Tax Benefits - part II

I have found a great blog written by Tracy Austin which illustrates the tax benefits of owning a home based MLM business. Click here to read the post.

Not Effected by Local Economy

You want a business that is separated from the local economy. If you rely only on local sales, any time a natural or man made disaster occurs or economic hard times come, your business will be affected.

In many of today's network marketing companies, you are able to cross city, state and even country boundaries to build your organization. You are not limited by any economic climate in any given place. Things could be slow in one area yet booming in another.

Geographical diversification can add a measure of stability to your business.

Unlimited Income Potential

Most people trade their time for money. You want more money, you work more hours or get paid more per hour. There are only so many hours a week a person can work. Though professionals are paid more per hour than salaried workers are, they still reach their limit because they are limited by what they personally can do. Eventually a person being paid through their own efforts will reach the top of their earning potential.

How would you like to be paid what you are worth instead of what a job is worth? That is what happens in network marketing/MLM. No longer are you limited by the confines of your job description. There is no artificial ceiling put on your earnings.

A good marketing plan will have a seamless worldwide compensation plan. The possibility for unlimited expansion means the chance for unlimited growth of income. As you sign up new marketing representatives into your organization, and they in turn do the same, your organization will grow at an accelerated rate. As more products are moved through your organization, your income increases proportionately.

In network marketing/mlm, you can have income without personally creating that income.

Quick Income

Unlike professional occupations where you make no money until after years of schooling, in today's network marketing/MLM, you can begin to make money immediately, even while you are being trained.

Inexpensive Training

Doctors and attorneys can go to school for years and spend a staggering amount of money while being trained and schooled, and then start their business already heavy in debt. In today's network marketing/mlm companies, you may have the cost of a few materials, some tapes, CD's, or an inexpensive training session. You begin to make money even while you are being trained, unlike many professional occupations.

You actually earn while you learn.

No Account Receivables or Collection Problems

Account receivables have destroyed many businesses. Collection problems can be costly and bad for customer relations.

Since today's network marketing/mlm companies' businesses are done on a cash and carry system, you have no negative cash flow. Your organization, both distributors and customers can call a toll-free number and place their orders. You never even have to handle the money.

The only money you have to worry about is how to spend your check.

No Risk

Since you have no large investment, your financial risk is almost non-existent. You really have nothing to lose except some of your time and yet you have everything to gain. Where else can you start a business with a small startup cost (say, for under $200, for example) and have the potential for financial freedom?

Positive Environment

In the corporate world, most of the time people are looking over their shoulder wondering who is trying to take their job, wondering if they will get that raise or promotion they are counting on, or will they be a victim of downsizing. And usually you have no choice who you work with. This can lead to a great amount of frustration and insecurity.

In network marketing/mlm, you have just the opposite. You are in business for yourself, but not by yourself. You have a whole upline that is pulling for your success, people who will go out of their way to help you succeed. You chose the people you want to work with. You are surrounded by people with a like mind, and it creates a positive, exciting environment.

No Employees

With more and more regulations being imposed on businesses by governments worldwide, it has become an administrative nightmare. A serious business needs to hire specialists to keep up with the regulations.

Since each distributor in network marketing/MLM is an independent agent, you have no employer to employee relationships. No payroll taxes to fill out, no government agencies or forms to worry about. Your job is to recruit and train. Network Marketing/MLM companies take care of the rest.

No Regulatory Problems

Network marketing/mlm companies today (of couse, those with good management and integrity) will take care of all regulatory requirements set up by local, national, and international governments. They have the necessary skills, knowledge and personnel to take care of this. And the cost to you? Nothing! It is all a part of the companies' support to help you succeed in your business.

You will be able to run a national and international business from the comfort of your home, with nothing more than a phone, fax machine and a computer.

Tax Benefits

A salaried employee has no tax related deductions, except the interest on their home mortgage.

Can you imagine going to resorts for conferences and being able to deduct it as a business expense? Once you are a self employed person, many tax advantages open up for you. You will be able to travel to and from your appointments and meetings, have a home office, and receive tax benefits.

Discrimination Free

No matter what your race, color, religion, age or gender you can succeed in network marketing/mlm. It is the most colorblind of all businesses. Your background and education don't matter. Your success or failure depends solely on your own ability, and not on someone else's prejudices.

The history in network marketing/mlm is full of success stories of minorities who had never been given an honest chance in the normal business world, and who are now debt free and financially strong.

No Large Inventories to Drain Your Capital

Many companies have a large amount of their assets tied up in inventory to supply their customers, which can also lead to additional taxes at the end of the year. In most product-oriented companies, bank loans are required just to get started because of the necessary inventory.

In today's network marketing/mlm, no large inventory is required since the companies ship the product directly to the consumers and distributors in your downline. The consumers and the distributors in your downline simply call a toll-free number and place an order. You then receive the credit for the sale without even being involved in the process.

Duplication of Efforts

In a professional business such as a doctor, dentist or attorney, it is the proprietor of the business that is really earning the money. The staff is there only to assist and add to the overhead. For instance, if the doctor is on vacation, there are no income producing activities, yet the overhead stays the same. The money that is earned is mainly because of his or her efforts. When he or she is not working, the money machine stops.

Very few people ever become wealthy without duplicating their efforts through others.

In Network Marketing/MLM, we franchise people instead of locations. You are actually setting up distribution centers throughout the country and throughout the world, yet you don't have the fees and the overhead associated with franchising, or the restrictions of only one location. You are paid every time product is moved through these distribution centers. The more distribution centers you have, the higher your income.

J. Paul Getty said,'I would rather be paid 5% on the efforts of a hundred people than 100% on my own efforts'.

No Special Licenses or Training Required

To become an attorney requires several years of schooling and then you must pass the bar examinations. Doctors require even more schooling and training. You start with a burden of heavy debt before you see your first paying customer.

Even many of the trade occupations require apprenticeships before you can be licensed and have your salary or hourly wages increased.

In Network Marketing/MLM, there are no exams to take. No special licenses to acquire. No unions to join.

Flexible Hours

Flexible Hours

In corporate America you are married to the clock. Your employer decides the hours you work and the time you get off. Most businesses do not have much flexibility. Even owning your own business isn't always the answer. Some businesses can become very demanding. You may think you own your own business when in reality the business may own you.

Network marketing/MLM business is usually started on a part-time basis. You are always in control of the amount of time you put into it. You decide the hours you want to work. By giving up a little leisure time, putting aside the TV, bowling leagues or a night at the movies, you can receive great dividends down the road.

Hiro Kaneko
Noni Juice

Small Startup Cost

"Here's another good reason to consider Network Marketing/MLM as a business opportunity:

Small Startup Cost

Many traditional businesses take a heavy investment in equipment and office or retail space. A network marketing business takes a very minimal investment to get started. You should be able to recoup your investment within 30 days.

why Network Marketing/MLM? "Work from Home"

This is my first post of this blog I decided to put out there. As the title of this post implies, I am hoping that my posts (as well as the comments to/from people) help explain why I think the so-called "network marketing/MLM or multi-level marketing" today could be a tremendous opportunity for people. I will post a series of reasons going forward that should show the attractiveness of the opportunity in network marketing/MLM.

To start things off, here's the first reason:

Working From Home - You don't have to travel to the 'Cement Jungle', and waste time in traffic. This is ideal for women who want to be home with their families, yet also earn some extra income. It is also good for the person who is tired of punching the clock and being paid what a job is worth, instead of what they are worth.
other reasons to follow...