Network Marketing Businesses

Network Marketing Businesses

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Can anybody please point me in the right direction with regard to dealing with several Network Marketing workers, who are registered with the Inland Revenue as self employed but in total form a team, thus forming a group? They work with a company called Kleeneze Europe Ltd and I am looking for pointers such as books on Tax and Accountancy for this type of business or any tips or information from members who deal with this sort of thing already.
Many Thanks
Graham Stone

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By User deleted
26th Sep 2006 13:46

Goods for own consumption
Can I re-iterate the point already made about goods for own consumption and suggest that you advise the clients to immediately start recording goods for own consumption.

The last client I had involved with Network Marketting (American Trashway or some similar name, I think) involved a catalogue of what appeared to me to be over-priced goods (ie. items I looked at were a lot more expensive than I was accustomed to paying). I was concerned that a gross loss was being shown in the accounts and the answer was adjusting for GOC. I was pleased to see the client eventually get out of the scheme at the end of the day - a total waste of time & effort for all concerned, except those higher up in the pyramid (sorry chain, sorry network).

I concur with the previous points made about commerciality - the head offices of these schemes (like franchises that I equally detest) will often attribute lack of attainment of the promised riches to "lack of commitment" - sometimes those at the bottom of the chain get brainwashed (by audio tapes in the case of American Trashway) into believing that their failure to make vast profits is their own fault, when I believe misleading claims to potential recruitees is the reason for lack of attainment of the promised riches.

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By tonyturner
25th Sep 2006 14:15

multi level marketing
Putting aside the commercial considerations - income tends to come from profit on retailing products and a "commission" or "bonus" based on volumes.Volumes are developed by pulling together a team of independent businesses, the majority of whom will make little or nothing, but contribute to the volumes (and therefore commissions) of their peers further up the line. The "morality" however is that no distributors make money out of each other for actual products - only when retailing to third parties. All distributors should buy products from same source at same price. Goods for own use an area to look out for though.Accounting and tax issues just as for a commercial sales person working for himself - allowable expenses follow normal rules - attending team building "conferences" and rallies are particular examples.

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By User deleted
22nd Sep 2006 11:03

MLM-?
You may be interested to read a letter I received:
"Hi A,
I need your assistance. As you will find in my book, Merchants of Deception, I was a loyal IBO and invested nearly
a decade of my life building 'the business' to the Founder's Emerald level. At that point, I discovered the rampant, systematic fraud that caused the financial losses of hundreds
of thousands of other loyal IBO's.

Each day, more and more IBOs drop out under the weight of these losses, unaware of how they are being scammed and convinced by promoters that they are personal 'failures'. An internal management report reveals an incredible 95% drop out rate over five years. These people are regularly replaced
by yet another unaware group of onsumer 'IBO' investors who fall into the same calculated trap.
I am willing to stand up for the hundreds of thousands around the globe who have lost and are losing money in this scheme. I simply can no longer fund the battle alone. A, you can make a significant difference.
Thank you for your time.
Kindest Regards,
Eric Scheibeler
http://www.merchantsofdeception.com/DOWNLOADBOOK2.html "
MLM Survivors Home Page
In pursuit of the almighty dollar - Dateline investigation: Inside story of business that attracts people with promise of easy money by Chris Hansen
What's Wrong With Multi-Level Marketing? Dean Van Druff
FTC - The Bottom Line About Multilevel Marketing Plans
FTC's Online Booklet: "Net Based Business Opportunities: Are Some Flop-portunities?"
The Mirage of Multilevel Marketing by Stephen Barrett, M.D.
Fitzpatrick, Robert L. and Joyce Reynolds. False Profits - Seeking Financial and Spiritual Deliverance in Multi-Level Marketing and Pyramid Schemes (Charlotte, N.C.: Herald Press, 1997).
This document is at http://www.vandruff.com/mlm.html

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