How would you like to save 40% of your gross income? When you have money it is easier to decide if you want to be an employee, a business owner or an investor. But if you just survive from one pay-cheque to the other, you don’t have much choice since you are trapped into a “Rat Race Circle”. You go to work, and automatically your taxes are withdrawn from your pay-cheque.
According to Sandy Botkin – a former IRS Attorney, now the President of the Tax Reduction Institute – taxes are the largest expense for most people. It exceeds what they pay for food, clothing, lodging and transportation combined.
Statistics show that in today’s world, the average person spends more than 40% of their gross income on taxes. If you are like most people, means you are likely working 4-6 months a year just to pay taxes and to support the government instead of your family! What is left is going to pay for your rent or mortgage, bills, food and other expenses and just very little or nothing to save.
But Sandy Botkin, advice is this: “Owning a home-based Network Marketing business is the best way for the average guy to take advantage of these tax breaks … Any home-based business, even part-time, that is not a hobby, and is in pursuit of a profit, can qualify for huge tax breaks – it is US Government law”.
And the taxable income is not only an American system, but applies to most countries around the world. So, the above statement can be true for many. (maybe some restriction might apply from country to country, but the system is the same)
Mr. Botkin also adds:
“If you have a Network-Marketing business, I can save you $3,000 to $9,000 in taxes every year; legally, morally, and ethically…There is no better way to create tax deductions, than owning your own small business, and in most cases, a network marketing business that you can run from your home…Many of the things that you consider personal property and cannot be deducted if you are an employee can now be deductible by those who have a small business. By owning a home-based business and taking advantage of the tax breaks available to you, you can keep more of your income, even if your business isn’t producing a profit? You just need to know the laws, and how to apply them.”
In my future article I will explain how legally anyone can reduce their taxable income, having a Direct Sell or a Home Based Network Marketing Business. Until then I would like to make it clear what is the difference between direct selling and network marketing.
Direct Selling or Network Marketing?
DIRECT SELLING is a marketing strategy where an independent representative is reaching and dealing directly with its clients, usually in their homes or at their jobs, but away from a fixed retail location. When they conclude a sell, they receive a percentage commission from the sell they complete. As the name imply you are a sells representative.
NETWORK MARKETING is a marketing strategy in which an independent representative of a company, refer (or market) a product or service to other people, but also recruit other persons to do the same and to build up a team. In this case your recruits will receive also a commission fee, and you will receive a commission, based on the volume of sells the company completed on a specific time due to your individual or combined effort in marketing their products. In this case you and your team are mostly marketers who use primarily their network of people they know and help the company they represent to complete more sells.
As an individual you can complete also a sell if you want, but mostly you are a marketer. And you can leverage your time by using and training a team of other network marketing representatives, and as the company increases their sells, you can get paid a percentage commission in multiple levels, or you can get paid a fixed percentage commission for the total volume produce by you and your team.
Some people might ask: Is this not a pyramid marketing scheme? No is not. Even if clever people design pyramid scheme to look like a network marketing structure, they don’t usually have anything to sell, but just recruiting people into their scheme and get paid for this. Someone during the process will lose money.
Read more about Network Market Business with its advantages and disadvantages, on my next reports.I will explain also how to distinguish between a pyramid scheme and a real network marketing business. I will also cover which are the most profitable network marketing business in the world.
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