased deductions in the event of loss, ask for proof that his/her business has turned a profit three out of the last five years. In the cases of MLMers, that in all likelihood will be impossible. Walk away, wishing him or her luck in the event of an audit.

  12. #37
    A Life Aloft is offline fled troglodyte invasion
    Join Date
    Jun 2010
    Posts
    908
    Blog Entries
    1

    re: Why MLMs Never Release Their Financial Statements

    Perfect Wserra! Thank you for validating the truth and the law! I was just going to post about the IRS rules regarding this! (somebody read my mind)

    Also, most cities require you to have a business license to file a Schedule C (the business deductions) on your tax form for the State and the IRS because they want their piece of the pie. Here in California, they actually monitor and review your State income tax filing to see if you are claiming business deductions and then look to see if you have a business license in the city that you reside in (if you are saying you have an office at home or work from home, etc.) If you don't, the fines and penalties are hefty, they will send you a letter and you must pay for a business license and renew it every year. Also you will be fined and have to pay for a license for EVERY year that you took/claimed the deductions and did not have a valid license, to boot! I have to have two. One for my office at home, and one for the office at my hangar. And you must maintain meticulous, detailed bookkeeping records and have all the receipts and logs (mileage expenses), appointment calendars/journals etc., to back up every single penny you are claiming. You also need an inventory of all of your equipment and other assets that must be updated and the receipts for those assets and all of your expenses. You need separate business banking accounts as well.

    __________________________________________________ _________________________________

    Often a person's hobby or sideline business is a labor of love rather than a reliable source of income. This is most often the case when the business owner or freelancer has other means of financial support -- such as a regular job or a working spouse -- that effectively underwrites the microbusiness. These types of tiny businesses are usually run from home (renting an office would be too expensive) and are often based on semi-recreational activities near and dear to the owner, which has earned them the nickname "hobby businesses."

    There are as many types of hobby businesses as there are hobbies. A basement jewelry studio, a jazz band for hire, or an antique refinishing business might all qualify. The owners would probably continue to make jewelry, play jazz, or restore antiques without making money, but they are trying to turn their hobbies into profitable businesses (or at least deduct their hobby-related expenses or losses from their income to lower their tax bill!).

    Deducting Hobby Losses From Your Income
    For most business owners, losing money for more than a year or so is a cue to close up shop. But if you love what you're doing, it might make sense for you to stick with your losing business even though it makes little or no money. That's because an unprofitable business can be a tax shelter: If you have another source of income, you may be able to use the losses from your hobby business -- including your expenses and depreciation on assets you purchase -- to offset your other taxable income. Deducting these losses can not only lower the amount of income on which taxes are owed, but may also drop you into a lower tax bracket.

    The catch is that only bona fide businesses can deduct their losses from their other income -- you're not allowed to deduct losses from your favorite activities, only from a legitimate, profit-motivated business. If the IRS decides that you are indulging a hobby rather than trying to earn a profit, it won't allow you to deduct your business losses.

    Example
    Reza earns a salary as a chef in a local restaurant, and his wife Kay has no outside income. They file a joint tax return. Kay has a passion for plants, and decides to try making a business of selling some of the hundreds of plants she grows and propagates in her backyard greenhouse. After she spends thousands of dollars on exotic plants, better lighting equipment, and permits, the greenhouse heater goes on the fritz and many of her plants die. Her expenses for the year total $10,000, and she has sold only $200 worth of plants.

    The silver lining for Kay and Reza comes at tax time, when they deduct the $9,800 loss from their joint taxable income of $65,000. By reducing their joint taxable income to $55,200, they not only are taxed on less income, but their tax bracket is reduced from 25% to 15%.

    Here's the catch: If Kay had not intended to make a profit -- that is, if she wasn't trying to run a business -- the IRS would not have allowed Kay to use the loss to offset any income, except against the $200 revenue she received from plant sales.

    Of course, most entrepreneurs would much rather make money by earning a healthy profit rather than by taking tax deductions because their business is losing money. And the savings made possible by a tax shelter do not always justify continuing a marginal or losing business. But they definitely can make a difference when you're deciding whether or not it's worth it to keep spending money on your hobby.

    Proving That Your Hobby Is a Business
    If you consistently use your business as a tax shelter, deducting your losses from your other income year after year, you'll probably attract the attention of the IRS. Make sure that the IRS will consider you a real business in case you're ever audited, before you start claiming deductions for the costs of your art projects or toy car collection.

    The deciding factor in determining whether a business is legitimate is whether the activity is engaged in "for profit." In other words, you must prove to the IRS that you're trying -- not necessarily succeeding -- to make a profit with your venture. The IRS uses several different criteria for deciding whether or not your business truly has a profit motive.

    One popular test for determining profit motive is called the "3-of-5" test. If your business makes a profit in any three out of the past five consecutive years, it is presumed to have a profit motive. This means that if you claim a loss for the third straight year after starting your business, you may be inviting an audit.

    While the IRS gives a lot of weight to the 3-of-5 test, it is not conclusive. In other words, if you flunk the 3-of-5 test, you still may be able to prove that your business is motivated by profit. You can use virtually any kind of evidence to show that you're trying to make money.

    Business cards, a well-maintained set of books, a separate business bank account, current business licenses and permits, and advertising or other marketing efforts will all help to persuade an IRS auditor that your activity really is a business.

    Complying With Local Business Rules
    Many cities require every local business to obtain a business license, or tax registration certificate. Technically, this rule applies to any money-making activity -- even if you don't intend to claim any federal or state tax deductions for your hobby business. Also, if you sell goods (such as homemade jewelry), your sales will be subject to state sales taxes, which means you'll have to apply for a "seller's permit."

    In practice, many microbusinesses -- so tiny that the word "business" seems excessive -- might be able to fly under these agencies' radar. But be aware that, depending on your local rules, you could be penalized if you're caught doing business without the licenses or permits required by your state or local government. These penalties may include fines and any back taxes that apply.

    In addition, getting the necessary licenses and permits will help show the IRS that you really are running a business. For more information, see Obtaining Licenses and Permits.

  13. #38
    Ballinamuck's Avatar
    Ballinamuck is offline Junior Member
    Join Date
    Jun 2010
    Posts
    4

    re: Why MLMs Never Release Their Financial Statements

    Quote Originally Posted by wserra View Post
    You'll have to cite that law from "8 or so years ago". That's not the law in the U.S., and the law in this area is basically unchanged for far longer than eight years.
    Never called it a law, but it's what I ran into when I started a sole proprietorship. The first 10k in profit was taxed up front, think it was only $35 or so at the time. Any profits beyond that would be due at the end of the year, or you could pay more up front if you were expecting a lot of profit. No clue what would happen if you made under 10k for years at a time, or if you wrote off everything to get below that figure.

  14. #39
    littleroundman is offline Administrator
    Join Date
    Jun 2010
    Posts
    16,868

    re: Why MLMs Never Release Their Financial Statements

    Why MLMs Never Release Their Financial Statements


    Would YOU want to release your financial statements if they showed the average user only earns between $85 and $576 per YEAR ??

    MALALEUCA 2009 INCOME DISCLOSURE STATEMENT




    http://www.melaleuca.com/contentimages/WebContent/bcDoc/IncomeStats_enUs.pdf
    Last edited by littleroundman; 11-27-2015 at 12:58 AM.
    The only thing necessary for the triumph of evil is for good men to do nothing

  15. #40
    littleroundman is offline Administrator
    Join Date
    Jun 2010
    Posts
    16,868

    re: Why MLMs Never Release Their Financial Statements

    This one must be a positive joy to slave your heart out for.

    74% of YORhealth MLM "Independent Representatives" earn an average of $1137.23 ANNUALLY (and that's GROSS earnings)



    http://www.yorhealth.com/downloads/legal/YOR-Income-Disclosure-Statement.pdf
    Last edited by littleroundman; 09-29-2014 at 06:49 AM.
    The only thing necessary for the triumph of evil is for good men to do nothing

  16. #41
    littleroundman is offline Administrator
    Join Date
    Jun 2010
    Posts
    16,868

    re: Why MLMs Never Release Their Financial Statements



    35.04% of distributors earn an average of $688 per YEAR

    55.68% of distributors earn an average of $2,264 per
    YEAR.

    http://advocarewolfpack.com/wp-content/uploads/2011/01/incomedisclosurestatement2010.pdf
    Last edited by littleroundman; 11-26-2015 at 10:19 PM.
    The only thing necessary for the triumph of evil is for good men to do nothing

  17. #42
    littleroundman is offline Administrator
    Join Date
    Jun 2010
    Posts
    16,868

    re: Why MLMs Never Release Their Financial Statements




    Total number of "Certified Retail Consultants" in United Kingdom and Northern Ireland during period October 2010 and September 2011: 10,043

    Total number of "Certified Retail Consultants" earning a CVR or bonus: 6582

    Average monthly CVR for Retail Consultants earning a CVR or bonus income £41 / Ä47

    Average income of Certifed Retail Consultants earning a CVR or bonus £109 / Ä126

    Amway UK 2010 / 2011 Income disclosure statement
    Last edited by littleroundman; 09-29-2014 at 10:51 AM.
    The only thing necessary for the triumph of evil is for good men to do nothing

  18. #43
    littleroundman is offline Administrator
    Join Date
    Jun 2010
    Posts
    16,868

    Re: Why MLMs Never Release Their Financial Statements

    Last edited by littleroundman; 09-29-2014 at 06:58 AM.
    The only thing necessary for the triumph of evil is for good men to do nothing

  19. #44
    littleroundman is offline Administrator
    Join Date
    Jun 2010
    Posts
    16,868

    Re: Why MLMs Never Release Their Financial Statements

    Acesse Marketing income disclosure statement 2013



    Acesse Marketing 2013 Income Statement


    92.5464% of all Active Members only earned between $673.63 and $6,324.55
    ANNUALLY
    Last edited by littleroundman; 09-29-2014 at 07:10 AM.
    The only thing necessary for the triumph of evil is for good men to do nothing

  20. #45
    littleroundman is offline Administrator
    Join Date
    Jun 2010
    Posts
    16,868

    Re: Why MLMs Never Release Their Financial Statements



    In 2009, 87.52% of all Tupperware Active Plan participants earned an average annual income of $634.79
    Last edited by littleroundman; 09-29-2014 at 10:55 AM.
    The only thing necessary for the triumph of evil is for good men to do nothing

  21. #46
    littleroundman is offline Administrator
    Join Date
    Jun 2010
    Posts
    16,868

    Re: Why MLMs Never Release Their Financial Statements



    "coach -retail sellers" make up 67.4% of "all coaches" and have an average earnings of $360

    "All ranks" have an average income of $3,337

    Team Beachbody 2011 Income chart
    Last edited by littleroundman; 09-29-2014 at 11:20 AM.
    The only thing necessary for the triumph of evil is for good men to do nothing

  22. #47
    littleroundman is offline Administrator
    Join Date
    Jun 2010
    Posts
    16,868

    Re: Why MLMs Never Release Their Financial Statements



    http://www.mxicorp.com/custom/library/incomedisclosure/2010.pdf

    68% of all active associates earned a GROSS annual average of $471.00

    10%
    of all active associates earned a
    GROSS annual average of $1761.00

    10% of all active associates earned a
    GROSS annual average of $3050.00
    Last edited by littleroundman; 09-29-2014 at 11:29 AM.
    The only thing necessary for the triumph of evil is for good men to do nothing

  23. #48
    scratchycat's Avatar
    scratchycat is offline Elite Scambuster
    Join Date
    Feb 2011
    Posts
    3,477
    Blog Entries
    2

    Re: Why MLMs Never Release Their Financial Statements

    Quote Originally Posted by littleroundman View Post




    70% of Average Weekly distributors earned an annual average of $1681

    20% of Average Weekly distributors earned an annual average of $2314

    The average annualized income for all Distributors during this period was $2,104.11
    Yet people work their but*s off to make this piddling amount while the owners rack in the millions.

    Multi-Level Marketing just means the bottom row does the work and the top rows earn the money.
    Don't get ripped off!! Stay informed!

  24. #49
    Once Upon a Time is offline Junior Member
    Join Date
    Jun 2011
    Posts
    1

    Re: Why MLMs Never Release Their Financial Statements

    Quote Originally Posted by scratchycat View Post
    Yet people work their but*s off to make this piddling amount while the owners rack in the millions.
    Multi-Level Marketing just means the bottom row does the work and the top rows earn the money.
    And they lopped off just about all of their 'distributors' who right out of the gate figured out that it was a joke of a "business opportunity".

  25. #50
    Luzer is offline Senior Member
    Join Date
    Dec 2011
    Posts
    167

    Re: Why MLMs Never Release Their Financial Statements

    Quote Originally Posted by A Life Aloft View Post
    What do people in MLM use to assess the business opportunity financially?


    Being that all MLMers tell you its a business, I am wondering what business principals are used to assess the opportunity from a financial point of view.

    For instance, if you were to buy an apartment building and investigate whether it was a good financial opportunity, this would consist of looking at the gross and net incomes for the prior 3 years (verifying income and expenses), looking at the market rents and occupancy rates, and calculating the average sales prices (on a per unit base) over the past 6-12 months within a 1 mile radius, you would have the building properly inspected and assessed by a professional, etc. All that information would be used in your financial assessment of the deal and to help you to decide whether it was worthwhile.

    Looking at financial statements is key in buying any business, but I have never heard of this in MLM. Other than statements made at a meeting or from their sponsor, what financial criteria is being used to decide whether the MLM "business opportunity" makes sense financially and is it ever verified?

    So an MLM member's research was merely looking at a COMPENSATION PLAN put out by the MLM itself?? Hmmmmm.

    What exactly did they verify and how? That the plan would pay a particular compensation percentage? So, do they believe that their upline numberís, someone who is supposedly making money running this MLM business, was of no interest to them and they just take their "word" with no actual hard proof?

    MLMís make 90% of their money through turn-over. Constantly repeating a cycle of recruiting, training, selling and quitting.

    Most people will join, sell what they can to friends and family, then quit.

    Itís only an opportunity for those willing to recruit and train. Problem is, once you realize you are selling overpriced crap to your friends and family, most people wonít be able to recruit anyone if they donít believe in the product they are selling.

    Bottom line, MLMís are tough for most people to make any real money at, unless you stick through it long enough to recruit lots of people below you, where you make money on their sales.

    And of course no one wants to show you their books or really look at hard figures, because itís all pie in the sky.
    "It's none of your business" "My results are not commensurate with yours" "Trust me"

Page 2 of 4 FirstFirst 1234 LastLast

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

Disclaimer: Opinions expressed on this website are solely those of their respective authors.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42